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HomeMy WebLinkAboutChena Hot Springs Reservoir Modeling App Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 1 of 13 9/2/2008 Application Forms and Instructions The following forms and instructions are provided for preparing your application for a Renewable Energy Fund Grant. An electronic version of the Request for Applications (RFA) and the forms are available online at http://www.akenergyauthority.org/RE_Fund.html The following application forms are required to be submitted for a grant recommendation: Grant Application Form GrantApp.doc Application form in MS Word that includes an outline of information required to submit a complete application. Applicants should use the form to assure all information is provided and attach additional information as required. Application Cost Worksheet Costworksheet.doc Summary of Cost information that should be addressed by applicants in preparing their application. Grant Budget Form GrantBudget.xls A detailed grant budget that includes a breakdown of costs by task and a summary of funds available and requested to complete the work for which funds are being requested. Grant Budget Form Instructions GrantBudgetInstr.pdf Instructions for completing the above grant budget form. • If you are applying for grants for more than one project, provide separate application forms for each project. • Multiple phases for the same project may be submitted as one application. • If you are applying for grant funding for more than one phase of a project, provide a plan and grant budget for completion of each phase. • If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. • If you have additional information or reports you would like the Authority to consider in reviewing your application, either provide an electronic version of the document with your submission or reference a web link where it can be downloaded or reviewed. REMINDER: • Alaska Energy Authority is subject to the Public Records Act, AS 40.25 and materials submitted to the Authority may be subject to disclosure requirements under the act if no statutory exemptions apply. • All applications received will be posted on the Authority web site after final recommendations are made to the legislature. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 2 of 13 9/3/2008 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) University of Alaska Fairbanks, Institute of Northern Engineering, Alaska Center for Energy and Power Type of Entity: Government Entity (University Research Center) Mailing Address Joanna Malcolm-Mongrain P.O. Box 755910, Fairbanks, AK 99775-5910 Physical Address 525 Duckering Building, 309 Tanana Loop Telephone 907-474-7574 Fax 907-474-6686 Email ffjcm1@uaf.edu 1.1 APPLICANT POINT OF CONTACT Name Maggie Griscavage Title Director, UAF Office of Grant & Contract Administration Mailing Address University of Alaska Fairbanks PO Box 757880 109 Administrative Services Center Fairbanks, AK 99775-7880 Telephone 907-474-7301 Fax 907-474-5506 Email fygrcon@uaf.edu 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer, or A local government, or XX A governmental entity (which includes tribal councils and housing authorities); Yes 1.2.2. Attached to this application is formal approval and endorsement for its project by its board of directors, executive management, or other governing authority. If a collaborative grouping, a formal approval from each participant’s governing authority is necessary. (Indicate Yes or No in the box ) Yes 1.2.3. As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement. Yes 1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached grant form. (Any exceptions should be clearly noted and submitted with the application.) Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 3 of 13 9/3/2008 SECTION 2 – PROJECT SUMMARY Provide a brief 1-2 page overview of your project. 2.1 PROJECT TYPE Describe the type of project you are proposing, (Reconnaissance; Resource Assessment/ Feasibility Analysis/Conceptual Design; Final Design and Permitting; and/or Construction) as well as the kind of renewable energy you intend to use. Refer to Section 1.5 of RFA. The proposed project is a resource assessment project. The project involves a detailed evaluation of resource data from the only geothermal power plant operating in Alaska at Chena Hot Springs, and an extension of this evaluation to other geothermal development prospects in the state. Specifically, the Chena Hot Springs geothermal model developed and tested during this program can be adapted and applied as appropriate to other geothermal prospects in the Central Alaskan Hot Springs Belt, thus facilitating future sustainable development of these sites. 2.2 PROJECT DESCRIPTION Provide a one paragraph description of your project. At a minimum include the project location, communities to be served, and who will be involved in the grant project. The geothermal plant at Chena Hot Springs has been in continual operation since 2006 and is the only operating geothermal plant in the State of Alaska. Since startup, there has been a decline in geothermal fluid temperature and pressure. This may be due to either engineering or reservoir issues. In order to operate the plant in a sustainable manner and develop other similar and possibly more marginal projects sustainably, it is critical that we understand the underlying mechanisms driving this production decline. Following this analysis, a suitable production scheme and monitoring schedule should be developed. The proposed project is a cooperative program between the University of Alaska and Chena Hot Springs Resort. A numerical reservoir model of the Chena geothermal system will be created and its performance matched to the historical production data. This model can then be used to assist in the making of development strategy decisions. Prior to production startup, geologic, geochemical, geophysical and well test information were used to develop a conceptual model of the Chena Hot Springs system. However, to truly understand the reservoir dynamics and adopt an appropriate production scenario, a numerical model of the system is needed. Data from both the shallow geothermal system (less than 1000 ft depth) and the deeper source system (1000-4000 ft) are needed to characterize this model. The shallow system properties have been well characterized in previous studies. To effectively predict future performance, temperature, pressure and flow data relating to the deeper system is also required. Chena Hot Springs has received a U.S. Department of Energy grant to drill a deep well to explore for a higher temperature geothermal resource beneath the facility. The information that will be obtained from drilling this well will prove invaluable for the understanding of geothermal potential in Interior Alaska as well as providing crucial input data for the Chena Hot Springs reservoir model. A resource assessment achieved through the testing of multiple production scenarios will be integrated with a conceptual design of the power plant production system. A generic feasibility analysis will generate recommendations for the final design of the Chena Hot Springs geothermal project. The outcomes of the modeling effort may be transferred to other geothermal systems such as Circle, Manley and Pilgrim Hot Springs and to other sites within the Central Alaska Hot Springs Belt. 2.3 PROJECT BUDGET OVERVIEW Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source of other contributions to the project. Include a project cost summary that includes an estimated total cost through construction. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 4 of 13 9/3/2008 The project budget will support the development of a reservoir model of the site, including time and materials for PI Jo Mongrain, co-PI Gwen Holdmann, a graduate student, and some time for consulting geologist Dr. Amanda Kolker and geothermal consultant Dick Benoit. Both Dr. Kolker and Mr. Benoit are familiar with previous assessment work at the Chena site. Dr. Kolker will lend expertise to the program in terms of expanding the model to interpret the results within the framework of other hot springs sites in Alaska. Dr. Benoit will lend expertise to the program by contextualizing geothermal development in Alaska with experience from sites worldwide. 2.4 PROJECT BENEFIT Briefly discuss the financial benefits that will result from this project, including an estimate of economic benefits (such as reduced fuel costs) and a description of other benefits to the Alaskan public. The development of a numerical reservoir model will lead to a better understanding of the reservoir dynamics governing geothermal systems in the Central Alaskan Hot Springs Belt. Included in this belt are over 30 potential resources in Western and Interior Alaska. These low- temperature geothermal resources have only recently been considered electrical-grade, as a result of recent technological improvements demonstrated at Chena Hot Springs Resort. As such, the resources in the belt are poorly understood and poorly explored. Development of a detailed numerical model – using the extensive geologic and production database collated at Chena Hot Springs data – will be an effective way to better understand not only Chena but also potentially the dynamics of other geothermal systems in the belt. This will greatly reduce production drilling and development risks for several prominent potential resources e.g. Manley Hot Springs, Circle Hot Springs, Elim-area Hot Springs and Pilgrim Hot Springs. Drilling a single geothermal well can cost as much as several million dollars. Detailed reservoir models can potentially save millions of dollars by better targeting geothermal wells to penetrate the hottest part of a geothermal reservoir. However, developing a good, detailed reservoir model takes time, which is usually rather precious during the timeframe of a geothermal development project. By developing this generalized model before development is initiated elsewhere, future projects will benefit by being able to rapidly input new parameters into an existing template. This will save precious man-hours in addition to the costs of drilling poorly targeted boreholes. For the purpose of putting a dollar value on the public benefit associated with this project, we calculated that 10 Central Alaskan Hot Springs Belt systems are close enough to population centers to warrant consideration foe development. For each of these systems, we estimate that this project will save $500,000 in modeling and exploration costs, for a total public benefit of $5,000,000. 2.5 PROJECT COST AND BENEFIT SUMARY Include a summary of your project’s total costs and benefits below. 2.5.1 Total Project Cost (Including estimates through construction.) $ 198,168 2.5.2 Grant Funds Requested in this application. $ 198,168 2.5.3 Other Funds to be provided (Project match) $ 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $ 198,168 2.5.5 Estimated Benefit (Savings) $ 2.5.6 Public Benefit (If you can calculate the benefit in terms of dollars please provide that number here and explain how you calculated that number in your application.) $ 5,000,000 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 5 of 13 9/3/2008 SECTION 3 – PROJECT MANAGEMENT PLAN Describe who will be responsible for managing the project and provide a plan for successfully completing the project within the scope, schedule and budget proposed in the application. 3.1 Project Manager Tell us who will be managing the project for the Grantee and include a resume and references for the manager(s). If the applicant does not have a project manager indicate how you intend to solicit project management Support. If the applicant expects project management assistance from AEA or another government entity, state that in this section. The P.I. for this project will be Dr. Jo Mongrain, a professor in the Petroleum Engineering Department at UAF. Dr. Mongrain has a strong background in petroleum reservoir engineering, specializing in the development of numerical models and has worked frequently within multi- disciplinary geoscience teams. In addition, the co-PI will be ACEP Director Gwen Holdmann. Ms. Holdmann has previously managed the GRED geothermal exploration and development project at Chena Hot Springs Resort. Resumes for Dr. Mongrain and Ms. Holdmann, are included as attachments. 3.2 Project Schedule Include a schedule for the proposed work that will be funded by this grant. (You may include a chart or table attachment with a summary of dates below.) This project will take place over an 18 month period beginning January 1st, 2009. The first part of the project will include collecting additional data from the shallow geothermal system prior to the drilling of the deep hole in April, 2009. Additional data on the deep and shallow system will be collected through the end of 2009, and the model will be completed in the second Quarter of 2010. 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. Project milestones include instrumenting the shallow system (completed April, 2009), and collecting data on the deep system (completed October, 2009). A report with preliminary findings on the Chena site will be released in late 2009, and the final project report including interpretation of results in relation to other Central Alaskan Hot Springs Belt sites will be completed in June, 2010. 3.4 Project Resources Describe the personnel, contractors, equipment, and services you will use to accomplish the project. Include any partnerships or commitments with other entities you have or anticipate will be needed to complete your project. Describe any existing contracts and the selection process you may use for major equipment purchases or contracts. Include brief resumes and references for known, key personnel, contractors, and suppliers as an attachment to your application. Project personnel – In addition to the project managers listed in section 3.1, the program will retain the services of contractor Dick Benoit of Sustainable Solutions as a geothermal consultant, and Amanda Kolker as a consulting geologist. A graduate student is also included in the budget to assist Dr. Mongrain. Project equipment – The project equipment purchased to support this project will be minimal. Included are four dataloggers to collect well data, and a laptop computer for the graduate Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 6 of 13 9/3/2008 student. Software Requirements – Licenses for the TOUGH2 and iTOUGH2 codes developed by Lawrence Berkeley National Lab as well as the pre/post processor Petrasim developed by Rockware, Inc. will be required. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Quarterly progress reports will be submitted to the Alaska Energy Authority. An interim report on the model utilizing Chena Hot Springs data will be submitted in December, 2009. A final report on the numerical model for Central Alaskan Hot Springs Belt systems will be completed in March, 2010. 3.6 Project Risk Discuss potential problems and how you would address them. No problems are anticipated in the development of the numerical models, assuming the drilling of a deep well at Chena Hot Springs occurs during the spring of 2009 to provide confirmation data on the deeper geothermal system. Even without the deeper system data, various production scenarios can be tested. Therefore, if drilling does not occur, this project will still deliver. SECTION 4 – PROJECT DESCRIPTION AND TASKS • Tell us what the project is and how you will meet the requirements outlined in Section 2 of the RFA. The level of information will vary according to phase of the project you propose to undertake with grant funds. • If you are applying for grant funding for more than one phase of a project provide a plan and grant budget for completion of each phase. • If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. 4.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available. Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be available for the market to be served by your project. The Central Alaskan Hot Springs Belt is a belt of over 30 hot springs that runs from the Seward peninsula to the Yukon territory of Canada. Several of the hot springs in this belt are close to population centers. This project would use data from Chena Hot Springs to better assess other resources within this belt, including Manley Hot Springs, Circle Hot Springs, Pilgrim Hot Springs, Elim-area hot springs, and others. The shallow geothermal system has been developed at Chena Hot Springs; however initial indications suggest that 5 MW could be produced if waters from the deeper system are tapped. Other geothermal resources in the Central Alaskan Hot Springs Belt would probably be developed using Organic Rankine Cycle binary technology employed at Chena Hot Springs, since higher reservoir temperatures are not expected. In addition to power generation, space heating for greenhouses and other beneficial use is also possible, and has been used at Chena for the past decade. Geothermal energy is advantageous Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 7 of 13 9/3/2008 as a renewable resource in that it can serve as a base load for both electrical and direct heat to communities in Alaska. 4.2 Existing Energy System 4.2.1 Basic configuration of Existing Energy System Briefly discuss the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. The existing electrical energy system at all other sites with geothermal potential is diesel gen- sets with a high cost of electric power ($1.02/kWhr in Manley as of October, 2008). Heat in these communities is supplied via heating oil or in some cases biomass (wood). The existing energy system at Chena is a 400kW binary ORC geothermal power plant designed and manufactured by United Technologies Corporation. 4.2.2 Existing Energy Resources Used Briefly discuss your understanding of the existing energy resources. Include a brief discussion of any impact the project may have on existing energy infrastructure and resources. The existing energy resource is geothermal produced from a moderate temperature geothermal reservoir. This project will not have any direct impact on the existing energy infrastructure, but information learned as part of this program will serve to make the geothermal power plant at Chena more sustainable. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. The Chena site exists as a stranded electric grid 32 miles from the nearest GVEA transmission lines. GVEA is interested in extending their grid to Chena and purchasing power from the site if the Chena resource can be demonstrated to be capable of generating 10 MW of power. This would benefit the greater Fairbank area by providing electric power with a low fuel cost and thus stable cost. In addition, there are significant ‘low-hanging fruit’ opportunities to develop geothermal power plants at similar sites such as Manley, Circle, or Pilgrim Hot Springs if the resource is better understood through this modeling effort. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 8 of 13 9/3/2008 4.3 Proposed System Include information necessary to describe the system you are intending to develop and address potential system design, land ownership, permits, and environmental issues. 4.3.1 System Design Provide the following information for the proposed renewable energy system: • A description of renewable energy technology specific to project location • Optimum installed capacity • Anticipated capacity factor • Anticipated annual generation • Anticipated barriers • Basic integration concept • Delivery methods N/A 4.3.2 Land Ownership Identify potential land ownership issues, including whether site owners have agreed to the project or how you intend to approach land ownership and access issues. The property is owned by Connie Karl. A letter of support, including permission for access to the site for project personnel is included. 4.3.3 Permits Provide the following information as it may relate to permitting and how you intend to address outstanding permit issues. • List of applicable permits • Anticipated permitting timeline • Identify and discussion of potential barriers No permits are required as part of this project. 4.3.4 Environmental Address whether the following environmental and land use issues apply, and if so how they will be addressed: • Threatened or Endangered species • Habitat issues • Wetlands and other protected areas • Archaeological and historical resources • Land development constraints • Telecommunications interference • Aviation considerations • Visual, aesthetics impacts • Identify and discuss other potential barriers N/A Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 9 of 13 9/3/2008 4.4 Proposed New System Costs (Total Estimated Costs and proposed Revenues) The level of cost information provided will vary according to the phase of funding requested and any previous work the applicant may have done on the project. Applicants must reference the source of their cost data. For example: Applicants Records or Analysis, Industry Standards, Consultant or Manufacturer’s estimates. 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following: • Total anticipated project cost, and cost for this phase • Requested grant funding • Applicant matching funds – loans, capital contributions, in-kind • Identification of other funding sources • Projected capital cost of proposed renewable energy system • Projected development cost of proposed renewable energy system N/A 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for new facilities constructed and how these would be funded by the applicant. • Total anticipated project cost for this phase • Requested grant funding N/A 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following: • Identification of potential power buyer(s)/customer(s) • Potential power purchase/sales price - at a minimum indicate a price range • Proposed rate of return from grant-funded project N/A 4.4.4 Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. N/A Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 10 of 13 9/3/2008 4.4.5 Business Plan Discuss your plan for operating the completed project so that it will be sustainable. Include at a minimum proposed business structure(s) and concepts that may be considered. N/A 4.4.6 Analysis and Recommendations Provide information about the economic analysis and the proposed project. Discuss your recommendation for additional project development work. N/A SECTION 5– PROJECT BENEFIT Explain the economic and public benefits of your project. Include direct cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following: • Potential annual fuel displacement (gal and $) over the lifetime of the evaluated renewable energy project • Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or avoided cost of ownership) • Potential additional annual incentives (i.e. tax credits) • Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) • Discuss the non-economic public benefits to Alaskans over the lifetime of the project The development of a numerical reservoir model would be lead to a better understanding of the reservoir dynamics governing geothermal systems in the Central Alaskan Hot Springs Belt. Included in this belt are over 30 potential resources in Western and Interior Alaska. These low- temperature geothermal resources have only recently been considered electrical-grade, as a result of recent technological improvements demonstrated at Chena Hot Springs Resort. As such, the resources in the belt are poorly understood and poorly explored. Development of a detailed numerical model – using the extensive geologic and production database collated at Chena Hot Springs data – will be an effective way to better understand not only Chena but also potentially the dynamics of other geothermal systems in the belt. This will greatly reduce production drilling and development risks for several prominent potential resources e.g. Manley Hot Springs, Circle Hot Springs, Elim-area Hot Springs and Pilgrim Hot Springs. Drilling a single geothermal well can cost as much as several million dollars. Detailed reservoir models can potentially save millions of dollars by better targeting geothermal wells to penetrate the hottest part of a geothermal reservoir. However, developing a good, detailed reservoir model takes time, which is usually rather precious during the timeframe of a geothermal development project. By developing this generalized model before development is initiated elsewhere, future projects will benefit by being able to rapidly input new parameters into an existing template. This will save precious man-hours in addition to the costs of drilling poorly targeted boreholes. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 11 of 13 9/3/2008 For the purpose of putting a dollar value on the public benefit associated with this project, we calculated that 10 Central Alaskan Hot Springs Belt systems are close enough to population centers to warrant consideration foe development. For each of these systems, we estimate that this project will save $500,000 in modeling and exploration costs, for a total public benefit of $5,000,000. SECTION 6 – GRANT BUDGET Tell us how much your total project costs. Include any investments to date and funding sources, how much is requested in grant funds, and additional investments you will make as an applicant. Include an estimate of budget costs by tasks using the form - GrantBudget.xls Costs below are estimated based on current pricing and the statement of work included with this proposal, “Reservoir Modeling for Chena Hot Springs.” Salaries Senior Personnel. Funding to support a total of 347 hours (roughly 2 months) is requested for the Principal Investigator, Joanna Malcolm Mongrain, of this project. Per UAF policy, faculty receive leave benefits at a rate of 1.5%, calculated on salary, and salaries increase by 4.5% annually. Funding to support 174 hours (1 month) is requested for the co-PI of this project, Gwen Holdmann. Per UAF policy, staff receive leave benefits at a rate of 20%, calculated on salary, and salaries increase by 3% annually. Total cost to Project: $26,513 Other Personnel. Support is requested for one Masters level Graduate Student Research Assistant for one year. Students work 20 hours per week during the academic year (760) and 40 hours per week during the summer (560), for a total of 1320 hours. Total cost to project: $29,252. Fringe Benefits Staff benefits are applied according to UAF’s benefit rates for FY08, which are negotiated with the Office of Naval Research (ONR) annually. Rates are 32.1% for faculty, 48.7% for staff salaries, and 7.9% for graduate students (summers only). Total cost to Project: $12,141. Travel Travel funds are requested to support field activities, planning meetings, and conference participation for dissemination. All airfare costs are estimated based on current ticket pricing and round-trip fares. Per diem is estimated based on current US Government figures for each location and on UA Board of Regents policy. See the table below for detail. Total cost to Project: $10,734. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 12 of 13 9/3/2008 TRAVEL 1. Domestic Travel Description Yr 1 Item Cost Airfare RT to GRC 2009, Reno NZ 2 1600 1.1 Meals RT to GRC 2009, Reno NZ 10 49 1 Lodging RT to GRC 2009, Reno NZ 10 110 1 Airfare geologist - Portland-Frb 1 800 1.1 Meals geologist - Portland-Frb 5 44 1 Lodging geologist - Portland-Frb 5 170 1 Airfare consultant - Reno-Frb 1 1600 1.1 Meals consultant - Reno-Frb 5 44 1 Lodging consultant - Reno-Frb 5 170 1 Mileage 20 trips CHSR (field)20 70.2 1 $10,734 $220 $490 $3,200 $1,100 $800 umb $220 $850 $1,600 $850 $1,404 otal Domestic Trav Yearly Increase Other Direct Costs Materials & Supplies. A total of $42,500 is requested for supplies, estimated to the categories below. $25,000 $2,500 $5,000 $10,000campbell dataloggers (4) plus peripherals batteries, cables, etc. modeling/mapping software field laptop Publication & Dissemination. A total of $2,000 is requested to fund publication and other costs associated with research results dissemination. Consultant Services. Funds of $6,000 are requested to support a consulting geologist, who will contribute to analyses and mapping efforts. Funds of $12,000 are requested to support work by a geothermal consultant, who will contribute to analyses and report preparation. Total cost to project: $18,000 Sample analysis. Funds of $7,700 are requested to support water rock sample analyses. Other. UAF requires that any graduate student supported by a research project over the course o the academic year also receive tuition support and health insurance costs for the life of the project Costs in Year 1 are $11,070 (tuition), 838 in other student costs, and $1,188 (insurance) per year per student for a total of $13,096. Indirect Costs Facilities and Administrative (F&A) Costs are negotiated with the Office of Naval Research and for research are calculated at 45.1% of the Modified Total Direct Costs (MTDC). MTDC includes Total Direct Costs minus tuition and other student support, subaward amounts over $25,000, participant support costs, and equipment. A copy of the agreement is available at: http://www.alaska.edu/controller/cost-analysis/negotiated_agreements.html This project includes Facilities and Administrative costs, or institutional costs, calculated based on the rate set by the existing Memorandum of Agreement between UA and the State of Alaska, 25% of the MTDC. Total cost to project: $37,420.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Alaska Energy Authority ‐ Renewable Energy FundBUDGET INFORMATIONBUDGET SUMMARY:Milestone or Task Federal Funds State FundsLocal Match Funds (Cash)Local Match Funds (In‐Kind)Other FundsTOTALS1 instrumenting the shallow system $55,487.00 $55,487.002 collect data on deep system $77,286.00 $77,286.003 additional data collection $45,395.00 $45,395.004 Prelim report $10,000.00 $10,000.005 Final Report $10,000.00 $10,000.006$0.00Milestone # or Task #BUDGET CATAGORIES:123456TOTALSDirect Labor and Benefits $22,918.00 $33,979.00 $19,523.00 $3,500.00 $4,962.00 $84,882.00Travel, Meals, or Per Diem $1,569.00 $4,615.00 $6,234.00 $1,000.00 $0.00 $13,418.00Equipment $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Supplies $21,000.00 $22,500.00 $9,000.00 $0.00 $0.00 $52,500.00Contractual Services $10,000.00 $16,192.00 $10,638.00 $5,500.00 $5,038.00 $47,368.00Construction Services$0.00Other Direct Costs$0.00TOTAL DIRECT CHARGES $55,487.00 $77,286.00 $45,395.00 $10,000.00 $10,000.00 $0.00 $198,168.00RFA AEA09-004 Budget Form Chena Hot Springs Resort Post Office Box 58740 Fairbanks, Alaska 99711 Phone (907) 451-8104 Fax (907) 451-8151 October 31, 2008 Dr. Jo Mongrain Alaska Center for Energy and Power PO Box 755910 Fairbanks, AK 99775-5910 Dear Dr. Mongrain: This letter is in support of your application to the Alaska Renewable Energy Fund to develop a reservoir model of the Chena Hot Springs geothermal system. We are pleased to allow ACEP researchers access to the property. Please contact our manager, Jenny Kirsch, and let her know in advance as to when you plan to work on site. In addition to allowing your researchers access to the property, we are happy to share any data we have collected pertaining to the site to improve your modeling effort. Sincerely, Connie Parks-Karl Owner Chena Hot Springs Phone: (907) 488-1505 E-mail: recycle@polarnet.com