HomeMy WebLinkAboutPaul Fuhs Geothermal Ltr. 10-13-08Oct 08 07 02:08a
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Paul Fuhs
PROFESSIONAL SERVICES E-Mail: paulfuhs@earthlink.net
329 E 101h Ave Anchorage, Alaska 99501 Phone: (907) 351-0407 Fax: (907) 272-2754
October 12, 2008
Mayor Shirley Marquardt
City Council Members
City Manager Hladick
I am writing to follow up on some developments with the Makushin Geothermal Project_
First let me congratulate the new members of the Council. I am sure you will find your
service to the community to be very rewarding and productive_
I was able to meet with many of the Council members on my last visit to Unalaska and I
came away with the overwhelming impression that everyone sees this project as a
positive development for the community if it be can put together in an economic way
that provides substantial benefits to the residents and businesses of Unalaska.
I appreciated my meeting with the Board of Directors of the Ounalashka Corporation
which will play an important role in the project since t hey are the surface land owners of
the property that will be necessary to access the project site for construction, operations
and maintenance. I felt that the OC Board was also very positive about the potential of
this project to benefit the community and their corporation, but that a lot more specific
information would be necessary before any final determination could be made.
I also understand that the lack of solid technical and cost information for the project has
made negotiations difficult to determine the value of the geothermal resource.
Accordingly, KSLC has applied to the Alaska Energy Authority for a grant to clearly
identify the options and costs for developing the project in the most cost effective
manner possible. I will forward a copy of this application to you for your consideration.
The application contains a letter of support from OC CEO Wendy Hawthorne which is
very informative. The study includes an analysis of aerial LIDAR, a laser based form of
radar which can identify the most promising sites for production and exploration wells.
I would like to request the opportunity to appear before your City Council meeting on
October 28 to discuss this feasibility study and to ask you to consider authorizing Mayor
Marquardt to write a letter of support of the application, with the understanding that all
information developed during the analysis will be available to everyone, including the
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general public of Unalaska. We would also request that the City designate a
representative to sit on a study oversight committee to make sure that the analysis
contains the information necessary for all the parties to make good decisions. Also on
that committee would be a representative of OC and the Alaska Energy Authority.
I understand that the City would like a clearer definition of the costs for accessing the
geothermal resource before making substantial commitments of City funds on drilling for
example. This is understandable. I have discussed with several of you a concept of
identifying a cost savings formula that would protect everyone's interest and allow us to
move forward given the current unknowns in the development options for the project. In
speaking with Steve Haagenson, Executive Director of the Alaska Energy Authority, I
understand that he has spoken with Manager Hladick and has offered his participation
in helping mediate the negotiations between the parties. KSLC would welcome his
participation.
The potential benefits of this project to the community are substantial_ This proposed
study would provide critical information for all of us to make sound decisions on. I do
believe that if we all work together, we can put together a successful project. I look
forward to seeing you in Unalaska.
Sincerely,
Paul Fuhs `,J