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Home My WebLink AboutContract-ATN Amendments 1a- :OD,OIX"Tom -ZB yiws cory 3 _RECEIVED |Ke Dee Mit291982OAR.ALASKA POWER AUT!HORITY SERVICES AGREEMENT Number _34-/ E-SCAN ELECTRICAL RESISTIVITY GEOPHYSICAL SERVICES MAKUSHIN GEOTHERMAL PROJECT "e TABLE OF CONTENTS Page 1.GENERAL 2.2 2 1 ww wee ee te ee thw we ee ew ett ] 2.STATEMENT OF SERVICES ..2...2 1 we ee ee ee we wets 2 3.COMPENSATION..2.1.2 11 1 ww ee we ew tt et we et 2 4.PERIOD OF PERFORMANCE...2...1.2.2 ee ew ew ee ew ewe 2 5.GENERAL TERMS AND CONDITIONS.........2..eeeeee "2 (a)Definitions.....2.2.2.00.See eee eee 2(b)Invoices .2.1.1 2 ww we ww wt we tw tt we te tw we te 5 (c)Insurance...2...1.1 ew ew we ew we we we we we we 5 (d)State Saved Harmless Clause.........2022ceewee 7(e)Compliance with Laws...1...6 2 ew ew ee ew te te 7(f)Release and Waiver of Liens.........22222e0e-e 8 (g)Assignment .2.2...1.1 ww ew ew ew te we ee wee 9(h)Royalties,Patents,and Licenses ........2..242422.2..-.9(41)Imspection ..2...2 ew ww ew we we we eee ew we we ww ws 9(J)Changes..2...2 2 ww we www we ew te we we we tt tt 10 (k)Reports and Records...2...2.2 2 ew ew ww ew we wwe 10(1)Chotce of Law..2...1 1 we we we we ew we we ee tt 11 (m)Relationship...1...2.2 ew ew we ew we ew ew we we we ww WI(n)Waiver .2.1 6 ww ew ew ew we we ww tw wt te te wee we Ri(o)Entire Agreement ..2...1 1 0 ww ew ew we ww we we we ew 11(p)Severability .2...1.1 0 ww we ew we ew we we ew tw we ws 12(q)Notices.........2.24..we ee ee we ew eee -12 (r)Termination..2...2.2.5.2 ew ew we we we ww cee eee 13(s)Release of Claims..2...1 6 2 ew ww ew we we we we ww 15(t)Disputes...2...2.2 ew ww we ewe we ew we ew we we (ee e 16(u)Labor Relations...1.6 2 0 sw ew ew we we ew ew te we ww 7(v)Warranty .2...2.6 6 ee ew ww ew we we ww we th ww ew 19(w)Survey Permits,Authorizations ...1...2 2 2 we ee eee 20(x)Operations in Alaska .2...1 1 ww we ew we we te wee ww 20 6.EXECUTION.2...1 1 we we we ee ew wwe we we ew we ee ee 21 APPENDICES Appendix I -Specifications ......2.2.ee we eee ee eo eo 6 22 Appendix II -Schedule of Payments..........2.426.20e6-.27 1. SERVICES AGREEMENT Number: Date: GENERAL Contractor:Premier Geophysics,Inc. 1184 Forge WalkVancouver,B.C.,Canada V6H 39 Contact:Mr.Greg Shore Telephone:604-732-1618 Owner:Alaska Power Authority Location of Work:The Makushin Geothermal Project is located on Unalaska Island approximately 12 miles west of the city of Dutch Harbor,Alaska. Republic Geothermal,Inc.("Republic”)and Premier Geophysics,Inc. ("Contractor")hereby agree that the services specified below shall be ) performed by the Contractor in accordance with all provisions stated herein.The Contractor agrees to perform the terms of this agreement- ("Agreement")as an independent contractor and not as an agent or employee of Republic or the Owner. 2.STATEMENT OF SERVICES The Contractor agrees to perform electrical resistivity geophysical services as defined in Specifications attached as Appendix I and hereby made a part of this Agreement. 3.COMPENSATION The Contractor will be paid in accordance with a Schedule of Payments. which are attachedas Appendix II and thereby made a part of this Agreement. 4.PERIOD OF PERFORMANCE Work shall start not later than August 1,1984 and be completed not later than December 30,1984.Time is of the essence in this Agreement. 5.GENERAL TERMS AND CONDITIONS (a)Definitions As used throughout this Contract,the following terms shall have the meanings set forth below: Wherever the word "Contractor”appears in the Contract Documents,it shal]mean Premier Geophysics,Inc. Wherever the word "Republic”appears in the Contract Documents,it shall mean Republic Geothermal,Inc. Wherever the words "APA"or "Owner”appears tn the Contract Documents it shall mean the Alaska Power Authority. The word,"Approved,”when applied by Republic to the Contractor's drawings or documents,means that the drawings or documents are satisfactory from the standpoint of interfacing with all Republic- furnished components of the installation,and/or that Republic has not observed any statement or feature that appears to deviate from the Contract requirements.The Contractor shall retain the entire responsibility for complete conformance with all of the Contract | requirements. The words,"Approved as Revised,"when applied by Republic to the Contractor's drawings or documents,mean that the drawings or docu- ments are approved as defined above,except that the changes shown are required for the proper interfacing with Republic-furnished components of the installation or are necessary to be in conformance with the specification's requirements.On the basis that the Con- tractor shall retain the entire responsibility for compliance with all of the Contract requirements,the Contractor shall either 3 incorporate the changes into its drawings or document and resubmit to Republic,or inform Republic that the changes cannot be made without prejudice to the Contractor's responsibility under warranty and resubmit with explanation of the reasons therefor. "Contract"or "Contract Documents"means this Contract and all appendices and exhibits attached to and made a part of the Contract, mcluding any subsequent amendments to the Contract,and any change orders issued under the Contract. "Furnish"means supply and deliver at location specified by the Power Authority or Republic. "Approved or Approval"means written approval by the Power Authority or Republic. "Services"means the entire Scope of Work required by the Contract Documents. "AS"means Alaska Statute. Except as otherwise provided in this Contract,the term "sub- contract"includes purchase orders. "Project"means the Makushin Geothermal Project. (b)Invoices Invoices shall be submitted in triplicate prior to the 15th of each month directly to Republic Geothermal,Inc.,P.0.Box 3388,Santa Fe Springs,California 90670,marked "Attention:Or.J.L.Smith, Project Manager,"who will review and approve invoices for payment. (c)Insurance Before commencing the Work under this Agreement,the Contractor and any subcontractors employed by the Contractor shall submit evidence acceptable to the Owner and Republic that they have provided and | shall maintain insurance for the duration of the Agreement as_--_-: required by law,including a provision for {10-day advance notifi- 'cation to the Owner and to Republic in the event of cancellation or any material change in the coverage of the insurance.The coverage shall be as follows: (1)Comprehensive General Liability This coverage shall include contractual liability and completed operations coverage and freedom from explosion,collapse,and underground exclusions. Coverage shal]not be less than: US $500,000 Bodily tnjury per occurrence. US $500,000 Property damage per occurrence. US $1,000,000 Aggregate. (2)Comprehensive Automobile Liability Coverage shall not be less than: US $250,000 Per person. US $1,000,000 Per occurrence. US $100,000 Property damage per occurrence. (3)Worker's Compensation and Employer's Liability Worker's Compensation as required by statute,including employer's liability insurance of not less than US $500,000. The companies issuing the above policies and the form of the policies will be subject to the acceptance of Republic. (d) (e) Republic and State Saved Harmless The Contractor shall indemnify,save harmless,and defend the State and Republic,its officers,agents and employees from liability of any nature or kind,including costs and expenses,for or on account of any and all legal actions or claims of any character whatsoever resulting from injuries or damages sustained by any person or per- sons or property as a result of any error,omisston or negligent act of the Contractor relating to its performance of this contract. All legal actions or claims including defense costs resulting from injuries or damages sustained by any person(s)or property arising from the Contractor's performance of this contract shall be appor- tioned on a comparative fault basis.Any such joint liability on the part of the State or Republic must be due to active negligence on the part of the State. 7 The State and the Alaska Power Authority agree to waive their Rights of Recover for Liability tn excess of the required limits. Compliance with Laws The Contractor shall comply with al]applicable federal,state,or local laws,including rules,regulations,and ordinances of any political subdivisions and/or agencies thereof.Without limitation (f) on the foregoing,the Contractor shall comply with (1)the Occupa- tional Safety and Health Act of 1970 and other applicable laws and (2)if required,Executive Order No.11246.dated September 24, 1965,as amended by Executive Order 11375,including posting of notices,Filing of reports,and initiation of programs;if required, the Contractor shall also require that all of tts vendors,subcon- tractors,and/or agents comply with the foregotng Executive Orders. Release and Waiver of Liens The Contractor agrees that,upon the completion of the services rendered hereunder,the premises on which the Work 1s to be per- formed shall be free and clear of any mechanic's and other liens of the Contractor and and and all of its successors,assigns,material men,laborers,vendors,and/or subcontractors who may furnish any labor,material,services,fixtures,apparatus,machinery, improvements,repairs,or alterations in connection with,or to, such premises,in connection with the services rendered here- under.The Contractor shall deliver to Republic a waiver of liens, in a form acceptable to Republic,at the time of completion of the services. (g) (h) (1) Assignment The Contractor shall not assign this Agreement in whole or in part or any monies due hereunder without the written approval of Republic. Royalties,Patents,and Licenses The Contractor shall pay all royalties and license fees in connec- tion with the Contractor's services under this Agreement.The Con- tractor shall defend all suits or claims for infringement of any patents,letters patent,copyrights,or trademarks and shall save the Owner and Republic harmless from loss on account thereof except that the Contractor shall not be responsible for any such loss when a particular process or product of a particular manufacturer or manufacturers 1s specified by Republic,unless the Contractor has been notified prior to the signing of the Agreement that the partic- ular process or product is patented or is believed to be patented. Inspection The services performed under this Agreement will be subject to inspection and approval by Republic at all times.This approval shall not relieve the Contractor of responsibility for proper per- formance of the Work.Republic may reject any work found to be defective or not in accordance with the specifications contained in (3) (k) Appendices I or II hereto,regardless of the stage of completion, the time or place of discovery of error,and whether Republic previously accepted any or all of the services through oversight or otherwise. Changes Republic reserves the right by written change order or amendment to make changes in requirements,amount of work,or schedule.If these changes require a price or schedule adjustment,the Contractor and Republic shall negotiate and include such changes itn this Agreement by amendment. Reports and Records The Contractor shall provide reports in the format,at the times, and in the manner as directed by Republic.The Contractor shall maintain on file and have available to Republic its records in legi- ble form for a period of three (3)years following termination of this Agreement.Drawings,specifications,reports,and any other documents prepared by the Contractor in connection with any or all of the services furnished hereunder will be the property of Republic. 10 (1) (m) ,(n) (0) Choice of Law This Agreement shall be governed by and construed in accordance with the laws of the State of Alaska. Relationship By entering into this Agreement,the relationship:between Republic and the Contractor is that of buyer and seller and neither has entered into any joint venture or partnership with the other. Waiver The waiver by one party of any breach of this Agreement or the failure of one party to enforce at any time,or for any period of time,any of the provisions hereof shall be limited to the particu- lar instance,shall not operate or be deemed to waive any future breaches of this Agreement,and shall not be construed to be a waiver of any provision,except for the particular instance. Entire Agreement This Agreement represents and incorporates the entire understanding of the parties hereto,and each party acknowledges that there are no warranties,representations,covenants,or understandings of any VW] .(p) (q) kind,matter,or description whatsoever,written by either party to the other,except as expressly set forth tn this Agreement. Republic and Contractor hereby agree that any purchase orders, invoices,confirmations,acknowledgments,or other similar documents executed or delivered with respect to the subject matter hereof shall be null,void,and without effect.This Agreement shall not be subject to change or modification unless by the execution of another instrument in writing subscribed to by a duly 'authorized officer of each of the parties hereto and entitled "Amendment to Services Agreement." Severability If any provisions of the Agreement shall be held to contravene or be invalid under the laws of any state,country,or jurisdiction where used,such contravention shall not invalidate the entire Agreement, but 4t shall be construed as if not containing the particular pro- vision or provisions held to be invalid in such state,country,or jurisdiction,and the rights or obligations of the parties hereto shall be construed and enforced accordingly. Notices Any notice required to be given by either party hereto shall be reduced to writing and,unless receipt of such notice is expressly required by the terms hereof,shall be deemed effectively served 12 (r) when deposited in the mails in a sealed envelope with sufficient first-class postage affixed and addressed to the party to whom such notice is directed at such party's place of business,which in the case of Republic shall be: Republic Geothermal,Inc. P.O.Box 3388 ; Santa Fe Springs,California 90670 Attention:Or.J.L.Smith and in the case of the Contractor shall be: Premier Geophysics,Inc. 1184 Forge Walk Vancouver,B.C.,Canada V6H 3P9 Attention:Mr.Greg Shore or such other address as either party shall hereafter furnish to the other party by written notice as herein provided. Termination Republic shall have the right to terminate the Contract at any time for any reason by giving the Contractor two (2)days prior written notice to such effect.Upon receipt of such notice the Contractor shall immediately discontinue all work in progress which can be discontinued without creating a hazardous condition and cancel all outstanding commitments,which may be cancelled without undue cost. The Contractor shall notify Republic of any commitment which cannot be cancelled without undue cost or without jeopardizing the work completed to date.Subject to compliance with the foregoing and any other applicable provision of the Contract,Republic shall pay to 13 the Contractor,in full satisfaction and discharge of all amounts owing to the Contractor under the Contract,an amount equal to the cost of all work performed by the Contractor up to such termination date,less all amounts previously paid to the Contractor on account of the Contract Price...The Contractor shall submit to Republic its statement for the aforesaid amount,in such reasonable detail as Republic shall request,within thirty (30)days after such date of termination,and Republic,subject to verification thereof,shall remit such amount within thirty (30)days after receipt of such statement by Republic.Republic shall not be ltable to the Contractor,however,for any damage on account of such termination or loss of anticipated profits with respect to the remainder of the work. If the termination occurs while Contractor crew,equipment and/or materials are in the field or in transit (away from Vancouver,B.C.) on the legitimate business of this Agreement,then Contractor will be entitled to proceed with the safe and orderly recovery of such crew,equipment and/or materials,and the transportation of same by atr to Vancouver,8.C.,and to claim payment on invoices for such activities and expenses at rates as set out in Appendix II for those activities and expenses. 14 (s)Release of Claims Republic,in its sole discretion,may withhold final approval of the Work until the Contractor shall furnish to it an affidavit setting forth the extent to which final payment or settlement has been made of al?bills and claims of whatever kind or nature in any manner arising out of the Contract,including full details as to any such bills and claims rematning unpaid or unsettled,:and Republic shall have the right to retain from any payment then due to the Contrac- tor,so long as any of said bills or claims remain unpaid or unsettled and outstanding,a sum sufficient in the opinion of Republic to provide for the payment of the same and Republic may pay any such bills or claims pro tanto in full satisfaction and dis- charge of any like amount due to the Contractor.Prior to final payment and as a condition thereto the Contractor shall furnisha release,in form and substance satisfactory to Republic,of al] claims of the Contractor against Republic arising under and by virtue of the Contract. If any breach or breaches by the Contractor of any provisions of the Contract shall occur at any time prior to the completion of the Contract and the acceptance of the Work by Republic,and any part of the amounts due or to become due to the Contractor hereunder . (including payments for additional work)shall be unpaid to the Contractor,Republic may retain therefrom a sum sufficient to 15 indemnify Republic against all damages which have resulted or may result from such breach or breaches,but,1f no such amount shall be retained,or if the amount of such damages shall exceed the amount so retained,the Contractor shall pay to Republic on demand the amount of such damages or such excess as the case may be. (t)Disputes All questions concerning interpretation of this Contract,the acceptable fulfillment of this Contract by the Contractor,and al} questions as to compensation,extensions of time,or both,shall be submitted in writing to Republic for determination.All determina- tions and instructions of Republic will be final,unless the Con- tractor shall,within seven (7)calendar days after Republic notifies the Contractor of any such determination or instruction, file a written protest,stating clearly and tn detail the basis thereof.Such protest will be prompt ly forwarded to Republic who will issue a decision upon each such protest.Pending such deci- sion,the Contractor shall proceed with the Work tn accordance with the determination and instructions of Republic.It is hereby agreed that if the Contractor fails to contest Republic's determination of instructions within seven (7)calendar days of such determination, such failure shall constitute a waiver by the Contractor of all its rights to further protest,judicial or otherwise. 16 (u) The Contractor shall be solely responsible for requesting instruc- tions or interpretations as required under this Contract.Any costs and expenses arising from tts failure to do so shall be borne by the Contractor. Labor Relations Contractor understands that he will be responsible for his own labor relations with any union representing his employees,and Contractor agrees to negotiate and seek to adjust any disputes between Con- tractor and his employees or anyone representing such employees. Contractor,prior to starting Work on the project,shall schedule a pre-job conference with the Building and Construction Trades Coun- cil.Contractor shall be bound by the rules and procedures of the Impartial Jurisdictional Disputes Board and Appeals Board in the settlement of any jurisdictional dispute,and shall make work assignments in accordance with such rules and procedures. It is understood that the primary responsibility for making work assignments lies with the Contractor;however,Contractor shall review his proposed assignments with Republic prior to formal notification to the craft or crafts involved.Contractor agrees to provide Republic with information supporting work assignments con- sidered questionable by Republic.The aforementioned work assign- ments and supporting information shall be made available to all W7 contractors on site for the purpose of promoting harmony on the total project and precluding the development of problems adversely affecting the overall project. Contractor's labor relations program shall be subject to coordina- tion and monitoring by Republic.Contractor agrees to comply with conditions specified in the project agreement,if any,job rules and applicable collective bargaining agreements. Contractor will not be forced to accede to unreasonable demands by labor which are in violation of local or international agreements or procedures or rulings of the Impartial Jurisdictional Disputes Board.If,however,any dispute with a unton (other than disputes affecting wage rates,fringes and hours)arises which,in the opinion of contractor,affects more than a single contractor or which threatens,unless resolved,to delay the construction work| generally or to postpone the completion of the project beyond the contract schedule completion date,Republic shall have the right to intervene and to attempt to effect a solution or adjustment of such dispute which will permit the resumption or uninterrupted cont inua-tion of the Work.The right to intervene shall include but not be limited to the right to initiate meetings between disputing parties.In the event resolution or adjustment of the dispute is not effected,Republic shal?have the right to seek injunctive 18 (v) relief through the National Labor Relations Board or appropriate courts,and to recover damages through such legal action as Republic may deem appropriate. Contractor agrees to report all labor disputes to Republic within 24 hours of occurrence and any actions or proposed steps Contractor is taking or will take to resolve the dispute.Contractor shall be held accountable for any delay in initiating steps to resolve any dispute that has adverse effects on his Work or the overall project. In performing the Work hereunder Contractor shall adopt wages,work- ing conditions and other employment policies,which shall be satis- factory to Republic,and which,where applicable shall comply.with the wages and working conditions established in agreements with local unions affiliated with the Building and Construction Trades Department (AFL-CIO)having jurisdiction over the specified work, provided that Contractor will not be required to violate any applic- able Federal or State statutory provision. Warranty The Contractor warrants that al]services performed hereunder shall satisfy the standards of care,skill,and diligence normally pro- vided by a professional in the performance of such services in respect to work similar to that contemplated hereunder.Any 19 (w) (x) services supplied hereunder failing to meet said standards shall be repeated or corrected at no cost to Republic and shall conform to the requirements of the Scope of Work.The Contractor shall be liable for any loss occastoned by such failure. Survey Permits,Authorizations Republic will secure at its expense all such permits and author iza- tions as may be required from State or Federal authorities for the conduct of the resistivity geophysical survey on the proposed site. Such permits will be concerned with the land use and geoscientific nature of the proposed work;permits and registrations required for the Contractor specifically to operate as a company in Alaska will be the responsibility of the Contractor. Operations in Alaska The Contractor will secure at its expense all such permits or regis- trations as may be required for legal corporate operation in the State of Alaska,with Canadian personnel.The Contractor will also obtain at its expense such licenses or permissions as are required for the operation of base,mobile and repeater radio stations during the survey. 20 6.EXECUTION IN WITNESS WHEREOF,Republic Geothermal,Inc.and AREMIER GEQUIYVACS INC ° have caused this Services Agreement to be executed this 2157g of M4y ,198f. ay REPUBLIC GEOTHERMAL,INC.Ole LiltsSAPRESDAT_lag Ml-'reasSur(SEAL) PREMIER GEOPHYSICS,INC. ,LEZ COtsLRESODEWT ATTEST:py Ahn Its Secretary APPROVED BY ALASKA POWER AUTHORITY 1 Gurl,Dietsf-Its Ac Ying D pices Pm,Lape FEE ; 21 APPENDIX I E-SCAN ELECTRICAL RESISTIVITY GEOPHYSICAL SERVICES MAKUSHIN GEOTHERMAL PROJECT SECTION 1.1 -SPECIFICATIONS 1.1-01 SCOPE OF WORK In accordance with the specifications contained in thts section,orasotherwisedirected,the Contractor shall mobilize and demobilize their equipment,suppltes,and personnel;conduct an E-SCAN full grid multi- directional resistivity survey;provide a report detailing the data collec- tion,plots,and interpretation;keep records;and restore utilized field locations as nearly as practicable to their original state.This work will be performed itn a workmanlike manner to conventional scientific standards,in an area to be specified by Republic,using survey layout parameters recom- mended by the Contractor and approved by Republic. Due to terrain limitations,all equipment,supplies,and personnelwrilbetransportedtotheProjectAreafromtheDutchHarborstagingarea by helicopter.This helicopter support and its expenses will be provided by Republic. Actual field operations are scheduled to begin on or about August 1,1984.The field phase of the resistivity survey wil]operate through the month of August.This time frame is not fixed and could vary depending uponweatherandcompletionoftheProject. 1.1-02 PROGRAM DESIGN The E-SCAN resistivity geophysical survey of the Makushin Geothermal Project area will be conducted in the following ten phases: A.Phase 1 -The Contractor will review with Republic's staff the topographic,geology,access,and mobilization factors.In addition,the Contractor will discuss exploration strategies with Republic.The Contractor will then design an E-SCAN electrical resistivity survey including starting parameters,wire parameters,supplies estimates,and labor requirements.The Contractor must have this survey design approved by Republic before proceed- ing to the next survey phase. B.Phase 2 -The Contractor will order custom manufacturing of the selected wire and electrodes.In addition,all field consumables will be acquired by the Contractor. 22 C.Phase 3 -The wire,electrodes,and other field consumables will be transported to Dutch Harbor,Alaska by a transporter approve by Republic. D.Phase 4 -The Contractor will prepare and pack for transporta-tton all remaining equipment,instruments,and supplies required to success- fully conduct the E-SCAN survey.These materials will then be airfreighted to Dutch Harbor,Alaska timed so they arrive synchronous with the crew. E.Phase 5 -The Contractor will transport the Project Manager andcrewtoDutchHarbor,Alaska in a manner that they arrive at the date speci- fied by Republic. F.Phase 6 -The Contractor will conduct the data collection stageofanE-SCAN electrical resistivity survey.This will include network lay- out,measurement,recovery,and expansion.The network expansion,which will _be recommended by the Project Manager and approved by Republic will be sub-ject to budget,terrain,weather,and data result constraints. G.Phase 7 -The Contractor will remove all wire,electrodes,crew, instruments,and supplies utilized in the E-SCAN survey to the Dutch Harbor staging area.The survey area will]be left in a condition acceptable to Republic. :H.Phase 8 -The Contractor will demobilize all crew members and all equipment to Vancouver,B.C.by transportation methods approved by Republic. I.Phase 9 -The Contractor will construct plan and pseudosectionplotsofthedatarecordedinPhase6invariousarraytypesandseparations; interpret the results,present the results in a written report,and recommend further work including computer modeling.The written report and four copies will be supplied to Republic within 90 days of termination of field activ- ity.Republic must approve ali work conducted in this phase of work. J.Phase 10 -Although computer modeling of data is not a require- ment for successful application of E-SCAN results,Republic may elect to utilize computer modeling.At Republic's discretion,the Contractor shall model the E-SCAN data utilizing methods approved by Republic. 1.1.-03 MOBILIZATION AND DEMOBILIZATION Mobilization and Demobilization shall consist of transporting all equipment,necessary spare parts,consumable supplies,and personnel between the Dutch Harbor staging area and the Contractor's point of origin prior to and following termination of Project operations. 23 1.1-04 |PERSONNEL The Contractor shall provide experienced personnel to perform the work covered herein. Specifically,the Contractor will supply a Project Manager accept-able to Republic who will have authority to communicate with Republic on all matters concerning the survey,including receipt and acting upon of such instructions as may be given by Republic from time to time under the terms of this Agreement.Until-further notice,Project Manager will be Greg Shore. Republic will designate a representative with authority to deal withtheContactoronmattersofsurveyprogramprogress,and daily operations atcamplevel,or alternately will provide a means of communication with adesignatedrepresentativelocatedoffthesite.: Republic has the right to require the removal from the Project,attheContractor's own expense,any personnel who,in Republic's opinion,are not qualified or unable to perform the work and responsibilities assigned tothembytheContractor. 1.1-05 EQUIPMENT ?°Since the entire operation is to be helicopter transported and supported,all equipment must be capable of being readily broken down to components of less than 1,400 pounds.The Contractor will provide a complete set of E-SCAN survey instrumentation,complete with all such accessories and tools as are required for the conduct of the proposed survey.The Contractor will also provide equipment spares consistent with the remote location of the survey.The Contractor will also provide all survey supplies and materials required to successfully conduct an E-SCAN survey except those items directly listed in this Agreement , Republic will provide at its expense at the remote Makushin campsite at the commencement of the survey,the following items: 1.0OA helicopter with pilot that can be utilized by the ContractoratRepublic's approval 2.3 car-type 12 volt batteries and 1 charger (approx.10A rate) -200 US gallons regular gasoline3 4.1 gasoline filtering device (with cartridges if required) 5.20 quarts 10W30 motor ot],detergent,or equivalent 6 -100 pounds granular table salt,in 1 to 5 pound boxes or containers 24 7.Accommodations with cots and mattresses for the Contractor. 8.Food preparation for breakfast and supper;materials for lunch making 9.Means of drying crew boots and clothes overnight 10.Approximately 75 square feet of dry operating space for E-SCANattheremotecampsite 11.110 volt,60 hertz electrical power at the camp,approximately2000wattspeakrequirement,up to 18 hours per day 12.A means of emergency communication with civilization In the event that Republic returns to the Contractor tn Vancouver, B.C.,supplies that Republic purchased from the E-SCAN survey,the Contractor will refund to Republic 90%of the original purchase price. 1.1-06 E-SCAN EQUIPMENT FAILURE In the event an E-SCAN equipment failure prevents continued surveyoperation,the Contractor's breakdown mode fees specified in Appendix II willbecomeeffectiveandtheContractorwillarrangetotransportreplacement equipment to Dutch Harbor,Alaska.The cost of shipping replacement equip- ment to Dutch Harbor,Alaska will be invoiced to Republic.Republic will not pay the 5%burden cost on the equipment shipping.Republic will continue to provide camp accommodations during the breakdown period and will,to the best of its qualification,provide personnel and equipment transportation between the remote campsite and Dutch Harbor,Alaska. 1.1-07 RECORDS During field work,the Contractor's Project Manager will prepare and submit daily estimates of E-SCAN survey charges accrued to date and current rate of expenditures to Republic.The Contractor shall also inform Republic immediately of any unusual conditions discovered during daily operations. The fact that Republic may be present and keeping an independent record of the camp operation shall not relteve the Contractor from the requirement of keeping records as described above. During work conducted at the Contractor's home office,the Contractor shall prepare and submit monthly estimates of E-SCAN survey charges accrued to date;the work accomplished;and the percentage of work remaining. 1.1-08 AVAILABILITY The Contractor agrees to be available for commencement of field work between July ZO and August@3_,1984,and for a period of up to 40 survey field operating days on the Makushin site. 1.1-09 FEES The Contractor shall utilize the fee schedule listed in Appendix II to invoice Republic for personnel,equipment,and materials charges.A burden rate of 5%is set for disbursement and expenses.The rates listed in Appendix II will be effective until December 31,1984. T.1-10 TERMS OF PAYMENT The Contractor will submit monthly invoices for work completed and expenses incurred under this Agreement in clear form cross-referenced to thetermsofthisAgreementandsupportedbyvouchers.Republic will reimbursetheContractorwithin30daysofreceiptandacceptanceoftheContractor. invoice. 26 tet «eat APPENDIX II E-SCAN ELECTRICAL RESISTIVITY GEOPHYSICAL SEI MAKUSHIN GEOTHERMAL PROJECT SECTION 2.1 -RATES 2.1-01 DOLLARS All money rates are U.S.A.dollars. 2.1-02 PERSONNEL RATES The Contractor shall charge the following rates for personnel rates depending on the operation mode.Rates will be divided into quarter days. MODE PERSONNEL NORMAL IN-TRANSIT STANDBY BREAKDOWN Project Manager $311/day $234/day $156/day $0/day Senior Operator/geophysicist $279/day $210/day $140/day $0/day Technician IV $238/day $179/day $119/day $0/day Technician I $135/day $102/day $68/day $0/day Secretary $22.55/hr N/A N/A N/A Draftsman $26.00/hr N/A N/A N/A N/A -Not Applicable The operation modes are: 1.Normal:Normal operating day in which some phase of survey operations 1s undertaken.Includes setup,measurements and final equipment/materials recovery phase data analysis interpretation,modeling as well as any preliminary property preparation,regardless of level of equipment usage or non-usage. In-transit day:Travel time between the Contractor's office and thejobsite,and return,including any delays en route or at destination prior to starting survey operations. Standby:Applies to conditions in which work 1s stopped due to specificRepublicrequest,or due to hazardous weather conditions,lack of air-craft availability,or other factors beyond the Contractor's control.Ifsomejobaspectsarecarriedforward,this rate will apply only to those personnel remaining on standby. 27 4.Breakdown:Time in which work cannot proceed due to equipment failure in the Contractor's instruments or hardware.If other legitimate phases of work can proceed during this time,this rate will apply only to those personnel and equipment affected by the failure. 2.1-02 EQUIPMENT RATES The Contractor shall charge the following rates for its equipment depending on the operation mode which is defined above.Rates will bedividedintoquarterdays. ;__MODE EQUIPMENT NORMAL IN-TRANSIT STANDBY BREAKDOWN Complete E-SCAN System, - Remote Spares II,One Full Radio System $1,151/day $577/day $577/day $0/day Computer $16.00/hr N/A N/A N/A 2.1-03 DISBURSEMENTS a Disbursements and expenses related to work are invoiced at cost +5% burden.Typical disbursements include telephone,travel costs,shipping, rentals,reproduction costs,photocopy costs,fuels and other consumables purchased for field work such as batteries,groceries,etc.The purchase of wire and electrodes is excluded from the 5%disbursement burden. 2.1-04 CONSULTANTS With Republic's prior approval,the Contractor can utilize consul-tants to assist in survey interpretation or modeling.Republic must approve both the Consultant's rate and time before the Contractor utilizes a consul- tant.Republic will reimburse the Contractor for the consultant's invoiced costs plus 5 percent. 2.1-05 CUSTOM MATERIALS The Contractor will provide and charge Republic,with its approval,the wire and electrodes to be utilized in the E-SCAN survey.The rate of these items is: A.Ouplex Wire:22 gage solid copper,polyethylene insulation,@$.0335/foot (estimated requirement 160,000 feet) B.Simplex Wire:22 gage as above @ $.0262/foot (estimated requirement 275,000 feet) C.Electrodes:mild steel,1/2"diameter,30"long,bias cutpoint,16"lead taped 2"below top,quantity of 300,@ $4.20 28 So.C-OCVendorNo.Amendment No. REG 028 7STATEOFALASKACommodityCodeType 6110 AMENDMENT TO PROFESSIONAL SERVICES CONTRACT |Encumbrances Dos.NosAV No.CCO8 2334 ATN Number 82-0820B This agreement is between the State of Alaska, Department of Commerce &Economic Development/Alaska Power Authority hereafter,the State,and Contractor Republic Geothermal,Inc.hereafter,the Contractor Mailing Address Street or P.O.Box City State Zip Code 11823 East Slauson Avenue Santa Fe Springs,California 90670 Previous period of performance Amended period of performance From:1-1-82 to:4-30-84 From:1-1-82 to:6-30-85 Previous amount of contract This amendment is for This amended contract shall not exceed a total of s 4,476,298.82 s -0-s 4,476,298.82 In accordance with the provisions of the above referenced contract,the parties to that contract agree that the services to be performed by the con- tractor under the contract are amended as follows:(Use reverse for continuation of amended provisions if necessary.) Article 2 -Appendix B,Scope of Work Add attached Amendment No.7,Appendix B. Article 4 -Consideration -Appendix C,Article C-3,Key Personnel Replace Gerald W.Huttrer with J.L."Bill"Smith as Project Manager,Republic. Article 4 -Consideration -Appendix C,Article C-10,Insurance Delete Section 4,Professional Liability. In full consideration of the contractor's performance under and including this amendment,the State shall pay the contractor a new total not to exceed $.4,476 »298.82 : The period of performance under this contract is increased/decreased by 14 months to 6-30-84 Except those provisions inclusive to this amendment,all other terms and conditions of the contract remain in effect. IN WITNESS WHEREOF the parties hereto have executed this amendment. CONTRACTOR STATE Name of Firm Division of Republic Geothermal,Inc.Alaska Power Authority Signature of Authorized Representative Date Signature of Project Director Date Typed or Printed Name of Authorized Representative Typed or Printed Name of Project Director Larry D.Crawford Title Title Executive Director APPROVAL BY THE CONTRACTING AGENCY APPROVAL BY THE DEPARTMENT OF ADMINISTRATION NOTICE!This certifies the availability of funds.|am aware that certifying false,inaccurate,or misleading documents constitutes an unsworn falsification punishable under AS 11.56.210. Signature of Head of Contracting Agency or Designee Richard A.Lyon Typed or Printed Name of Authorizing Official Commissioner Title Date NOTICE!This amendment has no effect until it is approved by the Department of Administration AA sen me Aan an Amendment No.7 Appendix B SCOPE OF WORK Phase III -1984 Activities The Contractor will acquire the permits necessary for implementa- tion of the 1984 activities,monitor operations so as to assure compliance with permit stipulations and develop and submit periodic reports as required by permit conditions and regulations.In addition,the Contractor will monitor all drilling and testing operations for environmental impact using qualified personnel for field sampling and operation inspection.The Contractor will implement standard environmental impact mitigation measures for al] activities and conduct emergency contingency measures if necessary. Stage I.Mobilization The Contractor will plan,supervise,and implement the mobi- lization,transportation,and set-up of all facilities,equipment, and supplies necessary for the base camp and drill sites. Stage II.ST-1 Long-Term Testing The Contractor will plan,supervise and implement a long-term flow test of Makushin ST-1 from the reservoir encountered at a depth of 1946-1949 feet.The length of the flow test will be determined in the field by mutual agreement of the Contractor and the Power Authority,based on preliminary results of the test and logistical considerations.The test will be designed to provide data on reservoir behavior and longevity,and scaling and corrosion ten- dencies.For this survey,a "bubble tube"(capillary tube)and thermocouples will be installed or periodically run in the well to optimize the accuracy of long term data recording capabilities. Graphic and digital recorders will be used to obtain continuous data documentation. Stage III.Drill Sugarloaf Temperature Gradient Hole The Contractor will: A.Plan,supervise,and implement the drilling of a temperature gradient hole at location A-1 indicated on the map in Exhib- it 1 of this Amendment to a depth of approximately 1200 feet. The actual depth of the hole will be determined in the field by mutual agreement of the Contractor and the Power Authority based on preliminary results of the drilling,on logistical considerations,and on the allocation of funds for this task. 1951/111/D7/F1 Page 1 The Contractor's Drilling Manager or other qualified drilling Supervisor approved by the Power Authority will be located at the project throughout the course of drilling operations. Collect drill cutting samples and cores for lithologic charac- terization and rock-chip geochemical analyses.Transport from the drill sites to Dutch Harbor any samples and cores to be independently tested by the Division of Geological and Geo- physical Surveys.Log and record all geologic and thermal data in accordance with accepted industry practice. Stage IV.Deepen and Test ST-1 The Contractor will: A.Make a reasonable effort to seal off the producing zone at 1946-1949 feet and drill Makushin ST-1 to a total depth of approximately 2450 feet.The actual depth of the well will be determined in the field by mutual agreement of the Contractor and the Power Authority based on preliminary results of the drilling,on logistical considerations,and on the allocation of funds for this task.The Contractor's Drilling Manager or other qualified drilling supervisor approved by the Power Authority will be located at the project throughout the course of drilling operations. Collect drill cutting samples and cores for lithologic charac- terization and rock-chip geochemical analyses.Transport from the drill sites to Dutch Harbor any samples and cores to be independently tested by the Division of Geological and Geo- physical Surveys.Log and record all geologic and thermal data in accordance with accepted industry practice. Conduct a preliminary flow test of limited duration immediate- ly upon encountering any significant hydrothermal resource to clean drilling debris out of the wellbore,determine resource type,and obtain a reservoir fluid sample to analyze for short-term flow test design and environmental mitigation measures. Conduct a short-term resource flow test for any major hydro- thermal resource encountered.If flow is not naturally occurring,the Contractor will make all reasonable efforts to stimulate flow.The resource flow test will include the monitoring of downhole static and flowing pressure and temper- ature,the measuring of flow volume (at three different rates, if possible,until stabilized)utilizing a modified "James"or a ""separator-weir"test method,the recording of surface flowing temperature and pressure,and the chemical charac- terization of the resource.Liquids will be discharged to a creek,if permitted,or discharged to a holding pond or 1951/111/D7/F1 Page 2 otherwise dealt with as required by permitting agencies.The length of the flow test will be determined in the field by mutual agreement of the Contractor and the Power Authority based on preliminary results of the test,on logistical considerations,and on the allocation of funds for this task. Stage V.Electrical Resistivity Survey The Contractor will conduct an electrical resistivity survey over an area approximately delineated by the map contained in Exhibit 1 of this amendment.The areal extent of the survey may be modified by mutual agreement of the Contractor and the Power Authority, based on preliminary results of the survey,on logistical consid- erations,and on the allocation of funds for this task. Stage VI.Demobilization The Contractor will: A.Plan,supervise,and implement the tear-down and removal of facilities,equipment,and supplies from the sites upon termination of field work. B.Restore drilling sites and campsites as directed by the Power Authority and in accordance with appropriate permits and regulations. C.Transport or dispose of Power Authority inventory as directed by the Power Authority. D.Suspend Makushin ST-1 as directed by the Power Authority andinaccordancewithapplicablepermitsand_regulations.However,if it is determined by the Power Authority that Makushin ST-1 should be plugged and abandoned upon termination of the 1984 field work,the Contractor will plug and abandon the well in accordance with applicable permits and regulations for a reasonable cost as agreed upon by both parties. E.Plug and abandon temperature gradient holes A-1,D-1,and E-1l indicated on the map in Exhibit 1,in accordance with applica- ble permits and regulations unless directed otherwise by the Power Authority. Stage VII.Interim and Final Report The Contractor will prepare and submit reports to the Power Author- ity containing data analyses,results,conclusions,and recommenda- tions: 1951/111/D7/F1 Page 3 A.Analyze and interpret core geochemistry,lithologies,and thermal data collected during 1984 activities. B.Interpret all data collected during 1984 activities to charac- terize resource temperature,pressure,transmissivity,fluid quality,and productivity. C.Integrate these data with all previously gathered geological, geochemical,and geophysical data. D.Refine and modify the Makushin geothermal system model to reflect the newly integrated data. E.Utilize the resource model to revise as appropriate previous estimates of commercial electrical generating potential. F,Revise as appropriate the previously developed commerciali- zation scenario and development cost estimates. G.Prepare and deliver to the Power Authority no later than January 1,1985,ten copies and one one camera-ready master of an interim executive report that summarizes the project to date and contains results,conclusions,and recommendations. H.Prepare and deliver ten copies of a draft final report of the Phase III activities to the Power Authority no later than April 1,1985.The Power Authority will review the draft and submit comments to the Contractor within 30 days after receipt of the draft.The Contractor will finalize the report and deliver twenty copies and one camera-ready master of the final report to the Power Authority within three weeks after com- ments on the draft are received by the Contractor. I.Prepare and deliver to the Power Authority no later than April 1,1985,ten copies of a draft final executive report that summarizes the project and contains results,conclusions, and recommendations.The Power Authority will review the draft and submit comments to the Contractor within thirty days after receipt of the draft.The Contractor will finalize the executive report and deliver forty copies and one camera-ready master of the final executive report to the Power Authority within three weeks after comments on the draft are received by the Contractor. Budget and Schedule The budget estimate and tentative schedule for work under this Amendment shall be as follows: 1951/111/D7/F1 Page 4 UNALASKA GEOTHERMAL EXPLORATION PROJECT SCHEDULE #1 3/15/84 PROJECT SITE OPERATION DAYS (1984) Oo °:10 20 30 40 50 60 70 80 |_||25.boas oot 'ba!ae or'ee re ee STAGE!2 mopiLizATion &e-{-incLupesnicmove «+;|:)2].oy 3 :{_.7 poi 4345 |poh,ti ho: '3 : . i ;hop rn ee STAGE II '40 DAY FLOW TEST OF ST-1 eo]REMOVE:|:oe ¢ '4 to..'in eer ae Ee SP a RP ii!INSTALL EQUIPMENT |;yicci mada dad,oft :an 'M 7 4 'fo :STAGE Il Vt at [og EP i Ponursucantoarnotel aig |i]ed ads|Pf fi!ee||7 1 |:||50_}'2b gy gs:!- 1}Pt Pb pg fad 5 DAY]:: STAGE IV |Ppa Pell],|ee |Toeerenstafriow||Eby Pe betP bee datatpaa dy test}i |'3 iofos '"Pos to.i.:.rod 1 |||,i 3h33)es es 63 65);°.i .'1 .: . .5 i poe tog :sof 4 STAGE V ity fad MOBILIZE-+{@|CONDUCT RESISTIVITY SURVEY }@{ DEMOBILIZE !|oor mp ;'t 1 ;i ".:1 . T 2!:ee ee ee re ee ee eelboisj-_ee Pt Pet PtP py te DEMOBILIZE|:STAGE VI bit pid tat pac de pau bp eta)P equiment,f-Pada oe eee ee ee ee eeeeebeeenGereGeesGeeeeeeee _roaot |7 oy Poa ifSTAGEVIIreeeres0seeii -REPORTS "2JoreesieneSere'65arie-FULL FIELD CAMP SE a iHbaPeaeSSpl: NOMINALLY JULY1 NOMINALLY SEPTEMBER13 ANTICIPATED OATES WCl C1054 PHASE TIT UNALASKA GEOTHERMAL EXPLORATION PROJECT BUDGET Stage T Stage YT Stage TTT =Stage YV Stage V Stage VT Stage VIT Mohi lization ST-1 Long-Drill TOH Neepen &Resistivity Demobilization Interim & Term Testing Sugarloaf Test ST-1 Survey Final Report Total Republic Tabor (Fringe &O/H) $26,300 $50,200 $27,100 $43,800 $12,900 $25,200 $65,000 $250,500 Republic Travel 1,600 14,500 4,500 9,500 2,900 1,700 34,700 Dames &Moore 9,000 13,500 4,500 9,000 9,000 5,800 50,800 Drilling 6,000 108,100 61,700 9,000 184,800 Well Testing 48,000 10,000 58,000 Helicopter 31,500 21,500 28,700 14,400 21,500 31,400 149,000 Resistivity Survey 106,500 106,500 Camp 15,000 7,200 9,000 9,000 10,800 20,000 71,000 Chemical Analyses 6,000 6,000 6,000 18,000 Prof.liah. Insurance 14,800 14,800 29,600 Communications 1,900 1,400 1,900 1,400 1,900 1,000 9,500 Other 5 300 2,500 9,400 1,700 2,500 5,200 1,000 27,600 Subtotal 111,400 164,800 199,200 166,500 159,000 117,300 71,800 990,000 Corp.GRA (4%}4,460 6,590 7,970 6,660 6,360 4,690 2,870 39,600 Total $115,860 $171,390 $207,170 $173,160 $165,360 $121,990 $74,670 $1,029,600 SY KU *Yemdut No 'amenament No ; «REG 028 7STATEOFALASKACommodityCodeType 1 6110 AMENDMENT TO PROFESSIONAL SERVICES CONTRACT |Socumtrance Ove:NosAV No.CC08-2334 ATN Number ' 82-0820B This agreement is between the State of Alaska,i Department of Commerce &Economic Development/Alaska Power Authority hereafter,the State,and i Contractor ' Republic Geothermal,Inc.hereafter,the Contractor Masking Address Street of P.O.Box City State Zip Coae , 11823 East Slauson Avenue Santa Fe Springs,California 90670 Previous period of performance Amended period of performance From:1-1-82 to:4-30-84 From:1=1-82 to.6-30-85 Previous amount of contract This amendment 15 tor This amended contract shall not exceed a total of s_4,476,298.82 s -0-3 4,476 ,298.82 ; In accordance with the provisions of the above referenced contract,the parties to that contract agree that the services to be performed by the con- tractor under the contract are amended as follows:(use reverse tor continuation of ded p ions it r ary. Article 2 -Appendix B,Scope of Work Add attached Amendment No.7,Appendix B. Article 4 Consideration -Appendix C,Article C-3,Key Personnel Replace Gerald W.Huttrer with J.L."Bill"Smith as Project Manager,Republic. t ; Article 4 -Consideration -Appendix C,Article C-10,Insurance Delete Section 4,Professional Liability. 1 full consideration of the contractor's performance under and including this amendment,the State shall pay the contractor a new total not to xceed $_4,476,298 .82 he period of performance under this contract is increased/deereased.by _-14 months to 6-30-85 xcept those provisions inclusive to this amendment,ali other terms and conditions of the contract remain in effect. N WITNESS WHEREOF the parties hereto have executed this amendment. CONTRACTOR STATE ame of Firm Division of Republic Geothermal,Inc.Alaska Power Authority LLureofeTOHDateSignaturerojectDirectorVjDateevara-1s-04_|(Xateen Leadpak IE:ped df Printed Name of Authorized Representative Typed or Printed pe of Project Director W4 WA Lf John L.Smith Larry D.Crawford le Title Vice President-Exploration Executive Director APPROVAL BY THE CONTRACTING AGENCY APPROX RYMENT OF ADMINISTRATIONIaee Se creer,-ITICE!This certifies the availability of funds.|am aware that certifying false,inaccurate,or ©ogee ye FpleadingdocumentscoranfalsificationpugsgableunderAS11.56.210.oof nature of Head of Contracting et CAAA :Vv 4 Richard A.Lyon n { ded of Printed Name of Authorizing Official RIOT:tc Me oa A MAY g S84 i Commissioner \ °Fitrtocp:7YR:OR |BY,THE CppetedPA19%|;eelREVIEW COMMITTEE |3 ?5-4 -¥¥.17 x} LoaNOTICE!This amendment has no effect until It is enproved by the Oepartment of Administration Amendment No.7 Appendix 8B SCOPE OF WORK Phase III -1984 Activities The Contractor will acquire the permits necessary for implementa- tion of the 1984 activities,monitor operations so as to assure compliance with permit stipulations and develop and submit periodic reports as required by permit conditions and regulations.In addition,the Contractor will monitor all drilling and testing operations for environmental impact using qualified personnel for field sampling and operation inspection.The Contractor will implement standard environmental impact mitigation measures for al] activities and conduct emergency contingency measures if necessary. Stage I.Mobilization The Contractor will plan,supervise,and implement the mobi- lization,transportation,and set-up of all facilities,equipment, and supplies necessary for the base camp and drill sites. Stage II.ST-1 Long-Term Testing The Contractor will plan,supervise and implement a long-term flow test of Makushin ST-l1 from the reservoir encountered at a depth of 1946-1949 feet.The length of the flow test will be determined in the field by mutual agreement of the Contractor and the Power Authority,based on preliminary results of the test and logistical considerations.The test will be designed to provide data on reservoir behavior and longevity,and scaling and corrosion ten- dencies.For this survey,a "bubble tube"(capillary tube)and thermocouples will be installed or periodically run in the well to optimize the accuracy of long term data recording capabilities. Graphic and digital recorders will be used to obtain continuous data documentation. Stage III.Orill Sugarloaf Temperature Gradient Hole The Contractor will: A.Plan,supervise,and implement the drilling of a temperature gradient hole at location A-1 indicated on the map in Exhib- it 1 of this Amendment to a depth of approximately 1200 feet. The actual depth of the hole will be determined in the field by mutual agreement of the Contractor and the Power Authority based on preliminary results of the drilling,on logistical considerations,and on the allocation of funds for this task. 1951/111/D7/F]Page ] The Contractor's Drilling Manager or other qualified drilling supervisor approved by the Power Authority will be located at the project throughout the course of drilling operations. Collect drill cutting samples and cores for lithologic charac- terization and rock-chip geochemical analyses.Transport from the drill sites to Dutch Harbor any samples and cores to be independently tested by the Division of Geological and Geo- physical Surveys.Log and record all geologic and thermal data in accordance with accepted industry practice. Stage IV.Deepen and Test ST-1 The Contractor will: A.Make a reasonable effort to seal off the producing zone at 1946-1949 feet and drill Makushin ST-1 to a total depth of approximately 2450 feet.The actual depth of the well will be determined in the field by mutual agreement of the Contractor and the Power Authority based on preliminary results of the drilling,on logistical considerations,and on the allocation of funds for this task.The Contractor's Drilling Manager or other qualified drilling supervisor approved by the Power Authority will be located at the project throughout the course of drilling operations. Collect drill cutting samples and cores for lithologic charac- terization and rock-chip geochemical analyses.Transport from the drill sites to Dutch Harbor any samples and cores to be independently tested by the Division of Geological and Geo- physical Surveys.Log and record all geologic and thermal data in accordance with accepted industry practiee. Conduct a preliminary flow test of limited duration immediate- ly upon encountering any significant hydrothermal resource to clean drilling debris out of the wellbore,determine resource type,and obtain a reservoir fluid sample to analyze for short-term flow test design and environmental mitigation measures. Conduct a short-term resource flow test for any major hydro- thermal resource encountered.If flow is not naturally occurring,the Contractor will make all reasonable efforts to stimulate flow.The resource flow test will include the monitoring of downhole static and flowing pressure and temper- ature,the measuring of flow volume (at three different rates, if possible,until stabilized)utilizing a modified "James"or a "separator-weir"test method,the recording of surface flowing temperature and pressure,and the chemical charac- terization of the resource.Liquids will be discharged to a creek,if permitted,or discharged to a holding pond or 1951/111/07/F1 Page 2 otherwise dealt with as required by permitting agencies.The length of the flow test will be determined in the field by mutual]agreement of the Contractor and the Power Authority based on preliminary results of the test,on logistical considerations,and on the allocation of funds for this task. Stage V.Electrical Resistivity Survey The Contractor will conduct an electrical resistivity survey over an area approximately delineated by the map contained in Exhibit 1 of this amendment.The areal extent of the survey may be modified by mutual agreement of the Contractor and the Power Authority, based on preliminary results of the survey,on logistical consid- erations,and on the allocation of funds for this task. Stage VI.Demobilization The Contractor will: A.Plan,supervise,and implement the tear-down and removal of facilities,equipment,and supplies from the sites upon termination of field work. B.Restore drilling sites and campsites as directed by the Power Authority and in accordance with appropriate permits and regulations. C.Transport or dispose of Power Authority inventory as directed by the Power Authority. D.Suspend Makushin ST-1 as directed by the Power-Authority and in accordance with applicable permits and _regulations.However,if it is determined by the Power Authority that Makushin ST-1 should be plugged and abandoned upon termination of the 1984 field work,the Contractor will plug and abandon the well in accordance with applicable permits and regulations for a reasonable cost as agreed upon by both parties. E.Plug and abandon temperature gradient holes A-1,D-1,and E-1 indicated on the map in Exhibit 1,in accordance with applica- ble permits and regulations unless directed otherwise by the Power Authority. Stage VII.Interim and Final Report The Contractor will prepare and submit reports to the Power Author- ity containing data analyses,results,conclusions,and recommenda- tions: 1951/111/D7/F1 Page 3 Analyze and interpret core geochemistry,lithologies,and thermal data collected during 1984 activities. Interpret all data collected during 1984 activities to charac- terize resource temperature,pressure,transmissivity,fluid Quality,and productivity. Integrate these data with all previously gathered geological, geochemical,and geophysical data. Refine and modify the Makushin geothermal system model to reflect the newly integrated data. Utilize the resource model to revise as appropriate previous estimates of commercial electrical generating potential. Revise aS appropriate the previously developed commerciali- zation scenario and development cost estimates. Prepare and deliver to the Power Authority no later than January 1,1985,ten copies and one one camera-ready master of an interim executive report that summarizes the project to date and contains results,conclusions,and recommendations. Prepare and deliver ten copies of a draft final report of the Phase III activities to the Power Authority no later than April 1,1985.The Power Authority will review the draft and submit comments to the Contractor within 30 days after receipt of the draft.The Contractor will finalize the report and deliver twenty copies and one camera-ready master of the final report to the Power Authority within three weeks after com- ments on the draft are received by the Contracter. Prepare and deliver to the Power Authority no later than April 1,1985,ten copies of a draft final executive report that summarizes the project and contains results,conclusions, and recommendations.The Power Authority will review the draft and submit comments to the Contractor within thirty days after receipt of the draft.The Contractor will finalize the executive report and deliver forty copies and one camera-ready master of the final executive report to the Power Authority within three weeks after comments on the draft are received by the Contractor. Budget and Schedule The budget estimate and tentative schedule for work under this Amendment shall be as follows: 1951/111/D7/F Paqe 4 PHASE ITT UNALASKA GEOTHERMAL EXPLORATION PROJECT BUDGET Stage |Stage IT Stage III Stage IV Stage V Stage V1 Stage VII Mobilization ST-1 Long-Drill TGH Deepen &Resistivity Demobilization Interim §&Term Testing Sugarloaf Test ST-1 Survey Final Report Total Republic Labor(Fringe &O/H)$26,300 $50,200 $27,100 $43,800 $12,900 $25,200 $65,000 $250,500 Republic Travel 1,600 14,500 4,500 9,500 2,900 1,700 34,700 Dames §Moore 9,000 13,500 4,500 9,000 9,000 §,800 50,800 Drilling 6,000 108,100 61,700 9,000 184,800 Well Testing 48,000 10,000 58,000 Helicopter 31,500 21,500 28,700 14,400 21,500 31,400 149,000 Resistivity Survey 129,800 129,800 Camp 15,000 7,200 9,000 9,000 10,800 20,000 71,000 Chemical Analyses 6,000 6,000 6,000 18,000 Prof.Liab. Insurance 6,300 6,300 Communications 1,900 1,400 1,900 1,400 1,900 1,000 9,500 Other 5,900 3,100 1 10,000 2,300 3,100 5,800 _1,000 31,200 Subtotal 103,500 165,400 199,800 167,100 182,900 103,100 71,800 993,600 Corp.G&A (4%)4,140 6,620 7,990 6,680 7,320 4,120 2,870 39,740 Total $107,640 $172,020 $207,790 $173,780 $190,220 $107,220 $74,670 $1,033,340 UNALASKA GEOTHERMAL EXPLORATION PROJECT STAGE | STAGE I STAGE III STAGE IV STAGE V STAGE VI STAGE VII PROJECT SITE OPERATION DAYS (1984) 0 20 40 50 -60 70 80 '1 ;rj i 25 :1 : ;:'i 3oTEpi: to4 :ol jMOBILIZATION!@ J INCLUDESRIGMOVE|Pho dad ii ':ee aan dada ta!3.5 ee ee H |i 4345 ;||roy : -re '40 DAY FLOW TEST OF ST-1 ofp REMOVE ee re|if.Sseeeeaeaee50phyhptyINSTALLEQUIPMENT; |ida talPyottdd|MOVE eee|ty |j|ORILL SUGARLOAFHOLE ee{||RIG Pp aid]daai|i - Hoh |bool,i i |t ||50 |'60!65 |boyy{i '1 ||SDAY];.||||DEEPENST-(FLOW|:)|0:| oon |||testy fp !|'as zal |i {3 i:6365 | |1 i :,'Poy |a|||MOBILIZE -T@ CONDUCT RESISTIVITY SURVEY @1-DEMOBILIZE |{!i ''. {|} . .t,'hide TP)ee Ls!|Pad ia DEMOBILIZE ;|i if Poa,EQUIPMENT,|Paty PERSONNELhidPedibafey LEonPiebbapede|pf be.|ps REPORTS==||20 fos nob 65,t FULL FIELD CAMPSERVICE||:F -T|i '---+:ot 1 rot ;|i i tal Page f pt btairf tres i { NOMINALLY JULY 1 ANTICIPATED DATES NOMINALLY SEPTEMBER 13 act c10sé EXHIBIT 1 PROPOSED OPERATIONS ON UNALASKA ISLAND Aww.\ROAD Ww ySS wae APPROXIMATE BOUNDARY OF PROPOSED ELECTRICAL RESISTIVITY SURVEY Ld e Oo TEMPERATURE GRADIENT HOLE PROPOSED IN 1984 '>SMALL DIAMETER GEOTHERMAL RESOURCEEXPLORATIONWELLDRILLEDIN1983y)O TEMPORARY BASE CAMPSITEif=Om AERIAL PHOTOGRAPH INDICATORS 2000 Q 2000 SCALE (FEET)ay).are=IN YUU ZAEES SRI Contract Tot-®-4,456,298.82 9 o*CC08-2334 This Amendm -20,000.00 New Total Atn 82-0820A +4,476,298.82 Type 6110 AMENDMENT #6 The Following AMENDMENT to Contract CC 08-2334 between the AlaskaPowerAuthorityandRepublicGeothermalIncorporated(RGI)for geo- thermal reconnaissance level cost analysis has been agreed to by both parties: Article 2;Appendix B;Scope of Work Add -ELECTRICAL POWER GENERATION ANALYSIS Task IJ Task II Task III Task IV Task V Article 4; The Contractor will catalog and review electrical generation equipment that could operate by using the geothermal fluids or steam resources most likely to be found at Unalaska Island. The Contractor will give a brief narrative on the positive and negative aspects of each type of generation equipment,the correspondence address for each manufacturer,and contact person.Well head,steam turbine and binary generation will be considered. The Contractor will develop a matrix to evaluate the differ- ent systems and manufacture's performance for a 10MW and 30MW size power plant.The matrix will include cost/unit,con- structability,transportability,dimension,weight,environ- mental impacts,reliability,operations &management,manu- facturer's warranty,and performance.Final matrix will be mutually agreed upon. The Contractor will graph what they consider the best two systems for application at the Makushin resource in the 10MW'and 30MW size.The graph will vary the plant size from 10MWto100MW(if possible)and plot the costs/MW for the plant.The intent is to show the scales of economyof the_differentIasystems.- The contractor will determine the rout and constructionoptionsandprobablecostsfortearem{ttion of electricity from the Makushin resource to Unalaska.The analysis will address the ability of the town's electrical system to accept the bus bar power from the proposed system based upon the planned completion of the Unalaska electrical plan.The,ana- lysis will address the survival probability considering the Aleutian weather conditions. The Contractor will determine the preferred conceptual design for a 10MW inittal plant size and for a 30MW to deliver power to the town of Unalaska based on present knowledge.A load forecast and cost estimate for these plans willbe prepared.The Contractor shall discuss forecast assumptions with Acres American,the Contractor preparing the analysis of all alter-natives for Unalaska.The present worth of the systems andcostofpowerwillbecalculatedinaccordancewiththePowerAuthorityguidelines(Appendix E)and standard engineeringeconomicpractices.Assumptionsand_costs willbe listed.The economic analysis period shall be that used byAcres American to reflect the analysis of hydroelectric under studybytheCorpsofEngineers. Appendix C;Article C-11 Add -E 8866 For Electrical Power Generation Analysis,Amendment #6,theContractorwillbepaidafixedpriceof$20,000 upon accep- tance of the final Amendment #6 report by the Power Authority.One (1)reproducible master and ten (10)copies will be de- livered as the final report. Pre}.Code:30 File Cede:202.1 of 6 Delivery date for the draft report is September 10,1983 and forthefinalreportisSeptember30,1983. Article 4;Appendix C;Article C-14;Limit of Funds Change to Read -The amount available for payment of work is $4 46 1298.82. ;A 1 other terms and conditions remain unchanged. E xecuted this LO A day of ,1983. For the Contractor For the State Republic Geotherma)Incorporated Alaska Power neBY:lb KAtttiin "BY;vier 8 .L Awi- ;DATE:393 pate;YUL 40 1983 | Department of Administration BY: DATE:- 2.(Za AUS*4 =-«1988 Original ATN $5,000,000.00 Original Contract $197,321.00 Amendment #1 $50,000.00 Sub-Total $247 ,321.00 Amendment #2 $2,959.82 Sub-Total $250,280.82 Amendment #3 $1,537 ,253.00 Sub-Total $1,787 533.82 Subtract from Amendment #1 (3 00)Sub-Total >5 . Amendment #4 $305,965.00 Sub-Total $2,043 498.82 Amendment #5 $2,412 ,800.00 Sub-Total $4 456 298.82 Amendment #6 $20,000.00 Sub-Total $4 476,298.82 New Total $4 ,476,298.82 8866 2 of 6 APPENDIX E SUMMARY _OF RECOMMENDATIONS Analysis Parameters for the 1983 Fiscal Year Economic Analysis Inflation Rate -0% Real Discount Rate -3.5% Real Oil Distillate Escalation Rate 2.5%-First 20 years 0%-Thereafter Cost of Power Analysis Inflation Rate -7.0%Project Debt to Equity Ratio.-1:0 Cost of Debt -12.0% Economic Life and Term of Financing .Pp Gasification Equipment Waste Heat Recapture Equipment Under 5 MW Over 5 MW Solar,Wind Turbines,Geothermal andOrganicRankineCycleTurbinesDieselGeneration* Units under 300 KW Units over 300 KW Gas Turbines Combined Cycle TurbinesSteamTurbines(Including Coal and Wood-fired Boilers) Under 10 MW Over 10 MW Hydroelectric Projects Economic Life - Term of Financing Transmission Systems Transmission Lines w/Wood Poles Transmission Lines w/Steel Towers Submarine Cables Oil Filled Solid Dielectric 10 years 10 years 20 years i10years 20 years 20 years 30 years 20 years 30 years /50 years-\35 years j 30 years 40 years 30 years 20 years *Diesel Reserve Units have longer life depending on use.Also this economic life is by unit and not total plant capacity. 8866 3 of 6 Inflation Rate For the purpose of the economic analysis there is assumed to be no inflation. Recommendation:The inflation rate should therefore remain at 0%. Discount Rate As previously indicated in the Analysis Parameters of FY 82 the historic inflation free cost of money to the utility industry appears to be approximately 3.0%.Currently national and local economists and finan- cial experts estimate the overall real discount rate to be in the range of 3%to 4%with a likelihood that the real cost of money for utilities is increasing slightly due to the increasing size and cost of electric generation projects currently being undertaken.It is also acknowledgedthathistoricallytherealcostofmoneyinAlaskacontainsan"Alaska factor"and is therefore somewhat higher than in th rest of the nation. However,the discount rate is also intended reflect the state opportu-nity cost of money and reflect long term trends. Recommendation:In regards to the above analysis and review,the Discount Rate should be set at 3.5%. Escalation Rate Based upon a composite research of Energy Consulting Companies,national and local economists,and Investment Brokerage Firms,the forecast ofdistillatefuels(diesel and fuel oil)are expected to increase at an average real rate of 2.5%per annum for the period from 1982 to 2001. Beyond the year 2001 further increases in fuel are assumed to be zero. This assumption is based upon the belief that although additional increases are expected they are too speculative to quantify. Recommendation:The escalation rate for diesel and fuel oi]be set at 2.5%per annum for the first 20 years of the economic analysis.There- after,further increases in the rate are assumed to be zero. Economic Life and Term of Loan Although in certain instances economic lives of up to 100 years may be warranted for hydroelectric projects,both the State Division of Budget and Management and F.E.R.C.recommend the use of 50 years and the term of financing at 35 years.For all other alternative generation sources, the economic life and the term for which financing can be obtained is assumed to be the same even though they vary for each alternative.The following economic lives and loan terms should be used for various power project alternatives. 8866 4 of 6 Economic Life and Term of Financing Gasification Equipment 10 years Waste Heat Recapture Equipment Under 5 MW 10 years Over 5 MW 20 years Solar,Wind Turbines,Geothermal and Organic Rankine Cycle Turbines 15 yearsDieselGeneration* Units under 300 KW 10 years Units over 300 KW 20 yearsGasTurbines20yearsCombinedCycleTurbines30yearsSteamTurbines(Including CoalandWood-fired Boilers) Under 10 MW 20 years Over 10 MW 30 yearsHydroelectricProjects Economic Life 50 yearsTermofFinancing35years Transmission Systems Transmission Lines w/Wood Poles 30 years Transmission Lines w/Steel Towers 40 yearsSubmarineCables Oil Filled 30 years Solid Dielectric 20 years *Diesel Reserve Units will have longer life depending on use.Also this economic life is by unit and not total plant capacity. 8866 5 of 6 REFERENCE Inflation Rate Discount Rate Fuel Escalation Rate Dr.Scott Goldsmith I.S.E.R.6.0%3 Dr.David Reaume Economic Consultant 7.0%3 Lehman Brothers, 0% 0% Kohn Loeb 5.0 -6.0%3.0 -3.5% Dr.Bradford Tuck University of Alaska 6.0%3.5% Donald MacFayden Salomon Brothers 6 -8%4.0% Peter W.Sugg URS/Cloverdale & Colpitts 6.0 -7.0%4, Gary Anderson Stanford Research 03% Institute 7.0%4.0 -4.04% Dr.Mike Scott Battelle Pacific N.W.Lab 5.0 -7.0%3.0% Mr.Thomas Thurber Data Resources,Inc.6.5%3.0% Victor A.Perry III Bechtel Corp.5.0%3.0% William L.Randall The First Boston Corp.7.0 -8.0%3.5% Wm.Michael McHugh Applied Economics Associates 7.0 -8.0%3.5% Fredic J.Prager Smith,Barney,Harris Upnam &Company 5.0 -6.0%4.0% John Delrocali Whartan Econometric Forcasting Asso.7.0%3.5% Michael G.Moroney Pet,Marwick & Mitchell,Inc.6.5%3.0% Exxon Corporation 6.0%3.05 -4.0% Chevron Corporation 7.0%3.0% 8866 6 of 6 2.3% 2.6% 2.8% 2.65% 3.0 -4.0% 4.0% 3.0% 2.7% 2.0% 2.5% 3.0 -3.5% 3.0 -3.5% 2.5% 2.3% 2.5% 2.0% 2.0% a-PDA Authority Number82-08206. STATE OF ALASKA DEPARTMENT OF ADMINISTRATION AUTHORITY TO ENTER CONTRACT NEGOTIATIONS This form must be executed prior to entering negotiations regarding PROFESSIONAL SERVICE CONTRACTS when the contract amount is in excess of $2,500 in an annual period.The PROFESSIONAL SERVICES CONTRACTUAL RELATIONSHIP QUESTIONNAIRE on the reverse side of this form must be completed in all circumstances,Refer to Administrative Manual,Section 8000 for further instructions. Oepartment Commerce and Economic Development Division Alaska Power Authority Contract Type 6110 Amount "FS 000NTE0,090 Period Covered From December 15,1981 June 30,1984To Purpose(s)of Contract Develop reconnaissance level cost analysis for geothermal power development Unalaska. Analysis to include power generation alternative analysis and present worth calculation. This is a no cost program addition change to the original ATN. We intend to negotiate with the following persons or firms.Agencies SHOULD list at least three choices or explain why it is not possible.LeName Address P.O.Box 3388 Santa Fe Springs Alaska Business Licensa Republic Geothermal California 90607 KkyYes [No Name Address Alaska Business License O Yes O No pNanep AUDIT Address Alaska Business License Oo Yes O No Name Address Alaska Business License fi en”)O ves ONo Name Address Alaska Business License oO Yes O No Name Address Alaska Business License O Yes Oo No BUDGETARY DATA (4/77 CNhyrttcoe Gas ks SLES.Budget Entry Code 07-73-04-67-03 BRU Name Alaska Power Authority Collocation Cote 08-73-4-673 FOR THE DEPARTMENT Department Head f*thorized Representative "Contmccvoner DatemLESTheconcurrenceoftheDepartmentofAdministrationissoughtsothatwemayproceedtonegotiatetheaboveconcontract. The proposed contract must be forwarded to the Department of Administration after contractor and Dé affixed but prior to execution or effective date,for final approval. CONCUR Tene(1 levferp 'FOR THE CONTRACT REVIEW COMMITTEE bUL.©5 1983 partmental signatures have been02:02,Vi,File Gods: e .PROFESSIONAL SE ICES CONTRACTUAL RELATIONS QUESTIONNAIRE \core 'roposed Contractor Republic Geothermal Inc. 1. 2. 10. 11, 12." 13. 14, 15. 16. 17. 18. 19. 20. Will the contractor be subject to supervision by agents,officials,or employees of the state? Will the state be involved in training the contractor as to the methods and/or techniques that are to be used to accomplish the work that is to be done? Will it be necessary for the contractor to render the services personally? Will the contractor be hiring/firing,supervising and financing payment of non-state employees in conjunction with the fulfillment of the proposed contract? Will the state retain the right to specify the hours (e.g.,start/stop times,minimum or maximum hours,days of week,etc.)during which the contractor is to accomplish the work required by the agreement? If so,what will be the nature of the specification? Will the state retain the right to specify the location at which the contractor will perform the required services? Will the state retain the right to specify the order or sequence in which the tasks involved will be accomplished? Will the contractor be paid based upon time worked (e.g.,hours,days,months)(in contrast to payment for completion of a product or,in the case of progress payments,a specified portion of the total product)? Will the contractor be reimbursed for miscellaneous expenses,such as travel,over and above the compensation agreed upon for the services to be rendered?(check ''not applicable'if no miscellaneous expenses,such as travel,will be involved in accomplishing the work to be done). Will the state supply tools and materials necessary for the contractor to accomplish the work to be done? (check "not applicable''column if no tools and/or materials are involved in the work to be done). Will the contractor be exposed to the risk of a financial loss under the terms of the proposed agreement? Will the contractor be afforded liability protection under state purchased insurance policies? lf so,what type of coverage? Is the contractor currently a party to agreements for the provision of similar services to non-state entities? Does the contractor make his/her services available to the general public (i.e.,maintain an office in a public place,advertise in yellow pages,trade journals,etc.)? Wilt the state be supplying office or other work space for the use of the contractor?(check "not applicable” if work space is only incidental in providing the required services). Will the state be able to discharge the contractor prior to completion of contract for reasons other than fail- ure to perform as specified by the agreement or the unavailabilityof appropriated funds? Will the agreement make the defaulting party liable for payment of damages rising out of the failure to per- form? Will the state have the right of first call on the services of the contractor? Will the contractor be bound to comply with the general policies and procedures govering the behavior of state employees by the proposed agreement? Why is it deemed preferable to contract for the required services instead of hiring an employee to provide them? Requires specialized services in a time frame that precludes state in house effort. The above statements,are true and correct to the best of my knowledge. YES aen aoh ADL.mee Executive Director dene Jb,E3 Y Comments on any of the above answers may be appended. _ ALASKA POWER AUTHORITY MEMORANDUM TO:Commissioner Lisa Rudd DATE:June 14,1983 Department of Administration THRU:Commissioner Dick Lyon yoDepartmentofCommerce& Economic Division OuFROM:Eric P.Yould.2\™SUBJECT:Sole Source Executive Director Justification, Geothermal Power4)|Development(,Analysis \A Amendment ATN .AE 82-0820A Background The attached ATN alters the scope of ATN 82-0820 to include recon- naissance level cost analysis of geothermal power development at Unalaska,Alaska.The original ATN Scope of Work was limited todevelopmentofadrillingplanforUnalaskaGeothermal(FCCSSB 26, Section 27)and operation of that drilling program. Alaska Power Authority The work completed to date on the subject contract includes the successful completion of three gradient test wells and a suite of geological and geophysical analyses at Unalaska. This ATN amendment will allow the contractor to complete a recon- naissance level analysis of the practicality of using the geothermal energy resources at Unalaska for electric power production.This work will be funded by a U.S.Department of Energy Grant by means of an RSA from the Division of Energy and Power Development.The original ATN amount was $5,000,000.This ATN amendment does not change that$5,000,000 figure. Justification The deep drilling phase of the Unalaska drilling project will be initiated in June 1983 by Republic Geothermal Incorporated.The drilling project results and the logistics required to complete the program will be essential information for the geothermal evaluation analysis required by the federal grant funding this reconnaissance level cost analysis.The unique exploration data being gathered at Unalaska by Republic Geothermal will not be published and available for public dissemination until mid 1984.This 1984 date is beyond the expiration date of the federal grant.The very short time requirement for commit-ment of the grant funds,(June 30,1983)is such that competitive bid procedures are not practical.The alternatives available are to use the existing contract with Republic to perform the work required on the federal work statement or to return the federal funds.The Power Authority has had this money available for a longer period of time but was not able to commit the funding until the summer 1983 drilling amend- ment was approved.The Alaska Power Authority felt the results of that pertinent program would be necessary in the cost analysis. Republic Geothermal,Contractor under the original ATN 82-0820,won a competitive bid for the right to do the geothermal work at Unalaska. Their work to date has been highly acceptable on completed tasks,and they are well qualified to prepare the conceptional design,cost esti- mate,and economic analysis needed at this time. The reconnaissance level work is required to proceed to the feasi- bility analysis of potential power projects at Unalaska.The Power Authority reserving funds froma prior appropriation for this feasibility study.It is hoped that,if a geothermal project is found to be econom- ically justified,the project could be funded with minimai state invest- ment.Geothermal energy has the potential to economically meet increas- ing power requirements at Unalaska.Republic Geothermal has the neces- sary expertise to complete the cost analysis of the geothermal prospect at Unalaska.The finished report is a requirement of the federal grant. Attachments as stated 8900 SUR eT EWE a sh 1 Uw UAE (Bret Communications)State c*Alaska ea TO:|]Name Dept./Div./Sect.Mail StopiCommie -Lowel'Ae Khrarte *7Dept./Div./Sect.FROM:[Name ;oh he bron AL 4 Cerd fret yA weice te!lo D1943LLEe a.Telephone "Date LEED4Afavao 7-3 335)E Ss ;z sz a /a a TA e ;?Q art hf ApeagerrVss Phia Coan handNe [ss {_ | .Ant aL,a on, ;ae Ah Pir ont r oot -_-|Li cL:CoeLikeUfsLats.Lr Sag Leet ) oy eed AAT LD ow,.opps ut a!|:Oru .f}ue -?Av LL ny,CON frac tu wae Ot TA 7 Lnmce >)Le Batdilrt.»(For Sree wert,_TH CS whan tol /AL CALs.Prischy aL -te Jha =ae no ;WAHtALan -001C(12/80) - Reh RAR RE RRR ROOT SII BEG 2 AMENDMENT #6 The Following AMENDMENT to Contract CC 08-2334 between the Alaska Power Authority and Republic Geothermal Incorporated (RGI)for geo- thermal reconnaissance level cost analysis has been agreed to by both parties: Article 23 Appendix B;Scope of Work Add -ELECTRICAL POWER GENERATION ANALYSIS Task I Task II Task III Task IV Task V Article 4; The Contractor will catalog and review electrical generation equipment that could operate by using the geothermal fluids or steam resources most likely to be found at Unalaska Island. The Contractor will give a brief narrative on the positive and negative aspects of each type of generation equipment,the correspondence address for each manufacturer,and contact person.Well head,steam turbine and binary generation will be considered. The Contractor will develop a matrix to evaluate the differ- ent systems and manufacture's performance for a 1OMW and 30MW size power plant.The matrix will include cost/unit,con- structability,transportability,dimension,weight,environ- mental impacts,reliability,operations &management,manu- facturer's warranty,and performance.Final matrix will be mutually agreed upon. The Contractor will graph what they consider the best two systems for application at the Makushin resource in the 10MW and 30MW size.The graph will vary the plant size from 10MWto100MW(if possible)and plot the costs/MW for the plant. The intent is to show the scales of economy of the different systems. The contractor will determine the routing and construction options and probable costs for transmittion of electricity from the Makushin resource to Unalaska.The analysis will address the ability of the town's electrical system to accept the bus bar power from the proposed system based upon the planned completion of the Unalaska electrical plan.The ana- lysis will address the survival probability considering the Aleutian weather conditions. The Contractor will determine the preferred conceptual design for a 10MW initial plant size and for a 30MW to deliver power to the town of Unalaska based on present knowledge.A load forecast and cost estimate for these plans will be prepared. The Contractor shall discuss forecast assumptions with Acres American,the Contractor preparing the analysis of all alter- natives for Unalaska.The present worth of the systems and cost of power will be calculated in accordance with the Power Authority guidelines (Appendix £)and standard engineering economic practices.Assumptions and costs will be listed. The economic analysis period shall be that used by Acres American to reflect the analysis of hydroelectric under studybytheCorpsofEngineers. Appendix C;Article C-11 Add -E 8866 For Electrical Power Generation Analysis,Amendment #6,the Contractor will be paid a fixed price of $20,000 upon accep- tance of the final Amendment #6 report by the Power Authority.One (1)reproducible master and ten (10)copies will be de- livered as the final report. 1 of 7 Froj.Cove: A ae tahJ.Cote:_#;in teers Fito Core:38.02.9201 A Delivery date for the draft report is September 10,1983 and for the final report is September 30,1983. Article 4;Appendix C;Article C-14;Limit of Funds Change to Read -The amount available for payment of work is $4,456 ,298.82. All other terms and conditions remain unchanged. Executed this day of »1983. For the Contractor For the State Republic Geothermal Incorporated Alaska Power Authority BY:BY: DATE:DATE: Department of Administration BY: DATE: BY: DATE: BY: DATE: Original ATN $5,000,000.00 Original Contract $197,321.00 Amendment #1 $50,000.00 Sub-Total $247 ,321.00 Amendment #2 $2,959.82 Sub-Total $250,280.82 Amendment #3 $1,537 ,253.00 Sub-Total $1,/87,533.82 Subtract from Amendment #1 (50,000) Sub-Total $1,/37,533.82 Amendment #4 $305 ,965.00 Sub-Total $2 ,043 ,498.82 Amendment #5 $2,412 ,800.00 Sub-Total $4 456,298.82 Amendment #6 $20,000.00 Sub-Total $4,476,298.82 New Total $4,476 298.82 8866 2 of 7 APPENDIX E SUMMARY_OF RECOMMENDATIONS Analysis Parameters for the 1983 Fiscal Year Economic Analysis Inflation Rate -0% Real Discount Rate -3.5% Real Oi]Distillate Escalation Rate 2.5%-First 20 years 0%-Thereafter Cost of Power Analysis Inflation Rate -7.0% Project Debt to Equity Ratio -1:0 Cost of Debt -12.0% Economic Life and Term of Financing Gasification Equipment 10 years Waste Heat Recapture Equipment Under 5 MW 10 years Over 5 MW 20 years Solar,Wind Turbines,Geothermal and Organic Rankine Cycle Turbines 15 years Diesel Generation* Units under 300 KW 10 years Units over 300 KW 20 years Gas Turbines 20 years Combined Cycle Turbines 30 yearsSteamTurbines(Including Coal and Wood-fired Boilers) Under 10 MW 20 years Over 10 MW 30 years Hydroelectric Projects Economic Life 50 years Term of Financing 35 years Transmission Systems Transmission Lines w/Wood Poles 30 years Transmission Lines w/Steel Towers 40 years Submarine Cables 0i1 Filled 30 years Solid Dielectric 20 years *Diesel Reserve Units have longer life depending on use.Also this economic life is by unit and not total plant capacity. 8866 3 of 7 Inflation Rate For the purpose of the economic analysis there is assumed to be no inflation. Recommendation:The inflation rate should therefore remain at 0%. Discount Rate As previously indicated in the Analysis Parameters of FY 82 the historic inflation free cost of money to the utility industry appears to be approximately 3.0%.Currently national and local economists and finan- cial experts estimate the overall real discount rate to be in the rangeof3%to 4%with a likelihood that the real cost of money for utilities is increasing slightly due to the increasing size and cost of electric generation projects currently being undertaken.It is also acknowledged that historically the real cost of money in Alaska contains an "Alaska factor"and is therefore somewhat higher than in th rest of the nation. However,the discount rate is also intended reflect the state opportu- nity cost of money and reflect long term trends. Recommendation:In regards to the above analysis and review,the Discount Rate should be set at 3.5%. Escalation Rate Based upon a composite research of Energy Consulting Companies,national and local economists,and Investment Brokerage Firms,the forecast ofdistillatefuels(diesel and fuel oil)are expected to increase at an average real rate of 2.5%per annum for the period from 1982 to 2001. Beyond the year 2001 further increases in fuel are assumed to be zero. This assumption is based upon-the belief that although additional increases are expected they are too speculative to quantify. Recommendation:The escalation rate for diesel and fuel oil be set at 2.5%per annum for the first 20 years of the economic analysis.There- after,further increases in the rate are assumed to be zero. Economic Life and Term of Loan Although in certain instances economic lives of up to 100 years may be warranted for hydroelectric projects,both the State Division of Budget and Management and F.E.R.C.recommend the use of 50 years and the term of financing at 35 years.For all other alternative generation sources, the economic life and the term for which financing can be obtained is assumed to be the same even though they vary for each alternative.The following economic lives and loan terms should be used for various powerprojectalternatives. 8866 4 of 7 Economic Life and Term of Financing Gasification Equipment 10 years Waste Heat Recapture Equipment Under 5 MW 10 years Over 5 MW 20 years Solar,Wind Turbines,Geothermal and Organic Rankine Cycle Turbines 15 years Diesel Generation* Units under 300 KW 10 years Units over 300 KW 20 years Gas Turbines 20 years Combined Cycle Turbines 30 yearsSteamTurbines(Including Coal and Wood-fired Boilers) Under 10 MW 20 years Over 10 MW 30 years Hydroelectric Projects Economic Life 50 years Term of Financing 35 years Transmission Systems Transmission Lines w/Wood Poles 30 years Transmission Lines w/Steel Towers 40 years Submarine Cables Oil Filled 30 years Solid Dielectric 20 years *Diesel Reserve Units will have longer life depending on use.Also this economic life is by unit and not total plant capacity.&38866 5 of 7 Inflation Rate Discount Rate REFERENCE Fuel Escalation Rate Dr.Scott Goldsmith 1.S.E.R. Dr.David Reaume Economic Consultant Lehman Brothers, Kohn Loeb Dr.Bradford Tuck University of Alaska Donald MacFayden Salomon Brothers Peter W.Sugg URS/Cloverdale & Colpitts Gary Anderson Stanford Research Institute Dr.Mike Scott Battelle Pacific N.W.Lab Mr.Thomas Thurber Data Resources,Inc. Victor A.Perry III Bechtel Corp. William L.Randall The First Boston Corp. Wm.Michael McHugh Applied Economics Associates Fredic J.Prager Smith,Barney,Harris Upnam &Company John Delrocali Whartan Econometric Forcasting Asso. Michael G.Moroney Pet,Marwick & Mitchell,Inc. Exxon Corporation Chevron Corporation 8866 6 7. 5.0 -noa0% 0% 6.0% 0% 8% 7.0% .0% 7.0% 5% 0% 8.0% 8.0% 6.0% 0% 5% 0% 0% 3.0% 3.0% 3.0 -3.5% 3.5% 4.0% 4.04% 4.0 -4.03% 3.0% 3.5% 3.0% 3.05 -4.0% 3.0% 6 of 7 2.3% 2.6% 2.8% 2.65% 3.0 -4.0% 4.0% 3.0% 2.7% 2.0% 2.5% 3.0 -3 5% 3.0 -3.5% 2.5% 2.3% 2.5% 2.0% 2.0% o1/oe MEMORANDUM TO:Commisstoner Lisa Rudd DATE:June 14,1983 Department of Administration THRU:Commissioner Dick Lyon Department of Commerce & Economic Division FROM:Eric P.Yould SUBJECT:Sole Source Executive Director.Justification, Alaska Power Authority Geothermal Power Development Analysis Amendment ATN 82-0820A Background ' The attached ATN alters the scope of ATN 82-0820 to include recon- naissance level cost analysis of geothermal power development at Unalaska,Alaska.The original ATN Scope of Work was limited todevelopmentof2drillingplanforUnalaskaGeothermal(FCCSSB 26,Section 27)and operation of that drilling program. The work completed to date on the subject contract includes the successful completion of three gradient test wells and a suite of geological and geophysical analyses at Unalaska. This ATN amendment will allow the contractor to complete a recon- naissance level analysis of the practicality of using the geotherma} energy resources at Unalaska for electric power production.This work will be funded by a U.S.Department cf Energy Grant by means of an RSA from the Diviston of Energy and Power Development.The original ATNamountwas$5,000,000.This ATN amendment does not change that $5 ,000 ,000 figure. Justification The deep drilling phase of the Unalaska drilling project will be initiated in June 1983 by Republic Geothermal Incorporated.The drilling project results and the logistics required to complete the program will be essential information for the gecthermal evaluation analysis required by the federal grant funding this reconnaissance level cost analysis.The unique exploration data being gathered at Unalaska by Republic Geothermal will not be published and available for public dissemination until mid 1984.This 1984 date is beyond the expfration date of the federal grant.The very short time requirement for conmit-ment of the grant funds,(June 30,1983)is such that competitive bid procedures are not practical.The alternatives available are to use the existing contract with Republic to perform the work required on the federal work statement or to return the federal funds.The Power Froj.Code: File Code:28,02.02 _ J.Bate:83./65.1 Authority has had this money available for a longer period of time butwasnotabletocommitthefundinguntilthesummer1983drillingamend- ment was approved.The Alaska Power Authority felt the results of that pertinent program would be necessary in the cost analysis. Republic Geothermal,Contractor under the original ATN 82-0820,won a competitive bid for the right to do the geothermal work at Unalaska. Their work to date has been highly acceptable on completed tasks,andtheyarewellqualifiedtopreparetheconceptionaldesign,cost esti- mate,and economic analysis needed at this time. The reconnaissance level work is required to proceed to the feasi- bility analysis of potential power projects at Unalaska.The Power Authority reserving funds froma prior appropriation for this feasibility study.It is hoped that,ff a geothermal project is found to be econom- ically justiffed,the project could be funded with minimal state invest- ment.Geothermal energy has the potential to economically meet increas- ing power requirements at Unalaska.Republic Geothermal has the neces-sary expertise to complete the cost analysis of the geothermal prospect at Unalaska.The finished report is a requirement of the federal grant. Attachments as stated 8900 THRU: From: ALASKA POWER AUTHORITY Commissioner Lisa Rudd May 19,1983 Department of Administration ae Commissioner Dick Lyon o.ewDepartmentofCommerce&CoyEconomicDevelopmentoO Eric P..Yould Sole Source Contract Executive Director Geothermal FilmingAlaskaPowerAuthorityAmendmentCC-82-2625 Background: The attached contract amendment changes the scope of work and increases the dollar amount of CC 82-2625.The original ATN scope ofworkwasforfilmcoveragefor"File Footage"for technical documenta- tion of Alaska Power Authority projects.The work completed to date on the resulting contract was for Tyee,Swan and Terror Lakes,and the Intertie project. This ATN will allow the Contractor to complete one ten minute and two one minute video productions on geothermal power development.The productions will be documention of the Unalaska geothermal drilling project and educational in nature.The work was funded by a Department of Energy Grant through the Division of Energy and Power Development. The original ATN amount was $9,500.This first contract adjustmentisfor$19,260. Justification: The deep drilling phase of the Unalaska drilling project will be initiated in June 1983.Filming of the drilling program is an essential part of the geothermal filming project funded by an RSA from the Division of Energy and Power Development to the Power Authority funded by a grant from the U.S.Department of Energy.The Power Authority is providing federally required cost sharing on the federal grant through a separate Unalaska drilling contract. The date for completion of the filming program is June 30,1983, which is too short a time to allow for a competitive bid procedure. Although we have had funds available for this filming for a longerperiodoftime,we were unable to proceed with this work until thedrillingamendmentwasapprovedandwewerecertainthatdrilling would proceed this summer. The Producers,contractors under the original contract,won a competitive bid for the right to film projects of this nature under the original ATN 82-1202 and Contract No.CC-82-2625.Additional work of this nature was considered likely at the time of selection and made known to the bidders.The Contractor's performance has been very good on completed tasks on CC-82-2625. Mmemo to commis:er RuddeismendmentCC-§'625May19,1983 Page 2 The documentation of geothermal activities at Unalaska is important to future logistical and planning activities that may be required if the project is to be developed by either the private sector or the State. The deliverables on this project are requirements of the federal grantthatfundedtheabovereferencedRSA(08-8243). 2 Ney *BALE ING REPUBLIC GEOTHERMAL.INC. 118623 EAST SLAUSON AVENUE,SUITE ONE SANTA FE SPRINGS,CALIFORNIA 90670 GERALD W.HUTTRER (213)945-3661 VICE PRESIDENT BUSINESS DEVELOPMENT TWX 910-586-1696 AND TECHNICAL SERVICES May 18,1983 Ms.Patti DeJong Alaska Power Authority RECE,,334 West 5th Avenue ,ED 2nd Floor Av D 1aAnchorage,AK 99501 CLAS,<3 1599iyPOyn Dear Patti:AUTO, We at Republic are extremely glad to have been awarded Amendment #5 to the Unalaska Geothermal Project contract.We are especially appreciative of the extraordinary effort that you personally made to keep the project going in 1983. It is obvious that this year the APA is following certain procedures related to "Requests for Bids"that are consider- ably more detailed than those used in 1982.While the use of the forms,language,and documents required in 1983 appears to be prudent for the APA,Republic did not anticipate these changes in the scope of the bidding procedures. Because of the very tight time constraints imposed on Republic by the "late"signing of Amendment #5,considerable effort has been required,over and above the effort that was expended in 1982,in order to develop the "Requests for Bids" and receive APA approval thereof.Additionally,the timeconstraintsdictatedanurgentneedforthetriptoAnchorage |from April 25 to May 2 made by R.E.Yarter and G.W.Huttrer in order to open and evaluate bids,identify winning contrac- tors,award contracts,and obtain APA approval of the deci- sions in the minimum possible time. The cost of these activities is summarized as follows: l.Labor*while preparing "expanded"requests for bids: Hours R.E.Yarter 45.0 L.J.Brandis 42.5 J.S.Matlick 14.0 R.G.Carey 7.5 109.0 $4,056 Proj.Cove: 4 Filo Cede:38.02.02 _ JC 28,I 38 | REPUBLIC GEOTHERMAL,INC. Ms.Patti DeJong May 18,1983 Page 2 2.Travel expenses for Huttrer and Yarter: Airfares $1,321 Car Rentals 529 Hotel 876 Per diems,17 @ $31 527 3,253 3.Weekend Labor* Hours R.E.Yarter 17.0 G.W.Huttrer 16.0 33.0 1,919 9,228 G&A @ 4%369 Total $9,597 *Note:Labor includes 37%Fringe Benefits and 40% Departmental Overhead. Because of the probable savings in the Drilling Stage X, no amendment to the Contract is required at this time.This letter is provided merely as the explanation for the likely overrun in Stage IX. GWH:13b cc:E.W.Wellbaum D.D.Weber T.T.Matsumoto R.E.Yarter Sincerely, hs kpLlieyGeraldW.Huttrer Vice President CONTRACT# PROJECT VEriilo: PROJECT 8107, ACCOUNTING AULITCR APPROVED FOR PAYMENT: AMCUNT_. APPROVINGCFE A/C# ee ee PAYMENT:NLT 2public Geothermal Inc. EXPENSE REPORT PERIOD Ny,PAGE OFcovereo:Wy rrlew I,/o3 name:°F Moree VAINSTRUCTIONS:DATE SUBMITTEDSStb/G21.ATTACH RECEIPTED BILLS FOR ALL LOOGING. 2.ATTACH RECEIPTED BILLS FOR EACH IN TOWN MEAL WHICH AMOUNTS TO $10.00 OR MORE. 3 ATTACH RECEIPTED SILLS FOR EACH SINGLE DAILY EXPENSE WHICH AMOUNTS TO $25.00 OR MORE. 4.SEE COMPANY EXPENSE REIMBURSEMENT GUIDELINES FOR FURTHER INSTRUCTIONS. DATE FROM/TO AIR FARE |LOOGING RENTAL OTHER TOTAL AFE OR DESCRIPTION OF OTHER CAR EXPENSES aceon APE/24 Lu Senrpe lBatcsl -52/R 32/2?HY / =-GHH-RS42£oA aCo Aicunenst Mae!2 7 7 <2 - Y/rb TIPE 22 Baki ee 2 £2 GH le Wr7_|Frevulic ale av?awl euAa-az a Qe iL rf 'tho |Frnm Au 4%4 =a =Yh»frei 22 aA a UASi-/2 /JE {iv Je -3762 3 2 L LODGri ns73Spoaat-bo0berticen tt nZaS £2 |te?|sae%|222%)n3427|v 60Woevns.LAK 2 Am |vu :00Sg.Wat Oo.(he 5?Se $=Fee 1,_|3 een fee RAE Fy 164| /6#| 70 oOSueMILs67694|466 |3437|76 ($323 SUB-TOTAL ($73 2-2 -ERTIFY THAT THIS INFORMATION IS A CORRECT PREVIOUS PAGES 1CORD OF MY EXPENSES FOR THE PERIOD MEALS/ENTERTAINMENT = , (FROM BACK)BE2EE EXPENSE REPORT TOTAL I8BSZz LESS COMPANY 8? INATURE ZZ F pare:Sit Lez FURNISHED:Ainrares |£646 = >ROVED DATE:___7 Ans Cae Gestac.OTHER |343 2#/r2 aovances|8002 NET DUE TO (FROM)EMPLOYEE GE STRIBUTION OF EXPENSES (to be completed by employee)AFE OR ESCRIPTION (B)AMOUNT,j ACCOUNT 46008 LITICAe UW,ert |epee WESAT.oD».Auro EXPENSES 22"Gen (1. 1 7 RCL G24(A)TOTAL IBES Lf MUST AGREE WITH EXPENSE REPORT TOTAL INCLUDE ENTITY,PROSPECT/PROJECT AND TASK DESCRIPTION FOR WHICH THE EXPENSES WERE INCURRED. ALL EXPENSES WILL BE RECORDED AS TRAVEL UNLESS OTHERWISE SPECIFIED. NO.3 MAY 1,1981 v.Lv MEALS/ENTERTAINMENT See instructions i :FE OREee ee ce AFE SER DIEM MERCVea3/2?[343/|EREOy 12 Sone fades o0 fEe Diem MEAL,fy 7Yar15=a aoeLeewen x rae37MCHOLHOE-Sreuttrod OF pfEeriedPTee-Go =Din 2 Meese el Harrow i ya -ED Seale jo hr 7 §0 feeDiem mene ActowAWeY/:x6 2o-Berir (Dryer 222Y/0 feeDiem Men,AuowAan c&27 IS=Recere Lala (SO.FERDiem Mene HLM Antear[S=fuser ¢Lact exeeDiewMereAccowawleJES/2 Zmeret Ye»3/2 - S;2/00.S Te |3/2 = Ss go Antt-SEnTle-WNTROR 2,eat733/-fee Dien,Men fupsavle LHIANTt HiepeaT HFTERdy7HesNene£7iPr 362 ES|SUB-TOTAL CARRY FORWARD FROM PREVIOUS PAGES 2524£|TOTAL (CARRIED FORWARD) RGL G23 de IA hamember Acct. No. casmert 781 THRU 10/ Poa RNS oie aby MasaiMedtnyt heea RAL delenatn sabeEFWeilaBae ONTAEIRI atsals 3128 og2140_ 41009; We look forward to your return visit! RICHARD E.YARTER,,. 5989, WNACHORAGE INTL °° INN ANCHORAGE670035906 or Authorized Re®eseniative for payment Merchandise and/or service purchased on thi@card shall notbe resold or returned for cash retund. 6. AX»| Check orBill No.. Any delayed charges 42483 Merchandise/Se mices Typeof Delayed Chg. -77)Printed in USA” Tips/ Misc. ;i ;Hee SBQO5O619T =AK _ SyMGAce as ; ae Establishment a&-esto transmit to American Expre” Cc ny (AWE xco) invoice Number169512 FirmlyCardmemberCopy Equivalent AmountQueene wereChargeskg Please Print (800)544-0986 or (907)243-2233 ACCOUNT NO. 300M NO. 3333 International Airport Road *Anchorage.Alaska 99502 JEST SIGNATURE - [we - on[ ; . " t | - [- : [. 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(53).AY S |g 9 0 1 0 0 b L 0 a MILEAGE DETERMINED BY READING |(20)TIME CAR WAS USED,.-|FACTORY INSTALLED ODOMETER,&,,(21){ .,](22)DATE/TIME ee STpreuaticsroTeeontt-y,p DS pose WHEN RETURNEDPP©YaRTrE |;yO,(23);|(24)DATE/TIMEYqree °:ne i en £0)»IntiNfen \@ baad ;dave fF Sead Is RATE CODE .FREE MILES a 4(26)HOURS|@(12)can A $: -|DISC.[HOURLY RATE DAILY RATE-WEEKLY RATE |ADDL DAYS [MILEAGE E (ye.7 DAYS|@ ©**t°$s .$ af IF |DONT COMPLY WITH ANY RULES FOR SPECIAL RATES,|MAY HAVE TO PAY AT NORMAL TIME AND §(28)_.WEEKS!@ae$ (13)ORIVER'S LICENSE NUMBER |AM UABLE FOR ALL PARKING AND TRAFFIC VIOLATIONS.(29) t :- .mo ad ' (14)LOCAL CONTACT/ADDITIONAL INFORMATION (30)af AD NUMBER AEMARKS -°(15)(15A)*(31)oyustMeNTS - EOE Re SERRE OE(158)REFUELIN ri 5 (33B)ATC/IATA NO.(32)apo '2 (25 THRU 31) id a3,4 es Tn a4)=nena a a 'COM % oud Do OS (34)TIMEAND MILEAGE CHARGEeys. . : ;oof .. .a pee "-" s 41(35)ONE WAY SERVICE FEE |(36)MISCELLANEOUS4-f woe .tty an r 5 COLLISION DAMAGE waiver [S22 REFUELING |:READ TERMS ON OTHEA SIDE ceedsaa)+.[(54)CAN EXCHANGE RA_NO._{S4A)CAR EX.CAR.NO.]](55)GAR EXCHANGEAA.NO.[(S8A)GAR EX.CAR NO.$500.00 %: 31ACCEPT«}1 DONT %(39)l " . THIS »»>|ACCEPT THIS SUB TOTAL ay)!&.O LoGASGASWAIVER'WAIVER;-!:out telielYalyeleltYelelFil ny X XY.#|(40)Tax on suncHG.+be -f oO %1 7IPNGBENEHGAYWenameD)"MY SSTATE 1"PERSONAL ACCIDENT INSURANCE WANT 7 TOONT Tay REFUELING =rare).wenn i ee ne eee 4 READ THE CERTIFICATE OF THIS.|WANT THIS *,ISERVICE (NON-TAXABLE)|\.RELATIONSHIP ca .;INSURANCE INSURANCE |a itedoa wewoodcINSURANCEONTHEOTHERSIDE)©eae >(42)CHARGE PER DAY fm are(17)|HAVE READ AND AGREE TO THE TERMS ON BOTH SIDES OF THIS AGREEMENT.IF THIS RENTAL IS TO X -AX $»*'PT BE CHARGED ON A CREDITCARD.MY SIGNATURE BELOW WILL BE CONSIDERED TO HAVE BEEN MADE ON FON Ce |(43)TOTAL "gp.to alTHEAPPLICABLE,CRED CLUBee -. :.CHARGE shy . _we fe 44)ON THE ROADXLoforponAs4)ON PENSES yo:NET CHARGE at}: (18)CORRECT BILLind NAME AND ADDRESS ;( _. _ 1 -46)|CASH |CENT.)CLUB]DIR.[AMT Oue Te ..(6)N ECT (US.$)wm 2 |>t q ,:RENTER AQRESS MOTTO OPERATE,ENTRUST O8 USE ENTED VEHICLE 47)CASH REFUND REC'D REFUND FROM 2 SeSTANYPERSONUNDERTHEINFLUENCEOFOCTOIOCANTS,AS CEFRED =|(4/)c TRAVEL 1 ny_BY THE LAWS OF ALASEA,AND F SO CPERATED,CLSTOMER AGREES X .HOTS AGENT 1 aYOPEMBURSEAVISFORANYRESULTINGDAMAGESWHETHER(48)RENTAL AGENT ID |(49)RETURN AGENT ID }(50)ACTUAL RETURN LOC.=DAMAGE WAIVER IS ACCEPTED O8 DECLINED.=rey aa RESERVATION NUMBER WTA,AGREERENT SPECIAL DOCUMENT NUMBER BEM,MENT phan nd 5 1 g #0 9 ?a3RENTALSUBJECTTOAODITIONALFEEIFCAociTy.PAYMENTS.aREIMBURSABLEEXPENSEDyPRESENTWITHTHISCOPYATGHECKIN.:WHILE ON THE ROAD REPORT ACCIDENTS IMMEDIATELY TO LOCALP'ALL RENTING AVIS STATION COLLECT.Kae.IF DELAYED IN RETURNING CAA PLEASE CALL RENTING AVIS STATION COLLECT. i RLA@ (Rev.6/80)Paye 2 Copyright ©1979 Avis Rent A Car System,inc.THIS IS NOT YOUR BILL PREPAYMENT/CUSTOMER''S MEMO- ae =:-wee ee >-or _-aes -¢ToD a erere, ne +yaadawi Oo EDall Oa AN awaFeNe ;EDMONDS,¥ A05 LAKE BALLINGER WAY /775-2561 we,TACOMA,W/=.27 RUSTON WAY /752-6661. SPOKANE,WA/W.621 MALLON ST./328-5965BELLEVUE,WA /2 LAKE BELLEVUE DRIVE /455-2244 a,,*RICHLAND,WA /1250 COLUMBIA CENTER BLVD /735-6575eneeeBEAVERTON,OR /3775 S.W.HALL BLVD/641-6161reANCHORAGE,AK /3301 "C”ST./274-5628ooana:FAIRBANKS,AK /BENTLEY MALL/452-2756CERRITOS,CA /11175E.183RD, - oo O134u. . ' -' °(1,7 x Cae ;ee .a :: ;'NumbeiBRED.on 21383 498721hEgale|f AACOciear ARCO ancoungaed Guantity Price Amount). Authorization ;LC].C]C]/ofAanere d Xf(Va 3 ,Sales Tax . Total Charge Applicable taxes included iS (3 Lf°|ARCO Petroleum Products Company Signature . Lo :'yt.:Division of AtlanticRichtieldCompany)X a . ;|-4."=: :Customer's Copy -.:wei)eh dade bs tahiti ar ae + .hem hogy Veen vale migereAcct.No.- ""yes 082740,S00810781THRU10/83 80 |"AY,Tan E YARTER /55989.Panel aa ::q Servic€Estanushment Dageag Gia gs _wie Any delayed charges_sI Mois ANCH :er ae |:are listed beidw;iS&SEAPORT.AK ae Fe @ i(096481293 2 6p4225-BF TOaS ;'e Taxes CSET ot Delayed Chg. i eeee almt.dfOelayed Chg. aa Revised Total ..-. Conia nd ROG,Form€020240Rev(8-77)PrintediaUSA.”LaeFieasePrint |-.Record of-.._Firmly .Charges.. a ton amb ap : Copy ae ot”il”a 2 28'ssa nari aa comorrons CKETIS)ara ee below for AirlineTeKeTiCHEsuanet700ComraseeaTwTCAETCONJUNCTIONTi= .tige t kaw .um _aad =*IR HWS ry a i.on toga rae te orm eria 'oj Fratsotaaaiiawea:a AiGhszancowo,ee FACETED FEI Let Fiverere Pgs iheeneeaaahCPN.aePATER TATETa ae DeFeet ole é PAT ae Aa,.Gl Saad aad "3 0 _FUFRAT ETE -_:4 i STARE ese TOR!Mr Pr ae AP ALLOW -8 OUTTA TCR eC ee TT rerea ATEa eT rn anne -w bob.ny i .Bl tk Ft Oe Pe ”'STO FRERTILEs Ted |)mo |ae i fedehe STF a |2 TRAROT aE RS RO RAP]Bowtie]ee ee |iiF{PORT ANU,OFRh.[as |.44 b fore aor De _aa.-:7 =To :SSeret eis 2 r2 try)phon ma!WT,uNcHecKeo| :-uncnecKen [4 __tneneenen ._--tFaneRIGAOSOPROONTpsSERTavataearoraPa&TAR)SA.where CME peta |=6B cme anern ee osSAY ye rae zeJEL cere antuswo.-am renee wee =eo es -a Sect-----OTR:5S =ao ee =roca -Erempypeeete-.ee a Lae staneSRIOINALISSUE--s-2,CPN.TERE FORT AER Te a O27:TET EE:|=:oars7195819724 2,De cd : "colaan "',a ©Py "Peet ®a av et tig,00 NOT MARK OR WRITE (NTH WHITE AREA ABOVE Lo _.vente ee eee teen nese wee epee " "t qa? : ee - ;.|'Republic Geothermal Inc.| | PERIOD .S Zz PAGE OFCOVERED:A/2s/P3 -S/o NAME:Lp Aether "/ -?7 E SUBMITTEDUCTIONS:DATE|INSTR Sheps4.ATTACH RECEIPTED BILLS FOR ALL LOOGING. 2.ATTACH RECEIPTED BILLS FOR EACH IN TOWN MEAL WHICH AMOUNTS TO $10.00 OR MORE. 3.ATTACH RECEIPTED BILLS FOR EACH SINGLE DAILY EXPENSE WHICH AMOUNTS TO $25.00 OR MORE. 4.SEE COMPANY EXPENSE REIMBURSEMENT GUIDELINES FOR FURTHER INSTRUCTIONS. AFE ORDATEDESCRIPTIONOFOTHERAIRFARE|Lopcine RAR OTHER EXPENSES Aceon 4/.2i/es Qwpeve -Awch E14 GEM 65-1963 -S1G0--I0-|644.8 |3aysy \shse4/28 Porfora sé La00 4.00 4 oe, 7 '4/et Fxpherot -fed,- AVA a Bice 3.ce ' i $72 Frlemg fash °[AZZ 2-60 S.ce *' i id5/3 Awel.lofernef [or (/M407.73 4 409.73 " .Wr,n 's/x__|fees ,ZA "7 P6 00)VIE 7 45/3 Poittetwe lo Hiri V tame |czu0 "|22.00 ” rrr a 7 =e 1 [1-145 peT|[Sa |Get Aabefia I5-6000-6 132-1]2o ti)[0.00 [be 3-418 |AFA f °¥ a aEDTreeutlCadve-Ef Cupro \7-7 B36 2H 33/7 7 M52 7942--GaVo-20 pb fi) SUB-TOTAL 1315.FE |% CERTIFY THAT THIS INFORMATION IS A CORRECT PREVIOUS PAGES -_ 2ECORD OF MY EXPENSES FOR THE PERIOD ;EALS/E N =MEALS/ENTERTAI MENT 340.5 |e EXPENSE REPORT TOTAL lb5b 3k / LESS COMPANY ap\ ignatuRE-_Le3Ah,Lhe DATE:les FURNISHED:AIR FARES C4:Le \PPROVED Bogis Ahacer:DATE:2//°4)3ohooh3 OTHER |/Fé .00 |”ADVANCES |-4/6,32 NET DUE TO (PROMt EMPLOYEE FOG.0F V DISTRIBUTION OF EXPENSES (to be completed by employee)AMOUNT hutDESCRIPTION(B)CODE StageSneerelLpXohachtreyeferegetC0fraCe(u-y 1A FUT |MSS |="oO -_-ACTBlegeret0-Re ce 00,2 hr?A-habe -(7I-wae)|7 IY.2)GZ.S98 [/3ft f AeABegpye32DicelepseenT-eg ho Free?_,Cucereg\\C2977 2/C912 ELIEG Were!THE ALASKA fvCTION CF THIS EXPE Mtibiny Wil RE BEd SéPAeRELy Fe Tee LEA Pr ;'6 RCI C2a(A)TOTAL [0563 )MUST AGREE WITH EXPENSE REPORT TOTAL )RAM NO,3 INCLUDE ENTITY,PROSPECT/PROJECT AND TASK DESCRIPTION FOR WHICH THE EXPENSES WERE INCURRED. ALL EXPENSES WILL BE RECORDED AS TRAVEL UNLESS OTHERWISE SPECIFIED. MAY1,1981.-Nt fp SS SWHESof, +4ae.Laer-iN.Wakearn /Se ."s oJ f MEALS/ENTERTAINMENT i ae See Instructions ,): AFE OR PLACE AND TYPE OF BUSINESS PURPOSE,NAMES,TITLES ANDAMOUNTACCOUNTEXPENSEINCURREDCOMPANYAFFILIATIONSOFPERSONSPRESENT 2?3(.60 W383 YS,Ait lerrye-BLD L/L She ae,vk y Q t,ig h rect.3/.60 ' 3/.60 *¢4 "he " fSe0 4 %%4 coat eae es " 3)«00 '*a "i .LS.od %',&7 °4 3/(Ov 8%Gj %o b 31,00 '("'' 6 CO ve "ae ty 4 THi2E "|W34¢E |Elev.92 Der -Got,22 trkr,PDelory Af [P30 39S.|Chrhvccot Charles -Dre SiH,F kiver,Hmwerd Cw./F \/AA Al2$4ss_liens |Metulh Cf Beh!eff \ 2 °Cozem fog Cle b Leech || é 8?ae Yolo Jjco -Be lA 7 "\ ge "AéPokey s -Dimer "/ 341s 194 a-|424e4 2010 -"i=|E50 #11343] |7463:\Sl00-l2oig-fh=222-00 370.§@ |SUB-TOTAL -_-CARRY FORWARD FROM PREVIOUS PAGES HO,£6 TOTAL (CARRIED FORWARD) act ¢23 hainparsoea"te,nteaeaeeeeeanAaneCndaeOoare8AtTiahiliAPonNah»EthbaBPanteacute S\.1.Y¥ MEMORANDUM State of Alaska” TO:The Honorable Richard Lyon DATE:March 18,1983 Commissioner Department of Commerce and FILE NO Economic Development 6TELEPHONENO:-) FROM:Eric P.Youid "fx SUBJECT:Amendment to Contract Executive Director NO.08-2334 for Alaska Power Authority Geothermal Exploration at Unalaska During its 1981 session,the Legisleture appropriated $5.0 million for geothermal drilling at Unalaska.The Power Authority subsequently solicited proposals for an exploratory drilling program not to exceed $4.7 million.The Board of Directors approved award of the full con- tract to Republic Geothermal,Inc.In order to retain maximum control over the work,and because early phases of work would determine detailed scope for later phases,we opted to phase the contract.Rather than phase by means of letter notices to proceed,contract amendments were to be used to exercise control over phasing of work. The cost of the first work phase (covered by the original contract and Amendments 1-4)totaled $2,043,498.82.Work proposed under Amend-ment No.5 totals $2,412,800 for a new Contract total of $4,456,298.82. The Project Manager for Unalaska Geothermal Drilling,who is also our Director of Project Evaluation,has provided Mr.Ed Eboch of your staff with preliminary background information to substantiate theeconomicpotentialofgeothermalpowerproductionatUnalaska.(He has expressed concerns with respect to marketability of power.These concerns were further investigated by Ms.DeJong as detailed in the attached Memo to File.) Although it is not clear that an exploratory geological program mandated by the Legislature need be justified on the basis of economics at such an early stage,it appears that if the resource is confirmed, geothermal development does have the potential to provide power at a significantly lesser life cycle cost than alternatives available to serve the same market.Confirmation at the detailed feasibility level requires information which must be provided by additional drilling.The subject amendment is,the necessary next step towards confirming the resource and determining economic viability of this project. This amendment must be approved by the Department of Adminis- trations immediately or the field season will be lost.To defer deci- sion is to terminate the program until 1984.This is probably the best geothermal project in Alaska.It is our intent to develop this resource either wholly or jointly with the private sector. Attachment as stated Fro].Code:. File Code:AY D2 Oo ee)eyeJ.Date,ods 2d