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Unalaska Geothermal Drilling Project Agreement 1981
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Ol ped Ceo Co nA STAI 6,aehing st Kedtlted eat +Ne ces?| wiht be tebuytled fo Tae TJ.W-R. egypt Tke Cuter fh AeKeomr/inefokKaweathwhlSufcouhatn>avosrAale (Hund ard tke Lagnere J 7 LL 0tnudtJpPeraseESpyCemrbahingweezerTyieFe),eke HO cess "oe The nlenks Paver Aataraihs LahevesucaSor'ae fo feo 11 a?AtecouplesorGaingproceLyWewee ,Q Cowprekenh/ne eu clarahbr,of KYtvefeorhe\et ane Fy (tO Cere af ploreLathbeuuwtrteber,Jo BRtlererrwe f4e set tab Oty <f +e continds FeAupnue,ALE frrdiigs ead Maly Coller tedandSerervintesyorlalssyythePfbecornre Ke CXC cu Diy prwe Or Phne eo LL pbswoCP HL cll egal ry Har 61 ng .wheLAr[ae Taree FA ,b Low oF prececater AES eum 2 i”6 yong ofCUOSCeeyoe” oO teppedl fr mip ackegerate Sify o€ Cantey,fh Aba?enc atag eo taag-te Omi Co yeo10aoyglee”to Col fae Meat ed!27'229 wo pur fo esa 4 Coheyz,.GH aly Cooled Cucly nngy or Sf recon Cento 77 ovrléo fro sebfity ct erg tlew”vo ke Roeser,Au 4 0 pers hole”coun pCelrig 1 Qtey CdbetotemplatedGirt./t_s's_prossiite ftraY trefrbi,nied &ake fa Hr HE fr dT 27UncarCa!wtlEl ,Mo every Lhe Cophatdvr shoudfaet should be Grune aos Clan are fn Luotry precemanes -0 Awl sree7jeslerwrhigtiyAecomurerte,|algeatugtreyeneCloreVabeBelemed0"s/f)aud hase aay mast 62 Cone wn oven te fo Ceon&yale Se Pores warty wt Antal =exlerzf Le rover e+/d.Fea frag "tat A welt f ERO MMe mrt CEG oy Ge?|cour pLern,of Lag wet are urd well kt2a_d/Conrbuaes Sree rin.sake pa CC».The pnou-Coumeresct cuffals i 4 of fle v2wattbeKeutedreCorquchonpvt +/4e courrsulfaufr por fue leh,PrezBaMoon'by Fi oa'rive fe aten COrr-3 PernaAePeteon-s Ste avo Sue abavylouwoul ppg?(CC Be frsee/at SoetYe, (6-4) 44 a)aoy Ss ne ae ezpcoun?ed ft Cer LOD CA TOCA Seavewmenn of fer rere ,en 14 peg avd f7re Sorefravpenlecw”Sugfe ce .Wha forepreorgerWwett?-Abdewer =-enme und +tGery So Mteng Cregnrber27Onre atr” costly ho th ro A.Le "7 Caste repete ¢feu Le bp clone| 3 8 Proposal for a Contractual Agreement to the Alaska Power Authority UNALASKA GEOTHERMAL DRILLING PROJECT 7 OyPattiDejong,Project Manager Submitted by: Department of Petroleum Engineering School of Mineral Industry University of Alaska Fairbanks,Alaska 99701 September,1981 LEE ee nee FEL5 EL Ait po,ths Michael J.Economides Earl H.Beistline Principal Investigator Dean 479-7734 School of Mineral Industry A.B.Frol,Director Keith B.Mather Administrative Services Vice Chancellor for Research and Advanced Study i Credo:The University of Alaska offers equal educational and em 1oyrient” opportunities.File Code:BE.0D.OU | J.Date:£1.- ,{ Proposal for Contractual Agreement To: Institution: Title: Principal Investigator: Duration of Project: Starting Date: Sum Requested from Alaska Power Authority: ABSTRACT Alaska Power Authority Petroleum Engineering School of Mineral Industry University of Alaska Fairbanks,Alaska 99701 Unalaska Geothermal Drilling Project Michael J.Economides Assistant Professor Petroleum Engineering S.S.#512-60-2784 12 months September 15,1981 $53,465.00 The Alaska State Legislature has made an appropriation to the Alaska Power Authority to initiate geothermal drilling on Unalaska Island. We propose that we participate in this project and serve as con- sulting engineers in the preliminary planning,the drilling and completion phase.We also propose that we conduct a far-reaching well testing/reservoir engineering analysis following the drilling phase. OBJECTIVES The Department of Petroleum Engineering,School of Mineral Industry, University of Alaska,Fairbanks is proposing a contractual agreement to perform work on the Unalaska geothermal drilling project.The proposed UAF principal investigator (P.I.}),Prof.Michael J.Economides,has had a wide exposure on the drilling,completion and testing of geothermal wells. He is already familiar with the constraints of the Unalaska project be- cause of his cooperation with the personnel at the Division of Geological and Geophysical Surveys of the State of Alaska and because of his on-site visit during the Summer of 1981. WORK PLAN The Unalaska drilling project may be divided into three phases.The Department of Petroleum Engineering is proposing an association with all three. Phase I:Preliminary Work Outline and Review of Contractor and Subcontractor Proposals. It is recommended that the project manager convenes a group (including the UAF P.I.)to establish a discernible plan of action for the project. A call for appropriate bids should result from the plan outline.Topographic and geophysical studies are anticipated.Drilling,well logging,well completion and well testing/reservoir engineering work should be expected. Since geothermal drilling,high temperature logging and steam or two- phase well testing have presented marked idiosyncrasies in the past,great care should be exercised in the choice of contractors. The logistics of the Unalaska project will undoubtedly prove costly. Hence,intense bargaining negotiations are needed with the potential drillers. Finally,a drilling plan taking into account in-house geological and tectonic structure information,must be drawn out and submitted to the driller. Geothermal drilling varies from oil and gas or artesian water drilling not only in the mechanics (compressed air instead of mud,different drilling bits),but also in the delineation of the wells (since geothermal reservoirs are found in highly fractured formations).Great risks due to unqualified contractors can be easily envisioned.This is why it is imperative that the Project Manager draws heavily on the obtained geological knowledge. The UAF P.I.could be particularly useful in formulating a drilling plan in cooperation and supervision of the successful driller. Phase II:Drilling and Well Completion. The actual drilling operation must be closely supervised by the pro- ject manager or through her proxies.Continuous exchange of information between the driller and the "company"engineer must be established before the drilling begins.The construction of the drilling pads,direction of drilling and the appropriate wellhead configuration must be outlined ahead. During the actual drilling operations,serious and urgent decisions should be anticipated and taken.Action on thieve zones,unwanted fluids from higher zones and the ultimate decision to complete or abandon must rest with the ''company"engineer. Drill stem testing and well logging must follow immediately after the drilling operation.The gathering of the proper data at the proper inter- vals must be directed by the future analyzer.All too often,useless and incomplete data have been collected because the engineer was not consulted. Phase III:Well Testing and Reservoir Engineering. Pressure transient analysis (well testing)is the most powerful tool available to a reservoir engineer for studying well productivity.Four major verdicts may be handed down for each well: 1.Determination of the extent of well damage or stimulation (skin). 2.Estimation of the value and direction of effective permeability. 3.Determination of the mean reservoir pressure. 4 An intelligent guess on the drainage volume and reserves. All of these variables are of great importance in the evaluation of the reservoir.Their values will decide whether future drilling should take place or whether the reservoir must be abandoned.The phase and extent -4- of the reservoir fluid will have a profound effect on the economics and the type of the power plant or the direct utilization system. Again,the UAF P.I.is particularly qualified to perform the work. He has analyzed a large number of geothermal wells,spanning several locations and fluid types.He is the principal author of "Geothermal Steam Well Testing:State of the Art,''published by the Society of Petroleum Engineers. BUDGET Personal Services, Prof.Michael J.Economides Principal Investigator One Assistant Travelling (to Unalaska and other project related destinations) Supplies Services (computer time,typing, drafting,etc.) Overhead (44.5%) Subtotal: Total: $12,000 12,000 8,000 1,000 4,000 $37,000 16,465 $53,465 By TOM ATKINSON Daily News correspond ent SOLDOTNA -Tihe state has launched a pilot )program tobegindeveloping;Alaska'sgeothermalenergybeneaththechillysurfaceoftheAleutianIslands. The University of Alaska,with a $5 million gr.ant from theylegislature,is geziring updrillawellinthe.A leutians that will tap geotherma |energy forelectricitygeneration.TheprojectwillberunjointlybyheFairbankscampus'Depart-ment of Petroleum EngineeringandbytheKena.i PeninsulaCommunityCollege.Scientists say th ey believe apowerhouse.of untzipped geoth-ermal heat,the same energythatcreatedthevolcanicis- lands,is beneath the islands and in Alaska's Interior. "Nobody,on this scale forsure,has gone out-a.nd drilled aeothermalwellinthestateof laska.We expect to findsomethingprettyg¢:ood or wewouldn't be doing it.,''said Den-'nis Steffy,coordiniator of the.university's statev vide petro-leum extension prog:ram.Steam or hot weiter flowingfromthewellcould.be used to Penerate electricity or to heatuildings,Steffy saic 1.There are severzil places on the Aleutian chain v vhere geoth- ermal energy could!be tapped,he said,but wells miust be near Aleuiiians'geothermal energy drilled UMNAK ISLAND. BERING SEA Makushin Voiceno AKUTAN ISLAND map:Daily News art department miles UNALASKA ISLAND ALASKA ANCHORAGE The state is planning to drill wells in the Aleutians in an attempt to capture for electricity the same geothermal energy that helped create the islands'volcanoes. energy consumers because geothermal power can be trans-ported only after being convert-ed to electricity.Steffy said he hopes findingandacquiringasiteandgettingadrillingrigtoitwon't takelongerthanayear.'A required environmentalimpactstudyalsomustbecom-pleted before drilling could be-gin.But Steffy said the geother-mal well would be a clean source of energy without ad-verse environmental effects. The university's petroleum techonology students will bene-.fit from the project,Steffy said,because drilling for steam isverysimilartodrillingforoil.The project will draw on prov-en geothermal technology al- ready used elsewhere,he said. The Kenai college also will use the well as an example in a new program developed totrainenergymanagementcon-sultants. Ginger Steffy,the program'sdirector,will'teach studentshowtosellgeothermalenergytoindustries. "As energy costs go up andup,'”'she said,''the businessesthatuselargequantitiesofenergyaregoingtohavetoStartlookingatsourceslikegeothermal.” MEMO TO THE RECORDALASKA]sussect_livetarton Geetd py YQ pare I/t/8) POWER SHEET NO OF AUTHORITY PROJECT Powe Te tal nen Sew.Pend CPoks.)Lao ko (Pee 2 rr 6 ctu...)les Sosa ct doth.ws >ree +NO ea c also ket te Te ect of Cat Lect) Buk «Ny ead S liao cree ty.DAS He ALA aKornapenip LAA CAA OAR "Het QO.Pree\-_ )|V2 Nuns WED wars Banned .Rocasue d Cc Cyc eG Re DO Asm aa Dern oh Tee, Prise 4 a ae Case.Cvles Myers wmWn Laclede toe ap town le Ganchinad2Sgowsi.vho . ALASKA POWER AUTHORITY SUBJECT MEMO TO THE RECORD BY DATE SHEET NO PROJECT OF. MEMO TO THE RECORD Pie)pate 6/U/2 |ALASKA SUBJECT _(Analawnxa BY POWER Drieagli,svca}Wwe SHEET NO |_or__] AUTHORITY \\proJecT.231. Tiler 6/6 (41 Vn.r Gene wdc aby ath LEA /rks Gaspins Peet A}\»)West rmoovk -_cline at wen Gann a po Loe ;chery?ej inn dere)a ark =dupe(-Orn Dh,Sn (O "Sy mm See yn 3 <x Soy (;"\BA ath we Papen any aoe bey 24 Ay : Z7™M_-3\Wit an aA hm Oo Cm dos ets ody-lo ev)ba Lan von Len cyt meg xt KeyCA¢ph Wonote,» rales Ut ean onw 4 iret aw \-\2.awh OF 208 e+.Te ew Lun 'AY ta oh ANNO OX Ard _peoeuwe L amma alee ,Lie amore ly4peelbettre(ite.Sap Orel Clepanneles?\Teale heareroe PreehoesDB:shoved.ATeesanPOCAe)Cet f \PUM send man OL Ra U MEMO TO THE RECORD ALASKA SUBJECT BY DATE. POWER SHEET NO OF AUTHORITY PROJECT STATE OF ALASKA ALASKA POWER AUTHORITY REQUEST FOR PROPOSAL The ALASKA POWER AUTHORITY is soliciting from interested parties written proposals for the following: 1)Data analysis and prepara- tion of a detailed exploratory drilling plan for the geother- mat resource in the vicinityofMakushinVolcanoon Unalaska Island of the Aleutian Chain,and 2)Operation of the drilling program,including atl logistic arrangements. Proposals will be available from the Alaska Power Au- thority September 22,1981. Engineer selections will be made by the Alaska Power Authority.Soticitation,selec- tion,and contracting for these services are to conform to all applicable statutes. Four copies of each proposal shall be submitted in person or by mail to fhe following address not later than 4:30 P.M.,October 28,1981: Alaska Power Authority 333 West 4th Avenue Suite 3) Anchorage,Alaska 99501 Questions concerning proposal Preparation or format may be addressed to: Patricia DeJong Phone:(907)277-9336 or (907)277-7641 Pub:September 20,22,24, 198%: AO-08 7352 STATE OF ALASKA ALASKA. POWER AUTHORITYREQUESTFORPROPOSAL The ALASKA POWER AUTHORITY is solicitingfrominterestedpartieswrittenproposalsforthe-1 following:=:.vee .cn > '1)Data analysis and prepara: tion of a detatied expioratorydrillingpianforthegeother- mal resource in the vicinity'of Makushin Voicano on Unalaska Island of the Aleutian Chain,and 2)Operation of the drilling program,inciuding all logistic arrangements. Proposals will be available from the Alaska Power Avu- thority September 22,3981,Engineer selections will be made by the Alaska Power Authority.Solicitation,selec- tion,and contracting for theseservicesaretoconformtoali applicable statutes.: Four copies of each proposalshallbesubmittedinperson or by mail fo the following address not tater than 4:#0PLM,October 28,1961:.Alaska Power Authority -te |}933 West 4th Avenue : Suite 31>:Anchorage,Alaska 99501Questionsconcerningproposalpreparationorformatmaybeaddressedto: '.Patricia DeJongPhone:(907)277-9336 or(907)277-7641 . Pub:September 20,22,24,1981 HO ay ary A0-087352 \. a _fren Number 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 amountisinexcessof$2,500in an annual period.The PROFESSIONAL SERVICES COHMTRACTUAL RELATIONSHIP QUESTIONNAIRE on the reverse side of this form must be completed in all circumstances)Refer to Adounimtrative Manual,Section 8000 for further instructions. Depariment oO Division.a -[contract Type Commerce&Economic Development Alaska Power Authority SE Amount af Contract Pernod Coverud oO ::ee ||NTE $3,500,000 ==|Frou October 15,1981 7 December 31,1982 Purpose(s)of Contract :a _--- Develop drilling plan for Unalaska Geothermal (FCCSSB 26,Section 27)and operate drilling |program,including any necessary subcontracts for pre-drilling reservoir definition,| drilling,analysis and all logistic support.= v .°,we rpaweaanASVwweee,\yes "As We intend to negotiate with the following persans or firms.Agencies SHOULD list at least three choices or explain why it is not possible. Name , Address /, Alaska Business Licensa To be advertised in Alaskan and other newspapers (and to a mailing list Ol ves (No Name Address - Alaska Business License developed specifically for this project)in accordance wiht Alaska Power ves Ono Name Adaress : : Alaska Business License Authority consulting engineer selection procedures._ Ove:Ono Name Address Alaska Business License a ee ; ie Yes O No Marne Agaress a an Alaska Business Licensyu oo a .'a Yes i)No Name Aacaress :-Alaska Business License] oo So ; (}Yes ie)No BUDGETARY DATA Buayet Entry Code BRU Name.:Cottocation Code 07-73-04-04-39 _AlaskaPowerAuthority 08-73-4-281 :_FORTHE DEPARTMENTDeastmentHeadofAuthorizedRepresentativeTitle .late 2 ee ed The concurrence of the Department of Administration is sought so that we may proceed to negotiate the above contract. CONCUR Oepartment of Agsuinistration |Title - Qate The proposed contract must be forwarded to the Department of Administration afte:contractor and Departmental signatures have been -alfixed but prior to execution or effective date,for final approval. 02-189 (Rev.7/81} ROPUSLIC GHOTSERMIL,INC.and pares &MOOKECONSULTINGSERVICESPRICELISTS Ceoesber 199) +aUYeeeeeeeaeye|:PGT DAMES &MOORE|.Cateoory Price®'Pricets Technical Management ($29.00/hr $96.25/nr Senior Technical Staff 65,00/hr 78,75/hr|Tecnnical Staff S1.00/hr| Supoort Staff $.00/hr 21.00/hr 27.50/hr _42.00/hr Actual Costs 254-2£Costes LABOR.i S$ef Costs and Gtamtn, *ourly rates are based on the actual salaries paid to thoseemployeesexpectedtoperforminthesecategoriesplusafactor forexployeebenefitsanddepartmentwerhead,The stated rates willbeineffectuntilJune1981,at wich tima they will be adjustedSoreflectanycostchange,, eK Hourly tates are those that will be effective fron January 1,1962throughDecember31,1982. duit in On Fea (siz 8,09 JoCoie Sl.-se ae tte +ee eee OU 4 Byi,Bye a $08 aSOPGeaaa 2 REPU ps 2OTHE MAL INGMB2xTAs5éSOWay%.ey.ONg Rang zs,"OPN A SSs45™.TO 888 tee . (Qty,Bag Oosy "Mber Lg,logy Patty 2JongYOjen*fanage,Alasi,Powe»wtthori a,334 y St Sth Wenig"chorags.Alas &99S5Q1Deepatty, PUrsnans to Sur selephon.Ony Sabion OF I>»8Cenbe .198)am reqittting the jo llowine Setay)budge.for Phase I Sliven.les relates to the Unalagr G Sthern,ExDloracs QD Pr JecyFleas,Wte that the Stton 2B de $bove Sur Tiginaydig,This is Cue to rors 8atag by sounding RUmbare dis.fere tly in Caley fions eons at Citrone,tz 8s,(Wa Wil)Stio;With Our 269 re?*Lgure;.I Hope that thig Preakdonn into Stag 'Wore Clas ifie Elo;ategor s.'Repupry labo)and Yerheas £TUreEs |amag d "CoreBdop8n@5Srheagfyrag,diregs Coss ,ipttasencs "hargas&2B Chars s,fof the SPub de &2 ds Stailedg Gnougy,to P@rmnysleyenerasig,Of »COse Plus fe Conte [a If i+1s Roe,tetEnoangE'yy try fo gs Dette 'Meerery r éOecA . aaa Fe ,Cae,nk Lienwe&we Ruters**Ploragy M vg STAGE Crier) r Man HoursCost It Man Hours Cast ' IIX Man Hours Coat IV Man Hours Cost Vv Man Hours Cost SUB Man Ho ursTOTALCost 10%GEA SUBTOTAL 15%FEE TOTALS SUMMARY -PHASE I BUDGET PSSUMANG Ey,xtO PCS 103 CONTINGENCY REPUBLIC DAMES &MOORE DIRECT ON D &M AND LABOR:&O/H LABOR &O/H COBTS DIRECT Casts TOTAL 290._64 NA NA 354 $33,095 $877%¥,200 $T,299 $37,332 __£16 2Ad NA __NA __85635,99S +21,580 53,106 7,508 Tia,580__ 88 312 MA NA ) 400 590 4g NA NA 63034,918 «37850 T7353,200 T7,765 229,613 968 192 NA NA 1,16057,636 -Tée,7ess 7,700 %,438 BA,455 2,552 1 vee B48 NA NA 3,400{56,550 73,285 80,200 35,348 545,683 15,685 7,328 31,535,54,568 172,535 80,613 308,220 38,883 600,251 25,880 12,092 §,832 90,037 $198,415 $92,705 354,453 $44,715 $690,288 STAGE T Man Hours Cost It Man Hours CoBt lit Man Hours Cost Iv Man HoursCost Vv Han Hours Cost TOTAL Man Hours Cost LABOR CATEGORIES SUMMARY --PUASE I,DAMES &MOORE LABOR &O/H TECH.HOM.SR.TECH,STAFF SEC,/CLERICAL @ $96.25/iR,_@ $78.75/HR. @ $27,50/UR.TOTAL 40 24 mond 64 553,350 $1,656 _ $BT740 176 64 240¥é,946 5,046 en 21,980 :120 .160 32 312Tt,556 12,600 S$886 25,030 Agi w - 403,850.-7,856 136 40 _16 19213,6506 '3,150 $45 i6,665 512 288 48 848 $49,266 $32,680 ST,325 $73,285 3.2%Rye732¢°°% 3Gol 22LPocrSf% STAGE T Man Uours Cost If Man Hours Cost IYI Man Hours Cast iv Man HoursCost Vv Man Hours Cost 2TAL Man Hours Cost 2" SUMMARY -PHASE I,REPUBLIC GEOTHERMAL,INC.LABOR &O/IL "yy ¢ LAROR 'CATEGORIES Y i : TECH.MGMT,SR.TECH.STAFR TECH.STAFF SEC ./CLERICALAa$89 /HR,,@ S65/HR.@ S$5L/UR.@ S21/UR.TOTAL 210 62 --18 290 Ng$18,696 $4,030 ==$3768 $23,098 KO 176 132 176 132 616 15,667 'BL 500 BOT 2,072 35,992 26 53 9 88 2,314"oe 2,703 TEs 5,206 '44 264 264 18 590 3,SL€17,166 Ys,46 378 4, 334 ed 202 238 968 25,726 12,610 0,302 7,995 57,636 790 652 695 al 2,552$70,di $42,380 $35,445 $B,71S |$136,856 'f . [yer $5O137689 /o4,EH oO/)2,9 38 ' °(4)"PERfaseeeZj74?&a 5%,EtweJ3-<Gn7)Th719422! STAGE TIL TOTALS (ex,esteET.Ke SUMMARY -PHASE IT,DIRECT COst?Ts TOPO.GROUND BENVIR-CHEM,GEO. TRAVEL HAP.TRANS.WELT.ONMTEL CAMP.ANAL.PHYS.OTHER TOTAL 3 7,000 _-_-__ - $200 §7,200 2,900 $50,000 ---_-- --200 53,100 4,900 _$2,500 $10,000 $3,000 $18,000 600 39,000 4,600 --5,000 20,000 --15,000 $3,000 $125,000 600 173,200 _- me - 7,000 na 700 7,700 boo.: $19,400 $50,000 $7,500 $30,000 $3,000 $33,060 $10,000 $125,000 $2,300 $280,206 ;For:Perarcia DEejaecReceivedDy(VU ws we Teitssery (AP Ar DetEmBe °1B,(7KDate |Time 10-J28LH VY O), | JAY S.HAMMOND,GOVERNOR BX 3001 PORCUPINE DRIVEANCHORAGE,ALASKA 99501 PHONE: DEPARTMENT OF NATURAL RESOURCES O P.O.80x 80007COLLEGE,ALASKA 99708 DIVISION OF GEOLOGICAL &GEOPHYSICAL SURVEYS PHONE:274-9681 March 31,1982 "OyMs.Patti DeJong Alaska Power Authority 334 West Fifth Avenue Anchorage,Alaska 99501 Dear Patti: Enclosed is a summary proposal for continued investigations by DGGS of the geothermal resources of the Makuskin Volcano region.I consider all of this proposed work to be of prime importance in understanding the hydrothermal resource of the Makuskin Volcano region.All of this proposed work would be of value for actually developing hydrothermal energy on the island. Even if Federal permitting delays cause an overall delay in your Unalaska hydrothermal drilling project,some aspects of this proposal such as the seismic monitoring and the petrographic,geochemical,and structural investigations should still be conducted this coming season.If necessary, such investigations would be conducted by means of our own federal permits. The more we know before exploratory drilling is undertaken,the better off we will all be. The Reimbursable Services Agreement with DGGS with respect to your Makuskin hydrothermal drilling project should be completed as soon as possible since field preparations require a long lead time. Cordially, IP flacden -John W.Reeder,Ph.D. Geologist JWR/mam Enclosure cc:Ross Schaff,State Geologist Proj.Code: File Code:26.02 .OH J.Date:%2,FO.[ Continued Investigations of the Geothermal Resource of the Makuskin Volcano Region Proposal Summary submitted to Alaska Power Authority March 1982 Division of Geological and Geophysical Surveys 3001 Porcupine Drive Anchorage,Alaska 99501 It is proposed that DGGS will undertake further exploration investigations in the Makushin Volcano region which will include the continuation and expansion of our geochemical investigations of geothermal fluids,continuation of gravity investigations,a year of seismic monitoring by a five-station seismic array,and continued petrographic-geochemical-structural investigations of bedrock exposures and surficial deposits.It is also proposed that DGGS will help monitor the field exploration activities of Republic Geothermal,Inc.in the Makushin Volcano region for the Alaska Power Authority for the next approximate two years.DGGS will not take responsibility for the APA Republic Geothermal Unalaska drilling project, but DGGS will try to help APA and Republic Geothermal,Inc.make this difficult exploratory drilling project as successful as possible. General Details The following describes the details of the type of investigations and analyses DGGS plans to undertake on Makushin Volcano and the associated geothermal areas. Geochemical Investigations of Geothermal Fluids We propose to sample and perform detailed analyses of waters,gases,sinter deposits,and hydrothermal alteration products associated with each of the known thermal fields located on or near Makushin Volcano,including the summit fumarolic vents.We also propose to analyze suitable samples of waters and gases obtained from the exploratory wells to be drilled in the next two years. The data acquired under this study will be used to help determine the nature of the subsurface hydrothermal system and deep reservoir characteristics, reservoir temperatures,the source of volatiles in the system,the source of waters in the system,and geohydrological conditions.The data on thermal fluids is also important for providing pre-exploration baseline information on the geothermal resource. All major,minor and trace element geochemistry of waters and gases will be performed by DGGS in our in-house laboratory.Results of these analysis will provide the basis for estimating subsurface conditions and temperature. In addition certain isotopic analysis of waters and gases are very important -2- to this study but are beyond the present capabilities of the DGGS laboratory. Such analysis must be contracted or performed under a cooperative agreement 3 with another agency. Ale A He The ratio of helium isotopes in fumarolic gases and in gases from thermal x springs provides a tag on the influence of magmatic systems on hydrothermalsystemsandprovidesinformationonthesourceregionofsystemvolatiles. 3He/4Hle analyses will be performed in cooperation with the Scripps Institute of Oceanography at no direct cost to this study.Isotopic analyses of other noble gases may also be included in this study. (7aThe analyses of at3c in COy and CH,from thermal fields is useful for eg Be diy geothermometry and also provides another tag for determining the source Jvolatilesinthesystem, bod |.whan AF corpus shea,The analyses of d189 and dD of waters associated with the thermal fields - ye?are needed to help define the hydrologic regime of the geothermal system and determine the extent of water-rock interaction. (320y-9,O Sulfate -water oxygen isotope geothermometry is useful for estimating deep 0 |pv reservoir temperatures of high-temperature system.The waters,however,amust originate from a chloride-rich hot-water reservoir.As yet no such waters have been positively identified near or on Makushin Volcano.If an exploratory well should encounter an aquifer containing such waters,sampleswillbeobtainedandsenttotheU.S.Geological Survey for SO,H,0,al8o A analysis.This will be done under an informal co-operative agreement -3- Osbetween DGGS and U.S.Geological with no direct cost to this study. FeTritium analysis are useful for obtaining an estimate of the age of waters in the hydrothermal system and,therefore,the time required for recharging waters to circulate through a system.Such analysis would be performed only . sporeCFCRew Gp : on Cl-rich thermal waters encountered during drilling.VL a5 Analysis of d34s provides information on the source of sulfur in waters and alteration products.The anlyses are useful as a potential geothermometer and may be needed to decipher possible ambiguities of the sulfate-waternot hulpoxygenisotopegeothermometer. Gravity Investigations We propose to add gravity stations to our regional gravity data base for the northern part of Unalaska Island and to undertake with fairly tight elevation control several gravity profile surveys in the immediate Makushin Volcano region.These profile surveys should be undertaken after the completion of the detailed topographic map of the Makushin Volcano region by Republic Geothermal,Inc.The attached Makushin Volcano map shows the Hytentativelocationofsuchprofiles,figure l.Compare Ann The data acquired under this study will help determine the boundary between the unaltered volcanic rocks and the older metavolcanic and associated plutonic rocks.It might also give valuable insight into the regional structural make-up of the hydrothermal prospect area and of the Makushin Volcano. CF RCE ' )D2)S Clay,. . |[rop esc ale x Ved gravity PRES fines |'9o* ee ? "ath !. :a4,Hy s SeoesnCapeKeleklaoS 4¥ oyaerah)Hee 4 7 (\ an Ys wees : Boe WG ) .SUSEMutes\A iyS a ¥aoe + ¥'ie ° Oo”OO Sera?ali :'"iP NGS yeAlroart0villlsh{ :iByEt i "jainanegi £NSy/wo\WO,\"iy ew "yo >.D pa qwelliaAN,wweeaeye eSSSIESRECEPNineatiniteoe. 7 . -{ia Wi Ape SiegUpweaoaMBAMEMesh,TreescaMaanBpBasenCLTMESAeyOeaetadintobeseacd y Meee G0",bee peat vo.(209, .C 'vey dg.2 Jeg 3 Brigg a)oo : = a ie Z 4Wyatpve?t -A)iyiMhSateYY]hd,Ly 4 We oi ARIRFa)be AN :I &"fill AN Ld '(ty 'NANA US 4p x. asEG :j Mf &\(oN OINC th.te BN agin i a oS NON¢;Os5FPEAN Seismic Monitoring We propose to conduct seismic monitoring with Lamont Doherty Geological Survey of Makushin Volcano and the associated geothermal areas.The resulting data will enable us to address the following questions: (1)Are there active faults within the overriding plate that could contribute to seismic hazard in the Makushin Volcano and Dutch Harbor region?; (2)What is the character of the seismicity associated with local active volcanoes and geothermal areas?;and (3)Is there a low velocity body below Makushin Volcano that would indicate the presence of a magma chamber at a shallow level in the "erust (such a chamber could be the driving heat source for any hydrothermal systems in the region)? A five-station array is proposed as shown in figure 2.This array should enable us to locate shallow (<10 km)microearthquakes (0.5<My <2.5)with exceptionally good depth control (<1 km).Such accurate hypocenter determinations are needed to locate fracture zones within a geothermal reservoir which possibly can serve a conduits for subsurface movements of geothermal fluids.We will provide epicenter maps and depth cross sections in addition to a listing of the location and magnitude of all recorded events.We will attempt to construct composite focal mechanisms for spatial clusters of earthquake activity.By comparing station P-wave delays of regional events or teleseisms with those observed within the Lamont Shumagin Network toward the east,we hope to be able to identify a possible chamber [igure Lo [ropes ed!8 -slalron SCSHnC:\ a RarerBG N Ary BS tayhaheyNy SR OPLY &(F iisLSROTAN CREE I EN 'Pos Ai7 N ? Nei ad A :r i /'ve hs wy)b .sf uh eeLewwh?on as AK 'r SY)q eA SY on ow ow:eh OS RCS (EAC ;yi Bx FESO ISS OM G51:Nae VL ul Nes JINN eh,MX a 4 HS OT LRA DIS ANG ORS 1G .',i Priest Rikfroth {Rou is papers, \ 4 Cape Kalekta 1p |5 ne He isn 4 ¥p4 Udagak at crustal levels below Makushin Volcano. A contract will be made directly to Lamont which will cover the cost to Lamont for their operation and maintenance of the network and some basic data analyses for one year.These cost will include station operator salaries,space rental in Dutch Harbor from the Native Cooperation,recording materials and shipping cost.The maintenance costs consists of salaries and travel costs for their electrical engineer and a field assistant.The materials and supplies are batteries (5 for each station)that power the remote stations for approximately one year and some spare parts needed because of,for example,weather related failures.The travel presumes that their electrical engineer will make one extra trip to Dutch Harbor during the winter to repair possible equipment failures.Egill Hankason who has conducted extensive geothermal and seismic investigations in Iceland,will conduct the Lamont duties with respect to this project in close cooperation with John Reeder and John Davies of DGGS.DGGS will supply all required logistical support to Lamont in addition to some of the required analyses of the collected data. fo8 The Lamont contract will terminate the first of October,1983.From just a ,it bears (o f1/C62 hazard point of view with respect to Makushin Volcano,it would be desirable to keep at least part of the network operating for the duration of the APA geothermal drilling project.DGGS will attempt to raise internal funds in order to keep at least the Makushin Valley seismic station operating for the duration of the APA geothermal drilling project. Petrographic,Geochemical,and Structural Investigations Petrographic,geochemical,and structural investigations on a regional basis have already been undertaken for the northern part of Unalaska Island. We propose to continue such investigations at greater detail in the Makushin Volcano region.Such work should greatly refine our knowledge of the geologic setting of any hydrothermal systems and such work should help determine the character of any shallow magma systems that might be the driving heat sources for such hydrothermal systems.The geologic history of volcanic activity will also be determined which would result in insight into what volcanic activity and volcanic hazards might be expected for this region. All whole-rock and minor-element determinations will be performed by DGGS in our geochemistry laboratory.All standard petrographic analysis will also be performed "in-house”.These analyses will give the overall chemical "make-up”of the rocks,the mineral-phase equilibrium conditions during the formation of the rocks,and some insight into any rock alterations.The petrographic analyses will help determine which rock samples can actually be dated by potassium-argon techniques. OD ws In addition certain geochemical analyses are important to this study such43Io\C %Neen88SrandPbIsotopeanalysesandKAR'age dating.Such laboratory analyseswaearebeyondthepresentlaboratorycapabilitiesofDGGS.The strontium and lead isotope determinations and analyses of volcanic rocks would help determine the source of the magma based on chemical contamination.Such analyses along with possibly some microprobe work would probably be contracted out to Lamont-Doherty Geol.Obs.The potassium-argon age dates of selected rocks would provide age control on magma evolution in the hydrothermal prospect region.Such determinations would probably be done through contract to the University of Utah. To better refine the more recent volcanic history of the Makuskin Volcano region,sections of two large Makushin Volcano post glacial pyroclastic flows and two ash-dominated post-glacial soil horizons will be examined. If carbon material is found of dating interest,carbon-14 radiometric age analyses would be undertaken through contract to a private geochemical laboratory. Products As work is undertaken and completed,preliminary results will be distributed to particular investigators on an informal basis.All preliminary data will be available for examination by APA and by any of APA's contractors. All DGGS data and results will be published at least as Alaska Open-File Reports. Seva dante commovToretr eee )Worry.Now us Budget Personal Services ---Kong Student Intern IV fe oy (24 months at half-time)_.$2 000 |My oo |. Travel Air fare to and from field for next two years (12 man trips)$8,200 Air fare to Lamont;(Serippsy'and syns 7SantaFeSprings(One trip to each loc.)$2,000 Xx aN Field per-diem ($50/day for 120 man-days)$6,000 Lower "48"per-diem ($80/day for 14 days)$1,120 x Air Freight of equipment to field §2,000 sub-total $19,320 yw Ale,100, Contractual Helicopter (25 days x 3 hr/days x $400/hr)S3s00osomeofthesefundscanbeusedto pay for our use of helicopter under contract to any APA contractor in Unalaska; i.e.,ideally up to only 1/2 of these funds. Fuel Br Wwe 7 $3,500 .--"Seismic monitoring contract to ress ey. Lamont Doherty Geol.Obs.\7 a (Oct.1,1982 thru Oct.1,1983)$50,300, |Sr-Pb isotope analyses (25 samples at least)3 which might include if necessary microprobe analyses.(Possibly contracted to Lamont)$10,000 id :a ¢aoK-Ar age dates (10 dates)acedoree .$5,000?0 Analysis of a}3c¢in CO»and CH,,5 analyses x $125 $62577 Analysis of 418 and SD in waters,20 analyses x $60 $1,200--oA Sy -9- Contractual (continued) Analysis of d3H in waters,2 analyses x $400 $800 Analysis of d34s in waters and rocks, 5 rock analyses x $125 5 water analyses x $60 :§_.925-Ss a Carbon-14 analysis (5 samples);$1,000 rene dt0.3 subtotal §103,350 Commodities Misc.sampling flask and chemicals ;$500 ee,eee ,ty acm,}|X AA >Equipment oO Half payment for a Vectron KE theodolite a $6,500 ©<-QUMLA yay ?;aT doesn't D6GS lncuse Total .$154,670 eeLeera.»; , Weeweeee Veh -10- Frguce 2 [roposed 5 -slallron i)\)HiN (lox AX he"WIC eter74paiAltoyTi }Z INScd tf His coo tefe=) 1)oye Abe, noeeS RAN x \Priest RhoETi cone KalekiaNe:f |.gis Se;Orya 'ae%Prin€ess Heed,"peps Rawr brosnuea1SANae 0-J28LH VBA JAY S$.HAMMOND,GOVERNOR [\[i ©3001 PORCUPINE DRIVEFANCHORAGE,ALASKA 99501S[\e 0 i Li S K PHONE: DEPARTMENT OF NATURAL RESOURCES ©P.0.BOx 80007COLLEGE,ALASKA 99708 DIVISION OF GEOLOGICAL &GEOPHYSICAL SURVEYS PHONE:(907)474-7147 February 26,1982 - Ms.Patti DeJung Alaska Power Authority P.O.Box 843 Anchorage,Alaska 99501 Dear Patti: Thanks for the opportunity to participate in the discussions on the Makushin Volcano geothermal drilling project.The meeting was very informative and I am optimistic that a cooperative and constructive effort between APA,Republic Geothermal,and DGGS will result in a successful program. I want to follow-up on the discussions regarding an RSA for continued studies by DGGS on the geothermal resources of Makushin Volcano.I have enclosed a preliminary work plan and budget for the studies we discussed would be performed by the Fairbanks office of DGGS.These studies are meant to be complimentary to work planned by John Reeder of our Anchorage office. The first part of the work plan addresses the continuation and expansion of our geochemical investigations of geothermal fluids in the area.This study was of considerable interest to Republic Geothermal and I would look forward to cooperating and working with their geochemists. The second part of the study concerns the investigation of the evolution of Makushin Volcano and what bearing a shallow magmatic system has on the geothermal resources of the area.This work would be performed in cooperation with Professor Sam_Swanson,an igneous petrologist at theUniversityofAlaska,Fairbanks.Professor Swanson is under a two month per year contract with DGGS to carry out the type of work described in the work plan.Note that some of the proposed contractural rock geo- chemistry and age-dating listed in the accompanying work plan and budget may be duplicated in John Reeder's work plan.Whatever overlap exists can be deleted from this budget as I am sure John would certainly share his data. As I indicated previously,principal investigator salaries for this study will be covered by DGGS.However,I am requesting funding for a student intern and half-time geologic assistant to help carry out the Patti DeJung -2-February 26, the field work and geochemical analysis.I am also presuming that a helicopter will be available to transport our field parties to various locations.If such will not be the case then the budget must be in- creased to cover two weeks helicopter time. Please review the work plan and let me know whether it is compatible with your program.I will then get together with John Reeder and Ross Schaff to iron out a combined final version.Do not hesitate to call if you have questions. Cheers, em At /oe Roman J.Motyka Geologist Enclosure 1982 Proposed Petrologic Study of Recent Volcanic Rocks from Makushin Volcano by Sam Swanson Geothermal anomalies,such as fumarole fields,on the flankes of Makushin Volcano are the surface manifestation of subsurface heating.Given the recently 'active eruptive activity of Makushin,it is reasonable to assume the subsurface heat source is a body of magma at a shallow depth under the volcano.The existence of a shallow magma body under Makushin Volcano would have important implications for modeling the geothermal activity and for subsequent development of the resource.In particular,the overall size and.dimensions of such a body of magma would be of great value in any attempt 'to model the thermalanomaly.=. Shallow level magma chambers are known to exist under volcanoes that are structurally and chemically similar to Makushin Volcano...Geophysical studies of local gravity and seismic anomalies around some of the Cascade volcanoes have predicted the existence of shallow level magma,.a prediction confirmed by recent drilling at Newberry Volcano.However,long before the geophysical studies,petrologists had been using shallow plutons (now exposedbyerosion)as models for magma chambers under the'Cascade volcanoes. Unalaska Island has three major plutons (now exposed)that may be used to model a magma chamber under Makushin Volcano.However,.the plutons are old (about 11 m.y.)compared to the Makushin volcanic rocks and it is not clear the magmas that formed the plutons are related to the volcanic magmas.Such a relation must be demonstrated before the plutons on Unalaska can be used tomodelasubsurfacemagmabodyunderMakushinVolcano. Detailed petrographic and geochemical studies (including isotopes of Sr,Rb and Pb)have been made on some of the plutons on Unalaska by Perfit (et al,1980).We propose a similar study of the recent volcanic rocks of Makushin.Currently only a few chemical analyses of these recent volcanics and a little petrographic data are available (Drewes et al.,1961).If our results suggest the recent Makushin volcanics and the plutons are similar, then these plutons may be used as a model for a shallow magma chamber.under Makushin Volcano.In any case the results will give valuable insight to the evolution of magmatic systems on Unalaska Island and by inference in theAleutianArc., References Drewes,H.,Fraser,G.F.,Snyder,G.L.,and Barnett,H.F.,Jr.,1961,Geology of Unalaska Island and Adjacent Insular Shelf;USGS Bull.,1028-S,94p. Perfit,M.R.,Brueckner,H.,Lawrence,J.R.,and Kay,R.W.,1980,Trace Element and Isotopic Variations in a Zoned Pluton and Associated Volcanic Rocks, Unalaska Island,Alaska:A Model for Fractionation in the Aleutian Calc- alkaline Suite;Cont.Min.Pet.,v.73,p.69-87. INVESTIGATION OF GEOTHERMAL FLUIDS AND IGNEOUS ROCKS ASSOCIATED WITH THE MAKUSHIN VOLCANO GEOTHERMAL PROSPECT Work plan Submitted to Alaska Power Authority by Roman J.Motyka Division of Geological and Geophysical Surveys Work Plan There are two parts to the work that the Division of Geological and Geophysical Surveys (DGGS)-Fairbanks is proposing to do on the Makushin geothermal prospect.The first concerns the geochemistry of thermal fluids;the second concerns the geochemistry and petrology of volcanic rocks. Geochemistry of Thermal Fluids We propose to sample and perform detailed analyses of waters,gases,sinter deposits,and hydrothermal alteration products associated with each of the known thermal fields located on or near Makushin Volcano,including the summit fumarolic vents.We also propose to analyze suitable samples of waters and gases obtained from the exploratory wells to be drilled this summer.These studies will augment previous studies made by DGGS and will be performed in close cooperation with investigators from Republic Geothermal,the prime contractor for the geothermal drilling program at Makushin Volcano.The data acquired under this study will be used to help determine the nature of the subsurface hydrothermal system and deep reservoir characteristics;reservoir temperatures;the source of volatiles in the system;the source of waters in the system;and geohydrological conditions.The data on thermal fluids is also important for providing pre-exploration baseline information on the geothermal resource. Water and Gas Chemistry All major,minor and trace element geochemistry of waters and gases will be performed by DGGS in our in-house geothermal fluids laboratory.Results of these analysis will provide the basis for estimating subsurface conditions and temperatures. In addition certain isotopic analysis of waters and gases are very important to this study but are beyond the present capabilities of the DGGS geothermal fluids lab.Such analysis must be contracted or performed under a cooperative agreement with another agency.An outline of the required isotopic analyses and their costs is given below. Quer Cope (house om ok rene lewine v 3ye/4He:The ratio of helium isotopes in fumarolic gases and in gases from thermal springs provides a tag on the influence of magmatic systems on hydrothermal systems and provides information on the source region of system volatiles.3He/4He analyses will be performed in cooperation with the Scripps Institute of Oceanography at no direct cost to this study. Isotopic analyses of other noble gases may also be included in this study. 13¢;the analyses of 6l3¢in CO,and CH,from thermal fields is useful for geothermometry and also provides another tag for determining the source volatiles in the system.Five analyses X $125 =$625. 185 and D:The analyses of 8185 and 8D of waters associated with the thermal fields are needed to help define the hydrologic regime of the geothermal system and determine the extent of water-rock interaction. Twenty analyses at $60 per pair =$1200. SO,H29,185:sulfate -water oxygen isotope geothermometry is useful for estimating deep reservoir temperatures of high-temperature system.The waters,however,must originate from a chloride-rich hot-water reservoir.As yet no such waters have been positively identified near or on Makushin Volcano.If an exploratory well should encounter an aquifer containing such waters,samples will be obtained and sent to the U.S. Geological Survey for S0,-H)0,g18p analysis.This will be done under an informal co-operative agreement between DGGS and U.S.Geological with no direct cost to this study. 3H:Tritium analysis are useful for obtaining an estimate of the age of waters in the hydrothermal system and,therefore,the time required for recharging waters to circulate through system,Such analysis would be performed only on Cl-rich thermal waters encountered during drilling.Two analyses X $400 =$800. 346;Analysis of 34g provides information on the source of sulfur in waters and alteration products.The analyses are useful as a potential geothermometer and may be needed to decipher possible ambiguities of the sulfate-water oxygen isotope geothermometer.Five rock analyses X $125 = $625;five water analyses X $60 =$300. Products As they are completed,preliminary results of the geochemical and isotopic analysis will be distributed to participating investigators on an informal basis.A formal DGGS report containing the final results will be issued upon completion of all the analyses.The report will include an interpretation of the data and,based on the outcome of the analyses, suggestions on the sitting of the deep test well. Schedule Field work is planned to coincide with Republic Geothermal operations at Unalaska in late May and again during July.A total of three weeks field work is anticipated.The analyses,modelling,and report writing will take place during fall-winter 1982-83.The final report on thermal fluid geochemistry will be completed by May 30,1983. Geochemistry and Petrologic Studyof Makushin Volcano The purpose of this work is to decipher the magmatic history of Makushin Volcano and determine what implications this history has for understanding the present-day geothermal resources at Makushin.The geochemical analyses listed below provide the tools by which the evolution and characteristics of the shallow magma system can be inferred,the rate of magma re-injection estimated,and the history of recent volcanic activity and it's bearing on present-day volcanic hazards evaluated.A shallow magma system at Makushin is the probable primary heat source driving the hydrothermal systems that are of commercial interest. This work will be done mostly by and in collaboration with Professor Sam Swanson of the University of Alaska Geology/Geophysics program,Fairbanks. Professor Sam Swanson has a two-month per year contract with DGGS and has recently conducted similar studies on Akutan Volcano. Petrographic Analyses All standard petrographic analysis will be performed by Professor Swanson. Microprobe Analyses Microbe analyses,which provide information on the chemistry of individual mineral grains contained in the volcanic rocks,are required for estimating mineral phase equilibrium and thereby magma temperatures and depths.No microprobe is available in Alaska and an out-of-state probe,most likely at Scripps Institute of Oceanography will have to be used.Fifty hours X $50/hour =$2500. Sr and Pb Isotope Analyses Analyses of the strontium and lead isotope content in the volcanic rocks provide clues for determining the source region of the magma and the amount of crustal contamination.Ten Sr isotope analyses X $420 =$4200;Ten Pb isotope analyses X $420 =$4200. K-Ar Potassium argon age dates on selected igneous rocks provide age control on magma evolution and help determine periodicity of activity and the rate of extrusion.Ten dates at $400 =$4000. Carbon-14 radiometric dates are required to date the youngest volcanics in the area.(K-Ar dating techniques cannot be used for young rocks).Carbon -14 dates help delineate the recent volcanic history which is necessary for evaluating volcanic risk.Six analyses X $300 =$1800. Products As they are completed,preliminary results of the petrological,geochemical and isotopic analysis of the volcanics will be distributed to participating investigators on an informal basis.A formal report containing the final results will be issued after completion of all the analyses.The report will include estimates of magma depths and temperatures based on petrologic and geochemical indicators. Schedule Field work will take place during July.A total of three weeks field work is anticipated.The geochemical analyses,petrographic and microprobe work,and report writing will take place during fall-winter 1982-83.The preliminary report on magma chemistry and evolution will be completed by May 30,1983. Understanding The salaries of the principal investigators involved in this study will be covered by DGGS.However,funding for one half-time geological assistant I and for one student intern IV is being requested.The geological assistant is needed to help perform the analysis on the geothermal fluids.The student intern will be graduate level and will help conduct the petrologic studies. It is my understanding that either Republic Geothermal,or the Alaska Power Authority,or DGGS-Anchorage will have a helicopter available during our anticipated periods of field work on and near Makushin Volcano.The helicopter is required to periodically position and retrieve people at different field locations on the volcano.In the event such helicopter support will not be available from other participants then the amount budgeted for this study must be increased by $28,000 to cover two weeks helicopter charter. Appendix A Budget Personal Services Geological Assistant I,Fairbanks,DGGS,six months $15,600 Student Intern IV,Fairbanks,DGGS,eight months 17,600 $33,200 Travel Air fare to and from field area,four persons $4,000 Air freight 2,000 Per diem,four persons X $50/day X 21 days 4,200.Air fare to and from Scripps,one person 600.eePerdiem,one person X $80/day X 7 days 560 Air fare to and from Republic Geothermal 600 Per diem,one person X $80/day X 7 days 560 $12,520 Contractual Analysis of 13¢in COz and CH,,5 analyses X $125 $625 Analysis of gl85 and SD in waters,20 analyses X $60 1,200Analysisof3Hinwaters,2 analyses X $400 800 Analysis of *s in waters and rocks,5 rock analyses X $125 Qos?5 water analyses X $60 925 wed”Microb®rental,50 hrs.X $50/hour 2,500 Analysis of Sr isotopes,10 analyses X $420 ©4,200__ Analysis of Pb isotopes,10 anlayses X $420 4,200 Potassium-Argon age dates,10 samples X $400 4,000 Carbon-14 analysis,6 analyses X $300 1,800 $20,250 Commodities Miscellaneous field equipment,sampling flasks,chemicals etc.$2 ,000 Total Cost $67,970 :PBIAY REPUBLIC GEOTHERMAL,INC. 11623 EAST SLAUSON AVENUE SANTA FE SPRINGS,CALIFORNIA 90670 TWX .910.586.1696 (213)945.3661 ay, March 30,1982 .OY RECEIVED fe2.5 102 Ms.Patti DeJong LACHA PONER AUTHOITS334WestFifthAvenue,2nd Floor Lhe Anchorage,Alaska 99501 Dear Patti: The purpose of this informal summary of Phase Ib costs and plans is to assist you in development of the Phase Ib contract modification.Table I,the proposed budget for Phase Ib activities,relates to Stages III through VII,as originally presented in Republic's proposal to the APA of October 28,1981. The figures almost all reflect firm price quotations from subcontractors and represent our best estimates at this time.Ultimate variations in these fig- ures will probably be due to weather considerations over and above contingencyallowancesthathavebeenmade. The figures presented on Table I aggregate $154,927 more than those given on pages 49 and 50 of Republic's October 1981 proposal.Please note that a G&A factor of 1.4 percent and a fee of 11 percent (page 50)were added to the totals for Stages VI and VII given on page 49 to determine the "old total." Most of the $154,927 increase is due to higher helicopter costs ($224,640versus$100,000);higher camp costs ($158,136 versus $93,000);and Profession- al Liability Insurance ($32,400 versus $0).These are compensated by lowergeophysicalcosts($59,283 versus $125,000)and about $1,532 worth of other diminished costs. I have,for your information,attached to this letter a memorandum from L.M.Targon to me,in which he describes the salient elements of the Pro- fessional Liability Insurance and the premium structure.I hope that this document is adequate support for the $32,400 insurance line item.I have no doubt that you will have questions regarding other line items in Table I. Please call and I'll try to answer such questions and/or provide adequate support documentation. In order to help you understand the scope of Phase Ib activities as we perceive them with the benefit of two months'worth of project experience,I have described,in some detail,the work that we propose to undertake duringStagesIIIthroughVII(Phase Ib). TABLE I Proposed Budget -Phase Ib (III-VII) ITEMS STAGES II IV V VI VII TOTALS Republic Labor $5,804 §$53,486 $68,052 §$55,642 $26,832 $209,816 (incl.OH &G&A) Dames &Moore 25 ,030 3,850 16 ,680 12,060 1,540 59,160 Labor Travel 4,800 7,250 -9,200 2,600 23,850 Other 600 1,000 700 1,200 200 3,700 Photogrammetr y*-30,000 ---30 ,000 Drilling ---480 ,000 -480 ,000 Helicopter 22 464 64,928 -137 ,248 -224 ,640 Environmental 3,000 ----3,000 Studies Camp 30 ,600 25 ,500 -102 ,036 -158,136 Chemical Analyses --7,000 -15,000 22 ,000 Prof.Liability 32 ,400 ----32 ,400 Insurance** Geophysics -59,283 ---59,283 Equipment -9,000 ---9,000 Communications 1,400 4,250 -11,652 -17,302 Expediter 2,000 3,000 2,000 4,000 2,000 13 ,000 SUBTOTALS 128,098 261,547 94,432 813,038 48,172 1,345,287 Fee 10,527 28,770 10,388 89 ,434 5,299 144,418 TOTAL 2625 $290,982 902,53,4 3 5/0 *Moved from Stage II to Stage IV for weather reasons. xk Not subject to fee. REPUBLIC GEOTHERMAL,INC. Ms.Patti DeJong March 30,1982 Page 2 STAGE ITI A. STAGE IV. LAND AND ENVIRONMENTAL FIELD WORK The well site selection data collection program is designed to complement the baseline environmental data collection program and to collect that data which,when integrated with the geologic andlogisticinformationgatheredduringtheinitialfieldseason,will allow selection of the optimum thermal gradient hole and deep geo- thermal well sites.Information to be collected will primarily be general geotechnical engineering data (slope,slope stability,andsoilcharacteristics),although general hydrologic,biologic,and visual data will also be acquired. The baseline environmental data collection program is designed to acquire that environmental information which is or may be required by permit-issuing agencies and other interested parties.It will also be utilized to optimize the selection of the thermal gradient or deep well sites and to establish an environmental data base upon which to judge the impact of operations.Although the complete range of environmental concerns will be evaluated,because of thenatureoftheareaandtheproposedoperations,only certain types of information such as regards water quality,vegetation,wildlife, and rare or endangered species will be collected. FIELD EXPLORATION Republic staff geoscientists will undertake the following activities on or about April 12,1982,weather permitting: A.Confirm and expand upon existing geologic mapping accomplished by Drewes and Reeder.Samples will be taken of major rock lithologic types.We will inspect and describe major faults and lineaments detected via existing aerial photos and previously mapped by Reeder.We will sample,map,and classify hydrothermal alteration areas where accessible.We will study the surface geothermal mani- festations,their locations,sizes,types,and temperatures,and we will determine their flow rates.We will also map and sample sec- ondary geothermal manifestation deposits. Republic's geochemists will perform confirmatory analyses of the chloride and pH concentrations in the major hot spring systems and select and sample thermal waters for detailed chemical analyses that quantify 42 anions,cations,and trace elements.They will gather baseline chemical data from the primary cold springs and river waters and provide assistance to Roman Moytka of DGGS in continued sampling of fumarolic gases at Makushin fumarole fields. REPUBLIC GEOTHERMAL,INC. Ms.Patti DeJong March 30,1982 Page 3 C. VAC STAGE V. A. During the mercury soil survey,Republic staff will collect approx- imately 250 grams of "in place"soils at 1 km spacing,where acces-sible,for mercury (Hg)analyses.They will perform mercury analyses on the collected samples,using a Jerome Model 301 Mercury Detector,and plot and contour the reported mercury values on a 1:50,000 scale map. Republic will cause to be conducted a self-potential survey along a pattern of selected profiles that is designed to detect potential subsurface thermal anomalies and major fracture zones.Electrode spacing along the profiles will not exceed 200 meters with all profiles being tied to a zero reference point.Daily telluric variations will be monitored.The subcontractor,Harding-Lawson Associates,will reduce,smooth,and plot all self-potential volt- age measurements along the sampled profiles to facilitate data interpretation. DATA COMPILATION AND PROGRAM PLANNING Following field mapping and sample collection,Republic will inter- pret geological data by: 1.Making and describing thin sections of selected rock types. 2.Determining the mineralogy of hydrothermal alteration by X-ray diffraction analysis. 3.Constructing geologic maps and cross sections that incorpo- rate hydrothermal alteration,fault lineament,and lithologic-related data. Collected gas and water samples will be analyzed for major,minor, and trace chemical constituents.We will interpret gas,water,andsoil(Hg)analyses to recognize potential thermal and chemical anomalies.These data will be used to determine migration paths ofthewater(s)in the system. Republic and its subcontractor will interpret and model self- potential survey results using filtering functions,half-wavelength analysis,and induced current algorithms.We will construct a simple geometric model outlining possible regions of primary fluid flow and/or heat transfer. Republic will integrate the above geological,geochemical,and REPUBLIC GEOTHERMAL,INC. Ms.Patti DeJong March 30,1982 Page 4 H. STAGE VI: geophysical data into a comprehensive model of the Makushin geo-thermal system that defines potential near-surface geothermalanomaliesandthebestexplorationtargets. The integrated geothermal model will be combined with environmen- tal,terrain,and logistical parameters to select three primary and three alternate thermal gradient well sites. Republic will prepare thermal gradient well drilling programs for each of the three primary locations based on expected subsurface geology.The programs will include casing and tubing design; equipment and materials requirements and options;drilling method- ology;fluid disposal;health and safety precautions;and loggingschedules. Because of the timing requirements for the drilling of the thermal gradient holes,most of the permit applications for these opera- tions will have been submitted prior to the commencement of Phase Ib.To accommodate the lack of certainty for the locations of the thermal gradient holes,multiple sizes were described in those applications,as required.Tasks remaining to be accom- plished include revision of these permits,as necessary,and work- ing with the agencies to ensure their timely approval. Schedule drilling logistics for personnel,equipment,and materials. THERMAL GRADIENT WELL DRILLING Republic and its expediteron Unalaska will: A. B. Direct the move in and rig up of drilling equipment and installa- tion of personnel,supplies,and facilities. Supervise the drilling of each gradient well following the drilling program prepared in Stage V. Collect drill cutting samples (or cores)for lithologic character-ization and rock-chip geochemical analyses.We will also log and record all geologic and thermal data in accordance with accepted industry practice. The thermal gradient hole drilling operations will be monitored at random by environmentally trained personnel over and above monitor- ing by drilling personnel to assure compliance with permit require- ments.Environmental quality monitoring stations set up during the REPUBLIC GEOTHERMAL,INC. Ms.Patti DeJong March 30,1982 Page 5 environmental baseline data collection program will be remeasured, as appropriate,to detect changes brought about by the operations. STAGE VII:DATA SYNTHESIS AND DEEP WELL SITE SELECTION In order to accomplish this task,Republic will: A.Analyze and interpret rock geochemistry,lithologies,and thermaldatacollectedfromeachofthegradientwells. B.Integrate these data with all previously gathered geological,geo- chemical,and geophysical data. C.Refine and modify the Makushin geothermal system model to reflect the newly integrated data. D.Utilize the refined geothermal resource model to select three deep exploration targets. E.Combine the chosen target locations,environment data,terrain,and logistical parameters to locate an optimum deep exploratory well site. F.Prepare and design a deep exploratory well drilling program that includes drilling specifications,casing,mud,logging,and cementing programs.Well testing will also be designed in prelimi- nary form,i.e.,logistics and site facilities. Patti,I trust that the information supplied above is detailed enough to allow you to write up a "scope of services"section for the contract amend- ment.I expect that we will be saying the same things more formally in our Phase Ia final report due April 30. Please call me as soon as questions arise so that I can help speed the contract development.Republic is anxious for the project to move ahead smoothly,and we will feel better about making relatively large financial commitments when we have the Ib contract. Sincerely, LG G.W.Huttrer Project Manager GWH:sjo Attachment , PSILLY REPUBLIC GEOTHERMAL,'INC. 11823 EAST SLAUSON AVENUE,SUITE ONE SANTA FE SPRINGS,CALIFORNIA 90670 TWX .910.586.1696 (213)945.3661 March 4,1982 J.04 HEGEL.0 RrAD an tnabeyC'Ms.Patty DeJong nena Alaska Power Authority cS334East5thAvenue,2nd Floor UpeeA PONLA SD Fe Anchorage,Alaska 99501 Dear Patty: This letter is a formal request from Republic to the APA for 1)inclusion of payment "milestones"in the Phase Ib contract; and 2)permission to delay aerial photography.until May. As you recall,you and I mutually agreed to extend the scope of Phase Ib to include work Stages VI and VIII.This modifica- tion was made in order to allow work to proceed uninterrupted by Phase II contract negotiations that might have been disruptive under the original schedule.The planned scove increase means that additional costs of approximately $758,396 will be incurred by Republic during Phase Ib and that total Ib costs will now approximate $1,251,355.Because Republic will be obligated to pay its subcontractors at 30-day intervals during Phase Ib,we request that provision be made in the Phase Ib contract for Republic to invoice the APA monthly. We realize that there will be at least a 30-day lag between submittal of invoices to APA and receipt of payment by Republic, during which time Republic will be "lending"money to the sub- contractors.Is there a way in which Republic can be reimbursed for the cost of this "advance"to its subcontractors?May we include this "money cost"as an expense in our monthly APA billings? During our recent trip to Unalaska,it became obvious that air photos,suitable for generation of topographic maps,cannot be acquired while the project area is under deep snow cover.I, therefore,request permission to delay the aerial photography and the map generation until May when ground conditions should be acceptable. J,Bote:>.3.)4 REPUBLIC GEOTHERMAL,INC. Ms.Patty DeJong March 4,1982 Page Two Patty,I would appreciate an early response to our requests and to our questions.It is a pleasure to work with you,and I thank you for your continuing cooperation. Sincerely, 3.WS Huttrer Project Manager GWH:sjo REPUBLIC GEOTHERMAL,INC. MAILING ADDRESS:P.O.BOX 3388 11823 EAST SLAUSON AVENUE,SUITE ONE RECEIVED SANTA FE SPRINGS,CALIFORNIA 90670 THOMAS J.REILLY DEGI.6 Walssc.16ce6 SECRETARY AND GENERAL COUNSEL .(213)945-3661 ALASKA POWER AUTHODecember8,1981 nlry Department of Revenue a)State of Alaska State Office Building "OvPouchSA/Juneau,Alaska 99811 Attention:Mr.Daniel H.Anderson,Tax Examiner III Re:Republic Geothermal,Inc. Gentlemen: Enclosed herewith is the application of Republic Geothermal,Inc. for a Business License in the State of Alaska. In support of such application,there are also enclosed a Non-Resident Affidavit anda surety bond in an amount greater than twicetheamountoftheestimatedtaxliabilityshownontheaffidavit. Also enclosed is our check in the amount of $25.00 to cover the filing fee. Republic Geothermal,Inc.intends to enter into a two-phase contract with the Alaska Power Authority to conduct a feasibility study.The Alaska Power Authority has advised us that the first phase of the work is not deemed an engineering contract and that a contractor's license is not required.Should you have any questions concerning this,please telephone Ms.Patty Jong of the Alaska PowerAuthorityat(907)277-7641. Both we and the Alaska Power Authority are most anxious to expe- dite the execution of the proposed contract for which a Business License is a prerequisite.We would be most appreciative of whatever you may do to expedite the issuance of the Business License. ietrulyyours,eet elleThomasJ.ReillySecretaryandGeneral soit TJR:cob Enclosures cc:Ms.Patty Jong Proj.Coit: File Code:39.02OU| J.date:#1.SYA.2D gn Ah wo ee NEPAL Ve ee. _RECEIvaT Ps).],4REPUBLICGEOTHERMALINC. 11623 EAST SLAUSON AVENUELee[ot Lean caSANTAFESPRINGS'CaLinohnia 90670 Ty TWX -910.586.1696 (213)945.3661 December 8,1981 Ms.Patty De Jong Project Manager Alaska Power Authority 334 West Sth Avenue,2nd Floor Anchorage,Alaska 99501 Dear Patty: Pursuant to your recent request,we have estimated the costs of operations that might become necessary if a)the Unalaska geothermal resource is determined to be located at a depth of 8,000 feet (instead of at 4,000 feet as assumed in Republic's original proposal);b)the resource turns out to be water-dominated (rather than dry steam as assumed in Republic's original proposal);and c)drilling difficulties and unusually severe weather conditions slow progress signifi- cantly. Originally,Republic estimated that the cost of drilling a 4,000-foot well would be +$13,000 per day plus mobilization-demobilization and helicopter support.An 8,000-foot hole would require the use of a larger rig estimated (through Parker Drilling)to cost +$18,000 per day.Additionally,the deeper hole might require up to 90 days to drill rather than the 40 days allocated to drilling time for a 4,000-foot well. The incremental increase in the rig cost would then be: 90 days X $18,000 -40 days X $13,000 =$1,620,000 -$520,000 =$1,100,000. If we have to fish for 20 days (two 10-day episodes)and sidetrack once (5 days),the incremental cost increase would be 25 x $18,000 or $450,000. If the 8,000-foot capacity rig and all related equipment and supplies have to be transported up the mountain by heli- copter,and if helicopter support is maintained throughout the drilling program (to ferry in mud,bits,parts,workers, --]Proj.Cove: Fi2 Coc3:28.02.04 | J.Outs:4.sya.J REPUBLIC GEOTHERMAL,INC. December 8,1981 Ms.Patty De Jong Page 2 etc.),then this would cost about $1.5 million for mob-demob and $5,000 per day for support. If the resource is water-dominated,say 80%water and 20% steam,then testing might cost $750,000 rather than the $73,000 originally estimated (an increase of +$675,000). Finally,if weather is especially bad,a 10%contingency for excessive delays should be calculated on all procedures. Presented below is a summary of the costs of the items briefly described above: l.Incremental cost increase to utilize large (8,000-foot)rig $1,100,000 2.Fishing and sidetracking 25 days at $18,000/day $450,000 3.Helicopter mobilization and demobilization of all rig supplies,camp supplies,etc.$1,500,000 4.Helicopter support at $1,000/hr, 3 hrs per day for 90 days $270,000 5.Well testing cost increase for water-dominated resource $675,000 Subtotal $3,995,000 6-6 10%bad weather contingency $400,000 Total $4,395,000 Patty,this $4.4 million is a large number that is conser- vatively estimated to take into account many of the diffi- culties that can be envisioned.It is a pessimistic,butpossible,mixture of scenarios. If Representative Sutcliff could obtain +$4.4 million morefortheproject,it would take much of the pressure off all concerned.I should stress,however,that any increase overandabovetheoriginal$4.7 million originally budgeted would REPUBLIC GEOTHERMAL,INC. December 8,1981 Ms.Patty De Jong Page 3 be very prudent,as it would greatly increase the chances for achievement of project objectives. Thank you for awarding Republic the Unalaska contract,for your courtesy during our recent visit to Alaska,and for asking us to make this estimate.If you have any questions about this letter and/or other matters,please call. Sincerely?anfe 7 G.W.Huttzger Manager -/Exploration GWH:sjo Be AETHER,DPLERATION 1962 EMIROSENTAL BALIN ESTEMATED COSTS PROFESSIONAL LASER Fisteriss Scientist First StageAuthorizedBudget . .&hrs x $53/hr $47 $472-e =)Mebilizatim/esdiliztio2tripsx4daysx8hrsx $59/hr 3,716 1,888 2 trips x 4 days x 10 hrs x $59/hr '4,720 2,360 » tealysis and feoort , Preliairary (May trip):2 brs x $59/hr 1,416 0 Final (1982 beseline):40 brs x $59/hr 2,360 0 Ls .Sabtotal €12,746 = $4,720 Mater Quality Semtractor / +Sezoling Lesign 40 hrs x $69/hr $2,760 $2,760©SMdilizatioyDescdilizstio 2 trips x 2 cays x 8 brs x S9/r 2,208 1,104 «Field Samling :. 2 trips x 4 cays x 10 hrs x $49/hr 5,520 2,760 «alysis and ReportPrelininary(May trip):40 hrs x $éS/br 2,760 0 Final (1982 beseline}:70-hrs x $49/tr 4,830 0 oo Sstotal $18,078 $6,624 Keter Cheaistry Analysis e Prisery Stetions 2 trips x $6,785 $13,570 0 «Secondary Stations 2 trips x $175 358 0 Sbtotal $13,920 0 Terrestrial Habitat and Encarcered Secies e Inspection of Aerial Photogranhy,Analysis of Hurrelet Coservations,and Reoort Yriting 24 bes x $XV/he $1,200 $1,200 Sdtoteal $1,20 $1,200..._ Cultural Resources Stoontractor «Literature Review,File Search,and Coordination with Alaska Office of 'Histery &Archeeslogy2caysx$day -§1,000 $1,000 Co dbabed ¢rem ¢1 ANN »feview of Geologiau unforestion ad terial Paotoorashs20brsxSir «Field Inspection,including scbiliotio25hesxSite @ tes x She SPPRT LER .Clerical and ecounting2hrsx$40/te«Tectroca]Dstratio10hrsx$45/hr BPS 5 RT anchoragsDtch Harbor 2 R/T Fairborés-frtoree1R/T Seattle tnchoragx »Sdsistence abile troveling « «CosanicatimsadRerokctim «dar Freight ERUTRENT Fisheries Science «ectrofister 2 trips x 8 days x 95/cay ®iets 2 trips x 8 cays x 6 rets x SS/dey Water Gality .Fetets,etc.2 trips x 4Otrip éesszrLions: ERED TOTAL [&IB1.¥a allowance tes been sede for delzys caused by ceather.; 2,femolic Ceothereal ll provide all oxsite logistic axsort (food,ledging,helicopter,etc.) $5,20 §12 $5,400 $1,040 3.Alaska Office of Histary &Archscology my require m aoreite tumrey in addition to the teview avd coordination proocsed tere.This field acver $400 $400 $19,654 - STAGE III. A. STAGE IV. { APPENDIX B -SCOPE OF WURK LAND AND ENVIRONMENTAL FIELD WORK. The Contractor shall carry out a program of all required data collection for well site selection.The well site selection data collection program is desianed to complement the baseline environmental data collection program and to collect that datawhich,when integrated with the geologic and logisticinformationgatheredduringtheinitialfieldseason,will allow selection of the optimum thermal gradient hole and deep geothermal well sites.Information to be collected willprimarilybegeneralgeotechnicalengineeringdata(slope,slope stability,and soil characteristics),although general hydrologic,biologic,and visual data will also be acquired. The Contractor shall carry out a program of all necessary baseline data collection and obtain permits for all field operations described in this Amendment.The baseline environmental data collection program is designed to acquire that environmental information which is or may be required by permit-issuing agencies and other interested parties.It willalsobeutilizedtooptimizetheselectionofthethermalgradientordeepwellsitesandtoestablishanenvironmental data base upon which to judge the impact of operations. Although the complete range of environmental concerns will be evaluated,because of the nature of the area and the proposed operations,only certain types of information such as regards water quality,vegetation,wildlife,and rare or endangeredspecieswillbecollected. FIELD EXPLORATION The Contractor's staff aeoscientists will undertake the followingactivitiesbeginningmidorlateApril,1982,weather permitting: A. Page 1 Confirm and expand upon existing geologic mapping accomplished by Drewes and Reeder.Samples will be taken of major rock Jithologic types.The Contractor will inspect and describe major faults and lineaments detected via existing aerial photos and previously mapped by Reeder.The Contractor will sample,map,and classify hydrothermal alternation areas where accessible.The Contractor will study the surface geothermal manifestations,their locations,sizes,types,and tempera- tures,and we will determine their flow rates.The Contractor will also map and sample secondary geothermal manifestationdeposits. The Contractor's geochemists will perform confirmatory analy- ses of the chloride and pH concentrations in the major hot spring systems and select and sample thermal waters for detailed chemical analyses that quantify 42 anions,cations, and trace elements.They will gather baseline chemical data from the primary cold springs and river waters and provide assistance to Roman Moytka of DGGS in continued sampling of fumarolic gases at Makushin fumarole fields. During the mercury soil survey,the Contractor's staff will collect approximately 250 grams of "in place"soils at 1 kmspacing,where accessible,for mercury (Hg)analyses.They will perform mercury analyses on the collected samples,using a Jerome Model 301 Mercury Detector,and plot and contour the reported mercury values on a 1:50,000 scale map. The Contractor will cause to be conducted a self-potential survey along a pattern of selected profiles that is designed to detect potential suksurface thermal anomalies and major fracture zones.Electrode spacing along the profiles will not UNALASKA GEOTRERARL EXPLORATION 1982 ERYIRORMONTAL BASCLIE ESTIMATED COSTS PROFESS 108A.LAGGR Fisheries Scientist 8 hrs x $59/hr «Kobi lization/Descbilization 2 triss x 4 days x 8 hrs x $59/hr 2 trips x &days x J0 hes x $59/hr s kealysis and Report . Preliminary (May trip):24 hrs x $59/hr Final (1982 baseline}:40 brs x $59/hr Shtotal Kater Quality Subcontractor ! «Sapling Desion 40 hrs x $69/hr «'Mbilization/Desobilization 2 tripsx 2 days x 8 hrs x $9/hr «Field Sawpling 2 trips x 4 days x IO Ars x %/hr «alysis and Report Preliminary (May trip):4Q'hrs x $69/hr Final (1982 baseline):70-hre x $49/hr Sototsl eter Cheaistry Analysis e Priaary Stations 2 trips x $6,785 «Secondary Stations 2 trips x $175 Sbtotal Terrestrial Habitat and Endancered Soecies e Inspection of Aerial Photogranhy,Analysis of Hurrelet Observations,and Report Writing 24 brs x $50/he Sdtotel Cultural Resources Subcontractor »Literature Review,File Search,and Coordination with Alaska Office of Histery &Archeealogy 2 days x $S0/day $13,570 $ig$12,788 $13,920 « eview of Geological Inforestim ad frou Motogats70hrsxS0/hr $1,@0 ©Field Inspection,incleting ecbilizstion 26 bes x Ste 2,080 20 hrs x S8/br 1,40"Sette© QPPOST LER .Clerical and Aecourting20hrsx$4Q/hr $om e =Techical Wustration10brsx$45/nr .AQSbtotal CPS e hir Fare ,5 RT Anchorage-Dutch Hetbor $3,6502WTFairbanksa0 1 VT Seattle-tnctoray:50) «Sdbsistenceutiletraveling pat] *Comunications and feprodction xO Sitotal EQUIPERT 'Fisteries Science ««Aectrofister2tripsx8days x $55/dy $ «ets 2 trips x 8 cays x 6 nets x $5/day 4 Subtotal Kater Quality °Feters,etc.2 trips x $4O/trip $moOSototal ERED TOTAL dsseptios: 1.Fo alloxarce hes been sede for delays cased by testher. $5,29 $1,20 $5,400 $1,040 2.fepublic Geothereal will provide all oesite logistic sxwort (food, lodging,helicogter,etc.) 3.Alaska Office of Histary &Archaealogy bay require a on-site aavey ina dsetatc.ba bh)AAERAEMTTARELIESAISTTMNTSTLSTIRCACPHSCOMCASTTATBLNMAPRTTARTOTATORSEEOSTSATEEN32DOT PLY REPUBLIC GEOTHERMAL,INC.ay 11823 EAST SLAUSON AVENUE SANTA FE SPRINGS,CALIFORNIA 90670 TWX .910.586.1696 May 17,1982 (213)945.3661 HEUEFIVED Mr.Paul Neff Dames and Moore MAY2 4 199800Cordova,Suite 101 Mo,nee Anchorage,Alaska 99501 7 ALASKA POWER AUTHORITY Dear Paul: Republic hereby authorizes Dames and Moore to proceed with the en- vironmental baseline data collection program planning and first phase field work as described in:1)the Unalaska Geothermal Exploration Project,Phase IA Final Report;2)Stage III.B.of Appendix B,Scope of Work,Contract No.08-2334,Amendment 3,between the Alaska Power Au- thority and Republic Geothermal,Inc.(attached);and 3)Dames and Moore's Unalaska Geothermal Exploration 1982 Environmental Baseline Estimated Costs (attached). Specifically,Dames and Moore is authorized to undertake:the sam pling design,mobilization/demobilization,and field sampling required for the first phase of the fishery and water quality programs;the terrestrial habitat and endangered species,and cultural resources pro- grams;planning of the geotechnical investigation;and any support labor,travel,or equipment expenses required for the above. Authorization is not given at this time to proceed with any analysis or report preparation for the fishery,water quality and geotechnical programs,or for any water quality analyses except as undertaken in the field.: Dames and Moore is authorized to expend up to $19,654.00 for this portion of the baseline data collection program,as indicated on the attached estimate of costs.Should field conditions require nominal additional expenditures to accomplish the tasks described herein,Dames and Moore is authorized to do so but shall take every reasonable step to first inform and receive authorization from Republic prior to proceeding. Authorization is not given to expend funds significantly in excess of the authorized amount.- Les be Project Manager Unalaska Geothermal Project GWH/wp Attachments ..Fig,Go cc:E.W.Wellbaum,Republic Geothermal,Inc.Fia Cots:38,02.0Y _P.Delong,Alaska Power Authority ts:ERIB7A_|T.Andriola,Alaska Power Authority eyeeoesSTAGE IIT. A, STAGE IV. APPENDIX B -SCOPE OF wurK LAND AND ENVIRONMENTAL FIELD WORK The Contractor shall carry out a program of all required data collection for well site selection.The well site selection data collection program is designed to complement the baseline environmental data collection program and to collect that datawhich,when integrated with the geologic and logisticinformationgatheredduringtheinitialfieldseason,will allow selection of the optimum thermal gradient hole and deep geothermal well sites.Information to be collected will primarily be general geotechnical engineering data (slope,slope stability,and soil characteristics),although general hydrologic,biologic,and visual data will also be acquired. The Contractor shall carry outa program of all necessarybaselinedatacollectionandobtainpermitsforallfield operations described in this Amendment.The baseline environmental data collection program is designed to acquire that environmental information which is or may be required by permit-issuing agencies and other interested parties.It willalsobeutilizedtooptimizetheselectionofthethermalgradientordeepwellsitesandtoestablishanenvironmental data base upon which to judge the impact of operations. Although the complete range of environmental concerns will be evaluated,because of the nature of the area and the proposed operations,only certain types of information such as regards water quality,vegetation,wildlife,and rare or endangeredspecieswillbecollected. FIELD EXPLORATION The Contractor's staff aeoscientists will undertake the followingactivitiesbeginningmidorlateApril,1982,weather permitting: A. Page 1 Confirm and expand upon existing geologic mapping accomplished by Drewes and Reeder.Samples will be taken of major rock lithologic types.The Contractor will inspect and describe major faults and lineaments detected via existing aerial photos and previously mapped by Reeder.The Contractor will sample,map,and classify hydrothermal alternation areas where accessible.The Contractor will study the surface geothermal manifestations,their locations,sizes,types,and tempera- tures,and we will determine their flow rates.The Contractor will also map and sample secondary geothermal manifestationdeposits. The Contractor's geochemists will perform confirmatory analy- ses of the chloride and pH concentrations in the major hot spring systems and select and sample thermal waters for detailed chemical analyses that quantify 42 anions,cations, and trace elements.They will gather baseline chemical data from the primary cold springs and river waters and provide assistance to Roman Moytka of DGGS in continued sampling of fumarolic gases at Makushin fumarole fields. During the mercury soil survey,the Contractor's staff wil] collect approximately 250 grams of "in place"soils at 1 kmspacing,where accessible,for mercury (Hg)analyses.Theywillperformmercuryanalysesonthecollectedsamples,using a Jerome Model 301 Mercury Detector,and plot and contour the reported mercury values on a 1:50,000 scale map. The Contractor will cause to be conducted a self-potential survey along a pattern of selected profiles that is designed to detect potential subsurface thermal anomalies and major fracture zones.Electrode spacing along the profiles will not LMALASKA «=HEFAAL EXPLORATION 1982 EkvixUAMERTAL BAST IPE ESTIMATED COSTS First Stage andPROFESSIONALLABORPreliminarySecondSta Authorized Budget Fisheries Scientist §hrs x $59/hr $47 $472¢Mobil ization/Leandilizatio2tripsx4daysx8hrsx$59/er 3,776 1,888«Field Saspling2tripsx4days x 10 hrs x $59/hr 4,72 .2,360 e alysis and Feport Preliminary (May trip):24 hes x $59/hr 1,416 1,416 Final (1982 baseline):40 hrs x $59/hr 2,360 2 Subtotal $12,704 $6,136 Yater Quality Sbemtractor !7 +Sampling Design 49 hrs x $69/hr §2,760 $2,760©Mbilization/Descbilization 2 trips x 2 days x 8hrs x S69/hr 2,208 1,104eFieldSamplingJ 2 trips x 4 cays x If hrs x $49/hr 5,520 . 2,760 Preliminary (May trip}:SO hrs x $49/hr 2,760 2,760 Final (1982 baseline}:70 hrs x $69/hr 4,830 0Sstotal$18,078 $9,384 Mater Cheaistry Jnalysis e Primary Stations 2 trips x $6,785 $13,570 $6,785 ©Secondary Stations 2 trips x $175 330 175Subtotal$13,920 --§6,960 Terrestrial Habitat and Endancered Soecies »Inspection of Aerial Photogranhy,Analysis of Murtelet Goservations,and Report Writing 28 brs x $S0/he $1,20 :$1,200Sdtotal$1,200 §1,200 Cultural Resources Strontractor »Literature Review,File Search,and Coordination with Alacka Office of Histary &Archaeslogy 2 days x $SX/day $1,000 $1,000 Geotecmical lnresticstisn «feview of Geological Inforestion ad ferial Photographs20hrsxSSV/tr $1,40 $1,600¢=Fiedd Inssection,inclixting adilization"2 bes x 0/te 2,080 0 2 brs x iVhe 1,40 0"'Stotal $5,220 $1,600 QPPRT LR e «©QsricalandAccounting2hesx$40/hr $am $800«06s Jechiel Wassiratim10hrsx$45/hr ad 450 Subtcts!$1,250 $1,250 OOORES e Air Fare ,5 R/T anchorage-Dutch Herbor $3,400 7 $1,4402VYFairbanksaD200 1 R/T Seattle-Anchorage 50 0 ««=Sabsistencewhiletraveling yah}100 ¢ Comuiicatiosandfegrokctin 300 300 e =Air Freight _a 300Sbtotal$5,400 $2,340 ETENT Fisheries Science «flectrofister . 2 trips «8 days x 25/sey $58 $280 2 trips x 8 days x 6 rets x $5/cay 40 240Subtots]$1,040 $520 eter Gality | °Feters,etc.2 trips x $4Q/trip $am $400Sdtotal$a $400 GRAM)TOTAL 40,72 -$30,790 feswntios: 1.a allowance hes been sade for delays caused by secther. 2.Republic Gecthereal will provide all mesite logistic axsort (food,lodging,helicopter,etc.) 3.Alaska Office of History &Archaeology may fequire m apsite urvey inadditiontothereviewandcoordinationpropesedhere.This field survey Rll l/r vo )Gor LREPUBLICGEOTHERMAL,INC. 11823 EAST SLAUSON AVENUE RECEIVEDSANTAFESPRINGS,CALIFORNIA 90670 / :' TWX .910.586.1696 UMNO 4 199$2'!3)945-3661 May 17,1982 ALASKA PCWER AUTHORITY Mr.Paul Neff YU 0] Dames &Moore S62 800 Cordova,Suite 101 Anchorage,Alaska 99501 Dear Paul:ay This letter,when executed by an authorized representative of Dames and Moore,is intended to constitute the agreement between Dames and Moore and Republic Geothermal,Inc.to ac- complish those tasks generally known as Phase IB (Stages III- VIII)of the Unalaska Geothermal Exploration Project.If the contents of this letter are acceptable to Dames and Moore, please have the letter signed and returned to us. 1.This letter agreement is to cover the period from May 1,1982 to June 18,1983.These dates may be amended by mutual agreement. 2.The work to be conducted by Dames &Moore will in- 'clude: a.Dames and Moore will undertake the baseline data collection program as described in the Unalaska Geothermal Exploration Project,Phase IA Final 'Report;Stage III.B.of Appendix B,Scope of Work,Contract No.08-2334,Amendment 3,between the Alaska Power Authority and Republic Geother- mal,Inc.(attached);and Dames and Moore's Unalaska Geothermal Exploration 1982 Environ- mental Baseline Estimated Costs (attached). However,Dames and Moore will not incur costs or undertake activities in regard to this data col- lection program without Republic's written authorization. Because field observations and conditions may require modification to both the scope of work and the budget of $60,712 presented in Dames and Moore's estimate of costs,Republic will provide Letter to Mr. May 17, Page 2 1982 REPUBLIC GEOTHERMAL,INC. Paul Neff Dames and Moore with written authorization to proceed with the baseline data collection pro- gram in.approximately three logically phased stages.Authorization to proceed for each stage will be provided by Republic immediately follow- ing discussions with Dames and Moore concerning the effectiveness of the program,the costs incurred to that point,and mutual agreement about any required modifications. Dames &Moore will keep Republic informed of costs by means of weekly principal labor re- ports,and will bill Republic by means of monthly invoices.Costs incurred for the base- line data program will be specifically identi- fied on each invoice. Dames &Moore will provide to Republic two copies of a draft report of the environmental baseline data collection by November 1,1982. Five copies of the final report will be sub- mitted to Republic by January 1,1983.All raw data collected by Dames &Moore is to be submit-ted to Republic within 45 days of collection so .that Republic can transmit this data to the APA in compliance with the Schedule,Item 3,of Appendix B of the contract. As specifically directed from time to time by Republic,Dames and Moore will assist Republic in the completion of selected activities other than those involved in Stage III.B.of Appendix B,"Scope of Work",Contract No.08-2334, Amendment 3,between the Alaska Power Authority and Republic Geothermal,Inc. Seven thousand dollars ($7,000.00)has been budgeted for Dames and Moore's participation in these activities.Dames &Moore will not incur costs or undertake activities which will cause this amount to be exceeded without the written consent of Republic.Dames &Moore will keep Republic informed of activities and costs by means of weekly principal labor reports,and will bill Republic by means of monthly invoices. REPUBLIC GEOTHERMAL,INC. Letter to Mr.Paul Neff May 17,1982 Page 3 3.Dames &Moore will prepare brief monthly reports of the project status,organized by stage and approxi- mately one page in total length.These will be sub- mitted to Republic within 10 days after the end of each month for inclusion in the monthly report of project status to the APA to comply with the Schedule, Item 2 of Appendix B of the contract. Sincerely, a G.W.Huttrer Project Manager Unalaska Geothermal Project Agreed to:A 7 fee/Bate By Dames a GWH/wp cc:-Wellbaum,Republic Geothermal,Inc.E D.Carey,Republic Geothermal,Inc. P.DeJong,Alaska Power Authority T.Andriola,Alaska Power Authority STAGE IIT. A. STAGE IV. APPENDIX B -SCOPE OF WORK LAND AND ENVIRONMENTAL FIELD WORK The Contractor shall carry out a program of all required datacollectionforwellsiteselection.The well site selection data collection program is designed to complement the baseline environmental data collection program and to collect that data which,when integrated with the geologic and logisticinformationgatheredduringtheinitialfieldseason,will allow selection of the optimum thermal gradient hole and deep geothermal well sites.Information to be collected will primarily be general geotechnical engineering data (slope,Slope stability,and soil characteristics),although generalhydrologic,biologic,and visual data will also be acquired. The Contractor shall carry out a program of all necessary baseline data collection and obtain permits for all field operations described in this Amendment.The baseline environmental data collection program is designed to acquire that environmental information which is or may be required by permit-issuing agencies and other interested parties.It willalsobeutilizedtooptimizetheselectionofthethermal gradient or deep well sites and to establish an environmental data base upon which to judge the impact of operations.Although the complete range of environmental concerns will be evaluated,because of the nature of the area and the proposed operations,only certain types of information such as regards water quality,vegetation,wildlife,and rare or endangeredspecieswillbecollected. FIELD EXPLORATION The Contractor's staff geoscientists will undertake the following activities beginning mid or late April,1982,weather permitting: A. Page l Confirm and expand upon existing geologic mapping accomplished by Drewes and Reeder.Samples will be taken of major rocklithologictypes.The Contractor will inspect and describe-major faults and lineaments detected via existing aerial photos and previously mapped by Reeder.The Contractor will sample,map,and classify hydrothermal alternation areas where accessible,The Contractor will study the surface geothermal manifestations,their locations,sizes,types,and tempera- tures,and we will determine their flow rates.The Contractor will also map and sample secondary geothermal manifestation deposits. The Contractor's geochemists will perform confirmatory analy- ses of the chloride and pH concentrations in the major hot spring systems and select and sample thermal waters for detailed chemical analyses that quantify 42 anions,cations, and trace elements.They will gather baseline chemical data from the primary cold springs and river waters and provide assistance to Roman Moytka of DGGS in continued sampling of 'fumarolic gases at Makushin fumarole fields. During the mercury soil survey,the Contractor's staff willcollectapproximately250gramsof"in place"soils at 1 kmspacing,where accessible,for mercury (Hq)analyses.They will perform mercury analyses on the collected samples,using a Jerome Mode]301 Mercury Detector,and plot and contour the reported mercury values on a 1:50,000 scale map. The Contractor will cause to be conducted a self-potential survey along a pattern of selected profiles that is designed to detect potential subsurface thermal anomalies and major fracture zones.Electrode spacing along the profiles will not " .SB-0Aa.OF REPUBLIC GEOTHERMAL,INC. 11823 EAST SLAUSON AVENUE,SUITE ONE SANTA FE SPRINGS,CALIFORNIA 90670 GERALD W.HUTTRER .wane 3)oarer eo6VICEPRESIDENTBUSINESSDEVELOPMENT AND TECHNICAL SERVICES February 24,1984 RECEIVED FEB 27 18°' Mr.Dave Denig-Chakroff ALASKA POWER AUTHORITY Alaska Power Authority 334 West 5th Avenue 2nd Floor Anchorage,AK 99501 Dear Dave: Pursuant to Appendix C,Article C-3 of Republic Geothermal, Inc./Alaska Power Authority Contract CC-08-2334,I wish to advise you that I will no longer be Republic's Project Manager on the Unalaska Geothermal Exploration Project,and that Dr. John L."Bill"Smith,Vice President of Exploration,has been designated as the new Project Manager.This change,effective immediately,has been dictated by internal redistribution of responsibilities within Republic's organizational structure. Dr.Smith,as evidenced by his enclosed resumé,is an extremely experienced and qualified geothermal geologist with strong project management background,and he will manage the work in a highly professional manner.I will continue to be available to assist Dr.Smith and to facilitate the changeover. I have thoroughly enjoyed working with the APA on this project and hope that there are similar opportunities in the future. Sincerely,J .; ae Vf Ld,TA 2 if.etd!a vA Ly Lh ted LG va Gerald W.Huttrer Vice President GWH:1jb Enclo cc:eJonSteveGrabacki J.R.Stites J.L.Smith BIRTHPLACE: BIRTH DATE: POSITIONS: EDUCATION: MILITARY SERVICE: RESUME John L."Bill"Smith Albany,New York May 13,1935 Vice President -Exploration,Republic Geothermal,Inc., Santa Fe Springs,CA,USA Executive Vice President,Republic Geothermal,Inc.(Japan), and Republic Geothermal International Managing Director,Republic Geothermal K.K.,Tokyo,Japan A.B.,Middlebury College,Middlebury,Vermont (1958),Geology M.A.,Indiana University,Bloomington,Indiana (1962),Geology Ph.D.,Indiana University (1970),Geology/Chemistry U.S.Army,Huntsville,Alabama (1958-1960) SOCIETY AFFILIATIONS:Geothermal Resources Council American Association of Petroleum Geologists PROFESSIONAL EXPERIENCE: 1975 -Present Republic Geothermal,Inc. Vice President-Exploration. Directs and manages all aspects of geologic,geochemical and geophysical exploration programs and development geology for Republic,including a number of joint ventures for geothermal resource development.Successful geothermal exploration and deep well drilling activities have taken place in the Impe- rial Valley and The Geysers areas in California,plus a sub- stantial number of other areas in Nevada,Utah,Oregon,and Idaho.Directly responsible for all technical and business Management aspects of extensive geothermal exploration,eval- uation,and development programs being undertaken throughout Japan by Republic for the Japanese National Government (MITI), with Idemitsu Kosan Co.,Ltd.and Idemitsu Geothermal Co., Ltd. John L."Bi11"Smith | Page 2 1972 -1975 1971 -1972 1970 Standard 011 Company of California,WOI Project Coordinator,Sacramento-North Joaquin Gas Project. Supervision and coordination of a project group of four geologists,two geophysicists,and temporary support person- nel as required to undertake an aggressive exploratory cam- paign for new gas reserves in the Sacramento Valley and Delta area.The arrival of "bright spot"recording-processing of seismic data markedly influenced the industry with the result that competition for data acquisition and land leasing was extremely active.Conditions required maximizing manpower effectiveness to rapidly formulate prospective trends,ac- quire and interpret seismic data from two crews,and then to acquire drillable land blocks.Final prospect evaluation and drilling followed. Project Coordinator,Westside San Joaquin Valley. The first supervisory assignment was for a small group of two geologists,one geophysicist,and the part-time assignment of a paleontologist.This specific project focused on deep water deposited sand fairways and fans present between struc- tural highs that were later rejuvenated to elevate sand edges into productive trap positions. Subsurface Geologist -Geophysicist (for Westside San Joaquin Valley). A wide variety of structural and stratigraphically entrapped oi]accumulations were recognized as present in the southwest San Joaquin Valley.Job was to pick over this mature prov- ince to initiate,develop,evaluate and present a series of exploratory plays.Well control and seismic data were inte- grated to produce unit isopach,sand isolith and structural horizon maps.Extremely rapid stratigraphic and lateral velocity changes required repeated use of theograms and involved migration techniques to insure proper identification and depiction of seismic-stratigraphic wedging.Plays were developed,recommendations made and approved,and wells were drilled.During this time a five-month leave of absence was taken to successfully complete and defend a Ph.D.disserta- tion. John L. 1969 1968 9-1967 BATT"Smith Page 3 Seismic Crew Client Representative,Bakersfield. The assignment required determining final line locations to adequately evaluate exploratory plays,observing field opera- tions,determining recording parameters,selection of various processing options,and then documenting the cost accounting of seismic crew.Innumerable time section interpretations and structure maps were rapidly made throughout the San Joaquin,Cuyama and Salinas Valleys to give an earliest evaluation from the crew's results.Additional formal pro- cessing background was received by attending the three geo- physical schools at the corporate data processing center. Geophysicist,Los Angeles Basin. First year of geophysical training provided an introduction to seismic data usage.Experience was gained as to the pro- gramming,field recording,computer processing and interpre- tation methods.Special interpretive problem requiring the discrimination of symmetrical and unsymmetrical multiples was resolved by a series of depth-time-depth iterations that utilized existing computer programming.Most of the effort was involved with the use of old dynamite and new Vibroseis data to structurally map a number of prospects within the Los Angeles and San Gabriel Basins. Petrographer,Santa Barbara Channel Area. The January 1968 Santa Barbara Channel Federal Lease Sale was anticipated with studies that were expanded to further inves- tigate aspects of the stratigraphy on and around the Channel Islands.The heavy mineral content was specifically examined in outcrop samples plus a limited number of ocean bottom and well core samples.A proposed system of maturity index valuing was developed to type units,to modify or support correlations,and to bring to light certain transgressive- regressive sequencing.Predictions of offshore reservoir quality and distribution incorporated these results.Follow- ing that a parallel study was made of the total section exposed along the Santa Ynez mountain front near the coast. Mineral suites were identified,and the degree of unit to unit correlatability/distinction was analyzed with a proposed similarity index developed to describe with matrix program- ming the vertical (temporal)and lateral variations present. Significant conclusions were reached as to the specific rela- tionships of the Ojai Eocene section versus that found pres- ent west of Santa Barbara. John L."BA1T"Smith Page 4 1966 -1967 Surface-Subsurface Geologist,East Los Angeles Basin. Previous independent interpretations of Puente Hills surface geology and of subsurface geology in some contiguous oi] fields had resulted in some significant discrepancies and inconsistencies.Resolving this situation involved field checking,review and modification of the existing strati- graphic,paleontonolgic and structural surface mapping in the specific area,plus the review and reinterpretation of the wel]data available.A report provided a synthesized inter- pretation of the detailed stratigraphic relationships with continuous structural mapping between the outcrop formational units and the oi]producing reservoirs within the nearby Esperanza,Yorba Linda,Kraemer and Richfield 011 fields. PUBLICATIONS: 1.Smith,J.L.,1965,Geologic investigations .of the Tobacco Root Batholith,Madison County,Montana:Compass,v.42,no.4, p.256-264. Smith,J.L.,1970,Petrology,mineralogy and chemistry of the Tobacco Root Batholith,Madison County,Montana (Ph.D.thesis): Bloomington,Indiana,Indiana University. Smith,J.L.,and Mattick,J.S.,1976,Summary of 1975 geothermal drilling -Western United States:Geothermal Energy Magazine,v.4, no.6. Smith,J.L.,and Rex,R.W.,1977,Drilling results from the Eastern Long Valley Caldera in Proceedings of the American Nuclear Society meeting,Golden,Colo.,April 12. Smith,J.L.,Isselhardt,C.F.,and Matlick,J.S.,1977,Summary of 1976 geothermal drilling -Western United States:Geothermal Energy Magazine,v.5,no.5,p.8-17. Smith,J.L.,1978,Geologic interpretations of reservoir and fluid flow rate variations of Northern East Mesa geothermal wells:Ameri- can Association of Petroleum Geologists,Pacific Section,Sacramento, Cal.,April 26-28. Smith,J.L.,Isselhardt,C.F.,and Matlick,J.S.,1978,Summary of 1977 geothermal drilling -Western United States:Geothermal Energy Magazine,v.6,no.5,p.11-19. John L."Bill"Smith Page 5 10. VW. Smith,J.L.,Matlick,J.S.,and Isselhardt,C.F.,1979,Summary of recent geothermal drilling activity:Pacific 0117 World,v.72, no.3,p.26-27. Smith,J.L.,Matlick,J.S.,and Isselhardt,C.F.,1979,Summary of1978geothermaldrilling-Western United States:Geothermal Energy Magazine,v.7,no.5,p.25-34. Smith,J.L.,1979,Geology and commercial development of the East Mesa geothermal field,Imperial Valley,California in Geology and geothermics of the Salton Trough:Geological Society of America, Annual Meeting Guidebook,field trip no.7,p.86-94. Smith,J.L.,Matlick,J.S.,and Enhi,W.J.,1980,Summary of 1979 geothermal drilling -Western United States:Geothermal Energy Maga- zine,v.8,no.7,p.3-18. -'De rw.eNO .r February 2,1984 a Mr.Gerry Huttrer Project Manager Republic Geothermal,Inc. 11823 East Slauson Avenue,Suite One- Santa Fe Springs,CA 90670 Dear Gerry:"eThts letter is a follow-up to my telephone conversations with you"and Jean Bisserier concerning Amendment No.6 to contract CCO8-2334'between the Alaska Power Authority and Republic Geothermal,Inc.The conceptual design and plan for development on which you base -_development and transmission cost estimates should reflect your recommended development approach,even if this means modifying someoftheguidelinessetforthinAmendmentNo.6.In your analysis, »you should use the "LOW BOTTOMFISH CATCH ESTIMATE"load forecasta"provided by Acres American,Inc.(enclosed).Under Amendment-NO.6.,we are depending on Republic Geothermal,Inc.to make use ---of fits technical expertise,past experience,a thorough study of..existing data,and consideration of the unique economic situation °"of Unalaska.to recommend the most viable design and development|..options,to supply supporting evidence for the recommendations,and..to provide reliable development and transmission costs for thoseoptions., Ee'In discusstons invelving representatives of the Power Authority,_-Republic,Acres,and the City of Unalaska,numerous suggestions=have been made regarding the optimum design and development plans_for a geothermal utility at Unalaska.I will summarize these below -"for your consideration:|ett ae ae oe 7-il.Construction of a 10 MW system with no plans for increas-"dng capacity through year 2000. a os -)2.Construction of a 10 MW initial plant size increasing by ae mo 5 MU increments,as needed,to a maximum 30 MW plant by"year.2000.See ee a Orilling all wells 'required for a 30 MW plant uponcaconstructionoftheinitial10MWplant. b.Drilling necessary production wells as each incre :ment fs constructed. 3.Construction of a plant designed to meet base loads(50-60%of peak demands)and assume that diesel genera-tors will meet demands exceeding base loads. 4.Construction of a plant designed to meet an intermediateToadlevel(between base load and peak demand)which may be economically competitive with a base load plantconsideringthehighcostofdieselback-up. Please consider these options and others you may recommend and provide cost estimates on those that you find to be optimal for Unalaska,Feel free to contact me at any time to discuss the viability of varfous options.JI will assist you with transmission'Vine routing options and cost estimates,." -oe_The 'delivery date for the final Amendment No.6 report:ts hereby””"extended to April 30,1984.The draft report is now due on.-April 10,1984,However,a draft of the portions of tasks IV and Vcovering"design and development options and estimated developmentandtransmission({ncluding operation.and maintenance)costs of:the options is needed as soon as possible and no later than-March 1,1984..The urgency for this data is due to a request From-the Senate Advisory Counci]which will use the information to .="evaluate the'need for additional appropriations for the project.._,, _are available for modifications to Amendment No.6 discussed here.However,you may reallocate effort from the now unnecessary econom- Le fe analysis in Task V to make up for time expended due to these |geF ies-Ghangese..ae I apprectfate the effort you and Jean have made on these tasks and| (fg fyVl Denig-ChakroffProjectManager DOC/it +enclosuresas stated 1738/126 "No addittonaT"funds,over the$20,000 fixed price of the amendment,©' Br.0S 08/88-04U4) January 31,1984 "Mr.Gerry Huttrer>Project Manager Republic Geothermal,Inc. 11823 East Slauson Avenue,Suite One Santa Fe Springs,California $0670 oe Dear Gerry:a.AS oThts letter isto confirm my approval of your proposal datedyews!.=t>a...December 1,1983 for purposes of initiating permitting activities|wis "3.pelated to 1984 field work for the Unalaska Geothermal Project. This approval does not constitute a contractual obligation,but I will begin preparing an amendment,based on your proposal,thatwillmodifytheexistingcontractand.extend its period of perfor-_mance to allow time for completion of the tasks you have proposed.| : The amendment will be forwarded for your signature and then submit--ted for approval by the Department of Commerce and Economic Devel-- =opment and the Department of Administration.Meanwhile,you may=s,continue working under Amendment #5 to procure the necessary,oc)permits?for 1984 field work based on the proposal submitted. Singerely, ef Mild biucl 0?"Dave Denig-Chakroff cad"”Project ManageroeDotyse7 ae Me M186 iProt.Cede:3 Fj:oa |rig Code:+V2:of z =Oke MEMORANDUM ____-StetesofAlaska To:Gloria Manni DATE:June 24,1983 Controller FILE NO: TELEPHONE NO: FROM:Patti DeJong)SUBJECT:Special Director,Project Evaluation Restriction of $100,000, Unalaska Geothermal Program In order to meet the stipulations of the drilling permit we have recently obtained from the Division of Minerals and EnergyManagement,Department of Natural Resources (DNR),the Alaska PowerAuthorityhasagreedtosetaside$100,000 of the geothermal budget in lieu of drilling bond to cover well abandonment contingencies.(See attached letter to Republic Geothermal,Inc.from Kay Brown,for the Commissioner,DNR,June 14,1983.)This amount will also serve as a reserve for the deductibles on the well insurance recently procured through the Division of Risk Management's con- tract with Coroon &Black. Please restrict $100,000 from our 670 account for this pur- pose, PKD/sc Proj.Cece: Fa Code:Z.nt L 9304 ||Date:33.195./ PZ\.\0Y os ce .Cannact /.REPUBLIC GEOTHERMAL,INC.Doc wa 11823 EAST SLAUSON AVENUE,SUITE ONE SANTA FE SPRINGS,CALIFORNIA 90670 (213)945-3661GERALDW.HUTTRER TWX 910-586-1696VICEPRESIDENTBUSINESSDEVELOPMENT AND TECHNICAL SERVICES June 1,1983 RECEIVED Ms.Patti DeJong YUN 06 J00AlaskaPowerAuthorityLAS"ww 334 West 5th Avenue Oven AUTH2ndFloorCaiTy Anchorage,AK 99501 Dear Patti: Enclosed,for your files,is a copy of an agreement between Republic and Aleutian Storage.We will be using their facilities instead of those at Carl's,Inc.for reasons of safety and economy. Please call if you have questions. Huttrer Vice Pkegident GWH:1jb Enclosure Fi'o Cove:SB,02.04 | J toe:FB./5D. Agreement This agreement,entered into by Republic Geothermal,Inc. and Aleutian Storage,will be effective upon date of Signing. Inside storage and freight moving equipment will be furnished by Aleutian Storage at rates per attached tariff sheet. Equipment used by Republic Geothermal,Inc.shall be charged on a cummulative hourly figure.The time used will be recorded by Aleutian Storage.No charge will be made for items in outside storage,however,a staging area rate of Thirty (30)dollars per day shall be charged for loading, unloading and use by the helicopter contracted by Republic Geothermal,Inc. Bills for all equipment and labor will be presented for payment on a monthly basis. |Ae aa a or?KOA Ce B.P.ChristofersonAleutianStorgge e 7a éLo at tine Af=acaRepublic Geothermal,inc. -.”aSignedanddatedthisBu"day of May,1983. Jt fF ALEUTIAN STORAGE Box 92 Unalaska,Alaska 99685 New Services 4 Single Side Band Radio 4125 frequency Call Sign WHG 969 Marine VHF Channel 6 Telephone:S8am-5pm (907)581-1428 after 5pm 581-1274 Freezer Storage now available!! Rates (effective March 1,1983) Labor:Monday thru Friday ° 8:00am to 5:00pm @eeeoeeeeneeoeveeev anes $17.50/hr5:00pm to 8:00am @eesoocoaoteaeoeeenonee eo 26.25/hr % Saturdays Up to 12 hours eccccccncccccccceed 2Oe6e5/hrOver12hourseeeeeeveaoeevoeeeeevee35.00/hr Sundays &Holidays ...cccccccecceeee $35.00/hr Vehicles:Up to one ton ce ccccccvesccseee $25200/hr Flatbeds one ton and over «eecccsece 52.50/hr Crane truck "@eeeeeeseoeeoeever 75.00/hrForklift@eeeoeeoeeeoeeeeeeeseeoe850.00/hr All prices include driver or operator.Cost of vehi¢lé remains the same regardless of times used.Over time only charged on labor. Storage:Inside (dry)...ccccccccccccccces $65.00/mo minimum.60/sq £t/moOutsidececccceccccccscccees 30.00/mo minimum .-20/sq ft/moFreezeseceeeeceereeseevcee50..00/mo minimum-O6/lb/mo or 2.00/cu ft/mo Please feel free to contact us anytime.I am helping Bernie with communications so please let me know if we can be of any help.Thank you for your patronage. Pd Stephanie Madsen ALASKA POWER AUTHORITY 334 WEST 5th AVENUE -ANCHORAGE,ALASKA 99501 Phone:(907)277-7641 (907)276-0001 May 9,1983 D ALASKA POWER AUTHORITY /QuFederalI.D.No.92-0071121 / Sales Tax and Excise Tax Exemption Certificate ' I hereby certify that I am the Executive Director of the Alaska Power Authority;that I am authorized to execute this certificate and that all orders placed by Republic Geothermal in connection with the Unalaska Geothermal Project for the period commencing April 20,1983,and ending December 31,1983,are or will be purchased for the exclusiveuseoftheAlaskaPowerAuthority. I understand that the exemption from sales and excise tax under this exemption certificate is limited to the sale of articles purchased for the exclusive use of the Alaska Power Authority.I understand that the fraudulent use of this certificate for the purpose of securing this exemption will subject me and all parties making such fraudulent use ofthiscertificatetoafineofnomorethan$10,000 or to imprisonment for not more than five years,or both,together with the cost of prosecution. Eric P.Yould \Executive Director eae Proj.Coce: File Coe:3g,02.04 | 8412/D 1 pate:03/09.)| PANY : .os . ftance>/ 'REPUBLIC GEOTHERMAL,INC.i 11823 EAST SLAUSON AVENUE SANTA FE SPRINGS,CALIFORNIA 90670 TWX .910.586.1696 (213)945.3661 March 7,1983 PUT ewe garye Hace od ae eltaad rAd 1:'i aewed 'newees "4 |™"are ltrMr.Ray Benish Alaska Power Authority 334 West 5th Avenue Anchorage,AK 99501 a"OC/Subject:APA Letter Dated February 4,1983 Dear Mr.Benish: Enclosed please find the information requested in your letter.The inventory listing has been prepared in a fashion to reconcile to the previous list supplied to APA rather than to adhere to the Inventory Control policies as described in Amendment 5.As you will note in reviewing this list only three items,numbers 57,58 and 63 totaling $763.07,are inventory as described in the policy. The enclosed listing of hourly rates is being provided to APA ona confidential basis and should not be revealed to or discussed with any other parties,including RGI project staff.Any questions relating to salary data should be addressed directly to me. Please call me if you have any questions. .Seatrulytho1,GeantaasistController TIM:cmb Enclosures br,Clim Pio Cerc:BE eE.ol ieee 238.66./_ RGI EMPLOYEES 2/28/83 DEPARTMENT/NUMBER LAND &ENVIRONMENTAL/03 Bressler Carey,D. Capron Evans Hass Johnson Nicholas Spray Thomas Westlund PRODUCTION/04 Bisserier Campbell Fisher Kirtz Lopez Michels Mobbs Morris Tracey Vella Verity Walden Walker Yarter EXPLORATION/05 Huttrer Isselhardt Matlick Parmentier Smith SENIOR MANAGEMENT/07 Brandis Knox Miles Rex Stites Wellbaum HOURLY RATE 7/1 -12/31/82 $9.23 18.10 9.23 30.65 12.50 8.08 14.42 5.63 15.58 14.73 24.45 36.78 26.76 5.53 11.40 22.12 13.46 26.39 12.50 8.65 28.56 17.31 27.69 24.23 30.46 24.66 22.93 14.42 43.27 10.10 11.54 14.42 57.69 38.46 49.04 1/83 -Current $9.23 20.11 9.23 40.87 12.50 8.08 14.90 5.63 17.31 16.37 27.16 43.27 29.73 5.53 11.40 24.58 13.46 29.33 12.50 8.65 31.73 19.23 30.77 26.92 33.85 27.40 25.48 14.42 43.27 10.10 11.54 15.58 72.12 60.10 57.69 DEPARTMENT/NUMBER WORD PROCESSING/09 Carey,R. Fierros FINANCE/14 Baker Colmaire Matsumoto Rutledge Targon TAX/15 Heying GRAPHICS/16 Carter Monroe Department Number 03 04 05 07 09,14,15,16 G&A RGI EMPLOYEES 2/28/83 OVERHEAD RATES HOURLY RATE 7/1 _-12/31/82 1/83 -Current $14.42 9.23 12.12 26.39 17.26 7.79 34.74 22.98 12.87 14.42 7/1 -12/31/82 1453 1223 90% 130% 98% 1283 $15.38 9.23 12.12 29.33 19.18 7.79 45.67 25.53 12.87 15.63 1/1/83 -Current* 135% 100% 110% 90% 103% 80% *All rates were adjusted to current on a cumulative basis in the January 1983 billing. ;CC-08-2334ALASKAPOWERAUTHORITYProjectNo. . PROPERTY INVENTORY SHEET page?of 4.” oO}Inventory , Parl or Suppliertnvoice [Contractor Invoice Inventory Condition/y.Number item Description Serial Number|Supplier Locotion No.Dote No.|Date PnitPrice|Total |Remorks 1 1 Woot SHIRT --REI-cOOP [ANCHORAGE TICKET 4/26/82 214 17/9/84 17.93]17.93]FAIR EXPENSE 582 _-7/82 q ..1 2 WooL SHIRT REPORT ANCHORAGE ISM 4/27/82 214 17/9/84 17.23|17.23]FAIR TICKET ]'|1 3 WOOL.-SHIRT °--REI-COOP |ANCHORAGE STUB 6/2/82 214 17/9/84 39.95|39.95}FAIR a TICKET ]ij14Woot.SHIRT --REI-COOP [ANCHORAGE STUB 6/2/82 214 |7/9/84 35.95]35.95]FAIR TICKET ;1 5 WOOL SHIRT -REI-COOP ANCHORAGE ati [4726782 214 17/9/84 35.95]35.95)FAIRaisteTICKET 1 6 Woot.SHIRT ---REI--COOP ANCHORAGE!STUB 4/26/82 214 |7/9/84 34.00]34.00]FAIR TICKET ,1 PR 7 Woo.Socks --REI-COOP ANCHORAGE STUB 4/26/82 214 |7/9/84 4.95|4.95}POOR TICKET ]1 PR 8 Woot SocKS --REI-COOP {ANCHORAGE STUB 6/2/82 214 17/9/84 4.95 4.95]POOR - TICKET 2 PR 9 _|WOou Socks --REI-COOP |ANCHORAGE}STUB [6/21/82 231 18/18/42 4.95 9.90 POOR TICKET a 2 PR 10 WooL Socks --REI-COOP ANCHORAGE]STUB [6/2/82 214 |7/9/82 4.50}°9.00 POOR EXPENSE ]1 11 THERMAL UNDERWEAR BOTTOMS - REPORT ANCHORAGE}582JSM 4/29/82 214 1779/84 9.46]9.46 POOR T112THERMALUNDERWEARBOTTOMS--REI-COOP {ANCHORAGE ein 6/2/82 214 17/9/84 16.95]16.95 POOR TICKET ]A113THERMAL.UNDERWEAR BOTTOMS --REI-COOP |ANCHORAGE STUB 6/2/8k 214 17/9/84 17.95]17.95)GOOD1|THERMAL UNDERWEAR TICKET SET }14 _|ToPs &BOTTOMS --REI-cOoOP {ANCHORAGE]STUB |[6/2/8P2 214 |7/9/84 23.95]23.95 GOOD DUTCH 1 15 PLASTIC RAINCOAT -CARL'S INC|HARBOR |/90843 |4/27/82 214 1779/84 15.75]15.75)DESTROYED DUTCH 1 |16 CAP _--CARL'S INC]HARBOR 91793 {5/20/82 214 17/9/84 7.02!7.021 POOR TICKET 1 17 FIELD PACK --REI-COOP |ANCHORAGE]STUB [4/26/82 214 |7/9/84 79.93|79.93 FAIR rs ns (an TICKET 1 18 FIELD PACK __--REI-COOP ANCHORAGE]STUB [6/2/82 214 17/79/84 31.95|31.95]FAIR TICKET 1 19 FIELD PACK --REI-COOP {ANCHORAGE]STUB 14/26/82 214 |779/84 35.95]35.95]FAIR DUTCH120GLOVES--CARL'S INC]yaRRBOR 90999 {5/4/82 214 }|7/9/84 9.66]9.66 LOST Total this nane 458.38 ALASKA POWER AUTHORITY Project No.CC-08-2334 + * PROPERTY INVENTORY SHEET page 2.of 4,° QO Inventory . Part or Supplierlnvoice [Contractor Invoice |Inventory Condition/y Number (Wem Description Serial Number]Supplier Location No.Date No.Date PnitPrice|Total |Remorks 2 PR 21 GLOVES --CARL'S INC ee 90282 4/29/42 214 b/9/82 15.10 |30.20]POOR 'DUTCH L1PR22GLOVES--CARL'S INC 90952 4/30/82 214 [779/821 11.56 |11.56]|POOR. DUTC ° 1 PR 23 GLOVES --CARL'S INC NanouR 90952 4/30/82 214 [7/9/82]11.57]11.571 LOST | TICKET TPR 24 ©GLOVES --REI-COoP ANCHORAGH STUB 6/2/84 214 17/9/82]14.95]14.95]POOR DUTCH 5.10]15.101PR__25 GLOVES --CARL'S INC }|HARBOR 92798 18/24/42 267 10/12/B3 °°POOR BUTCH 7 1 1 PR 26 GLOVES -|CARL'S INC |HARBOR 91707 6/5/84 231 |8/18/8P16.95 |16.95]POOR 1 27 IcE Ax --REI-COOP ANCHORAGE eros 726/82 214 [779/82]57.95 1 57.951 POOR TICKE 4/26/82 214 [7/9/8215128___|Ice AX --REI-cooP___|ANCHORAGH STUB 9495 |59-95]POOR TICKET,»26/d2 214 [7/9/82]2.2 4229__|SPACE BLANKETS --REI-cooP __|ANCHORAGH STUB 725 |4-90)RUINED DUTCH 1 30 SPACE BLANKET --CARL'S INC |HARBOR 90843 #/27/d2 214 1779/82]2.25]2.25;/RUINED TICKET] 1 31 SNow PAc Boots --REI--COOP ANCHORAGH STUB 6/2/84 214 [779/82]69.95 |69.95]FAIR DUTCH . _2 |.32 |SNow PAc Boots _--CARL'S INC |HARBOR 90992 5/3/84 214 [7/9/82]72.63]72.63]FAIR 1 33 SNow PAC BooTs --CARL'S INC vanooR 90967 [5/1/84 214 [7/9/82]69.95]69.95]FAIR -: TICKET 1 34 SNow PAC LINERS --REI--COOP ANCHORAGE STUB [6/2/84 214 [7/9/82]14.95]14.95]FAIR 1 35 SNow PAC LINERS --CARL'S INC DUTCH 90843 [4/27/42 214 7/9/82 14.951 14.95]FAIR wee -HARBOR-Ae 1 36 SNow PAC LINERS --REI-COOP JANCHORAGE!]21913 [4/26/42 214 |779/84 14.95]14.95|FAIR a : ;TICKET 1 37 PACK POCKETS --REI-COOP JANCHORAGE!STUB {6/2/84 214 |7/9/82)4.39]4.39}FAIR TICKET238PACKPOCKETS--REI-CcOOP JANCHORAGE "STUB 4/26/42 214 1779/84 7.48]14.95]FAIR TICKET , 1 39 FIRST AID KIT --REI-COOP ANCHORAGE STUB 4/26/42 214 |7/9/82)15.95]15.95])DEPLETED 1 40 FIRST AID KIT _REI-coop |ANcHorAGE|ESKET 4/2672 214 17/9/8d 15.95]15.95]DEPLETED Total this page 533.60 ALASKA POWER AUTHORITY Project No.CC-08-2334 . ' ° PROPERTY INVENTORY SHEET page >of 4. Inventory Port or Supplierinvoice |Contractor Invoice Inventory Condit on/Oly.Number ttem Description Serial Number|Supplier Location No.Dote No.Date pinitPrice]Total |Remarks 2 41 SURVIVAL KITS ---REI-COOP ANCHORAGE eruB 4/26/82 214 17/9/84 2.75]§.50{DEPLETED DUTCH 1 42 SURVIVAL KITS --CARL'S INC|HARBOR 90843 {4/27/82 214 17/9/84 2.75|2.75 DEPLETED :DUTCH -e143STERNOHEATSETS°--CARL'S INC HARBOR 90843 14/27/82 214 17/9/84 15.00]15.00 DEPLETED a ae DUTCH 1 44 STERNO HEAT SETS --CARL'S INC ]HARBOR 90843 14/27/82 214 17/9/84 15.00]15.00)DEPLETED ee pees Oe BUTCH 1 45 GORETEX RAIN PARKAS --CARL'S INC /HARBOR 90843 |4/27/$2 214 17/9/84 89.93]89.93]FAIR ee ees Oe TICKET : 1 46 GORETEX RAIN PARKAS --REI-COOP {|ANCHORAGE]STUB [6/2/8P 214 17/9/84 89.93]89.93]FAIR TICKET 1 47 GORETEX RAIN PARKAS --REI-COOP {ANCHORAGE]STUB |4/26/82 214 17/9/84 89.93]89.93]FAIR TICKET 1 48 __|_GORETEX RAIN PANTS --'REI-COOP [ANCHORAGE]STUB [672/82 214 {7/9/84 62.95]62.95)GOOD| EXPENSE 5/82 1 49 _|HAT --REPORT ANCHORAGE]PPP [4/27/82 214 |779/84 7.75 7.75)POOR DUTCH |1 50 HAT --CARL'S INC }HARBOR 90843 §4/27/82 214 |7/9/84 16.00]16.00 POOR TICKET 1 51 Woot PANTS --REI-COOP |ANCHORAGE]STUB {6/2/82 214 17/9/84 44.95]44.95]POOR 'DUTCH 4152WootPANTS--CARL'S INC HARBOR 90843 14/27/82 214 17/9/84 35.50]35.50)POOR TICKET 1[53 __|_Woot PANTS --REI-COOP__JANCHORAGE|STUB [6/2/82 214 17/9/84 14.95]14.951 POOR DUTCH 10.95]10.95 1 |54 =|BELT --CARL'S INC|HARBOR 94006 18/3/82 267 [10/12A82 POOR EXPENSE 1 5S __|_WOOL JACKET --REPORT ANCHORAGE]582JSM|4/25/82 214 {7/9/84 33.53]33.531 GOOD TICKET 1 |56 __|SUNGLASSES __--REI-COOP |ANCHORAGE]STUB 16/2/82 214 |7/9/84 14.00]14.00}POOR #043355 FORESTRY 129344-167.68]167.68 1 57 ALTIMETER W/CASE #043289 SUPPLIERS |MASS.00 3/25/82 205 16/11/42 . GOOD a"MODEL.SURVEYORS SURV 157.411157.41 1 58 BRUNTON COMPASS _ 5055 [SERVICE CO.|CALIF.382 3/25/82 205 |6/11/42 GOOD TICKET 1 59 WIND GAUGE --REI-COOoP ANCHORAGE]STUB [6/3/82 214 |7/9/784 38.95]38.95]RUINED TICKET a 2 60 Woo.Socks --REI-COOP ANCHORAGE]STUB 4/26/42 214 17/9/84 4.95 9,901 RUINED Total this paae 922.56 jec 0.CC-08-2334 .ALASKA POWER AUTHORITY Project N _ PROPERTY INVENTORY SHEET page *of __4."- Inventory Parl or Suppliertnvoice [Contractor Invoice faventory Condition/Qly.Number IWem Description Serial Number!Supplier Location No.Dote No.Date MnitPrice]Total |Remarks 1 61 SLEEPING BAG ---REI-COQOP ANCHORAGE TICKE 4/26/82 214 17/9/82}95.99 95.95 POOR- STUB TICKET]1 62 SLEEPING BAG --REI-COOP ANCHORAGE I 4/26/82 214 7/9/82 95.99 95.95 POOR .i MAX.11133-101 LONG BEACH '|36.69 2--FAIR 10 63 REGISTERING THERMOMETER 11134-101 KUSTER CO.CA 21440 |8/10/42 248 (9/15/82 46.60437.98 8- RUINED ;TOTALS: PAGE 1 $458.38 PAGE 2 533.60 PAGE 3 922,56 PAGE 4 629.88 $2,544.42 Total this paae 629.828 2/o_To:Patti DeJong oS k.Revised as per telephane conversation of 2/20/83.3/1/83 |a: G.W.Huttrer |MOY an4,, - PROPOSED BUDGET 2 gO PHASE IT ON UNALASKA GEOTHERMAL PROJECT YS w) LTEMS /STAGES ;oa OBTXxxTKYMTITEV!TOWNS SES Republic Labor $63,000 $109,400 f 34,350 $97,650 $15,060 $319,400 -..--- Dames &Moore Labor 3,006 15,000 20,000 =,3,000 2,080 43 ,000 Travel 1,700 13,600 4,400 3,500 2,500 25,700 Drilling ose 1,12 ,000 "- : <1,112,000 Well Testing --ae ,50,000 te $0,000 Helicopter 410,200 102,500;--27,000 -539,700 Camp &Expediter --129,400 32,400 --8,500 170,300 Chemical Analyses --"-15,060 -- =1§,c00Prof.Liability Ins.2 12,600 - ----12,600 Communications o-8,000 2,000 - 2,000 12,000 Contingency (AbandonmentofEqutpment)4 "- -- 100,000 100,000 Fee on Third Party Costs 140 50,610 6,790 200 |4 260 62,000 $30,440 41,848,210 9207,440 $104,$50 Fi61 260 $2 461,700 1 Reflects grouping af Stages described in 2/14/83 "Scope" 2 Not subject to fee , 3 Yo be used in case containment of resource is unusually difficult,t.e.,ultra-high flow and/or pressure oe BLL ,ann RECOMENDED SCOPE OF MORK=PHASE 11 0.0UNALASKAGEOTHERMALPROJECTJ | Logistical Plannina-for Resource Confirmation and Delineation Wells. |The Contractor,with the assistance of its expediter,will:. oe¥ SY Stage 1X. A. 8. C. "De Stage*X, PYan,schedule and obtain the required transportation,communication,and housing for personnel,equipment,and materials to be utilized inPhaseIIwork.Prepare plans for emergencies. Locate the nearest repair facilities for equipment to be used in Phasei]work.; 7 Obtain additional permits as required. well:Ori ting.,'The Contractor,'ith the assistance of its subcontractors,will dei a*slim™resnurce confirmation well into the geothermal reservoir or to the depthlimitofthedrilling.equipment (approximately 4,600 feat).The Contractor andfissubcontractorswill: A. G. C. a. .Mobilize and activate the camp.okt r Direct the move in and rig up drill inghequipment ang installation of-personnel,supplies and facilities.Supervise the drilling of.the resource confirmation:well following theorfiling,program prepared and submitted as part of Phase 18.Collect dri]cutting samples {or corés)for lithologic characteriza--tion and rock-chip geachemical analyses.Log and record all geologic and thermal data in accordance with accepted.industry practice.. Complete the well as geological andmechanical conditions dictate. Conduct environmental impact mitigation measures,as designed in PhaseIB,Stage VIII,and as may be necessary based on any changes in opera- tions. Rancomly monitor the drilling and testing operations using environ-mentally trained personnel.Such inspection will be in addition tomonitoringconductedbydrillingpersonnelinordertoassurecompli-ance with permit requirements. -.3¢,08,04. oo 83.45.1... H. ry Stase x1, mechanical conditions. Utilize the established basdline environmental quality monitoringstationstodetectchangeswhichmaybeDroughtabouthyPhaseI]operations... Conduct a preliminary fiow test of Jimited duration immediately aftercompletionoftheresourceconfirmationwelltocleandrillingdebrisOutofthewellbore,determine resource type,and obtain a reservoirfluidsample. Direct the.rig-down and.remebi lization of the artinig equipment to the.resource celineation hole site..Supervise the drilling of the resource delineation hole to:a depth ofapproximately2,000 feat or until.terminated by adverse weather or. "Collect drill cutting samples and cores for-}¢thologic characterization|and rock-chip geochemical.analyses.Log and-record al}geologic andthermaldatainaccordancewithacceptedindustrypractice. well Testing.The Contractor,with agsistence af 4ts subcontractors,wilts:,a.CyAnalyze the reservoir fiuid collected during the preliminary flow testasnecessaryforflowtest.design and environmental mitigation measures.. Construct resource test facilities:and equipment. Conduct a resource flow-test.The test method employed \will depend ontheresourcetype€encountered,4 A steam resource flow test will include the monitoring of downhole_pressure and temperature,the measuring of flow-volume utilizing.several orifice plates at different discharge valumes,the recording of surface temperatures and pressures,the measuring ofsteamquality,and the chemical Characterization of the steam."2,A-hot water-resource flow.test "i include the monitoring of.downhole pressure and temperature,the measuring of flow volume"utilizing a modified "James*or a "separator-weir®test method,the recording of surface temperature and pressure,and thechen'ical Characterization:'of the resource. tege XII.Conciusions,Recommendations and Report. A, B. Cc. 0. G. Analyze and interpret core geochemistry,Tithologies,and thermal data collected from both wells. Interpret al?data to characterize the resource's temperature, pressure,transmissivity,fluid quality,and productivity. Integrate these data with all previously gathered geological,geochemical,and gecphysical data. Refine and modify the Makushin geothermal System model to reflect thenewlyintegrateddata, Utilize the resource model to predict commerctal electrical generating potential. Develop preliminary commercialization scenario and economics. Report al]findings and make recommendations for further action. Stage XI]i.Demobi lization. The Contractor will: A. hal.Be C. Direct the removal of equipment,personnel,supplies,and facilities.- Restore all drilling and campsites as appropriate.| File all nacessary reports with regulatory agencies. Stage XIV.Suspension.| she Contractor will: A,Secure Crilled holes and well as directed by the APA, taUNALASKA GEOTHERMAL PROJECT PROPOSED PHASE II KELL TESTING PROGRAM (STAGE XZ} Té a full-sized production scale well were to be drilled,the following information could be obtained via flow tests: A. a. C. De FP. Both flowing and static subsurface temperature and pressure. Pressure drawdown and bulidup. Flow rate with surface temperature and pressure. Resource fluid chemistry. Reservoir'productivity index. Potential for commercial productivity. If,as is presently contemplated,a "slim*®resource include: confirmation well is drilled,the information obtained could Ae B,. Cc. D. E. Both static and flowing subsurface temperature and pressure (1 the flow is not restricted by bore diameter"and instruments). 'Minimal pressure drawdown and buildup. Flow rate with aurface temperature and pressure (rate may be friction-lLimited by hole gize}. Resource fluid chemistry. Reservoir productivity index (minimum). Though this well will not be capable of commercial productionandthequalityofthereservoirdatawilinotbeashighas that obtainable from a full-scale well,the glim well will .yield a great deal.of important information and it may,a8 4 bonus,be usable as an injection well or as an observation wail during future development of the resource. Proposed Flow Test Programfora "Siim'well If the resource type le Gry steams Conduct downhole static and flowing pressure and fumperature Surveys. Determine steam quality with calorimeter. Measure £low rates using several orifice plates and varying the rate,if pagglble. Record surface flowing temperatore and pressure, Collect geochemical samples. Discharge steam to atmosphere. Duration of flow test -3 days,with @ daye for rig-up and tear down. the resource type is water dominated: '"Cenduct downhole flowing and static pressure and temperature surveys. Use modificd "James™method with orifice plate and nozzle or "Separstor=weir"method to determine flow rate, Attempt to flow well at three different rates until Stabilized {it is possible that with &small hole,only One rate may be usable). Measure surtace flowing prassure and temperature. Collect suite of geochemical samples, Discharge Liquids to creek if permitted, Duration of flow tast -7 days,with 4-§daya for rig-up and téar down. Cost Batimate Costs include the servicea of 1 geochemieat,1 reservoir engineer,and 1 technician for 47 days. 1.Republic Geothermal Labor (hot water cage)£28,000* Zs Equipment Rentale,Supplies, and WNon=RGI Labor £50,009 This estimate includes overheads and fees which are pro rata amounts based on the "Slim"Well project taken ag a whole. REPUBLIC GEOTHERMAL.INC.aa oe |'19823 EAST SLAUSON AVENUE.SUITE ONE - .SANTA FE SPRINGS,CALIFORNIA $9970. |TELECOBIER COVER LETTER FROM:G.W.Huttrer DATE: TO: COMPANY:Alaska Power Authority .CITY &STATE:Anchorage,AK $9501- |ATTENTION:Patti DeJong TOTAL NUMBEROF PAGES,INCLUDING COVER LETTER 7 TRANSMITTAL SPEED:4 2 MINUTES [Veneer H1t{8.| ,am {213)945=3661© 2/14/83 VE ARE TRANSMITTING FROM A PANAFAK 1200 AUTOMATIC TELECOPIER.| IF YOU DO NOT RECEIVE ALL THE PAGES PLEASE CALL AS SOON AS POSSIBLE.AREA CODE 213,PHONE 945-3661,EXTENSION 255. SPECIAL INSTRUCTIONS: REPUBLIC GEOTHERMAL.INC. .11823 EAST SLAUSON AVENVESANTAFESPRINGS.CALIFORMA 80870 TWX 91058616960 | a (213)$45-3561- February 14,1983 Ms.Patti DeJong | Alaska Power Authority , 334 West 5th Avenue end FloorAnchorage,AK $9501DearPattisEnclosedisanew "Scope of Work"for Phase IL activities that,in my opinion,should be used instead of the.Scope thatIsentcoyouonNovember15,1982. his document follows the tages.contained in our originalproposalanditdeviatesonlyminimallyfrom.the scenariooriginallycontemplatedtodrilithe"deep well.*Also submitted for.your 'review ig an outline discussionregardingwell.testing programa that would be undertaken usingthe"slim"hole and the estimated cost and.time required toconductthetest... I trust that this information will be adequate for.yourimmediateneeds.Tf not,please gall.Sincerely / GWHsljb: Enclosures .PSY a C ON *2 1 REPUBLIC GEOTHERMAL,INC. 11823 EAST SLAUSON AVENUE,SUITE ONE SANTA FE SPRINGS,CALIFORNIA 90670 DON D.WEBER (213)945.3661 CONTROLLER TWX 910.586.1696 February 4,1983 RECEIvenMr.Ray Benish °oD, Alaska Power Authority FESoe 5 OY 334 West 5th Avenue A 1523 2nd Floor ASKA POWER auTionAnchorage,AK 99501 wuTY, Dear Mr.Benish: Pursuant to your telephone conversation with us on January 21,1983,we are forwarding information concerning our pro- posed indirect cost and fee rates for the next phase of your Project.It is my understanding that you requested a company- wide fringe benefit rate,a company-wide overhead rate,a separately stated G&A (handling charge)rate and a proposed profit percentage.Our proposed rates are as follows: Item Rate and Base Fringe Benefits 37%of direct labor Overhead |40%of direct labor plusfringebenefits G&A 3%of direct costs (labor, benefits,overhead and third party costs) Fee 11%of total costs The indirect cost rates stated above are based on our current estimates of expenses and project costs over our next two fiscal years,the anticipated period of project perfor- Mance.We will adjust these rates annually to those actual rates incurred at the completion of our fiscal years which end on June 30. At this point,I would like to reiterate the fact that our accounting system does not account for indirect costs in the above fashion,and that we have prepared this proposal solely for APA's purposes.We would be pleased to discuss the assumptions made in our overhead calculations and the Proj.Csce: Fits Cece: J.Cate:22.233 REPUBLIC GEOTHERMAL.INC. Mr.Ray Benish Page 2 February 4,1983 differences in the methods used in our general ledger system with you and/or your auditors at our offices in the Los Angeles area.I suggest that this discussion take place as soon aS possible,so as not to delay final contract negotia- tions. Please call me if you have any questions. Very truly yours, Qon LAg- D.D.Weber Controller DDW:1jb cc;Patti DeJong REPUBLIC GEOTHERMAL,INC. 11623 EAST SLAUSON AVENUE SANTA FE,SPRINGS,CALIFORNIA 90670 TWX .910.586.1696 (213)945.3661 January 14,1983 :aste ey mhes,te<t.,7 '2>vy Ms.Patti DeJong Abe fyAlaskaPowerAuthoritya334W.5th Ave.,2nd Floor ane Anchorage,AK 99501 "40 Dear Patti: Enclosed are the "critical path"and "penalty"documents that you requested.Please note that worst'case penalties could exceed $1,000,000!Let's hope it never gets to that point! Please let me know if you need further data. GWH/1lv Hic.Core: Fra tec:BSR| J fue 83.14,| TO: FROM: SUBJECT: %yREPUBLICGEOTHERMAL,INC.,"Wa veUy,»>,oMy MEMORANDUM ey "Cry G.W.Huttrer January 14,1983 R.E.Yarter Unalaska Deep Drilling Preparation Cancellation Penalties -("Order of Magnitude"estimates only;based on discussions with contractors) I. If. III. Iv. Drilling Rig A.If cancellation occurs prior to shipping to Dutch Harbor;$150-200K. B.If cancellation occurs after shipping to Dutch Harbor;$550-700K (includes barge transportation). Helicopter A.If cancellation occurs prior to 4/1/83 -none. B.If cancellation occurs 4/1-4/30/83 -+$50K. Cc.If cancellation occurs after 5/1/83 -+$100K. Barge -If barge chartered,+$1,250/day for each dayfromdateofreservationuntilcancellationdate. Materials -Casing,Mud,and Cement,etc. A.If cancellation occurs prior to sea shipment,a restocking charge of +15 percent and landtransportationchargeswouldbelost-estimate +$100K. B If job cancelled after shipping,would recommend storage of materials at Dutch Harbor until used in 1984. Miscellaneous Additional Cancellation Costs -+$100K. To Realize June 20,:'1983:Spud Date: 4/1/83 5/1/83 5/10/83 - 5/15/83 - 5/25/83 - 5/30/83 - 5/31/83 - 6/20/83 Locate and contract for Dutch Harbor staging area. Materialsand equipment to be shipped from "LWR48"(i.e.,Seattle)to be at embarkation point. Materials and equipment to be shipped from Anchorage at embarkation point. Begin site preparation. All materials and equipment at Dutch Harbor. Camp set up. Begin rig up operations. Spud well. Drilling Contract: 1/28/83 2/14/83 2/18/83 2/28/83 Bid letters out. Open bids. Evaluation completetion. Contract approval and award. Helicopter Support: 2/4/83 - 2/16/83 2/18/83 2/25/83 Camp Services oe1/24/83 2/4/83 2/10/83 2/25/83 Bid letters out. Open bids. Evaluation complete. Contract approval and award. Bid letters out. Open bids. Evaluation complete. Contract approval and award. Tubular Goods and'Wellhead: 1/31/83 -Bid letters out. 2/11/83 -Open bids. 2/15/83 -Evaluation complete. 2/22/83 -Contract approval and award. Air Completion Equipment and Services 3/4/83 -Bid letters out. 3/14/83 -Open bids. 3/18/83 -Evaluation complete. 3/25/83 -Contract approval and award. Barge Transporation:(Excl.of:Drilling Rig): 2/23/83 -Bid letters out. 3/1/83 -Open bids. 3/4/83 -Evaluation complete. 3/11/83 -Contract approval and award. Mud Logging Services: 2/25/83 -Bid letters out. 3/11/83 -Open bids. 3/15/83 Evaluation complete. 3/25/83 -Contract approval and award. Cement and Services: 3/7/83 -Bid letters out. 3/18/83 -Open bids. 3/22/83 -Evaluation complete. 3/29/83 -Contract approval and award. wm. DrillingMudand:Services: 3/9/83 3/19/83 3/23/83 3/30/83 Communications: Bid letters out. Open bids. Evaluation complete. Contract approval and award. 3/4/83 3/16/83 3/18/83 3/25/83 Bid letters out. Open bids. Evaluation complete. Contract approval and award. Site ConstructionandRestoration: 3/5/83 3/25/83 3/29/83 4/5/83 Bid letters out. Open bids. Evaluation complete. Contract approval and award. UNALASKA DEEP TEST SCHEDULE OF LOGISTICS &PRESPUD OPERATIONS CAme B10 DALG CONT J HELICOPTER [CSG &WELL-[AIR OALG BARGE MUD LOGG.|CMT &SVCS MUD BID COMMUNI.StlE CONSTBIDB10HEADBIDEQuIPTBio[aID ING BID Bo CATIONS BID EVALAWARDEVALAWARDAWARDAWARDAWARDOuTAWARDAWARDoutRETEVALAWAROAWARDoutReTEVALAWARDIO.W.STAGING!AREAIMTLS@COCKSEATTLEIMTLS@DOCKANCHORAGEBEGINSITEPREP.ALLEQUIP&MTLS@On.CAMPSET-UPBEGINRIGUPspud5te)RetEVALRETEVAL3RETOUTREToutRETEVALoQuTRETEVALoutRETEvalEVAL& «1@}OUT{rT i _PPEEEPEEEEIEEEPELP EEEFEB4eo;e is aoe Gee eed Gee Se Oe _i ee ees fee Ge _tE._10 _|@ _an on oe oe i Lyf td..on oe __ rn oe ie "yer "EEL14_f|_J@ on ...1:3 Oe ae Oe eo)_t _pifipep.dyeoeae_|_le _=_fe .. 1]ft |]|p fe e tet T_Tef ef.-. 22 eo;|_)_}_fb _d_te -LLP_T_L TTT ET _7 __a234@ __TLI_ITL.on on on ae _.25 e _|_oj |e | 28 __|e a -FEIEELIEEPLELY EY EsMAR1ff][__eo][_Os Os Os ee Gn Se se4ée i a an ee _5 nC)Oe ee 7 {4 i >é ;9 1 _I__L .|.@ LE]LE_J_p_bo pe}_. "1 _{._a ®@ _-t_t_L __fTffed __|ayot __|¢_me ee ee ees ees Ges Ge a on ... 15 eo;_fe a __16 -J_feb te y_yet JEL TLL th._t.2.on on .i _._.wl ty Eee Eye o|-Os Oe Oe Oe Oe)Oe Oe Oe 0 Oe Oe Oe OD 0 Oe Oe GG Ge9Tf_}f_ff fet fT __t_f_]_LIL _Oh _ 23,_I-ff ee JEP _SS EE le -PFIE TLeJ ye __f25 a é ie es OK 0)ee ee ee20__e |_Ce De ee ee_t_Todt _t Lf -[L_]__ef _|.ie ee Deen Sees eeeapaLddyAEEEEE=53(2-|--|-|--|-|--MAY14 |fe SEERA FEE EEE EEE EE CIEE EEE ed.ee on10_[."PELE 7 -LEC oe)”15 SPE Ty.i e 25 |yy __"Lb e30},TP EE EL EET aE -EIELEEELEELSJ_ELLEELLEEY on ee oe oeayeftpeeEEE_|_|-j-E}-[-E]-]-YT .a oj}.JUNE 20 Mlcles ' |Gai.\¥ REPUBLIC GEOTHERMAL,INC.: 11623 EAST SLAUSON AVENUE SANTA FE SPRINGS,CALIFORNIA 90670 TWX .910.586.1696 --(213)945.3661 November 12,1982 Do.Ms.Patti DeJong / Alaska Power Authority334West5thAvenue,2nd Fl. Anchorage,AK 99501 Dear Patti: Phase II deep well drilling costs were estimated as follows in the Republic-Dames and Moore proposal of November28,1981: Logistical Planning $69,363 Exploratory Drilling 2,528,592 Well Testing.73,292 Well Supervision and Demob "32,276 .$2,703,523 11%Fee '297,384 TOTAL '$3,000,907 It is our understanding that this total figure is pres- ently allocated and available for the project.It must be noted however,that this estimate was made in 1981 dollars and was stated to be contingent on the following basic conditions: A.A geothermal reservoir at relatively shallow depth ,(3,000-4,000'),and B.A dry steam resource Phase Ia geologic,geochemical,and geophysical work and Phase Ib temperature gradient hole drilling,all done in the period April-September 1982,strongly suggest the existence ofahotwaterortwo-phase resource which could be more than 4,000 feet below the ground surface. It is now apparent that in 1983 dollars the available funding is sufficient only for a relatively small diameter (+6-1/4")stratigraphic hole drilled to a depth of 3,000-4,000feet.Such a hole would be of value in further establishing geothermal gradients,obtaining additional geologic data and, if it were to penetrate a geothermal reservoir,it might yield a Proj.Code:---- File cede:2%.O2. J.Date:L£O..2+ REPUBLIC GEOTHERMAL,INC. Ms.Patti DeJong November Page 2 12,1982 some significant data related to economic aspects of theresource.It is felt,however,that pending sufficient addi-tional funding,the next logical step is the drilling of a full-scale well to +6,000 feet.Advantages of such anapproach 1. ares The large drilling rig that would.be utilized to drill a +6,000 foot hole could,if necessary,drilldeeperifdataindicatedaneedtotest.incrementallyfurtherintoareservoir.A rig used to drill.aslim,3,000 foot well would be unable to go signifi-cantly deeper due to design constraints. A production scale well would become a project assetbyprovidingfluidsforpowergeneration.It is doubtful that a stratigraphic test hole could yield more than experimental data;though it might possibly serve as an injection well.- A large well would permit testing of maximum resource'flows and thus maximize acquisition of knowledge con-cerning the reservoir.A small diameter well,though it might yield significant and important data,would be "casing limited"in regard to flow rates,and it would not therefore allow assessment.of ultimate resource potentials. Based on geologic data and field operational and logis- tical experience gained in the temperature gradient hole drilling program,the following basic ground rules would applytothe1983deepdrillingprogram: A.Although the possibility of a shallow reservoir has not been completely ruled out,the well must be programmed in such a manner that it can be tested and.completed as a producer at depths ranging from 3,000 feet to as deep as 6,000 feet. It is anticipated that the diorite pluton will be continuous from a depth of 40-50 feet to total depth, which for budgeting and scheduling purposes must be assumed to be.+6,000 feet.Actual penetration ratesareprojectedasbeing+100'/day at the locationselected.Obviously,should production be encoun- tered at a significantly shallower depth,rig time and costs would be substantially reduced. Due to the remoteness of the project from service and supply centers (i.e.,Anchorage or the West Coast of the "Lower Forty-Eight")and the unpredictability of Ms.Patti DeJong November 12,1982 . 4 : , Page 3 |a,oe yo.- a) commercial transportation schedules,logistical:plan-ning becomes of the utmost importance.It is an absolute necessity that essentially all drilling and completion equipment,casing,and consumable supplies adequate to cover.all reasonable contingencies of a6,000.foot well be on hand prior to spud. D.Because of terrain limitations and environmentalconstraints,the 1983 drilling project will betotallyreliantonhelicoptertransportationofequipment,fuel,and supplies from Dutch Harbor for all phases of the operation from initial locationbuildingandrigmobilization,and daily rig support |through testing,demobilization, and location cleanup. E.Due primarily.to weather constraints as they apply tohelicoptertransportation,a full camp will be main-tained at the drill site,even though the location isonly+12 miles from Dutch Harbor.Conversely,a ) staging area/storage facility will be maintained at Dutch Harbor and equipment and supplies moved-to the site on an "as needed"basis so as to make the mostefficient.use of helicopter flight time.= F..Because of the necessity.for a totally helicopter-supported operation,the selection of a drilling rigisextremelylimited.At this time,investigationhaslocatedonlyonehelicoptertransportablerig inAlaska,or on the West Coast,that is capable of-drilling a 6,000 foot geothermal well.Conversion of other-rigs so that they could be transported by heli- copter requires extensive modification and/or replacement of major components at a substantial cost. G.Again due to weather constraints,it is considered unfeasible to conduct the initial drilling operations at any time other than during the summer months. This timing unfortunately conflicts with the North Slope Sea Lift and places a premium on barge trans- portation from the standpoints of both:cost and .equipment availability. Considering the above-listed basic conditions and ground rules,we have developed the following cost estimate which is believed to be realistic for a 6,000 foot exploratory well to be drilled at the Makushin Volcano site in 1983. 'UNALASKA DEEP TEST -1983 'PRELIMINARY COST ESTIMATE* Transportation (Materials &Equipment): Mobilization to Dutch Harbor $880,000 Demobilization from Dutch Harbor 580,000 SUBTOTAL .$1,460,000 Rig &Camp Costs: Transportation,Move In,&Rig Up 330,000 Operating (Rig-60 days,Camp-l00days)1,160,000 Rig Down,Move Out,Transportation 270,000 ) SUBTOTAL .$1,760,000 Location &Pits (Build,Maintain, &Clean Up),200,000 Wellhead,Tubular Goods &Hardware 250,000 Helicopter Support (+120 Day,Including Fuel) . 860,000 Drilling Variables:|| Downhole Tools (Bits,Reamers,Hole Openers,etc.)*450,000 Mud,.Cement,&Chemicals 165,000 Air Drilling Equipment & Services (Including Fuel)175,000 Rig &Camp Fuel °120,000 Miscellaneous,Services,Supplies, and Equipment**445,000 SUBTOTAL ,°1,355,000 GRAND TOTAL | $5,885,000 *Third party costs only.Does not include Republic or Dames and Moore fees or supervisory expenses. **Includes mud logging services,cementing equipment,and personnel as required;directional tools and services,fishing tools and services,8-hour minimum production test,air transportation of special equipment requirements and service company personnel,staging facility,etc. Ms.Patti DeJong November 12,1982 Page 5 By means of demonstrating the sensitivity of this estimate to penetration rate and/or the depth of the producing zone,it should be noted that the incremental daily operating cost including rig,camp,consumable supplies,drilling tools,and all support functions is +$41,000/day.Should the well becompletedin50daysoverallrigtime,the project cost would be reduced by $410,000;40 days,$820,000 etc. It is also extremely important to be aware of the need to make commitments for critical equipment and transportation services as early as possible.With regard to the drilling rig,a letter of "right of first refusal"can be obtained which will hold the equipment until such time that another operator has need for it.At that time,a firm commitment must be made or the rig will be lost for the 1983 season.Presently,both Sohio'and:ARCO'have made serious inquiries astoitsavailabilityin1983.Quotes on barge transportation have been made subject to equipment availability.Due to coincident timing with the North Slope Sea Lift,it isstronglyrecommendedthatafirmcommitmentbemadeprior toJanuary1,1983. Sincerely, -),47 Le R.E.Yarter Manager -Operations REY:1jb G/.14f REPUBLIC GEOTHERMAL,INC. 11623 EAST SLAUSON AVENUE SANTA FE SPRINGS,CALIFORNIA 90670 TWX .910.586.1696 .(213)945.3661 RECEIVED August 3,1982 AUG 91829 ALASKA FOUR AUTHONITYMs.Patti DeJong Alaska Power Authority 334 West 5th Avenue,2nd Floor )Anchorage,AK 99501 Brey, Dear Patti:S As you are aware,thermal gradient drilling on Mt. Makushin is proceeding satisfactorily,but at a rate that is slower than was anticipated in Republic's initial Phase IB plans.We are now approximately four weeks behind schedule, and I would have to guess that we will fall one more week behind when we drill the third gradient hole in Glacier Valley. We,that is you,I and Clay Nichols,have agreed that the third hole should be drilled so as to adequately evaluate the resource manifested at fumarole fields numbers 3 and 4.Pre- sented below is an estimate of the costs that will be incurred if the project runs five weeks longer than initially planned. This incremental budget assumes that:1)we will continue to use the camp (it is less expensive and "safer"than billeting drillers in town),2)the third gradient hole will require two weeks mobilization and three weeks drilling time,3)Republic supervisory personnel will make two additional round trips between Los Angeles and Dutch Harbor,and 4)Dames &Moore geotechnical experts and an archeologist's services will be required to preliminarily assess the feasibility of building a road into Glacier Valley for the drilling of the production well next year. Proposed Phase IB Budget Increase I.Camp Includes cook's salary and additional food and fuel $16,300 Il.Helicopter Includes 35 days averaging 5 hours of flight time,fuel at $220/day and room/ board for pilot and mechanic $83,825 bilp Coa 4 Pete:SPOROF J.to BQAIS./ REPUBLIC GEOTHERMAL,INC. i .i DeJong 7 .1982 a Drillin Includes 2 weeks mobilization at 12 hours/day;3 weeks of drilling at$195/hour,fuel and bits $146,340 Iv.Travel Includes 2 round trips between Los Angeles and Dutch Harbor,plus hotels and a car in Anchorage $3,500 Vv.Republic Costs Includes Field Supervisor full time for 5 weeks,office support by the Project Manager,1 geologist,and the Land Depart- ment $36,000 VI.Dames &Moore Costs Includes environmental,geotechnical, and archeological work of increased scope $20,000 Summary I.Camp $16,300 II.Helicopter 83,825 III.Drilling 146,340 IV.Travel 3,500 Vv.Republic 36,000 VI.Dames &Moore 20,000 $305,965 Patti,expenditure of this additional sum is definitely warranted,especially in light of the excellent results obtained to date in the first two drill holes,and the magni- tude of the geothermal phenomena that exist on the south side of the mountain.I would hate to have to say that we saved $306,000,but didn't test what appears to be the most powerful energy field on the island. REPUBLIC GEOTHERMAL,INC. Ms.Patti DeJong August 3,1982 Page 3 You and I have verbally agreed to spend this much to drill the third gradient hole.Please affirm your consent and approval of this budget by signing in the space provided below and returning a signed copy to me as soon as possible. It continues to be a pleasure to work with you and your associates in the Power Authority and in the DGGS. Sincerely,7 L .'ChAG-W.Huttrer Project Manager APPROVED: Patti DeJong Date Project Manager Alaska Power Authority GWH:1ijb cc:J.R.Stites E.W.Wellbaum D.D.Weber T.T.Matsumoto D.L.Carey REPUBLIC GEOTHERMAL,INC. 11623 EAST SLAUSON AVENUE SANTA FE SPRINGS,CALIFORNIA 90670 TWX .910.586.1696 (213)945.3661 RECEIVED _August 3,1982 AUG 9 1992 ALASKA POWER AUTHORITY* Ms.Patti DeJong Alaska Power Authority 334 West 5th Avenue,2nd Floor Anchorage,AK 99501 Dear Patti: As you are aware,thermal gradient drilling on Mt.Makushin is proceeding satisfactorily,but at a rate that is slower than was anticipated in Republic's initial Phase IB plans.We are now approximately four weeks behind schedule, and I would have to guess that we will fall one more week behind when we drill the third gradient hole in Glacier Valley. We,that is you,I and Clay Nichols,have agreed that the third hole should be drilled so as to adequately evaluate the resource manifested at fumarole fields numbers 3 and 4.Pre- sented below is an estimate of the costs that will be incurred if the project runs five weeks longer than initially planned. This incremental budget assumes that:1)we will continue to use the camp (it is less expensive and "safer"than billeting Grillers in town),2)the third gradient hole will require two weeks mobilization and three weeks drilling time,3)Republic supervisory personnel will make two additional round trips between Los Angeles and Dutch Harbor,and 4)Dames &Moore geotechnical experts and an archeologist's services will be required to preliminarily assess the feasibility of building a road into Glacier Valley for the drilling of the production well next year. Proposed Phase IB Budget Increase I.Camp Includes cook's salary and additional food and fuel $16,300 II.Helicopter Includes 35 days averaging 5 hours of flight time,fuel at $220/day and room/ board for pilot and mechanic $83,825 REPUBLIC GEOTHERMAL,INC. ti DeJong 1982 a Drillin Includes 2 weeks mobilization at 12 hours/day;3 weeks of drilling at$195/hour,fuel and bits IV.Travel Includes 2 round trips between Los Angeles and Dutch Harbor,plus hotels and a car in Anchorage V.Republic Costs Includes Field Supervisor full time for 5 weeks,office support by the Project Manager,1 geologist,and the Land Depart- ment , VI.Dames &Moore Costs Includes environmental,geotechnical, and archeological work of increased scope Summary I.Camp $16,300 II.Helicopter 83,825 III.Drilling 146,340 IV.Travel 3,500 V.Republic 36,000 VI.Dames &Moore 20,000 $305,965 $146,340 $3,500 §36,000 $20,000 Patti,expenditure of this additional sum is definitely warranted,especially in light of the excellent results obtained to date in the first two drill holes,and the magni- 'tude of the geothermal phenomena that exist on the south side of the mountain.I would hate to have to say that we saved $306,000,but didn't test what appears to be the most powerful energy field on the island. REPUBLIC GEOTHERMAL,INC. Ms.Patti DeJong August 3,1982 Page 3 Cy o You and I have verbally agreed to spend this much to drill the third gradient hole.Please affirm your consent and approval of this budget by signing in the space provided below' and returning a signed copy to me as soon as possible. It continues to be a pleasure to work with you and yourassociatesinthePowerAuthorityandintheDGGS. Sincerely,AfCECiheG.W.Huttrer Project Manager APPROVED: Patti DeJong Date Project Manager Alaska Power Authority GWH:1jb ec:J.R.Stites E.W.Wellbaum: D.D.Weber T.T.Matsumoto D.L.Carey tor ons ll ¢aa ne ITEMS -STAGE Lo °HI IV V f/f VI]Vil VITIs TOTALS epublic Labor.$5,804 $53,486 $68,052 $55,642 $26,832 $9,971 $219,787 (incl.OH &G&A) -Dames &Moore 25 ,030 3,850 16,680 12,060 1,540 16,820 75,980 Labor "Travel 4,800 7,250 -9,200 2,600 -23 ,850 -Other 600 1,000 700 1,200 200 -3,700 _-Drilling .--480 ,000 --480 ,000 _ Helicopter 22,464 64,928 -137,248 --224 ,640 -fnvironmental 3,000 -=--1,000 4,000 -Camp 30 ,600 25,500 -102 ,036 --158,136 -Themical Analyses --7,000 -15,000 -22,000 7Prof.Liability (82,400)-----82,400 Insurance** -Geophysics -59,283 ----59,283 Fu ipment -9,000 ----9,000 Communications 1,400 4,250 oo 11,652 --17,302 Expediter 2,000 3,000 2,000 4,000 2,000 -13,000 SUBTOTALS 178,098 231,547 94,432 «813,038 §=948,1/2 27,791 1,393,078 Fee 10,527 25,470 10,388 89,434 5,299 3,057 144,175 TOTALS $188,625 $257,017 $104,820 $902,472 $53,471 $30,848 $1,537,253 ONael Ont,8355+! kk Not subjectto fee.Ieee oer FIORE UogsF Ba 34 This Amendment supercedes Amendment No.1. spent by the Contractor under Amendment No.1 shall be treated,forpurposesofaccounting,as costs presented in the budget estimate of this Amendment No.3. All monies obligated or ey REPUBLIC GEOTHERMAL,INC. 11623 EAST SLAUSON AVENUE SANTA FE SPRINGS,CALIFORNIA 90670 TWX .910.586.1696 (213)945.3661 July 23,1982 RG Ms.Patricia DeJong MSA PO poeProjectManager" Alaska Power Authority 334 West 5th Avenue,2nd Floor Anchorage,AK 99501 "yoe,CO)!Subject:Contract Number 08-2334 "7 Overhead Rates -FY83 Dear Ms.DeJong: Republic Geothermal,Inc.'s fiscal year ended on June 30, 1982.Based on data submitted to our outside auditors,Arthur Andersen &Co.,final rates for our fiscal year 1982 were as follows: Department Interim Rates (1)Final Rates Land 178 145 Engineering 111 122 Exploration 142 90 Senior Management 115 130 Word Processing 162 98 Project Support 75 98 Operations 56 73 G&A 130 128 (1)Rates used in billings through June 30,1982,as included in my letter dated January 5,1982. Upon completion of our annual audit,all billings through June 30,1982,will be adjusted to reflect final rates.Our audit is presently in progress,and we expect to show these adjustments in our August billing. As our contract provides for annual negotiation of over- head rates for billing purposes,we propose the following rates to be used for our fiscal year 1983,which are based onourfiscal1982experience: REPUBLIC GEOTHERMAL,INC. Ms.Patricia DeJong Page 2 July 23,1982 Department Proposed Rate Land 145 Production (a combination of the former 122 Engineering and Operations Departments) Exploration 90 Senior Management 130 Word Processing 98 Finance (formerly Project Support)98 Gé&A 128 If you have any questions,or require further information, please do not hesitate to call.In the meantime,billings beginning with July will be computed at the proposed rates. Very truly yours tna Mo 4T.T.\Matsumoto TTM:1jb ccs Mr.Sid Kidwell,APA .VL REPUBLIC GEOTHERMAL,INC. 11823 EAST SLAUSON AVENUE SANTA FE SPRINGS,CALIFORNIA 90670 TWX .910.586.1696 (213)945.3661 June 8,1982 RECEY,Mr.Paul Neff Ve <.0DamesandMooreIM C 800 Cordova,Suite 101 .JUN1 5 1822 7 Anchorage,Alaska 99501 ALASZA panen Aumugn |vad AUT ORITY Dear Paul: Republic hereby authorizes Dames and Moore to proceed with the data analy- sis and preliminary report preparation for the environmental baseline datacollectionprogram,as described in:1)the Unalaska Geothermal ExplorationProject,Phase IA Final Report;2)Stage III.B.of Appendix B,Scope of Work,Contract No.08-2334,Amendment 3,between the Alaska Power Authority andRepublicGeothermal,Inc.(attached);and 3)Dames and Moore's UnalaskaGeothermalExploration1982EnvironmentalBaselineEstimatedCosts(attached). Specifically,in addition to those activities previously authorized in our letter dated May 17,1982,Dames and Moore is now authorized to undertake: the data analysis and letter report preparation for the first phase of thefisheryandwaterqualityprograms,including the complete water quality anal- yses for those samples taken during the May field trip;and the samplingdesignforthesecondphaseofthefisheryandwaterqualityprograms. Authorization is not given at this time to proceed with any field work, analysis,or report preparation for the second phase of the fishery,water quality and geotechnical programs. Dames and Moore is authorized to expend up to a total of $30,790.00 for the work authorized to date on the baseline data collection program,as indi- cated on the attached estimate of costs. Sincerely, a G.W.Huttrer Project Manager Unalaska Geothermal Project GWH/wp Attachments cc:£.W.Wellbaum,Republic Geothermal,Inc. D.Carey,Republic Geothermal,Inc. P.DeJong,Alaska Power Authority T.Andriola,Alaska Power Authority Proj.Coss:rs Cote:32.02.04 ype 2,IST 1