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Home My WebLink AboutUnalaska Letter of Entry & Related Correspondence 9-91 - 1-92A] FROM:Petrie,Brent TO:Denig-Chakroff,David DATE:01-04-92 TIME:13:41 cc:Arminski,Tom Bussell,Charlie Ganthner,Terri Nelson,Emily Petrie,Brent SUBJECT:Makushin site visit 1/7/92-1/9/92 PRIORITY: ATTACHMENTS: Dave-- Please make arrangements to join Greg Refkin in the field at Unalaska during the week of January 6 to assist with an on-site visit by several contractors.The primary purpose of the site visit is an orientation to the road route and general site preparation prior to submitting bids.I was told there are at least four contractors interested including Green Construction, Peter Kiewit,Frank -----from Unalaska and one other. I am also sending you a copy of an analysis of the Summer Bay prospect by Stu Johnson of OESI.OC Corp appears interested in granting ROW for Makushin in exchange for some investigation at Summer Bay.We may need to drill some wells at Summer Bay--perhaps with a water well type drill rig.What is your opinion on the logistics,cost,and likelihood for success for hydrothermal resources at Summer Bay. Please give me a call about logistics for the week of January 6. Brent ad7:ByAPas)2/959)VME Corporation FACSIMILE COVER PAGE SENT TO:Masks.EXERY MESSAGE #: ATTENTION:FAX NUMBER:JO "1 SQ)--C64FROM:LOAN Se hohe DATE:See,ON,IAG FILE NUMBER: | ce: - NUMBER OF PAGES (INCLUDING COVER SHEET): IF YOU HAVE DIFFICULTY RECEIVING THIS PAX,PLEASE CALL (702)355-5666 AND ASK FOR: a --- --_--a 610 East Glendale Avenue »Sparks,Nevada 9431!«(702)355-5666 Facsimile (702)355-5656 wa vVVveae Ns owemarLuceGTVT wvwaivevvvY_vY ---=ee ee oe _-- TO:Dan Schochet FM:Stu Johnson DT:December 23,1991 RE:Unalaska Non-electric,Alternate Use of Geothermal Resource HARK HRAKRARRAERAKHEARERAERERERRAAHAARRAHAKRARHERKRKAREAREHKARAHRHARARRAKEAEEHAE The Makushin resource could be utilized for non-electric use dew to temperatures of about 70°C (158 F)before silica scaling would be likely to occur.This temperature was estimated using iin anticipated flash to 152°C prior to conductive cooling in the OGlic neat exchangers.This estimate of lowest temperature prior ia onset on scaling was made using a "rule of thumb”1.5X saturatinn as the onset of scaling (Fig.1.)and the silica values measured in a flash to atmosphere sampling.An additional more optimistic estimate was made using 4 calculated silica concentration assumirg fluids are in equilibrium with silica at the production temperature of 194'C and yields a lower exit temperature of 50'C,Testing cf actual produced fluids would be required to determine the exact temperature at which silica scaling would become severe. In regard to the Summer Bay geothermal system,there has beei sufficient work done to identify a shallow fluid system at 3 temperature of 122°F,The data from this shallow drilling effor!: is contained in a 1980 Dames and Moore report and Reeder (1981 states that these fluids were encountered at a depth ol approximately 5@ feet.I have not yet found any data on thi: chemistry of the fluids,but they are reported to have a quart: temperature of 194'F.This temperature is probably optimistic. The Summer Bay geothermal system is located at the intersection of two mapped satructural trends (Fig.2)that potentially could provide both the permeability and the depth of circulation te support A low temperature system for non-electrical use.The next step in evaluation would be to drill shallow gradient holes to 500 feet depth to further delineate the system.This could be accomplished with a small truck mounted rig at relatively low cost in conjunction with next year's efforts in Unalaska. valzie aa.Se ee oY Pek Preserve Ow Cae @-hAATION Tew yw. Resi vei . "ws - eaive vu wud avvveoss” urmay cuerey 375 / nee- @ b _ «i)we,"Or ast Rok \)S)Dee JotOUTCHAye'HARBOR -Duy parte ere¥ofasets124 1 MAP SYMBOLS > i]comm Fault:dashed where eeles Agamgik Formation .2 wi approximate a Pa dy we oO Warm spring UVaalaska Formatioa a 2 Hydrothermal well Er g asl in har Cepteins Say Plutonwhe1aStrikeanddipeear of bedding \Other piutanic bodies eal apoyo)-4 Figure@,Generalized geologic map of the Summer Bay region,Unalaska island,Alaska. , ! i t t'« i1:1''. a y \'' sO"Neeeee: Pa | t Me we wan)fe:EERPRE 4/3310 1 jalohaibew qrecigtshn han Unalanka Resource "pomp veae ieee. oN ear | -901 4 ee re ere eery 3 "po ® 7 ? £ ee ee eeee ee eeee asxq £27007 aBmIn acac cee 7012 Post-It™brandfax transmittal memo 7671 votpegre {QC a9 6usse wl ee anyCo.ek Etttr uy Augth OC. OUNALASHKA CEUDhl PSY ree oR AT 1 ON Sent by Fax (907)561-8584 Original Mailed October 8,1991 | Charlie Bussell Executive Director onAlaskaEnergyAuthorityar PO Box 190869 Anchorage,Ak 99519-0869 ret Unalaska Geothermal Project Dear Mr.Bussell, The Ounalashka Corporation grants its permission for the staff, employees,contractors and subcontractors of the Alaska Energy Authority (AEA)and OESI to enter OC property.AEA,OESI and all their contractors and subcontractors agree that they will hold oc harmless for accident or loss.This permission expires January 15, 1992,and is granted to allow AEA and OESI to conduct the geotechnical and environmental surveys of the Makushin Valley inanticipationoftheconstructionoftheMakushinVolcanoGeothermal electrical generation facility.All reconnaissance will occur byhelicopterandnosurfacetransportationwillbeinvolved. Should you have any questions or need this permission extended, please contact me. Sinceyely, ;;ad "2, Thoma 7 Crandall Vice President,Finance cc:file WIP-OESI Dut: Wn oomARealEstatean14panamentCompany(907)581-1276.FAX ($0 7)581-1494PO.Bux 149.Unalaska,AK.99685 ANIAansV4A/)AAAN. q State of AlaskaDNWalterJ.Hickel,Governor wh Alaska Energy Authority A Public Corporation September 30,1991 Ms.Katherine M.Grimnes President Ounalashka CorporationP.O.Box 149 Unalaska,Alaska 99685 Subject:Unalaska Geothermal Project Dear Ms.Grimnes: I want to thank you and the Ounalashka Corporation for allowing the Alaska EnergyAuthorityandtheOESIPowerCorporationteamtoaccesstheMakushinValleyduringtheirrecenton-site field survey. The Authority is cooperating with OESI Power Corporation on a program which wehopewillculminateinthedevelopmentandoperationofageothermalpowerplanttobeconstructedneartheMakushinVolcano.As you know,the Authority spent over$5,000,000 in 1981 through 1987 to explore the Makushin geothermal resources andestablishthefeasibilityparametersforthedevelopmentofageothermalelectricpowerplant.At this time the Authority,in concert with OESI Power Corporation,eels that this project has substantial merit and we are proceeding with the following program: 1.The Authority and OESI,who has acquired the geothermal resources rights,are entering into a preliminary (letter)agreement to each use their best effortstopursuetheobjectivesofdevelopingandfinancingtheproject. 2.The project will consist of a power plant,with roads,dock and transmission linetobeancedandownedbytheAuthority.Financing will be by tax-freeonds. 3.OESI will construct the plant for the Authority,drill the geothermal wells (attheirexpense),sell the geothermal energy to the Authority,and operate andmaintaintheentireproject. 4,The Authority will sell the generated electricity to the City of Unalaska,who inturnwillseflelectricitytotheindustrialcompanies(shipping and fishprocessing)in Dutch Harbor as well as the Unalaska residents and businesses. 3.The Authority is in the process of preparing the power sales agreements and isretainingtheindependentconsultantswhowillfinalizethefeasibilityconsiderations. 6.OESI is preparing to perform detailed permitting surveys as well as engineeringdesigntosupportthepermits. 7.The project plan anticipates completion of negotiations and permit approvalstosupportabondfinanceclosingbyMarch31,1992 (or thereabouts)withconstructiontobegininthespringof1992.The plant would then go intocommercialoperationinlate1993. O PO.BoxAM Juneau,Alaska 99814 (907)465-3575 f PO.Box 190869 704 East Tudor Road Anchorage,Alaska 99519-0869 (907)561-7877 =PIQBVD1672(1)ee _- Ms.Katherine M.Grimnes September 30,1991 Page 2 8.Subject to the verification of the OESI proposed plant parameters by theindependentprojectconsultants,it is anticipated that the plant will have a netcapacityof12MWandbecapableofsupplying88,000,000 KWH annuallyundernormaldesignconditions.Additional power may be generated from thisplant,and OESI believes that the plant may be expanded in the future if thedemandforpowergrows. 9.The project will have an effluent of 2,800 gallons per minute of geothermalfluidat170°F (approximately)for reinjection.is fluid may be used toprovideheatenergytoanagricultural(or aquacultural)project independent ofthepowerplantoYreducingthefluidtemperaturefrom+170°F toapproximately+100°F prior to reinjection. 10.The power plant,and the geothermal wells,will be developed on land currentlyownedbyteBattleMountainGoldCompanyandleasedforthispurposebyOESI.The access road from Broad Bay and the aboveground transmission lineistobeconstructedthroughtheMakushinValleyonaright-of-way which wehopetoobtainfromtheOunalashkaCorporation. What the Authority is respectfully requesting from the Ounalashka Corporation at thistimeisthefollowing: A.We would like permission to immediately begin the geotechnical andenvironmentalsurveysintheMakushinValley,so that we can supportourfasttrackschedule. B.We would also like to begin negotiating with you the right-of-waycorridor(approximately 150 feet wide)to accommodate the access roadandtransmissionlinefromtheplanttoBroadBay.We also need toacquiretherighttoconstructadockandavehicleshedatthebeachonBroadBaytoaccommodatethetransportoftheplantoperators. I have instructed Mr.Petrie of my staff to work directly with you on this matter.He isout-of-state through October 21,1991,but in his absence Mr.David Denig-Chakroffwillfollowuponthismattertoansweranyquestionsyoumayhave.Mr.Petrie will becontactingyouuponhisreturn.I would like to note that the Authority feels that if wearesuccessfulindevelopingthisproject,the Ounalashka Corporation would derivebothdirectandindirectbenefitsfromtheproject--direct benefits in the potential useofthegeothermalenergyforotherprojectsandindirectbenefitsinanenhancedislandpowersystemtosupportinvestmentssuchastheMargaret's Bay project. Charlie Bussell Executive Director BP:CB:jd cc:Brent N.Petrie,Alaska Energy AuthorityDavidDenig-Chakroff,Alaska Energy Authority 91Q3D167(2)