Loading...
HomeMy WebLinkAboutMakushin Geothermal Development Plan 1993voprié tareLyd ES PO :(om)Tr 4000 KRUSE WAY PLACE BUILDING ONE,SUITE 255 LAKE OSWEGO,OREGON 97035 PHONE:(503)636-9620 FAX:(503)697-0288 EAM GoOovVER SHEET DATE:__August17,1993 - PLEASE DELIVER THE FOLLOWING PAGES TO: NAME:Mr.Riley Snel]. FIRM:AIDEA FAX:|(907)561-8998 FROM: NAME:Greg Retzlaff Cao kbe ke 72 CALF TOTAL NUMBER OF PAGES (INCLUDING COVER SHEET):SO PROJECT:MAKUSHIN SUBJECT:DEVELOPMENT PLAN Attached is an advanced copy of the Development Plan dated August18,1993.A bound copy will be made available at the August 18,1993 meeting.I look forward to meeting you. IF YOU DO NOT RECEIVE ALL PAGES,PLEASE CALL (503)636-9620 AS SOON AS POSSIBLE. CRN zOFax:jon eee ener aneien 1, Il, NI. IV. Appendix: 1, 2. 3. 4, 5. MAKUSHIN GEOTHERMAL ELECTRIC GENERATION PROJECT Development Plan INDEX Introduction Financial Considerations Basis and Assumptions Proformias: -Baseline _-Alternative 1 -Alternative 2 -Altcrnative 1 and 2 Combined Figures: Alternatives Cost Summary Figure 1 Road Alignment Figure 2 Summary of Environmental Permits Figure 3 Schedules -Baseline Figure 4 -Drill With Helicopter,Alternative 2 Figure 5 Plant Layout Figure 6 Flow Schcmatic Figure 7 Construction Cost Estimates From October 15,1992 R.W.Beck Report Scope of Work: A.Power Plant Description B.Pipelincs and Transmission Line C.Road and Pier D.Well Field Development Operation and Maintenance Enclosure:, Key Milestone/Construction Network wee eee DISCLAIMER This Development Plan has been submitted by OESI Power Corporation in good faith and,if acceptable,will form the basis on which the partics may negotiate the terms,conditions and provisions of an agreement to develop the Makushin Gcothermal Electric Generation Project. This Development Plan does not constitute an offer of OESI Power Corporation,nor does it intend to be a complete list of all the terms,conditions and provisions of an agreement for the development of the Project. L.INTRODUCTION This Development Plan for thc Makushin Geothermal Electric Generation Project is presented to the Alaska Industrial Development and Export Authority (AIDEA)by OESI Power Corporation (OESI)and consists of a "Bascline”project together with recommended "Alternatives”which have becn developed from the same basic scope as the Unalaska Project Development Plan dated December 6,1991 (uscd by RW.Beck as the basis for their subsequent reports).Altcrnatives developed since the original plan are included for further consideration and evaluation.The costs and schedule for the Baseline program have been updated and thefixedpricecostoftheprojectis$96.84 Miltion in 1994 and 1995 dollars for the field development and plant respectively.This cost is one-half percent below the cost published by R.W,Beck in their October 15,1992 report,after adjusting for escalation.The project construction will commence April of 1994 and be completed by December of 1995.In addition, the estimated cost and schedule impacts of the recommended Alternatives are presented. Figure 1 (Appendix)provides a summary level matrix of the Baseline program and the recommended Alternatives with their associated financial information.The forecast cost of power has been calculated essentially consistent with the R.W.Beck approach.The proformas for the Baseline and the Alternatives indicate the cost goal of $0.12/kwh in 1992 dollars can be realized. THIS 1S PROPRIETARY AND CONFIDENTIAL INFORMATION OF OESE POWER CORPORATION GRRAO8P.DOC :Page 1 August 18,1993 A.Baseline Project Description The project will provide a net average capacity of 11.5 Mw at the City of Unalaska's interconnection powerbus.The Project will utilize a binary modular power generation system that has the proven capability to operate at a combined availability and capacity factor of 95%.This plant will only be required to operate at an 82%combined availability and capacity factor to provide the 82,000 Mwh annual energy capability required to meet the projected demand,The Unalaska area loads have been reviewed since the R.W.Beck December 6,1991 report was published.With the Westward expansion and Margaret's Bay facility now completed and other projects such as CARRS, Post Offices,Sealand addition,and others,in various stages of planning,it is appropriate to increase the Unalaska area load requirement projections for 1996.The above mentioned R.W.Beck report projected an area load demand of 82,000 Mwh in 1994, The 1995 City projected demand is greater than the R.W.Beck projection,With this and the above mentioncd additions,a load demand projection of 82,000 Mwh in 1996 is reasonable. The attached financial model uses 82%combined availability and capacity factor consistent with the past models prepared by R.W.Beck.During the preparation of the R.W.Beck proformas,OESI regarded the 82%combined availability and capacity factor used in their financial model as overly conservative.This belicf is still held by OESI and with the added pcriod of operation of existing plants since 1991,OESI is prepared to THIS IS PROPRIETARY AND CONEFIDENTIAI,INFORMATION OF OESI POWER CORPORATION GRR408P.DOC Page 2 August 18,1993 present evidence that the seven geothermal plants currently in opcration achieve a 95% combined availability and capacity factor.A 95%combined availability and capacity factor is equivalent to 96,000 Mwh per year and provides a significant capability to meet future load demand deliverable with the equipment proposed for the project.The transmission line is sized for 16 Mw (equivalent to 140 Mwh/yr capability),and with a modest addition of plant equipment,provides further expansion capability at a considerable ¢/kwh savings.The Baseline Development Plan includes the above mentioned power plant equipment along with all required associated auxiliarics,power transmission line,pipelines,access roads to Nateekin Bay,and a Natcekin Bay pier. This Development Plan,as well as the recommended alternatives,is based on the power plant site being located adjacent to the geothermal wells on the South Plateau. Alternative plant sites,such as on the valley floor,were strongly considered but ultimately not recommended due to the added cost,reduced plant thermal efficiency, reduced elcctrical generating capacity,and added Operation and Maintenance expense. The additional cost to move the plant to the Valley floor is $4.5 Million net after including savings from the shortencd transmission line. B.Recommended Alternatives In reviewing the Development Plan several alternatives to the Baseline project were considered and evaluated.Of the various alternatives considered,the following are THIS IS PROPRIETARY AND CONFIDENTIAL INFORMATION OF OESI POWER CORPORATION GRR408P.DOC .Page 3 August 18,1993 wee rier ee recommended for incorporation into the project.Note that the essential charactcristics of the project and its power production capability would remain unchanged. ®ALTERNATIVE|-It is recommended that the well drilling proceed in the spring of 1994 by utilizing helicopters for mobilization.This allows drilling to begin at the earliest possible date and avoids the potential delay of waiting to permit the road as well as the delay (approximately 90 days)for the "pioneered" or rudimentary road to be completed for site access after the permits are obtained. Although increasing the project cost by an estimated $2.8 Million,Alternative 1 provides the following significant benefits: 1)provides added assurance that permitting will not cause drilling delays and that the two year schedule can be maintaincd 2)all drilling activitics will be completed in 1994 (three production and two injcction wells) 3)early resource information will allow further generating unit cycle |optimization | 4)allows characterization of the rcsource and finalization of the well locations THIS IS PROPRIETARY AND CONFIDENTIAL INFORMATION OF OESI POWER CORPORATION GRR408P.DOC Page 4 August 18,1993 aowy @ ALTERNATIVE 2 -It is recommended that the proposed section of roadway connecting the Makushin Valley to Nateekin Bay and the new picr at Nateckin Bay,not be included (see Figure 2 in Appendix).Instead the air field at Broad Bay will be refurbished and reactivated to allow transporting personnel and light materials by fixed wing aircraft.During construction,heavy materials would be off loaded directly at Broad Bay on the beach.This alternative is recommended to reduce the capital cost of the project by $1.15 Million. C.-_Environmental Considerations (NEPA) In as much as the project will require a Corp of Engineers permit for the construction and reconstruction of access road in the valley,the project will become subject to the National Environment Policy Act (NEPA).Although a formal determination is yet to be made by the Corp,it appears likely that an Environmental Assessment and NEPA clearance,Finding of No Significant Impact (FONSD,will be required.This process can take 3 to 8 months to complete,although the Corp of Engineers has informally indicated this may be achieved in three months,Alternatively,a full Environmental Impact Statement (FIS),could be initially required or would be required if a finding of Significant Impact is made.If an EIS is required,it could require 12-18 months to complete.Complction of the NEPA process will be required to close financing and commence construction of the access roads.The NEPA process is not required to commence drilling if done so by helicopter, TIHS IS PROPRIETARY AND CONFIDENTIAL INFORMATION OF OESI POWER CORPORATION GRR408P.DOC Page 5 ;August 18,1993 The cost estimates and schedules have been prepared under the basis that a full NEPA ETS will not be required. All major permits required have been identified and are listed in the Summary of Environmental Permits in the Appendix (Figure 3).Significant work on the permits has been completed and the details of the project are currently being reviewed with the various State and Iederal agencies. D.Schedule Considerations The schedules for the base Development Plan and recommended alternatives have been prepared.The Baseline schedule,as well as a schedule for Alternative 1,are included in the Appendix (Figures 4 and 5).There is no significant schedule adjustment from the Baseline if Alternative 2 alone is implemented.' In the Baseline scenario,road construction will begin in April of 1994 by constructing a "pioneered"road to the South Plateau on which the drill rig will be mobilized by truck. Drilling operations will commence in July of 1994 with thrce production wells expected to be complcted prior to a winter shutdown.The road will also be complcted prior to the winter of 1994.All other construction and drilling of the two injection wells will commence in the spring of 1995,with plant completion during the fall of 1995 and final acceptance occurring in the spring of 1996. THIS TS PROPRIETARY AND CONFIDENTIAL INFORMATION OF OFSI POWER CORPORATION GRR408P.DOC Page G August 18,1993 crmy eo ory ewer ew rte ere ts For Alternative 1,drilling mobilization and support by helicopter,will commence in April 1994 allowing all wells to be completed in 1994,avoiding a winter shutdown of drilling activities.Road construction will commence in time to allow completion prior to the winter of 1994.All othcr construction will commence in the spring of 1995 with plant completion and acceptance occurring as outlined in the Bascline above. If an NEPA EIS is required,the drilling by helicopter option becomes compelling to avoid an otherwise nearly certain delay of 12-18 months in the project completion.With this scenario the drilling would progress simultaneously with the NEPA process to allow road and plant construction to commence upon completion of the NEPA EIS. TIS IS PROPRIETARY AND CONFIDENTIAL INFORMATION OF OESI POWER CORPORATION GRR4OBP,DOC Page 7 August 18,1993 II. omy ecsewew awry tee lls FINANCIAL CONSIDERATIONS The project construction and operating costs as submitted in 1991 were based on then current costs.These costs,as well as the recommended Alternatives,have now been adjusted based on commencing drilling in 1994 and performing plant construction in 1995. The power plant,road,transmission line and all associated auxiliaries are prescnted at a fixed price of $81.94 Million in 1995 dollars.The field improvements as outlined in the "Basis and Assumptions”is presented at a fixed price of $14.9 Million in 1994 dollars. From Page 3 of the "Construction Cost Estimates”prepared by R.W.Beck in their October 15,1992 report (sec Appendix),the total cost for the project is $84,947,000 in 1992 dollars.If the project costs are escalated 5%(as used by R.W.Beck),R.W. Beck's independent review shows a projected cost of $97,400,000 in 1994 and 1995 dollars for field development and plant respectively. THIS 15 PROPRIETARY AND CONFIDENTIAL INFORMATION OF OESI POWER CORPORATION GRR408P.DOC Page 8 August 18,1993 B.Financial Projections Project projections are based on funding the project from the sale of tax exempt revenue bonds.A Proforma for the Baseline is included in this Development Plan.A Cost Summary which includes figures for other cases,is provided as Figure t in the Appendix.Although provided in the R.W.Beck studies,the attached Proformas 'demonstrate that a rate stabilization fund is not required. The Energy Policy Act of 1992 provides a 1.5¢/kwh incentive payment to geothermal plants selling power to a municipality.If obtained,this would enhance the project economics to the benefit of the State/City. Cc,City Distribution System The Scope of Work for the capital improvement neccessary to upgrade the City distribution system has not been identified.For purposes of identifying the entire cost of this project,a $2 Million allowance has been included in the cost.In addition to this $2 Million allowance,the financial projections have included a 12¢/kwh cost of power, of which 1.5¢/kwh will flow to the City's benefit.This is equivalent to $1.2 Million per year. THIS IS PROPRIETARY AND CONFIDENTIAL INFORMATION OF OESI POWER CORPORATION GRR408P.DOC Page ) August 18,1993 If,BASIS &ASSUMPTIONS - BASELINE DEVELOPMENT PILAN AND ALTERNATIVES A.Power Plant 1.Plant located on the South Plateau 2.Road from South Plateau to Broad Bay 3.Road from Nateckin Bay to Broad Bay 4.Pier at Nateekin Bay 5.Equipment capable of producing 11.5 Mw at the City intertie point,at an annual average temperature of 41°F B.Resource 1.Drilling three production wells on the South Plateau 2.Drilling two injection wells at the base of the South Plateau 3.Sufficient artesian flow and pressure (no pumps) 4.On-site disposal of drilling mud and cuttings On Operation and Maintenance 1.Plant operated from the South Plateau D.Alternative 1 Mobilize and support of drilling operation by helicopter E.Alternative 2 Refurbishment of the existing airfield instead of constructing Nateekin Pier and road from Makushin Valley to Nateekin Bay THIS 1S PROPRIETARY AND CONFIDENTIAL INFORMATION OF GEST POWER CORPORATION GRR4O8P.DOC Page 10 .August 18,1993 Baseline Proforma CASE BESCUIPTICA Bape Case (Alternates Bot Bael} Debt apertization a5 Years Ietereat capitalazed then 3/31 AIDEA reture on equity mA Base Bate =12.6 cesta' 1932 pear Linited State Guarautee To Bowed Holders Bond Jewuarce Dates: "”Mar-% "se Jun $5 Debt Service Seaerre 0.5 year Rate Stabilization Fund Wet Present fale se Bond Size $110,350 State Graet 3 Federal Renesable nergp Inceative ¢ceateskite CASE OESTRIPTION AGTERAATES BOT [MCLUDSD A)tereate 1 Relicopter Mobilization Added Cost 2,300 Alternate 2 Delete Baateekia Becess Savings 1,0 AMA/RT OGL ISSLASEA CROTUIRAL FROECT fond Siziag snalpsia (Dollara 59 Thousanda) CAPITAL COST DATR/PARAMETSNS FOARIK DTS {oust rection Cost 8 Bond Ineee Bates (BOA) Drilling,Pield Development,ele,4,900 Cost of Capital Alternatives 1 &2 Bet 0 Reinveateent Rate Total Developsent Contes Cost of Iazuance Iwfo finaucing costa}%160 Other Coste bens:Initial Stadies Grant i.Bond Insurance - equity Participation Hid Fund Requirement rf)t Working Capita} Proceagora 4 Bond Fended 0&& Boed Fisaoced Ascuat 96,44¢Debt Aportication Period Bepaynent Period CERATING COST DATEL . c&a 2,98 Wel lfield Maintenance (included above)fase Tear of uid Fee Ataf expeasen Operatiag Corte Adoin (General 135 Tapurance 150 fawaal Bacalation factors: Wellfield Inenrasce 30 Genera] We]Beserve Foad deposit Input Steasfield Zozalty Yeara 1-5 Sof babar cost Teaze 6-11 4 Stof Jushar cost Tears LD-thereafter 7OSof bacbar coat danma)Baergy Usage $2,005 Oe Energy Losses: Busbar te Lead O.08 City Caste 1.5 centasith Ving} 40,25;02 OST Power Syetens Mar-%-Jan-95 6.009 O.a08 2S0%0f bowda 0 200 F.0%0F debt ove 1,hua 1,000 }.8}%0f bonds 25 pears Quarterly 1% 4.58 $ im i58 7,556 La 13,87 13,407 a 13,067 D-ty-3 MLAS)DERG)METRORETT 19:29:82 TAACASLA GEOTEIRAAL PRET CASE DESCRIPTION Jnnaa!Coats of Power Baee Case O85]Poser Bystene (Basel iach @ollara ia Thoesands] 1 P|3 4 Calendar Tear 1956 19]19 1999 acasstss esSssss SSs-SSERSttE sSerrsss Lagds ed) Operations aad Haiatenasce:24t 3,00 #318 863,309 Fiwid Fee 2 30 Ww 31 Inverace >isé 13?le beh Wellfield Ivsuramce 30 i qv 4 General &Administrative (omer}45 lil ur 54 Royalty 4 aw at 14 Total Coat of Operations 3.916 ©4,092 4,20 4,469 Other Conta;. Deposit to HE ¢Fosd |t 58 bb Depopit to Well Seserve 0 a la 450 Debt Service 6.590 6,997 6,907 7,358 City Costa [Oy]ae OE)Ot | TOTAL ESPEASES UT 12,8900 13,797)1, REFEIUE REQQURERET Keterest Rearminge: Ma 6 |'t W Pud N a0 rt a0 Hate Stabilizaton Puad (2571 Papwent )a '"§ Bet Pacility levee Requirement 1,96 12,203 4,057 13,008 Sate Stabilizatom Pued (5%)Repaysent '''g Total Revenoe Requirement.176 12,05 (12,78)13,38 COST OF PONG Delivered Cast To Ratepayers Noainal Dollara 14.3 i.15.6 16.2 $992 Price Levels 2.8 1pm 14 Re Cumalative Valee BSF ||i}| Bet Pregeat Falve eS?| 7,910 1,238 4n 1,031 | 14,4 7 ri 34 Piatti] 4,257 1,838 15,62 it 2083 $922 L138 16,211 16.00) t 16171 n il 745 2005 ne Cue 4,5ch 4,708 4a0 58i 524 Pre w au}5 a.ry) it Pai 219 C2 2 1,03 Ge 6,77 7,075 1 156 Le a in 5b $706 =9,555 9,855 Lie 1.2%2,20 16,797)7,084 18,159 4 '¢ 40 #ff )'4 16,357 1,01 18,UES 'a t 16,75?1,916 18,119 204 rite tA1$2)10 |0 6 "WS Faatcas UAT -| velo 5,371 '598 278 Sh 758 1,521 0,473 156 Je 9,555 1,238 19,158 L7-Aag-93 FO:I7S 8 CASE DESCHLPTION Base Case O2S[Power Syatens Calesdar lear COP ERSES Operations aod Maintenance: Paid Fee Tomuraoce "Well field Inauraace Genera]&Acninistrative Somer! Royalty Total Cost of Operations Other Costs: Deposit te R&C fund Deposit to Hell Reperte Debt Service City Conte TOTAL MEPERSES BETENIE REQUIREMENT [atereat Zarningt: DS We Pood Rate Stabilizaton Pend (RSF)Payment Met Facility Bevesee Requiresest Bake Stabilazaton Ford (BSP)Depayacat Tota]Aereme Requireseat COST OF ROMER Delivered Cost fo Galecsyers Reaioal DolJara 1952 Price Levels fummolative Yaloe RSF Bet Present Yaloe ASF 19,333 ] WY 5 at Te a 1é 201) wsrerrst 6,129 682 M7 63 285 1% 9,213 258 1,04 9,627 ww i) 2,117 16 i) ' 20,551 ( 2,504 LS)2,073 4,163 11,48] é 15a §,555 1,234 22,415 6,346 n4 431 wa 2,302 12,537 '8 154 $,555 1,236 23,472 "% 7,49 13,1482 6 40 | 22,716 4 2,580 £3,651 28 PiIK) 443 2,6% 14.307 10.6 tartcsss 4,546 1,107 514 103 463 2,81? 4,51 16,553 6 16,559 APPENDIX 1.FIGURES ALTERNATIVES COST SUMMARY Capital Costs $000 Baseline ,96,800 Includes all OESI costs,fees and overhead Alternative 1 -Add to Baseline :2,800 Mobilize and Drill by Helicopier Alternative 2 -Reduce Baseline {1,150) Eliminate Nateekin Road and Pier Alternative 1 and 2 Combined 98,450 *1.5¢/kwh added for the City would provide a final cost of 12¢/kwh FIGURE 1 *Cost of Power In 1992 Dollars C/kwh 10.5 10.5 10.5 10.5 imeneMalar: Makushin Geothermal Electric Generation Project GNM 3,.PORT OPTION |:SAU RO tie eer gee:. cee wl iat aie fheeeeoyslevOEPs as Pindrs”a_. PowEnPLANTSHE BS(Ef Lys HES YON HARV GE eA-5 We Ys ='MAS "ISN r i =SS are 5 "TAAbiSitESS --a | ;(=)(4 NATEEKINBAY ELE RS #3 4(@ oA aN +a 49° FIGURE 2 SUMMARY AND STATUS OF ENVIRONMENTAL PERMITS AND OTHER APPROVALS MAKUSHIN GEOTHERMAL PROJECT The following table gives the status of the various permits and other approvals that must be obtained to construct and operate the Unalaska Geothermal Project utilization facility and to drill and operate the project's gcothcrmal wells.Approvals are expected on or before datcs listed below. -oCurrent StatusAgency-Permit "a wo 1.Alaska Department of Covernmental Coordination (DGC) Costal Consistency Determination Agency contacted.Permit assessment complete.twUS Army Corp of Engineers (COF) Section 404 Permit ;Wetlands delineation survey to be completed.Application Section 10 Permit being assembled, Construction details being assembled.Application being asscmbled. 3.Alaska Department of Fish and Game @MF&C), Anadromous Fish Stream CrossingPermit 4.US Fish and Wildlife Service (USFWS) Scction 7 Consultation I} 5.US Coast Guard (USCG)|Aid Navigation Fuel Transfer FICURE 3 GRR4IL1.Doc, Ageney-Permit. 6.Alaska Department of Environ-DEC penmits and authorization mental Conservation (DEC)to be prepared and submitted as part of the Costal Consistency Process Air Quality Control Solid Waste Disposal Sewage Treatment System Waste Watcr Disposal Certificate of Reasonable [nsurance 7,Alaska Department of Natural Resources (DNR) Water Rights Geothermal Production Well Permits Geothermal Injection Well Permits Tidclands Lease 8 Environmental Protcction Agency EPA To be submitted afer Underground Injection Control completion of injection wells. Inventory 9,City of Unalaska Building Permits To be submitted throughout the construction process. 10.State Fire Marshalt Plan Review To be submitted throughout the construction process. Hi.Rights of Way ) Pipeline and Road System on OESI To be obtaincd by AEA. Leases Road and Transmissiyn Line through |To be obtained by AEA. Makushin Valley 12.Site License To be obtained by AFA. 13.SARA 311 and 312 requirements to be submitted after construction begins. 14.OSHA Safety materials to be obtained prior to construction GRR41{Doc.u Schefole Dawe a Makusbia Pr:ject BASELIBE kespoasibsé or beeq Retzlateé Joly 19,0993 fKs-of Date oy P19 /92 Schedule File y NBASELIA 3 3t 95 % Start Dutatn End Pet Bog Sep Ort Vor Dec dan Feb Kar Ape Map due fo]Aug Sep Oct Mov Bec Jao PebWar Apr Mag Tua Jul Aug Sep Get for Dec Jan Feb fast Kame cate |fka)Bate Ach?-Lo kL t Logdktdye:s:Yd 2 Ss e to 9 21 9 1 3 9 t dod i yd 2 +PEBFITS Sf2'93 TQ DSI)GQ eadkesessectesaazsezsEeesee2,|fg kl se -8 +PTIMECING CLOSING telah o ane a ..Bowe . TOAD,ARIOSES &FUER itsda oak yee .wEQGUF 225072 6250 ESES LO UEEZIRELEIELESSEIEETE Englecering,Road itidge Pler Wh 6 LG 8 oe e OM,''.' bidscBval Prad,Iridge Bids sflbsee §ase 8 ,7,. Auazd Road,Bridg:&Plec 2h 8 o2flisd 8 ..»E oo.:. Fresuce Bridge &ACB rice Th]an ets)a .,wae.'.+oe tle Azad ta $Plateav Wis 12 Vet '',am ll.''. Temple §Plat Koad &Maoteekin ==1/094 1@ SSIS 8 ':..sie.:. Zhe SLSAS4 2 9fos 8 oe ., +BRGEREZRIKG aia in Teo rn |QSGLGTESESESLGESIAGRETEEE |,glk lk oa 1 a >TORS-GEG SU]?via KEACTLE ails soe ®oah9$4 .»MURENNTS NTE EES CZETTS EATS LEER TE2E ST LTITT REESE +JORE-GEA SAE DISECT 1 SITE Sis y eth|ey .Tree TeUriiiLitiniteiaisisFitCresrificitteleieiista +D-LIIE LORE rye Tt)tA shee 4 ee we ng)REERSSEESRDEQIRESURAESTIENTESIETTIESL20I . +T-SCNE SUENIRIIE 4494 at gs8s 8 coe et lee BSTILSERG RIE SSSEREZORES TTAEEZ 34 .1 +SUBSTATION LOWE LEAD ITZHS ibs $d %315/98 4 1 oe »STAEZESETRETZIRGESSERRESEZEE:ESESUEGEEERTESIE |Uk,se ee woe ' +FROTULEMEST 23/9q 38 Lasaayoe oa oe.»RELESMELERSTEDISSISNETEIEGSE SEZEREZ EEL--- -- BESSUACS rrr Test NM oasiyrgs é 1 oe .BRARTELEGELEE LUTE ES ARTES EST SES EE ERIE SES IN|ERE ES ERT ETA Wok Drill Rig ite}209NnT 6 ...om -' Dciil Firat Peat 0 Mase 6S BD .-ml,.. brill Sesond Pred U TEC,a ie 2.oh oo.Pr ,ee.:. bvi1)Third Prod W Wis SS LsleM @ .-+e te m_™.1.' Fell Testing UteSh 2 LTE 8 eo 1 os 8 'mm .we . Vioter Sbot Sewn Mpsyse MSL 4 .Le '.Mina ll.. Mill ?irst [aj Sss95 5 $yrerts fh oo..-.nome 3cill Second Iniect 145195 ee Pete)a 'oon .toe .ee - Seacbilize Ded]Fquip Wi =]uss oa F ''.soe eC +SHAP SEATTLE To SLE WASMS «od S25 '.ee we .MME EEaSI EEE,coe ee +PLANT CONSTRUCTOON VLTIS aL 2998 a '-..Mersssististiircistcritiistrizitititis+ mew tetail Task os ERO (Progress)>>Conflict WT--(S)ack|«MB Pescucce delay Proqesss shows Fecceat Ushieve?sn actual t Wilestove mesaresec nee aecees Stale:S Laps per characte m----e-mentee ner en ee se cer terse rs creer weer mr we ree nrarerecrcosen erence ecscccowewarsareacacssacarsacencacanuraetaccrasarncoracecmsmsnnasmcenceencneaces eoene Vaseline Pier 81a Coner Piste Momsek freia 1 Baas L cekedcle Bane e Hakusbio Prosect WELICOP DUILL,Ale 2 Respooslble oo Grey Retristt July 19,1993 As-<f Date oc MLA!Schedule Tiles NREDRL2I 3}34 a 4 .96 Start Durato fod Yt hag Sep Occ Hav Dec fat Pek Mar Ape Mag Jua Jul dug Sep Oct Mos Des Jan FebMar Ape Bay Jeo Ju)dug Sep Ort Woe Dec Jan Feb Task Home Bate Wes]Sate ach?2 Yo Tot 9 2 2.F272 Yo voy Yet dof yt §1 to bt dad t tes +PRAHCTS Aree ad fae Ceri etisats Se oee CELE t ett et rr - 4 PIBAECING/CLOSIBa VIN §2st +6 ««-B 0 8 el .oe te BOLD,SPIOCES &BITE TTs9G YW UeAwh 4 o «-EZSPHRLASSHISTISZSZEAFESTHSEERERVERESETEIE---omens --- Ecgiazeriog,Road Bridge Pler NUM $3159 4 oo ew we Mk le Bids:Bva)]Boad,bridge Bids Uisisa S$41998 3 yoo ew el whl OG dwar Ggad,Bridze &fier 4515258 @ HIN 8 oe Fn a Priesre Brigge &MO?fUssga 1 6fyie 8 ee OO Jcad ta §Phateas Gs vn ee |'ae lll. Streae blockout 2ecisd Bi1894 €HIN 1e F PT Cceple $Plat Soad &Ranteekla =9/1/94 Lh meme www kk kk SEHOR iC rsCye|ereeePOS.h Le .soe ..,Oe one +BSGISEIRING WM a 623M oe 'QRPEMSEGRERREUUESISURSESE Sk el +TURR-GIN Sa?gia SEAYTIE 115,594 te es |qa a USSRURTISRZEZTEGLTREEIEWISTL:LTPEUETIRGTTEVEIETE =k .oe ee -oe wl +TORB-SiN ST?DLRSCT PO SITE Si2rs4 LT rere>ae |BUPRUL GLE MESES TTEL ESSE 02 235 RET EES SAT RTT ET EEE EES ZEREEE, t Y-LIME LARD Wid |a5.d 199s @ .»EVEPSLITELSULTELLRUTESIIPOZSILETTTTRVETERLTIEEE +al .oe ee .oe ke +T-LICE SUBMARINE agin a]Vis ¢SQLANSUERETGELEDSSUTEEAAESSERESESESEIEIGGREE . +SIBSSACION LCRG LEAD STEHS RCTs)ere ae |i +PROCURENZOT 23094 Mba 8 'BiB GTTTILVES TEL TTRTER EE RRERZETETEATELNE---------,.oe ee Lo.ele RESOURCE Q199e 22 Le oo eel o FASQIESLEEEL]DEEEZRELZSSIRECTIZELS Neb Dril)iy By Halisopeer 115194 2 SG9t re a Oct!)Pleat PredW Sibi §wien @ .me Drill)Sececd Pred f Ging 8 Use a Dridl third Pred@ T1994 §ern 8 '...-.eee Wel!Testing Bi2d9¢tos a ''-a.' Oca!1 Pirst ing Ltr)$BNI too .'.en,. Deil)S2z0cd loject Wisse ==F§MAE ,,.eel Depcbilize Brill Byuip CPO7h|Me aeESOS |.F .-2 om...- +AIP SEATELE TO SITE cp b Te)eee |SN 0).'.«0 ERESEREEARE,=,gw oo +PLART CORSTADC TION G1N9S alc s9y9b ¢-ee g RESUSPESSUEGETCDETIETSIBIEDBLEESTESERESEZ5 BOOM Setail Sask usaie Syavany Tisk =|*"*°"Baselineo8M|Progress)sestz [Prigeess)>>=Caoflict Wea Stack}siz-{SJack|8B Resource delay Fasgecas shcws Percent Astigved on Sclual 4 Xiestae srecceacsoseeee Safes DO daye per thayact2y oe cree ce cece ce cre ee es seems ee ces notes memes cm ene cs aermes creat cert n amas enem ee re -careeee:ceeeereecores -settee ees WAKUSHTIN GEDTHERMAL ELECTRIC GENERATION SITE Plas ee(- POWER PLANT SUBSTATION (yy { a ta :ror #isfoe tk cf ifs) os | rc hi} co t :es a Piped ji2ial. | Tm)otES\'tBO. Te = ema) v FIGURE 6 £500,000 H r er eg nnn 7 _{65,000 4 Vaporizer 56 P T G 37 P r |! Seporetor {L Te 2 Additional | Nodular Units |Well |° 20 T } |©Preheater T =380 degre fh =354 Btu/be {-_--<<-}-_-a -oaTa -> 3 Additional Cycle ?Modular Unts-¥unp \a _A 1375.00 1 Conditions 330 gpn 2670 gpm 290 T 41 degF Amual AverageSynbols®@ 215 T 2ia0T 4 -lon/be me P -psig ]ed Remject =-ein jection To RemJjectionQ@=Btu/ne Systen Systen "-_-=ree aanwo .j Condenser ORST certion Kakushm Geathernmol Electric Generation Project Fiow Schematic One of 4 Modules Shown on wo FIGURE 7 APPENDIX 2.CONSTRUCTION COST ESTIMATE FROM OCTOBER 15,1992 R.W.BECK REPORT .|AEA Budcet Estimate 10/7/92 i | FEATURE |LOW |HIGH NOTES* ($1.000)|($1,000) |l |.PLANT (Direct costs)!| 1.Ganeration Facility !of a Site preparation |1,775)1,775! Dd.Bidg's &structures |555]750!highs acct bid'g allowance c.Mechanical 3,157]3,157: d.Electneal |1,534 1,534) @.Scada /comrois !564|564) f,Modular olant |12.448)13,0001 high:acart wind protection ] suototal!\$20.033 |$20,780 A] 2 Fluid gathenng || (all work)|$2.745 |33,448 i low 9/23.high 12/20 3.Transmission /substations |: a Buried T/L 3611 4197!low:mixed quates.high:pierrti b.Submarine cabie 2363 2950!low:med quotes.high:pierri c.Substations 732 732) subtotal $6,706 $7,879 | | 4.Distribution | a.City improvements 1500)15001 b.Dispatch center fe]250!high:aad dispatch subtotal $1,500 $1,750 | §.Roads &dock i a Road const 7460 7460 b.Dock const.415 415! c.ROW acauistion fe]250 high:add ROW cosi d.Borrow matts 90 228)low:9/23,hign:228000 CY @$1 subtotal $7,965 $8,353 | i} -*except as noted,all costs Dasead 'On OES!9/23/S2 estimate FROM R.W.BECK REPORT DATED OCTOBER 15,1992 Page 1 | :|\ 6.Construction suppor i 1, a Camo &catanng +200|1500!low:9/23,high:ext.schedule b.Transportation \12431 1500]low:9/23,high:ext.schedule ¢.Temp.utilities,atc.|1611 1750!low:9/23,high-ext,schedule I | subtetal |$4,054 |$4,750 | ' 7,Start-uo &tesung { (all work)|$705 |$705 | | 8.0 &M supplies | a Equipment i 622)-622!from 12/20 est b.Soares 940!940]from 9/23 est |{ sutnotal |$1,562 |$1,562 | | Total (direct const.)|$45,270 $49,223 9,Design a Generation plant.880 909 low/nigh:7.5%+2.5%modules b.Fluid gathering |137 258 low;5%,high:7.5% c.TA &subs |350 350 low/high:9/23 est. d.Distribution |113]131 tow/high:7.5% @,Road &dock i 400|626)low:5%,high:7.5% f,Permmting |1201 200 low/high:addti allowance g.Misc.|100|100}low/high:adatt allowance | subtotal $2,100 |$2,574 10,Const.management | (all work)$1,584 $2,079 |tow:5%(no module cost) high:7.6%+25%modules 11.Administration | {all work)$968 $1,086 low/high:2%all items Total (admin,design,CM)$4,672 $5,739 il TOTAL PLANT (Direct)|$49,942 |$54,962 FROM R.W.BECK REPOR! DATED OCTOBER 15,19¢ Pagoe2 |1 'IL FIELD DEVELOPMENT ] . 1.Purchasa rights 1500|15001 low/high:JV ast. || 2.Field desian 678)10001 low:7.5%dniling,high:JV ast. || 3.Drilling &maris 8238 |8238 |low/high:9/23 est | 4.Testing &evaiuation 1289]1289]low/high:9/23 est. {| 8.Admin,CM,insurance 400!B42!low:12/06,high:CM 5%admin 2% TOTAL FIELD (Direct)$12.045 |$12,869 | || i BUDGET SUMMARY | (with eScal.&comingency)| |.PLANT Direct cost 49942 54962 Escalation 19931 2748 low:4%,high:5% Contract contingency 3896 §771 low:7.5%,high:10% TOTAL PLANT $55.836 |$63,481 it.FIELD DEVELOPMENT Direct cost 12045)128691 Escalation 481]643)low?4%,high:5% Contract contingency 1253)2027|low:10%,high;15% | TOTAL FIELD $13,779 $15,539 | il,PROJECT RESERVES $5,221 $5,927 low/high:7.5%all costs GRAND TOTAL $74,836 $84,947 PROM R.W.BECK REPORT DATED OCTOBER 15,1992 Page 3 APPENDIX 3.SCOPE OF WORK A. SCOPE OF WORK Power Plant Description l.Binary Gencrating Units The proposcd power plant will utilize four (4)interconnected binary generating units (BGUs).Each BGU will have a dedicated set of finned,air-cooled condenser bays and auxiliary step-down transformers.Also included in the design arc the ancillary plant systcms,buildings,and auxiliary facilities required for a fully integrated powcr plant.Figure 6 shows the layout of the plant site and the approximate location and dimensions of the structures and facilities to be constructed within the site area. The core of the power plant is the BGU unit,a prepackaged,fully automatic equipment power module which generatcs electrical power using geothermal heat sources.Each BGU includes the following major componcnts:evaporator/- preheaters,condenser,turbine,generator,motive fluid cycle pump,motive fluid automatic control valves,level switches,pressure gauges,pressure controls and complete internal piping connections. Figure 7 provides the steam and brine process flow information.Approximately 1,500,000 Ibs/hr of geothermal liquid,at a downhole temperature of 380°F,will be produced for the four modules.The fluid will flash in the well bore and the resulting geothermal fluid,and the steam at approximatcly 290°F,will separate Page 1 and flow as two phase components into the power plant.Approximately 165,000 Ibs/hr of steam at 290°F and 57 psia will flow through a heater into the vaporizers of BGU modules 1 through 4.The steam will condense in the vaporizer heat exchangers whcre the heat from condensation of the steam will be transferred to the binary motive fluid.The binary motive fluid will thus be vaporized and flow through the turbines to drive the generators,The generators produce three-phase electrical power at 13,800 volts,In addition,the 1,335,000 Ibs/hr of liquid at 290°F flows through the preheaters of the BGU modules, where it warms the motive fluid enroute to the vaporizer.The turbine exhaust vapor from the BGU units is condensed in the finned,forced draft air-cooled condensers and cycled back to the evaporator by the individual BGU motive fluid cycle pumps.The spent geothermal fluid and steam condensate is reinjected to dedicated injection wells, Control and Monitoring a)BGU Control -Each Dual BGU Module has its own Programmable Controller and Protection Relay unit which controls the operation of that BGU.The control system,when started,automatically accelerates the turbine to the synchronous speed and then synchronized the generator to the bus.After being linked with the bus,the control system monitors and. controls the operation of the BGU Module.Pressure,temperatures, voltages,speed,kilowatts,kilovars,currents,etc.,are checked and monitored during each scan of the Programmable Controller and compared Page 2 b) d) with present values in the memory,to detect for a warning or failure conditions. In case of any failure in the system,the unit is disconnected from the bus and shut down in a preprogrammed procedure.After a failure condition is rectified,the generating unit is automatically started again with a manual resct signal.The unit can also be locally started. Central Station Control Systems -All the BGU control systems are linked to a central station control which includes a programmable controller, CRT monitor,keyboard and a printer.The control system governs the integrated power plant operation under all operating conditions.The system controls and monitors the start-up procedure,normal operation, normal and emergency shutoff,protection,alarms and other functions. Data Acquisition and Communications -The Data Acquisition System will be integrated with the geothermal central control system for monitoring and producing hard copy reports from the gcothermal generation master control center. Remote Control Terminal -A remote terminal will be located at Dutch Harbor and intcgrated with the City Dispatch Center.This remote terminal consists of a CRT monitor,keyboard,and printer.Functions available at the remote terminal will be all functions for geothermal Page 3 gencration monitoring.A fiber optic communication link (or equal)will connect the central station control to the remote terminal at Duich Harbor. This link will provide reliable remote monitoring of the gencration facility. e)SCADA-Items a,b,c,and d above all comprise the Station Control and Data Acquisition System referred to as SCADA. Electrical System A main power transformer,auxiliary transformers,high voltage switchgear, motor control centcrs,and all of the necessary protective breakers and disconnects will allow the power to be distributed to the plant auxiliaries and to the transmission line.Power will be gencrated at 13.8 kv and stepped up to 34.5 kv for transmission. Auxiliary Systems The power plant will be equipped with a compressed air distribution system to operate pneumatic valves and supply compressed air for maintenance purposes. Air from the compressors will be filtercd and dried to avoid moisture and dirt build up in the distribution piping. Emergency Diescl Page 4 An emergcncy diescl generator will be provided to supply emergency power to the power plant in the event of an upset. Fire Protection Systems A supply of water for fire fighting will be provided to all areas which have potential risk of fire.The source of water for firc fighting will be from water stored in a 200,000 gallon water storage tank,The fire system includes a diesel engine driven fire pump,a jockey pump,an underground fire water system, extinguisher system and an alarm system which will include flame,n-pentane and smoke detectors connccted to the main control system,Enclosed control systems, electrical equipment and occupied building(s)will also be protected with a dry fire protection system. .Page 5 B.Pipelines and Transmission Line Gathering and Injection System The gathering system will collect geothermal fluids from the production wells and move it to the plant.It is anticipated that up to three production wells will bce drilled to supply the plant,two of which will be on-line at any one time.The production wells will be located approximately 1,000'from the plant on the South Plateau.The wells will produce two-phase flashed flow which will be piped together and fed to a separator located near the plant.This two-phase flow piping,most of which is anticipated to be 30 inches in diameter,will be located above ground and supported by drilled piers.The separator located at the plant allows the stcam and liquid to be separated into their component phases and piped to the BGU units. Spent geothermal fluids from the plant will be piped to the injection wells for disposal.Two injection wells are to be provided,one of which will normally be on-line at any one time.The spent fluids will be piped through an above ground, insulated 12"pipc to the injection wells.It is not anticipated that injection pumps will be required as the fluid will flow under gravity head to the wells.However, depending on the required injection pressures,injection pumps could becotme necessary,but are not currently in the scope of supply. Page 6 Well head valves will provide the ability to isolate cach well.Automated valves are included in the two-phase flow piping upstream of the separator to allow the field to be shutdown remotely (the field could also be shutdown using the steam flow control valve located on the separator steam outlet).A well start-up line (a bypass linc to the rock muffler)with appropriate valving has also been included for each well. Level control instrumentation and control valve are included with the separator as are flow meters,tempcraturc and pressure measurements of the liquid and steam lincs to the plant.Two rupture disks with block valves to provide overpressure protection are also included. Transmission System The proposed transmission system from the plant to Unataska will be approximately 13.5 miles long,with 3.5 miles of the system consisting of submarine cable,and the other 10 underground construction.Both the underground and submarine portions will utilize a single,3 conductor cable using 250 kcmil copper conductors.This will allow the 34.5 kv system to transmit up to 16 Mw with acceptable line losscs.Optic fibers to provide a reliable communication link will be buried with,or be integral to,the transmission cable. Page 7 The underground cable will intertie with the submarine cable at Broad Bay.The submarine cable segment will run from Broad Bay to the point of interconnection with the City utility near Cave Rock,a distance of approximately 3.5 miles.The submarine cable will be Ethylene Propylene Rubber insulated and armored.The cable will be sea bottom buried approximately 4 deep for 3,000°on the west end,1,000°on the east end to minimize the danger of anchor damage to the submarine cable. There will be a Switching Station at the interconnection to the City utility electric grid.This Switching Station will include;submarine cable termination,circuit switcher,regulator,relaying,metering,associated switches,control housc, equipment and structures, Page 8 Cc.Road and Pier 1.Road Geotechnical investigations including site inspections,soil sampling,seismic,and bathymetric surveys were completed subsequent to the December 1991 proposal. This has allowed a final road alignment for the lower Makushin Valley and pier designs to be completed.The reviscd road alignment begins in Nateckin Bay .north to the Makushin Valley where it follows the World War II road alignment (see Figure 2).Alignment of the road down the center of the valley in the gravels of the river has been determined to be the most cost effective road alignment yet still bclicved to be acceptable to the permitting agencics, There are two alternate routes to reach the well field and plant site on the South Plateau,which both begin near the base of the original switchbacks. The northern option is not recommended as it would require a complete rebuilding of the existing switchbacks and requires three major gully crossings, including Fox Creek Canyon. The southern option allows a more gradual assent to a plateau.Beyond the plateau,a difficult one mile long scction is encountercd with slopes between 30- 38°.The southern option requires only one major crossing of the somewhat wider Makushin Valley allowing better utilization of switchbacks.The southern Page 9 -----died v ---s we eee et Fae tar aw Ww ew YY option was favored by several road contractors who inspected the valley and is currently recommended by OFSI.The final road alignment will be finalized after further survey and site inspections during the summer months.The roadway will be topped with pit run gravel from local borrow sources.Corrugated metal pipe culverts will be provided for each drainage crossed. Nateckin Bay Pier The dock located at Nateekin Bay would be supported by steel piles.It will be approximately 16'wide and 230°long,capable of accommodating a 30°-50°work boat and a work vehicle for loading and unloading supplies. Page 10 avy Well Field Development Three production wells located on the edges of the South Plateau,drilled to 2,000- 4,000'and utilizing production casing of 13 3/8 diameter,will be required.This placement will provide the horizontal separation sought when locating drill sites for this resource.This is the area where Discovery Well ST-1 is Jocated,which demonstrated the presence of a known resource,encountered in the fracture zone at 1,950'. Two injection wells will be required and are to be located at the basc of the South Plateau.This has becn identified as the prime injection well location and will allow a 350°head advantage trom the plant. Page 11 APPENDIX 4.OPERATION AND MAINTENANCE is a ee ea OPERATION &MAINTENANCE A,Operating Plan 1.The operating staff planned for this project is as follows; 1 Plant Superintendent 1 Administrative Assistant 8 Combination Operator/Maintenance Personnel I Mechanical Maintenance 2 I &E Technician L Utility Person 14 Total 2.The plant will be manncd 24 hours per day by two opcrator/maintcnance personnel (12 hour shifts),These operators will work a rotating shift equivalent to four days on and four days off.The operators will be expected to do plant preventive maintenance as well as contribute to regular plant maintenance.One full time Mechanical Maintenance person,one I &E Technician and one Utility Person will be on staff to support regular plant maintenance and unscheduled maintenance work on a 12 hour four day work week.A second T &E Technician will be on staff to support maintenance the remaining four days.Maintenance Page 1 will sleep on site and be available for call-in emergencies occurring during the night shift.The Plant Superintendent and the Administrative Assistant will supply managerial and office support,both at the plant and from a satellite office in Dutch Harbor,It is expected that Operations and Maintenance personnel will remain at the plant during their four day shift schedule.The A shift operators will rotate 12 hour shifts with the B shift operators for four days.At the end of the four days A and B shift operators will be relieved by C and D shift operator, The Plant Superintendent and Administrative Assistant will vary their work between the plant and satellite office at Dutch Harbor as needed. The Resource Field Manager,Operations Manager,and Compliance Manager will support the project on an as required on-site basisfrom the offices of OESI and its affiliates. B.Plant and Field Operation and Maintenance Costs 1.Cost of Sales e Salaries Plant Superintendent $80,000 Administrative Assistant $31,200 e Hourly Wages (8)Control/Maintenance Operators @ $26/hr x 2184 hrs 454,300 Page 2 (2)I &E Technicians @ $32/hr x 2080 hrs 133,200 (1)Maintenance Technician @ $26/hr x 2080 hrs 34,100 (1)Utility Helper @ $15/hr x 2080 hrs 31,200 Overtime 151.500 Subtotal 935,500 Payroll Burden (30%)280,650 Subtotal 1,216,150 Subcontracts -Operations Manager (600 hrs/yr @ $75/hr)(ORST),45,000 -Field Manager (800 hrs.yr @ $65/hr)(OESI)$2,000 -Compliance Manager (200 hrs/yr @ $60/hr)(OESI)12,000 -Minor Road Maintenance and Matcrial 25,000 (using Plant Equipment) -Major Snow Removal 25,000 -Work Boat 40,000 -Outside Services 75,000 Repair and Maintenance of Plant Equipment 125,000 Vehicle Maintenance 25,000 Transmission Line Maintenance 30,000 Pentane 25,000 Small Tools 5,000 Fuel 10,000 Rentals 15,000 Permits (Routine Permit Renewals)10,000 Page 3 e Lubricants e Shipping and Transportation e Office Supplies,Telephone,Postage,Safcty/Medical e Travel Expense e Relocation (One personnel) e Education e Miscellaneous Operating Expenses eo Dutch Harbor Office e Wellfield Chernicals °Above Ground Geo Resource Piping and Equipment Maint. Preventive and Major Repair .Below Ground Geo Resource Piping and Equipment Maint, No Major Below Ground Maintenance e Employce Benefits/Incentives e Depreciation of Operator Owned Mobil Equipment Total , °Opcrator General and Administrative Total Cost Of Sales Opcrator Fixed Fee TOTAL OPERATING AND MAINTENANCE COSTS IN 1993 DOLLARS Page 4 5,000 70,000 60,000 50,000 25,000 25,000 15,000 25,000 100,000 75,000 150,000 20,000 45,000 2,400,150 260,000 2,660,150 240,000 2,900,150 Recommended Spares e Spare Turbine °BGU/Control/Electric e Preheater Sparcs e Spare Step-Down Auxiliary Transformer e Vaporizer Tube Bundle e Piping,Valves,Gaskcts e Vehicle Spares - e Pneumatic Fittings,Compressor,Air Filtcr Spares e Spare Hi-Volt Relays,Insulators,Transmission Equipment Spares e Diesc]Generator Spares Page 5 APPENDIX 5.ENCLOSURE