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Unalaska Meeting Notes-Phone logs-Trip reports 1986
Pa TO: THRU: FROM: 1ONAA AMD...aneaat wtMEMORAIUM* Stat.of Alaska FILE DATE:May 6,1986 FILE NO.: TELEPHONE NO.: SUBJECT:Trip Report Unalaska/Dutch Harbor David Denig-Chakrof 4/29/86 -4/30/86 Project Manager Purpose of Trip The purposes of this trip were (1)to meet with Village Corporation stafftodiscussthelatestdraftright-of-way agreement and (2)to meet with the Unalaska City Council and staff to update them on the progress of negotiations and to discuss provisions of the latest draft resource agreement that would affect power sales negotiations. Tuesday,April 29,1986 I departed Anchorage on MarkAir at 10:15 a.m.and arrived in Dutch Harbor at 12:15 p.m.The AirPac flight for which I had reservations was can- celled purportedly due to maintenance,but when I reached Dutch Harbor,I learned that AirPac had not flown in for several days,and rumors were that it may be going out of business.The MarkAir 737 flight and service were very good with the noted exception of an extremely hard landing at Dutch Harbor.That,apparently,is common;I was happy they hit the runway. I was met at the airport by City Manager Nancy Gross who dropped me at Carl's Motel.Carl's location is very convenient for business on the Unalaska side of the island.The room was clean and the price slightlycheaper($55.00 single occupancy)than the Unisea Inn.However,the rooms are tacky and worn and management is obviously more interested in operat- ing the store than the motel.I had to wait 20 minutes to registerbecausethemanagerwasbusysellingpistols,and I couldn't raise the desk operator at 7:30 a.m.to place a long distance call for me.Also, there is no restaurant on the Unalaska side that serves breakfast. I met with Kathy Grimes,President of the Village Corporation,from 2:30 to about 4:30.We discussed in detail the current draft of the right-of-way agreement,which the Corporation's attorney had reviewed. Kathy requested clarification with respect to easement rights to specify that the width at transmission angle points,terminals,and other facil- ities would not exceed 100 feet.We discussed and agreed that the "Con- sideration"provision should allow for a negotiated settlement before necessitating involvement of appraisers.Kathy indicated that threeadditionalsections(32,33,and 34)in Township 72 South,Range 118 West were IC'd to the Corporation but not listed in the project area.We discussed at some length the possibility of using waste heat from the geothermal plant or finding a hydrothermal resource in Makushin Valley foragricultureoraquacultureoperations.We called John Reeder who indicat- ed that there is a possibility of hydrothermal resources in Makushin Valley.I informed Kathy we would consider including this as part of the 4190/217(1) FILE .May 6,1986 ) Page 2 feasibility study as well as drilling wells in Makushin Valley or at Summer Bay in lieu of paying market value for the easements and rights-of-way granted. At 7:00 p.m.I attended the City Council meeting and gave a presentation on the status of negotiations and a review of the provisions affecting the City's cost of power.I explained changes made from the previous draft to address concerns expressed by City staff and the City's attorney.The council was very receptive,appeared to concur with the changes,and seemed anxious to proceed with the feasibility study.However,the City had asked R.W.Beck to review the agreement and wanted to await final approval until those comments have been received.The City Council is willing to hold a special meeting to approve the agreement if necessary. I discussed briefly with the Mayor,Paul Fuhs,a proposal to use fluids from the exploration well for an aquaculture demonstration project. Wednesday,April 30,1986 On Wednesday morning,I met with Jeff Currier,Director of Public Works, to go over the new draft agreement in detail.He liked the changes that had been made from the previous draft,but was still concerned about the Busbar cost calculation.He tried to call R.W.Beck to check on the status of their review but was unable to reach his contact person.Jeff said he would call later and ask R.W.Beck to send a copy of the comments directly to the Power Authority. Jeff dropped me off at the airport after our meeting,and I departed from Dutch Harbor at 1:00 p.m.on MarkAir. DDC:it cc:Don Shira,Alaska Power Authority Brent Petrie,Alaska Power Authority 4190/217(2) -,RSCGLOS :MEMORANDUM State of Alaska @ TO: FROM: 02-001A(Rev.10/79) File pate:January 17,1986 FILE NO: TELEPHONE NO: ve Denig-Chakroff suBJect:Meeting with the Project Manager Aleut Corporation January 7,1986 At 2:00 p.m.,January 7,1986,Ed Morris,Brent Petrie and I met with Carl Cardinelli and Allan Aksell of the Aleut Corporation in their conference room to discuss the land and resource agreement we are negotiating for the Unalaska Geothermal Project.I had hand-delivered a draft proposal and transmittal letter to the AleutCorporationat11:00 a.m.that morning (see letter dated January 7,1986).The proposal contained new draft language for sections of the Agreement dealing with royalties,rents,term,and capacity limitation.Immediately prior to leaving for the meeting,I called Allan to see if he had had time to review that proposal.He said he had read it quickly but had not discussed it with others in the corporation.I suggested that we postpone the meeting until such time as they could analyze the proposal and give us substantive feedback.Allan seemed determined to have the meeting,stating that he wanted to discuss the negotiation "schedule"and other matters. At the meeting,Allan asked for an oral summary of the proposal and for a summary of the major points contained in the Board's December 12,1985 motion instructing staff with respect to the Agreement. He indicated that he would like to see a specified term in the Agreement rather than a term tied to an unknown term of finance. Ed agreed suggesting a 35-year primary term with two 10-year extensions. Allan suggested that it was time in the negotiations to begin going through the agreement section-by-section to determine which pro- visions are acceptable and which are not.He wants to do this through exchange of drafts.Ed expressed our understanding that we were way beyond that point in the negotiations and that we had nar- rowed the list of conceptually unresolved issues to four.Although we realize that some modifications in language will be necessary in finalizing the agreement,we thought the Aleut Corporation concep- tually agreed to all provisions except the four addressed in the current transmittal.Carl indicated agreement,but said some other sections may have an effect on the four unresolved issues.Allan indicated that they still wanted a substantial guaranteed minimum annual royalty.I pointed out my understanding that that issue had been dropped because there was no mention of it in Allan's letter of December 6,1985 in which he set forth the "expectations of TheAleutCorporation."Allan indicated that it was addressed in terms of a two MW minimum annualized output. 2620/529 ©Memo to File January 17,1986 Page 2 Carl appeared to recognize the futility of discussing technical issues at this meeting since they had not yet reviewed the draft in detail.He promised that they would review the entire Agreement and identify parts they can agree with and parts they cannot within one to 14 weeks.In turn he would like to know the schedules,for the next few months,of Heath and others participating in the nego- tiations so we can plan a schedule for completing the negotiations. He also expressed the need,when we meet,for the presence of some- one with the authority to make final decisions.Allan asked when Heath would be back and whether he had been briefed on the nego- tiations.Brent said that he had been briefed and that the current transmittal was the result of that briefing. Ed promised to provide written schedules of our staff by the end of the week and asked about times when Aleut staff would be unavail- able.They will be tied up in planning sessions from January 20-27 and will be involved in preparing for and attending a Board meeting from February 11-14.Ed said he would arrange for a discussion of the status of negotiations at our Board Planning Committee meeting on January 23 and expected that representatives of the Aleut Corpo- ration would attend.Carl and Allan indicated that one or both would attend. The meeting ended at 2:45 p.m. DDC/cdc (tL.Ed Meees Sreur Pereie 2620/529 -Z 06 -OS"MEMORANDUM State of Alaska TO:File DATE:January 17,1986 FILE NO: (\TELEPHONE NO FROM:ave Denig-Chakroff SUBJECT:Meeting with the Project Manager Aleut Corporation 02-001A(Rev.10/79) January 7,1986 At 2:00 p.m.,January 7,1986,Ed Morris,Brent Petrie and I met "with Carl Cardinelli and Allan Aksell of the Aleut Corporation intheirconferencerecomtodiscussthelandandresourceagreementwe are negotiating for the Unalaska Geothermal Project.I had hand-delivered a draft proposal and transmittal letter to the Aleut Corporation at 11:00 a.m.that morning (see letter dated January 7,1986).The preposal contained new draft language for sections of the Agreement dealing with royalties,rents,term,and capacity limitation.Immediately prior to leaving for the meeting,I called Allan to see if he had had time to review that proposal.He said he had read it quickly but had not discussed it with others in the corporation.I suggested that we postpone the meeting until such time as they could analyze the proposal and give us substantive feedback.Allan seemed determined to have the meeting,stating that he wanted to discuss the negotiation "schedule”and other matters. At the meeting,Allan asked for an oral summary of the proposal and for a summary of the major points contained in the Board's December 12,1985 motion instructing staff with respect to the Agreement. He indicated that he would like to see a specified term in the Agreement rather than a term tied to an unknown term of finance. Ed agreed suggesting a 35-year primary term with two 10-year extensions. Allan suggested that it was time in the negotiations to begin going through the agreement section-by-section to determine which pro- visions are acceptable and which are not.He wants to do this through exchange of drafts.Ed expressed our understanding that we were way beyond that point in the negotiations and that we had nar- rowed the list of conceptually unresolved issues to four.Althoughwerealizethatsomemodificationsinlanguagewillbenecessaryin finalizing the agreement,we thought the Aleut Corporation concep- tually agreed to all provisions except the four addressed in the current transmittal.Carl indicated agreement,but said some other sections may have an effect on the four unresolved issues.Allan indicated that they still wanted a substantial guaranteed minimum annual royalty.I pointed out my understanding that that issue had been dropped because there was no mention of it in Allan's letter of December 6,19385 in which he set forth the "expectations of TheAleutCorporation."Allan indicated that it was addressed An termsofatwoMWminimumannualizedoutput. 2620/529 rage < Carl appeared to recognize the futility of discussing technical{issues at this meeting since they had not yet reviewed the draft in detail.He promised that they would review the entire Agreementandidentifypartstheycanagreewithandpartstheycannotwithinoneto14weeks.In turn he would like to know the schedules,for the next few months,of Heath and others participating in the nego-tiations so we can plan a schedule for completing the negotiations.He also expressed the need,when we meet,for the presence of some- one with the authority to make final decisions.Allan asked when Heath would be back and whether he had been briefed on the nego- tiations.Brent sald that he had been briefed and that the current transmittal was the result of that briefing. Ed promised to provide written schedules of cur staff by the end oftheweekandaskedabouttimeswhenAleutstaffwouldbeunavail- able.They will be tied up in planning sessions from January 20-27 and will be involved in preparing for and attending a Board meeting from February 11-14.£&d said he would arrange for a discussion of the status of negotiations at our Board Planning Committee meeting on January 23 and expected that representatives of the Aleut Corpo-ration would attend.Carl and Allan indicated that one or both would attend. The meeting ended at 2:45 p.m. DOC/cde 2620/529 ALASKA POWER AUTHORITY 2.OS,OS 334 West 5th Avenue, 2nd Floor Anchorage,Alaska 99501(307)276-0001 _Telephone Conversation Record(907)277-7641 +Date tLe Les ime _le 30 Kam CI em Project No.ina.onXMToCrom(cd.Léae Loa RecordedBy _4224 20 ov-5 Company Stone aft Gp bs 22y-Phone No.2703 -J9#/-7L 20 Address Deny Ores fons box SOL |Dorrie CO 2202/7ProjectName[Pos Lsske SUBJECT:ALA ve [s Fam she of SHG) rhors Dleer se Ducl, Invite:Ay sv bmn Praga f D9 op 2 ete LL?Le CoM,AQ fF hore Aleut Cr 2. Cee eshen PES ree ;oCVALxY<8 aa H A TF alloot Pak Wa Les VAT Lhewithy *ja |e L.CY Oy ..aqat.£ Ben a Alo EE plants An af eee SoD 72.2.Qrv an Baa x*mi a |re Anse a /Cmckres 'nh Lo, Py :Sve tat -irre fas LoL LE tn Pen ere(2/2 La eolvadt aL "2 cadloy Lad Kf)Eg oFiahoc,Concerned?mn AYA 2 Latins hig s SA Al X&liwbhs Lr Qael Sf Laer dK he Cop Berrct lost okt Ly ecLy toatn cerrew afeea: flo,95.O 05 MEMORANDUM STATE OF ALASKA TQ:FILE September 19,1985 FROM:DAVE DENIG-CHAKROFF Trip Report:International Project Manager Geothermal Symposium 8/26/85 -8/30/85 The purpose of the trip was to attend and present a paper at the 1985 International Syeposium on Geothermal Energy in Kailua-Kona, Hawaii.Specific objectives were to learn as much as possible about water-dominated geothermal systems and technologies,to determine standard leasing and royalty arrangements for hydro- thermal power systems,to visit an operating 3 MW geothermal power plant,to provide information about the Unalaska project to firme that may have interest in bidding future aspects of the project,and to make contacts with specialiste who may be of assietance to the project in the future. Qn Auguet 26,27,29,and 30,I attended technical sessions covering topice related to economics and finance,direct use of geothermal resources,production and power generation technolo- gies,and tax credits and leasing issues.On August 29,I attended a field trip to Hawaii Volcanic Park and a 3 MW geo- thermal power plant.The plant has been in operation for four years.Although production has been declining recently,new welle are currently being drilled to increase the capacity of the plant to 12 MW. On August 29,I presented a paper on the development potential of the Unalaska Geothermal Project.The session was well attended and well received.The presentation generated interest in the project and I received numerous inquiries following the presenta- tion.Fifty copies of the paper provided for attendees quickly disappeared. During the conference,I spoke with representatives of many firme and individuals about the Unalaska project.Several firms expressed interest in receiving copies of the RFP for the feasi- bility study including Union Geothermal,Stone &Webster,Bechtel, Flour,Ansaldo and Geotherwma S.A.I also met with the with the manager of a Greek geothermal project with many similarities to the Unalaska project and vith Gerry Huttrer to discuss standard leasing and royalty provisions used in other Western states. P FROMsteO ;ee ,Td: in Used 'Hee Tat7paleDEec aa IhasntenantewoAE43q4S-3b] O rene L's.cole oles ole sacl pean SC)WA |SIN ct UAGENT Lo ANCHORAGE WATER &WASTEWATER UTILITY ASSETS Water Utility Plant Plant in Service Accumulated Depreciation Net Plant in Service Construction in Progress Total Water Plant Investments and Special Funds Equity in Construction Cash Pool Revenue Bond Reserve Investments Grants Receivable Assessments Receivable Total Invest.&Spec.Funds Current Assets Equity in General Cash Pool Net Accounts Receivable Inventory Other Total Current Assets Prepayments and Deferred Charges Unamortized Debt Expense Other Total Prepayments and Deferred Charges TOTAL ASSETS WATER UTILITY Balance Sheet March 31,1985 Balance 12/31/84 $135,874,180 (33,790,997) 102,083,183 30,204,917 Balance 03/31/85 $129,818,110 (34,928,864) 94,889,246 33,555,745 Net Change Increase (Decrease) $(6,056,070) (1,137,867) (7,193,937) 3,350,828 $132 ,288,100 $128,444,991 $(3,843,109) $14,725,783 $35,285,180 $20,559,397 2,961,972 5,391,972 2,430,000 6,613,945 617,056 (5,996,889) 352,212 1,404,060 1,051,848 $24,653,912 $42,698,268 $18,044,356 $2,527,628 $633,312 $(1,894,316) 1,355,907 5,106,038 3,750,131 '947,743 598,521 50,778 770,321 617,783 (152,538) $5,201,599 $6,955,654 $1,754,055 $0 $209 ,652 $209 ,652 286 ,225 2,732,946.2,446,721 $286 ,225 $2,942,598 $2,656,373 $162,429 ,836 $181 ,041,511 $18,611,675 SE.OS.OS MEMORANDUM State of Alaska TO Mr.Edwin Morris pate August 19,1985 Associate Executive Director of Planning FILENO Mr.Michael D.Hubbard Financial Analyst TELEPHONENO p FROM:Brent Petrie SUNECT Aleut Negotiations -(le [fa eer Planning Unalaska Geothermal Alan Aksell and Carl Cardinelli of Aleut Corporation (561-4300) called on August 16,1985,as a followup to our telephone confer- ence of 11:30 a.m.,August 15,1985. An appointment has been scheduled between you and Alan and Carl at: 9:00 a.m.,Monday,August 19,1985 at the Alaska Power Authority offices Summary of Discussion 1)Aleut would still like fluid compensation based on a per cent of gross receipts and would propose language that in the event such an approach jeopardizes the tax-exempt financing of the project then they would renegotiate a compensation pegged to some other basis as long as it would generate a comparable level of revenue to Aleut Corporation. 2)Incremental expansion of project -They would like fluid rights to the initial project to be pegged to some initial MW size and any expansion above that level would involve a new royalty arrangement. Observation -I sense that there may be a different understandingof"gross receipts"and "increment"between the Alaska Power Authority and Aleut. I told Alan that under my perception of "gross receipts"and Aleut's 12.5%royalty proposal that the compensation would be way out of line with the formula we proposed (a 10%royalty on the wellhead value of the fluid,where that value is a function of the diesel fuel alternative.) My perception of "increment"means the addition of a second genera- tor (or third or fourth)within the project that makes use of theoriginalinfrastructure(well field,pipelines,effluent handling, etc.)along the lines of the empty third bay that we have at the Tyee powerhouse. I'm not sure that Aleut Cerp's thinking is entirely the same.They do seem to want some top limit to the amount ef fluid that could be 741/439 AQOo aiRev 10 "2 Mr.Edwin L.ris and Mr.Michael D.Hubbard August 19,1985 Page 2 utilized under the initial agreement and have the option to utilize amounts above that requirement for new generation that they might install.Perhaps there might be appropriate language in some of the California geothermal contracts or coal supply contracts that would provide some guidance on their concept. Suggestion -Mike Hubbard and I agree that the compensation defini- tion might be better understood if we ran some examples based on aproposedplantcost($45,000,000 in 1985 dollars which does not include IDC or financing costs.) Aleut would like to meet face to face on Monday to discuss their philosophical approach to these issues.This would also be a good time to determine if a difference in definition of terms js a problem. BP/se xc:Dave Denig-Chakroff,Alaska Power Authority, 7F.0S OS” _.MEMORANDUM __StateofAlaska To:FILE DATE:July 24,1985 FILE NO: TELEPHONE NO: FROM:DAVE DEN KROFF suBJECT;:Unalaska Trip Report Project ager 7/15/85 -7/16/85 The purpose of the trip was to meet with Ounalashka Corpora- tion officials to initiate negotiations for a right-of-way agreement for the Unalaska Geothermal Project,to inspect the geothermal wellsite at Mt.Makushin,and to survey potential road and transmission routes from the helicopter. On Monday,July 15,1985,Gary Ransom,Right-of-Way Agent, and I flew to Unalaska/Dutch Harbor on Airpac,arriving about 3:00 p.m We were met at the airport by City Manager Nancy Gross and townsperson Kathy Grimnace.Nancy offered us a city vehicle to use during our stay which we gladly accepted. Gary and I met with Ounalashka Corp.President Emil Berikoff and Business Manager Hondo DeBakker from 4:00 to 6:00 p.m. We discussed the status of the geothermal project and our need for resource and right-of-way agreements prior to conducting a feasibility study.With the aid of a map of the island,we discussed current land status and potential road and transmission routes.The Ounalashka Corp.has interim conveyance to the surface estate of the majority of Makushin Valley.It does not own land in Driftwood Valley some of which has been selected by CINA.Berikoff and DeBakker advised against Driftwood Valley as an access route due to severe weather conditions because it opens to the Bering Sea.They also informed us that Hog Island is privately owned but not by Exxon as we had previously heard, We presented a review draft right-of-way agreement to Berikoff and DeBakker making it clear that the draft had not undergone internal review or review by the Attorney General's Office.They had little comment on the draft but said they would review it,send a copy to their attorney in Anchorage, and respond to us in two to three weeks.Berikoff made it clear that they were making no commitments at this time, even as to weather or not they are willing to negotiate. 02-001A(Rev.10/79) Unalaska Trip Report July 24,1985 , Page 2 Gary took the name of the Corporation's attorney and re- ceived permission from Berikoff and DeBakker to contact the attorney directly on this matter. On Tuesday morning,about 8:30 a.m.,we contacted Jim Sink at Maritime Helicopters and confirmed our suspicion that weather conditions were too poor to fly to the wellsite.We agreed to stop by his office or call later in the morning to check the weather status.We went to City Hall to see if we could meet with Nancy Gross and/or Jeff Currier but Nancy wasn't in the office yet and Jeff was on vacation.I gave Gary a tour of the city while we waited for the weather to clear,including the major seafood processors,residential areas,and the new powerhouse. At about 10:00 a.m.we stopped at Maritime and found that the weather was still too bad to fly.I talked to Jim Sink about the condition at the wellsite on his last trip.There appeared to have been little leakage at the wellhead and, after having closed the valves to the kill line,the leakage was stopped. At about 11:00 a.m.we returned to City Hall and met with Nancy Gross.We discussed the status of the project and the status of shore lands where a transmission line might be landed on Amaknak Island.Tidelands are owned by the state and all uplands in areas where a cable would likely be landed appear to be owned by the Ounalashka Corporation.I asked Nancy about the status of the ESI hydroproject proposal and the R.W.Beck rate study.The ESI project is on hold unless and until ESI returns with a modified power sales proposal.The R.W.Beck study is progressing well. Gary and I had lunch with Nancy at the airport where she left us to catch our plane.The 1:30 p.m.Airpac flight was diverted to Cold Bay due to weather conditions at Dutch Harbor and was finally cancelled about 3:00 p.m.We were able to change our reservation to the Reeve flight which finally left Dutch Harbor around 5:00 p.m.and arrived in Anchorage at about 8:00 p.m. cc:Gary Ransom BOOS -OS MEMORANDUM State of Alaska TO: FROM: Brent Petrie,Director DATE:May 24,1985 ) Systems Planning FILE NO: (QL TELEPHONE NO:David Denig-Chakroff¢susJect:April 1985 Invoice ofProjectManagerMichaelJ.Economides, Geothermal Consultant The attached April 1985 billing from Dr.Michael J.Economides, Geothermal Consultant,includes reimbursement for the following consulting services: *3 days of technical review,analysis,and response to draft reports submitted to the Power Authority by Republic Geothermal,Inc.under contract No.CC08-2334.I requested Dr.Economides to conduct a thorough technical review of Republic's draft Phase III report and Executive report. Dr.Economides conducted the review and submitted comments which were incorporated into my response to Republic dated May 14,1985, *1.5 days of review and analysis of the draft Unalaska Recon- naissance Findings and Recommendations.I requested Dr.Economides to review this draft to ensure that geothermal issues and technical findings of the geothermal exploration program were adequately addressed.The Findings and Recommen- dations were finalized April 30,1985. *0.5 days of general consulting and advising the Power Authority on geothermal technical matters.I requested Dr.Economides'advise on several technical geothermal questions that arose during preparation of our Board presentation of the Unalaska Findings and Recommendations which took place on May 2-3,1985. Dr.Economides has advised me that,due to other professional commitments and the fact that the Unalaska geothermal exploration program is very near completion,he will be unable to provide further consulting services to the Alaska Power Authority.Conse- quently,his April 1985 invoice may be considered his final billing under this contract.With your concurrence,I will prepare a close-out letter for the contract acknowledging the outstanding service Dr.Economides has provided to this project. DDC/amh Attachment as stated cc:Lew Hayes,Accountant 9532/389 3.05,095 'MEMORANDUM State of Alaska TO: FROM: 02-001A(Rev.10/79) File pate.January 29,1985 FILE NO: TELEPHONE NO: David Denig-Chakroff supsect:Stanford Workshop Project Manager 1/22/85 -1/24/85 PURPOSE OF TRIP: The purpose of this trip was to attend the tenth annual workshop on Geothermal Reservoir Engineering sponsored by Stanford University and to present the results of our recent evaluation of the Makushin Geothermal Reservoir on Unalaska Island. ACTIVITIES/AGENDA/CONTACTS: (See attached program and list of participants). In general,I found this workshop to be extremely well organized and conducted.The topics were varied and practical and the participants were professionals highly regarded in their respective fields. I attended the presentations listed in the program with the excep-tion of Session III (Vapor-Dominated System)during which time I prepared my presentation on the Evaluation of the Makushin Geo- thermal Reservoir.In general,the presentations were very inter- esting and informative although many were extremely technical in nature.Of greatest interest were the presentations dealing with two-phase,water dominated geothermal systems and those addressing testing and production in a fractured medium.These topics have directed applications to the conditions at Unalaska. The presentation on the Unalaska reservoir evaluation was well received.Several participants approached me immediately following the presentation and at the workshop banquet that evening to discuss the project further. I will be receiving a copy of the final proceedings of the workshop which will be kept on file for future reference. DDC/jm cc:Edwin Morris Brent Petrie Prej.Code:9a 8062/099 File Code:«OS OS J.Date:5.<7./ STANFORD GEOTHERMAL PROGRAM --- STANFORD UNIVERSITY : STANFORD.CALIFORNIA 9.2405 TENTH ANNUAL WORKSHOP GEOTHERMAL RESERVOIR ENGINEERING STANFORD UNIVERSITY JANUARY 22-24,1985 PRELIMINARY PROGRAM TUESDAY,JANUARY 22,1985 0800 0900 0925 1035 1400 Registration,CERAS LOBBY Welcome,Introduction Recommendations of the Industry Advisory Panel on Geothermal Reservoir Definition Gulati and Lippmann Fault and Fracture Mapping:An Assessment of Current Technology, Current Research and Research Needs Goldstein Field Development and Power Generation in Kizildere Field,Turkey Okandan and Polat The Nesjavellir High Temperature Geothermal Field in Iceland Stefansson Development Strategy at Mokai Grant and Barr On the Conditions of Water and Heat Feeding of the Pauzhetka Hydrothermal System (South Kamchatka,USSR) Kiryukhip Discussions on a Type of Reservoir Cell Boundary in the Geysers Steam Field Hebein A Reservoir Engineering Analysis of a Vapor-Dominated Geothermal Field Brigham et al. Flow Rate Decline of Steam Wells Bodvarsson and Witherspoon Correlations between Steam Saturation,Fluid Composition,and Well Decline in Vapor-Dominated Reservoirs D'Amore and Pruess _- 1600 Results of Initial Exploration and Testing in the Puna Geothermal System,Puna,Hawaii Iovenitti and D'Olier Analysis of Recharge Cooldown at the Western Boundary of Cerro Prieto I Geothermal Field : Kruger et al. The Hohi Geothermal Area,Kyushu,Japan Pritchett et al. WEDNESDAY,JANUARY 23,1985 0830 1030 1325 1525 The Thermal Shallow Reservoir:A Historical Production Review 1922-1963 Raasch The Thermal Landslide Vantine 1982 Thermal Reservoir Testing Pittinger Drilling and Testing of Thermal 15 Relief Well Mogen A New Model for Well Test Analysis in a Purely Fractured Medium Karasaki et al. Cold Water Injection Tests in Fractured Rocks Cox and Bodvarsson Decline Curve Analysis for Infinite Double Porosity Systems without Wellbore Skin Sageev et al. Pressure Buildup Monitoring of the Krafla Geothermal Field,Iceland Steingrimsson et al. Modeling Pressure,Temperature,and Composition Profiles in Flowing Geothermal Fluids Containing Dissoived Salts and Non-Condensable Gases Dickman and Andersen A Temperature Drop Model for Two-Phase Flow in Geothermal Wellbores Michels Rapid Casing Corrosion in High Temperature Liquid Dominated Geothermal Fields Bixley Computer Simulation of Wellbore Cooling by Circulation Duda A Study on Geothermal Reservoir Engineering Approach combined with Geological Informations Hirakawa Thermodynamic Behaviour of Several Simplified Geothermal Reservoirs 'Hiriact and Sanchez "Initial Chemical and Reservoir Conditions at Los Azufres Wellhead Power Plant Startup Kruger et al. Evaluation of the Makushin Geothermal Reservoir,Unalaska Island Economides et al. THURSDAY,JANUARY 24,1985 0830 1030 1325 Evidence of Two Extreme Flow Regimes Operating in the Production Zone of Different Wells from Los Azufres Nieva et al. The Thermodynamic Natural State of the Los Azufres Geothermal Reservoir Iglesias et al. Tracer Stability and Chemical Changes in Geothermal Fluids during East Mesa Injection-Backflow Testing Adams Geologic and Geochemical Investigations of the Meager Creek Geothermal System,British Columbia Moore et al. CO,Transients in the Depletion of Vapor-Dominated Geothermal Reservoirs Pruess et al. Numerical Studies of Silica Dissolution/Precipitation Problems Lai et al. Fracsl Reservoir Analysis Code Development and Simulation of the East Mesa Hydrothermal Clemo Experimental Determination of the Effective Taylor Dispersivity ina Fracture Horne and Gilardi A Dual-Porosity Laboratory Model Hull High-Resolution Seismic Studies Applied to Injected Geothermal Fluids Smith and Kasameyer A Hawaiian Geothermal Research Laboratory:The Puna High Technology Facility Takahashi et al. TENTH WORKSHOP ON GEOTHERMAL RESERVOIR ENGINEERING Michael C.Adams University of Utah Research Institute 391 Chipeta Way,Suite C Salt Lake City,UT 84108 Richard H.Adams California Energy Co. 3333 Mendocino Ave. Santa Rosa,CA 95401 Greg Andersen Union Oil of California 376 S.Valencia Brea,CA 92621 Victor Arellano Instituto de Investigaciones Electricas Cuernavaca,Morelos Mexico Paul Atkinson Union Oil Co.of California Geothermal Division P.O.Box 6854 Santa Rosa,CA 95406 Sally Benson Lawrence Berkeley Laboratory One Cyclotron Rd.,Bldg.90,M/S 1106 Berkeley,CA 94720 G.W.(Bill)Beecroft State Board of Equalization P.O.Box 1799 Sacramento,CA 95808 Phil Beilin U.S.G.S.Geothermal!Div. 120 Hillcrest Rd. Berkeley,CA 94705 John A.Bickerstaffe Gibbs &Hill Inc. 226 W.Brokaw Rd. San Jose,CA 95110 Dennis Bird Geology Department Stanford University Stanford,CA 94305 Gudmundur Bodvarsson Lawrence Berkeley Laboratory One Cyclotron Rd. Berkeley,CA 94720 Jean McHugh BodylIski Gibbs &Hill Inc. 226 W.Brokaw Rd. San Jose,CA 95110 Participants List William Thomas Box Jr. Geysers Geothermal Co. P.O.Box 11279 Santa Rosa,CA 95472 William E.Brigham Petroleum Engineering Department Stanford University Stanford,CA 94305 Paul Brophy California Energy Co.Inc. 3333 Mendocino Ave.Suite 100 Santa Rosa,CA 95401 Myron Burr Union Oil Co. Geothermal Division 2099 Range Ave. Santa Rosa,CA 95406 Daniel L.Carrier Union Geothermal Japan Ltd. Toranomon 37 Mori Bldg. 5-1 Toranomon 3-Chome Minato-Ku,Tokyo,105 Japan Mario Castaneda Instituto Investigaciones Electricas P.O.Box "A" Calexico,CA 92231 Cc.Chu Texaco Inc. Texaco Houston Research Center P.O.Box 770070 Houston,TX 77215-0070 T.Y.Chu Div.6242 Sandia National Labs Albuquerque,NM 87185 Edd Clark Arthur D.Little Valuations Inc. 2455 Bennett Valley Rd.,Suite 318B Santa Rosa,CA 95404 Tom Clemo EG&G Idaho P.O.Box 1625 Idaho Falls,ID 83415 Joe Calosi Harold W.Bertholf,Inc. 2775 Cottage Way Sacramento,CA 95825 Jim Combs Geothermal Resources Internationa!Inc. 545 Middlefield Rd.,Suite 200 Menlo Park,CA 94025 Enrique Contreras Instituto de Investigaciones Electricas Internado Palmira Cuernavaca,Morelos,Mexico Richard Corbaley California Division of Oil and Gas 485 Broadway Suite B El Centro,California 92243 Herlander Correia Geothermal Dept.of BRGM (France) BP6009 45060 Orleans,France John R.Counsil Consultant 1148 Shadyoak Place Santa Rosa,CA 95404 B.Lea Cox Lawrence Berkeley Lab One Cyclotron Rd. Berkeley,CA 94720 Bob Daniel Union Geotherma!Division P.O.Box 6854 Santa Rosa,CA 95406 David Denig-Chakroff Alaska Power Authority 334 West Fifth Ave. Anchorage,Alaska 99501 Ronald C.Dick R.C.Dick Geothermal Corp. 22 Mitchell Blvd. San Rafael,CA 94903 Alice Dickman Union Oil of California 376 S.Valencia Ave. Brea,CA 92621 W.L.D'Olier Thermal Power Co. 3333 Mendocino Ave.,Suite 120 Santa Rosa,CA 95401 Richard F.Dondanville Union Geothermal P.O.Box 6854 Santa Rosa,CA 95406 Andy F.Drenick,P.E. GRI Operator Corp. 2300 County Center Dr.$#250 Santa Rosa,CA 95401 Leonard E.Duda Div.6241 Sandia Nationa!Labs Albuquerque,NM 87112 Herman Dykstra Consultant 4180 Treat Bivd.,Suite [ Concord,CA 94518 Steven L.Enedy Union Oil Co.of California Geothermal Division P.O.Box 6854 Santa Rosa,CA 95406 Richard Estabrook Bureau of Land Management 555 Leslie St. Ukiah,CA 95482 Scott Gaulke Lawrence Berkeley Lab One Cyclotron Rd. Berkeley,CA 94720 Monte Gleason Citicorp (USA)Inc. 1801 Broadway Denver,CO 80202 Norman Goldstein Lawrence Berkeley Lab One Cyclotron Rd. Berkeley,CA 94720 Keshav Goyal Thermal Power Co. 3333 Mendocino Ave.,Suite 120 Santa Rosa,CA 95401 Jon S.Gudmundsson Petroleum Engineering Dept. Stanford University Stanford,CA 94305 Mohinder S.Gulati Union Oil Co.of California Geothermal Div. P.O.Box 6854 Santa Rosa,CA 95406 Jill Robinson Haizlip GEO Operator Corp.(formerly GRD 2300 County Center Drive Suite 250 Santa Rosa,CA 95401 Marjorie Hatter Union Oil Co.of California 376 S.Valencia Ave. Brea,CA 92621 Roger Henneberger Geothermex,Inc. 5221 Central Ave.,Suite 201 Richmond,CA 94804 Jeffrey Hebein Thermal Power Co. 3333 Mendocino Ave.,Suite 120 Santa Rosa,CA 95401 Hiriart L.Gerardo CFE Morelia-Mexico APDO 31-C Morelia 58290 Mexico James R.Hoagland Union Geothermal of Indonesia P.O.Box 264 Jakarta,Indonesia Hoang Thai Viet Chevron Resources P.O.Box 7147 San Francisco,CA 94120 Susan F.Hodgson California Division of Oil and Gas 1416 Ninth St.,Room 1310 Sacramento,CA 95814 Bill Holman U.S.Dept.of Energy 1333 Broadway Oakland,CA 94612 Roland N.Horne Petroleum Engineering Department Stanford University Stanford,CA 94305 Larry Hull EG&G Idaho P.O.Box 1625 Idaho Falls,ID 83415 Eduardo Iglesias Instituto de Investigaciones Electricas Cuernavaca,Morelos,Mexico Joe Iovenitti Thermal Power Co. 3333 Mendocino Ave.,Suite 120 Santa Rosa,CA 95401 Pamela J.Irvine Union Oil-Geothermal Div. P.O.Box 6854 Santa Rosa,CA 95406 Bill Isherwood GeothermEx 5221 Central Ave.,Suite 201 Richmond,CA 94804 Tsuneo Ishido New Energy Development Organization (NEDO) Sunshine 60,29F,1-1,3-Chome,Higashi-Ikebukuro Toshima-ku,Tokyo,170 Japan Earl D.James Chevron Resources Co. P.O.Box 7147 San Francisco,CA 94120-7147 lain M.Jamieson GRI Operator Corp. 2300 County Center Dr.#250 Santa Rosa,CA 95401 Cathy Janik U.S.Geological Survey 345 Middlefield Rd.MS910 Menlo Park,CA 94025 Kenzi Karasaki Lawrence Berkeley Lab One Cyclotron Rd. Berkeley,CA 94720 Syamsi Khatib Pertamina Schlumberger International Coord. 2707 North Loop West,Suite 1090 Houston,TX 77008 Christopher W.Klein Geothermex 5221 Central Ave.#201 Richmond,CA 94804 Brian A.Koenig Union Oil Co.of California Geothermal!Div. P.O.Box 63854,2099 Range Ave.Santa Rosa,CA 95406 Paul Kruger Civil Engineering Department Stanford University Stanford,CA 94305 Mark Kumataka Santa Fe Geothermal Inc. 5001 E.Commerce Center Dr. Bakersfield,CA 93309 Joe LaFleur California Energy Co. 3333 Mendocino Ave. Santa Rosa,CA 95405 Cheng Lai Lawrence Berkeley Lab One Cyclotron Rd. Berkeley,CA 94720 Erik B.Layman Chevron Geothermal Co. P.O.Box 7147 San Francisco,CA 94120 Al E.Lewis,Jr. State Dept.Water Resources Energy Div. P.O.Box 388 Sacramento,CA 95802 Marcelo Lippman Lawrence Berkeley Lab One Cyclotron Rd. Berkeley,CA 94720 David K.Liu Rockwell International,ETEC P.O.Box 1449 Canoga Park,CA Tom MacPhee GRI Operator Corp.2300 County Center Drive #250 Santa Rosa,CA 95401 Mark A.Magers Union Oil Co.of California Geothermal Div. P.O.Box 6854 Santa Rosa,CA 95406 Maureen E.Mahoney Union Oil Co.of California 461 S.Boylston St. Los Angeles,CA 90017 Jeff McCleary Arthur D.Little Valuation 9990 Graton Rd. Sebastopol,CA 95472 Dennis S.McMundie Consulting Geologist 7418 Fire Oak Drive Austin,TX 78759 Don Michels Republic Geothermal Inc. 10818 E.Beverly Dr. Whittier,CA 90601 Frank K.Miller” Petroleum Engineering Stanford University Stanford,CA 94305 Allen Moench U.S.Geological Survey 345 Middlefield Rd. Menlo Park,CA 94025 Philip G.Mogen Union Oil Co.of California Geothermal Division P.O.Box 6854 Santa Rosa,CA 95406 Martin W.Molloy U.S.Dept.of Energy1333Broadway Oakland,CA 94612 Joseph N.Moore University of Utah Research Institute 391 Chipeta Way,Suite C Salt Lake City,UT 84108 David Nieva Instituto de Investigaciones Electricas Apartado 1612 Cuernavaca,Morelos,Mexico Gerald Niimi Thermasource Inc. 725 Farmers Lane Santa Rosa,CA 95405 John O'Brien Arthur D.Little Inc. Suite 318B,2455 Bennett Valley Rd.Santa Rosa,CA 95404 Harry J.Olson Steam Reserve Corp. 1707 Cole Bivd. Golden,CO 80401 Susan Petty Livesay Consultants 1535 Avohill Dr. Vista,CA 92083 Alfonso S.Pingol Jr. Union Oil Co.of California Geothermal Div. P.O.Box 6854 Santa Rosa,CA 95406 Enrico Pistelli AGIP S.p.A. P.O.Box 12069 20120 Milano,Italy R.T.Pittenger Diamond Shamrock-Thermal!Power Co. 601 California St. San Francisco,CA 94108 Lyndon F.Pittinger Union Oil Co.of California Geothermal Division P.O.Box 6854 Santa Rosa,CA 95406 Susan M.Prestwich U.S.Dept.of Energy 550 Second St. Idaho Falls,ID 83401 John Pritchett S-Cubed P.O.Box 1620 La Jolla,CA 92038 Karsten Pruess Lawrence Berkeley Lab One Cyclotron Rd. Berkeley,CA 94720 Charles P.Priddy California State Lands Commission 1807 13th St. Sacramento,CA 95814 Gregory D.Raasch Union Oil Co.of California Geothermal Div. P.O.Box 6854 Santa Rosa,CA 95406 Henry J.Ramey,Jr. Petroleum Engineering Department Stanford University Stanford,CA 94305 Walter Randall GRI Operator Corp. 2300 County Center Dr.#250 Santa Rosa,CA 95401 Marshall Reed Department of Energy CE-324 Washington,D.C.20585 Robert D.Reedy Reedy Exploration 3500 American River Dr.,Suite 214 Sacramento,CA 95825 M.A.Richard Diamond Shamrock-Thermal Power Co. 601 California St. San Francisco,CA 94108 Jesus Rivera Seccion de Ingenieria Petrolera Division de Estudios de Posgrado,Facultad de Ingenieria Ciudad Universitaria 04510 Mexico,D.F. Joel Robinson Union Oil Co. 2099 Range Ave. Santa Rosa,CA 95401 Kendal Robinson Rockwell!International -ETEC P.O.Box 1449 Canoga Park,CA 94913 Tim Rosskrecht Union Geothermal of Indonesia,Ltd. c/o 1911 Wilson Ave. Hot Springs,SD 57747 Ray Rothermel Board of Equalization P.O.Box 1799 Sacramento,CA 95808 Abraham Sageev Petroleum Engineering Department Stanford University Stanford,CA 94305 Subir Sanyal Geothermex,Inc. 5221 Central Ave.,#201 Richmond,CA 94804 R.C.Schroeder BGI 2000 Center St.,Suite 302 Berkeley,CA 94704 Omar Sigurdsson Orkustofnan Grensasvegur 9 108 Reykjavik,Iceland Albert T.Smith Lawrence Livermore National Lab L-205 P.O.Box 808 Livermore,CA 94550 Robert F.Smith Exlog Smith 3740 Industry Ave.,#303 Lakewood,CA 90712 Alan A.Soneda PG&E 77 Beale St. San Francisco,CA 94106 Michael Sorey U.S.Geological Survey 345 Middlefield Rd. Menlo Park,CA 94025 Valgardur Stefansson Orkustofnun Grensasvegur 9 Reykjavik,Iceland Kenneth Stelling State of California 50 "D"St.Room 300 Santa Rosa,CA 95404 Jeffrey N.Sternfeld Santa Fe Geothermal!Inc. 5001 E.Commerce Center Drive Bakersfield,CA 93309 Douglas Stockton Cal.Division of Oil &Gas 1416 9th St.Room 1310 Sacramento,CA 95814 Arifin Sumitramihardja Pertamina Geothermal Div. Gedung Pertamina,18th Floor Jalan Medan Merdeka Timur No.1A Jakarta,Indonesia Chandler A.Swanberg GEO Operator Corp. 545 Middlefield Rd.,Suite 200 Menlo Park,CA 94025 Patrick Takahashi Hawaii Natural Energy Institute2540DoleSt. Honolulu,HI 96822 Richard Thomas California Div.of Oil and Gas 1416 9th St.,Room 1310 Sacramento,CA 95826 Alfred H.Truesdell U.S.Geological Survey 345 Middlefield Rd. Menlo Park,CA 94025 James V.Vantine Union Oil Co. 2900 Range Ave. Santa Rosa,CA 95401 D.E.White U.S.Geological Survey 345 Middlefield Rd. Menlo Park,CA 94025 Tom White Bonneville Power Admin. U.S.Dept.of Energy P.O.Box 3621 -EPG Portland,OR 97208 Ken Williamson Union Oil Co. P.O.Box 6854 Santa Rosa,CA 95406 T.E.Wilson Diamond Shamrock-Therma!Power Co. 601 California St. San Francisco,CA 94108 Terrie Winnett Penn State University University Park,PA 16802 R.P.Wischow Pacific Gas and Electric Co. 77 Beale St. Geysers Project Office,Room 2661-A San Franicsco,CA 94106 Paul Witherspoon Lawrence Berkeley Lab One Cyclotron Rd. Berkeley,CA 94720 Phillip M.Wright University of Utah Research Institute 391 Chipeta Way,Suite C Salt Lake City,UT 84108 Tsukasa Yoshimura New Energy Devleopment Organization Sunshine 60,29F,1-1,3-chome,Higashi-Ikebukuro Toshima-ku,Tokyo,170 Japan tewnaacemttelnem,08ALASKA POWER AUTHORITY Loy 334 West stn Avenue,SB 00S o O S 2nd Floor Anchorage,Alaska 99501(907)276-0001 Jelephone Conversation Record(907)277-7641 Date -L o/:Aq sy Time #230 CJ am TM pw Project No.Dd To 0 From Raw corer LS CL Recorded By Brsnw¥R bosCompanyAnownYCrAnPhoneNo.At+%-OY Z2- Address flu cloves,PaProjectNameUnalasleoSUBJECT:VUua larlen Rate.Shuwde-cok Gad Re.,<=ax GeRAW AR NE OeretstotsLDAOncloclenAGveSfwcleFewCmWedi"Yahi Pers ime ema thatbarcl. "thes,ia a pertt.fi beak Ro $Cee ov csarle taSayyLYASEASR=ante [4.4 wy cS Ohne Te LAY ranw A We,+a. A Mayan ahead at avosdwd cost.(Wao holden NU n aan aa "U.=ocak Vo.BM Stes ty,oe.'\{.s=wonle 1,Btn (,8.ats to5 rarer ts Cs Bp ae 4._©;Lotta,lee soa ided coves chee nn Vo \(Oya se DasaThe.o te hot oe rea A io4% 41 Pe Ae aa fiav YtsOa vd ad .lost Pad ate,Lawak2a ialan 4 hnwa aa.c Pe ck mak Jc M"acayRindwoantadJ.£rab mat Lior Fay eg JS.wale hieg Ayt,&B')is ak [ee a fa.0-4 _An.ee a C00.ih,aa a oy whe >_ "of Jed fle LoL ZA nike anf le yayd |no a Lepreta fren, Cen f=f-Lv ot,|Lira las how ree Oi YE at Lites freA OL trprces ect'ahon at ohta a.ate Lr.a Abt crane [y Sumo/Can Q aA selene f :Copy / O) 4 File MEMORANDUM TO: FROM: 02-001 A(Rev.10/79} 0S OS State of Alaska The Files DATE:September 10,1984 FILE NO: TELEPHONE NO: David Denig-Chakrof{|SUBJECT:Meeting between theProjectManager\Alaska Power Authority and the U.S.Dept.of Navy On Thursday,August 16,1984,representatives of the Alaska Power Authority and the U.S.Department of Navy met to discuss their respective geothermal development programs in the Aleutian Islands. Representing the Power Authority were Brent Petrie,Acting Associ- ate Executive Director,Planning;David Denig-Chakroff,Project Managers and Dr.Michael Economides,University of Alaska Consul- tant on the Unalaska project.Representing the Navy were Carla Gerrard,David Holmes,and Alan Katzenstin of the Naval Weapons Center at China Lake,California and George Gelb,of TRW,Inc.,an engineering consultant to the Navy.Earlier in the week,the Navy had met with representatives of the Alaska Department of Natural Resources and the U.S.Geological Survey to discuss geothermal resource occurrence in Alaska and in the Aleutian Istands in particular.The purpose of the meeting with the Power Authority was to discuss mutual interest in geothermal power development and possibilities for coordination between the agencies during possible development of the Power Authority's project at Unalaska and theNavy's project at Adak. David Denig-Chakroff and Dr.Economides gave a brief presentation, including slides,of the Unalaska Geothermal Project and answered questions posed by the visitors.Brent Petrie discussed the role of the Power Authority in state power development projects and presented financing options available to the Power Authority. Representatives of the Navy discussed various aspects of the Adak project.Although temperature gradient holes show resource potential,no exploration or production wells have been drilled. The Navy is seeking venture capital to finance its project and feels that concurrent geothermal development at Unalaska and Adak may enhance the attractiveness of the projects to potential investors who may wish to participate in both. We emphasized the need for the Navy to attain additional technical data and to perform further economic analyses before potentialinvestorsarelikelytogiveseriousconsiderationtotheAdak project.We pointed out that even with the confirmation of a world-class geothermal reservoir at Unalaska,:there is need for a detailed project feasibility study before private investors are likely to show serious interest. 5461/290/D1/F2 ane,- September 10,34 Page 2 The Power Authority recommended that the Navy conduct an explora- tion drilling program at Adak similar to the one we are completing at Unalaska,followed by a detailed feasibility study once the potential of the resource is determined.Both the Power Authority and the Navy agreed to keep the other informed of the status and schedule of their respective projects in order to facilitate any coordination efforts. Subsequent to the August 16 meeting,David Denig-Chakroff and Carla Gerrard have been in contact by phone to discuss the possibility of coordinating the use of drilling equipment in the Aleutians next summer.The Navy plans to mobilize a drill rig to Adak to begin its exploration program,and the Power Authority is evaluating a proposal from the City of Unalaska to drill a shallow geothermal well at Summer Bay.Both agencies could reduce costs by coordinating these efforts and using the same drilling equipment. DDC/ah cc:Brent Petrie Michael Economides 5461/290/D1/F2 I.OS OS PROJECT EVALUATION TRIP REPORT NAME:Dave Denig-Chakroff DATE:7/23/84 -7/25/84 LOCATION:Unalaska/Dutch Harbor PURPOSE OF TRIP: The purpose of the trip was to visit the project site of the Unalaska GeothermalDrillingprojectandtoobserveongoingoperationsandtests.An additionalobjectivewastovisitthesiteoftheproposedCorpshydropowerprojectonPyramidCreekandtodiscussthisproposalwithCityofficials ACTIVITIES/AGENDA (participation in meetings,schedule appointments): Field trip to geothermal project site,observation of flow test and other ongoingtestsanddrillingoperations. Flew helicopter reconnaissance of potential road access routes,transmission routes,power plant sites,and fumerole sites. é' Met with Drs.Economides and Dehghani to discuss test results and significance oftemperaturereversalinexplorationwell. Met with Bill Smith to discuss project and proposal for drilling Surgarloaf deeper inCONTACTS:(over) Dr.Michael Economides,Univ.of AK Nancy Gross,City ManagerDr.Kaveh Dehghani,Univ.of AK Arnie Erickson,City PlannerDr.Charles Morris,Republic Carl McConnel,Elec.Util.ManagerDr.Bill Smith,Republic Mike Aronson,Newspaper EditorMr.Danny Sanders,Republic SIGNIFICANT ITEMS We may wish to drill Sugarloaf deeper rather than deepen ST-1 as planned based ondiscoveryofatemperatureinversioninST-1,potential technical problems todeepeningST-1 and other considerations.This decision must be made by Aug.16th The City is very skeptical about proposals for hydropower on Pyramid Creek.Better communication between the City,Power Authority,The Corps,and sponsorsofasecondhydropowerproposalisneeded. nen en ACTIVITIES/AGENDA (Cont'd) lieu of deepening the exploration well (ST-1) Met with the City Manager and City Planner to discuss geothermal project and proposals for a hydropower project on Pyramid Creek as well as the status of the City's cost-of-power and rate study and the Power Authority's Reconnaissance study. Visited the Pyramid Creek Water Supply facilities and met with City officials to further discuss hydropower proposals. Met with city officials and the Newspaper editor for a field trip to the geothermal project which was cancelled due to inclement weather.Provided an interview to the editor for an article on the project. SI.OS8.0%8 MEMO TO THE RECORDALASKAsussecr(etnenmels fale,BY flees o_o 6/9/64POWERSHEET|or_f AUTHORITY provect Leng litba ste Per),Lib tymt INO,Called%fsb feedppondt yfirAPANa:senournl of dataatinphess whleby foEyespeatonhatteAYAweemsthatf$ibnnt prtey LN pred b [21/8 arthWoperks4persfor)ESS,bhorth soo desh?Ld hepdi ods Hath taets do)EUS teesw the)ipprtrel D4aga 1 we plied b wrk Ye Lr Oo poteWopudiedbderenthepolibyAwordsinveshek.+Wns.shed ma boob)ab pte THES phi ThtheprdedChapop,the Carersge ae Oy.B prepxctlo,Lic,|Deg ted DaveD-C ud Ohi,ap dahedh what 430)Werded)f An ©+r tle petpmded)that.Ondo wth bers,Aylblia 0s&trperatunn GAderab Wel |eye ded)pet nid.tp spas d coverage."Catesligphats”A applrerga LonLehelyfrNeus?rel 20 pt.tapping 2BieMSaedadhaebefepSPorHatPkyCAL'nse ll por dled)Covenaye.that-tee_peliea phat be percuredeLebyesdoratLenoreputee,A)premiuts fas FYEatthesdet,J” MEMO TO THE RECORD ALASKA SUBJECT BY DATE POWER SHEET NO OF.AUTHORITY PROJECT ISIS,OFS PROJECT EVALUATION TRIP REPORT NAME:Dave Denig-Chakroff DATE:5/20/84 -5/25/84 LOCATION:Palm Springs,CA PURPOSE OF TRIP: To attend workshop on geothermal development economics and financing held by - the Geothermal Resources Council and the U.S.Department of Energy.To meet with Republic Geothermal staff to discuss details and logistics of the 1984 field program and to visit operating geothermal facilities similar to a possible Unalaska plant. ACTIVITIES/AGENDA (participation in meetings,schedule appointments): See attached workshop program. Also met with Republic Geothermal,Inc.(RGI)staff and toured geothermal projects and facilities in Imperial Valley,CA. CONTACTS: Jim Sikes,President,RGI Gregg Long,M-K Gerry Huttrer,V.Pres.,RGI Doug Powell,M-K Dick Yarter,Operations Mgr.,RGI Bill Long,O'Brien Resource Corp. Don Campbell,Geologist,RGI Tom Eiden,Transamerica Delaval Allan Aksell,The Aleut Corp.Salvatore Pantano,Geothermal Floral Pauline Labire,U.S.DOE Ben Lunis,U.S.DOE Maureen Mahoney,Union Jodie Fisher,Union SIGNIFICANT ITEMS (potential problems): Attended workshop--Transactions obtained Received many comments on Unalaska Reconnaissance Study. Received interest in future phases of Unalaska project from potential bidders Discussed federal geothermal commercialization grant extension with federal manager Toured RGI projects in Imperial Valley and 10 MW Binary geothermal projects. ALASKA POWER AUTHORITY , SS.OS-PD 334 West Sth Avenue, 2nd Floor Anchorage,Alaska 99501(907)276-0001 -Telephone Conversation Record(907)277-7641 Date df if:5UA Time Mf:3 [[XLam C PM =Project No.G ZotcOfromJayMevmevddRecordedByDaveD-CCompany__Div-ol Ecol."2 Casphys.SuRV-PhoneNo._7°E-A"SO Address Project Name UN,A2ZASEA CC THE mr SUBJECT: Sh THLE TO TAY SUEAROLO DHOOM ErrTHATFSWERE_/S AOPLOX ATED)454.JO}-Sk oF THESAFoeHiod,S20 or ver Biz)To US.Né Ws 4leed Wo Mere W THEI FeuEAO OFECE tapnio "n”SEWN THE wart Rittene-Ry LATeTRHSWEEOREArpLYMVEXKT.aay SAID TH EPCE-1S AFRO MATELY '3/7,009 Leer yr YepCCoUNTPbVfDeEspn/7-EXPECT AvyMARAICROVTSTHNWDIWVEB/CLIMES On)HS. ConsE@ UE Arty THE 8/7006 CAn)RE _CreweaeVGAyo|AmEnpmewr Wo.2. "i 70.0 Say We Wor NEE A Wipw TeySeDENDVRE.List (HE Catceo (rh mex.-- NEC Tenn)Gitte ate Goi AY Sice +hSheelakbxpivredo Copy File ]*<xALASKAPOWERAUTHORITY74OS.OS334West5thAvenue, 2nd Floor Anchorage,Alaska 99501907)276-0001 _Telephone Conversation Record(907)277-7641 .Lf TSDate-dpiafeg time _%2 32 Gitn Fan Elem -project No.BBE=-FE2ThieFromShLa.Are Recorded By Dou O--a Company Cars Ag Phone No.9779-DE o/ Address _Project Name Uy pha ba KeLCL - SUBJECT: Coll Nx fo del eT bak SeDob/tove "coi.a cupfe ee < PKeeVeasebcA-wirtA fo NY of oeVLVILA)OX hoff Lente et TShoreR Chakce fo hea 4 Peas aba anLlkmwesboulhrtfefabringVesShhomemtvec.©ospex ll,ot Wh,love (oeYadaToabowebedomYebooianteVepok,2 HititSeer er a to wole ouch_o tants C advan eae!Fartn akIevee.2,"platid tak |K tim fquesplicalkaurHeVecpmntrdadbinm[ip ppotolDrovideNwinxsadhechinksGéueLdtakbactemaTmeLAjothatiea-i Ins Anan h_,Y Crowte,*ULL ,B)lbw Irene ThE oak zi The Shdpmust dsomedDicangy*O_yas a Le hdl pura Xs wal heerAyalZt)Shavit fig LE mPYuvtihYoAlhe6_€,. File BY -OS+OSMEMOTOTHERECORD ALASKA |SUBJECT ; py Dave D-C pate_3/9/84 POWER UNALASKA RECONNAISSANCE SHEET NO.OF.AUTHORITY oROJECT | "BELIEVE IT OR NOT CATEGORY ! Patti:As you will recall,Acres'contract for Unalaska Reconnaissance was extended to April 30,1984.TI sent the geothermal development costs to Jim Landman on March8thwhenitarrivedfromRepublic.What this means,contractually,is that he has 20.business days,or until April 5th,to deliver a draft report of the reconnaissance receipt of Republic's data,he now says it will be 3 or 4 weeks. Acres also has 20 business days after receipt of comments on the draft to deliverthefinal.So,if he doesn't deliver the draft until April 5th,even if wereturned comments the same day,the contract would expire before the final report is due. Don't stop now,it gets better.In order to extend the contract (again)we need tosubmitanewATNandSoleSourceJustification--because the old AIN has expiredIamworkingwithTomA.to get these documents prepared ASAP. ALASKA POWER AUTHORITY _ 334 West 5th Avenue,SE .OS .OS 2nd Floor Anchorage,Alaska 99501(g07)278-0001 Telephone Conversation Record Date Sf.oof,ah Time keile)(am Clem Project No.A ZO[]10 {Zerom been,itMeAE Recorded By Lew D-CCompanyA220ShetheCerwal_Phone No.IYS -5EC AddressProjectName Um LZ bestinal, SUBJECT:Due 6 a LRG HY ca 7B a DUAN 2G atxOXDepthHeCoyWYtbe,with ma LonginheohhbrypnegeVEVrekeohefosenk-The Dh)Leone LIVMN AAI prs [ba Da.Teh."Bill Smet VP.Barizctin-Do-S wa Ly bgt aay,bn GengCeHot,tegucels oak Auntidsitet 2 "7 4yGZt1thangne_Lerotrentl on the Unralora haa. 'Disewesjim LuautA gn avert Orme.rs fea cata ssiDimeAntAbTardifnoaobadFeatD0anttehcxOtAshafaeigBrechinhbSonnbetie.wauth"lake 2 Crypq ty wokizeBaaHLturnsthnepifics.Thess wll 5 acdSuneLeantefiatin2t1oga,Chl Gere QA.tO Cnn ont Ls fre be 4epta tle Cotwlineeswoh.DE was wWrsyeed tet fin ic E Githapcecn Lage aed GM ney 'Copy ey hc "auth sed "Dab A pecah akMeantAnotionseztheaOh._me PROJECT EVALUATION TRIP REPORT NAME:Dave Deniq-Chakroff DATE:February 10-12,1984 ; , 7 LOCATION:Fairbanks,AK PURPOSE OF TRIP: (1)To attend and represent the Alaska Power Authority at the 1984 Alaska Alternative Energy Conference. (2)To give a presentation at the conference on the Unalaska Geothermal Program including the first public presentation of the video production,"Alaska's Geothermal Future." (3)To diseminate public information about the Power Authroity and its projects using the public display exhibit and information circulars. ACTIVITIES/AGENDA (participation in meetings,schedule appointments): 2/10/84 7:00-10:00 pm--Registration,reception,and opening speech by Denis Hayes. 2/11/84 9:00-10:30 am--Keynote speech by Lt.Governor and Commissioner of DCRA. 10:30-12:00 am--Presentation on rural energy programs by Bob Brean,DCRA and Patti DeJong,APA. 12:00-12:30 pm--Set up Power Authority public exhibit. 12:30-1:30 pm--Met with Dr.Economides over lunch. 1:45-3:00 pm--Presentation on geothermal energy development and the Unalaska Geothermal Program. 3:00-5:00 pm--Manned the Power Authority exhibit and observed other public displays. 5:00-7:30 pm--Met with Dr.Economides over raquetball.Lost 3 games. 7:30-10:00 pm--Dinner with conference attendees and participants.(over) CONTACTS: Jim Olney,Conference Coordinator Dr.Deghanhi,Prof.Univ.of Ak Will Snyder,Conference Coordinator Denis Hayes,Solar Energy Res.Inst. Jack Roderick,Director,Div.of Energy,DCED Chris Flavin,Worldwatch Inst. George Matz,Special Asst.to the Commissioner,DCED Arlon Tussing,Economist Pat Woodell,Energy Specialist,DCED Matt Zencey,RurAL CAP Jim Gurke,Energy Specialist,DCED Peg Tileston,APUC Judy Zimicki,Energy Consultant David Brook,Owner,Energy House Don Markle,Energy Consultant Karen Perdue,Director,Div.Comm.Dev.,DCRA Bob Brean,Deputy Director,DCRA Dr.Michael Economides,Prof.Univ.of Ak.aeSIGNIFICANTITEMS:[|was disturbed by the poor public image hese=by the Power Authority which appears to be based largely on misinformation and misunderstanding of our \y.activities.I was even more disturbed by the unwillingness or inability of other ©.2 state officials to boost this image when the opportunity arose.This was particu- ..-larly evident in the Lt.Governor's speech and in the public hearing for input to d\nthe1984Alaskalong-term energy plan.At the latter session,chaired by Jack Mm9RoderickandGeorgeMatz,information about Power Authority programs was presented.wytothepublicinanextremelypoormannerandnorepresentativesofthePower>Authority were asked to attend the session or to respond to public comments.Attempts So by the Chairmen to respond to comments about Power Authority programs was handled very poorly and certainly did not do justice to the Power Authority.It was very evident to me that a public education effort is sorely needed which should start with the education of other state agencies and officials involved in energy programs to theary,qties of the Power Authority and a strong mandate that they involve APA in anyactivitiesinwhichourresponsibilitiesoverlap. ACTIVITIES:(continued) 2/12/84 8:30-12:00--Attended the Alaska Energy Policy Forum. 12:00-1:00--Lunch with Dr.Economides and Dr.Deghanhi. 1:00-2:00--Speeches by Sen.Murkowski and Chris Flavin,Worldwatch Inst. 2:00-3:30--Presentation on Energy,Politics,and Self Interest by Denis Hayes. 3:30-4:30--Attended public hearing on input to the 1984 Alaska long-term energy plan. 4:30-5:00--Dismantled APA exhibit.Got lost on way to the airport. .(iv -PEOS.USocpphfeUNAd/UNVI/UNHI UNALASKA GEOTHERMAL ANALYSIS 12Pa ViiDED Sy M l<at mNeze fing10MWPLANTTHIRDPARTYOWNERSHIPPsUCAPITALCOSTSSCHEDIILEAil,Lt cot hein veg Ses a OfoS;&f°Cy?1987 TOTAL JAN FEB MARCH APRIL may «JUNE =JULY AUG SEPT OCT NOV DEC 1987 ,198 PROJECT COST 1,535 1,535 15791 1,791 1,791 2,047 2,302 2,302 2,302 2,558 2,814 2,814 25,583 onESCALATEDCOST1,535 1,541 1,806 1,813 1,821 @,0790 2,361 2,370 2,380 2,656 2,934 2,946 26,252 "4ENGINEERING2,558 2,558 Oy Ws)WELL COSTS 27 896 27 896 ba %BID BOND 358 358 INSURANCE 150 150 .> BANK FEES 300 300 ia)COMMITMENT FEE 22 22 21 21 20 19 18 17 16 15 13 12 216 INV BANK FEE 300 300 LEGAL FEE 30 30 FEARS.STUDY TOTAL W/O INTEREST 33,149 1,564 1,827 1,894 1,841 2,109 2,379 2y387 2,396 2,670 2,947 2,958 58,060 EQUITY 21,478 21,478 ACCUM EQUITY 21,9478 21,478 21,478,21,478 21,478 21,478 21,478 1,478 21,478 21,478 21,478 21,478 21,478 DEBT 11,671 1,690 14972'2,000 2,028 2y318 2,613 2,650 2,688 2,991 3,300 3,347 39,270 ACCUM DEBT 11,671 13,361 15,399 17,333 197362 21,680 24,293 26,944 29,632 32,623 35,923 39,270 39,270 INTEREST 126 145 166 188 210 235 263 292 321 353 389 2,688 TOTAL W INTEREST 33,149 1,690 1,972 2,000 2,028 2,318 2,613 2,650 2,688 2,991 3,300 3,347 60,748 1988 TOTAL TOTAL JAN FEB MARCH APRIL MAY JUNE JULY AUG SEPT oct NOV DEC 1988 PROJECT 1983 PROJECT COST 1,706 15706 1,450 1,450 1,450 1,450 1,279 1,279 1,279 1,279 15364 1,364 17,055 42,638 ESCALATED COST 1,793 1,800 1,537 1,549 1,549 1,556 1,379 1,384 1,390 17395 1,495 1,501 18,323 44,575 ENGINEERING 2,558 WELL COSTS 27 896 BID BOND 358 INSURANCE 150 150 300 BANK FEES 300 COMMITMENT FEE 11 10 9 8 7 6 5 4 4 3 2 1 68 283 INV BANK FEE 300 LEGAL FEE 30 FEAS.STUDY TOTAL W/O INTEREST 1,953 1,810 1,545 1,551 1,556 1,562 1,384 1,389 1,394 1,399 1,497 1,502 18)541 76,601 EQUITY 21,478 ACCUM EQUITY 21,478 21,478 21,478 21,478 21,478 21,478 21,478 21,478 21,478 21,479 21,478 21,478 21,478 21,478 DEBT 29379 «2,261 «2021 =048 =076)By104 1,949 «15975 2,001)2028 =By 4B 029177)55167 0 4 437ACCUMDEBT41,649 43,910 45,931 47,979 50,055 52,140 54,108 56,083 58,084 60,112 62,260 64,437 64437 64,437 INTEREST 425 451 476 498 520 842 565 586 608 629 651 674 67626 9,314 TOTAL W INTEREST 2,379 =eye6i =yO2L «=04B 076)By 104)19949)=14975 2,001 =2028 21482 177 25,167 85,915 e REP2/REP INC/REP INC UNALASKA GEOTHERMAL NET INCOME AND CASH FLOW STATEMENTS (Thousands) 1987 1988 1989 1990 1991 1992 1993 1994 199§1996 1997 REVENUES: GIGAWATT HOURS 70.08 70.08 70.08 70.08 70,08 70.08 70.08 70.08 70.08 MILL RATE PER KWH 300 300 300 300 300 300 300 300 300 REVENUES TO WELL 4,205 4,205 4,205 4,205 4,205 4,205 4,205 4,205 4,205 REVENUES TO PLANT 16,819 16,819 16,819 16,819 16,819 16,819 16,819 16,819 14,819 TOTAL REVENUES FROM POWER SALES 21,024 21,024 21,024 21,024 21,024 21,024 21,024 21,024 21,024 EXPENSES; OPERATING &MAINT.695 730 766 805 845 887 931 978 1,027 GENERAL &ADMINISTRATIVE 70 73 77 80 84 89 93 98 103 INSURANCE 559 587 616 647 679 713 749 787 826 ROYALTY PAYMENT 1,752 1,752 1,752 1,752 1,752 1,752 1,752 1,752 1,752 DEPRECIATION 11,490 16,852 16,086 16,086 16,086 INT.DUR CONST.AMORT.2,488 63626 INTEREST EXPENSE 8,377 8,170 7938 7,471 7;372 75034 67652 6,220 5,733 DEPLETION 348 368 348 368 PROPERTY TAX 7686 781 797 813 829 846 863 880 897 TOTAL EXPENSES 2,488 67626 23,708 "2B,945 28,030 27 854 27,448 11,689 11,408 11,082 10,7046 NET OPERATING INCOME (2,488)(6,626)(2,684)(7,921)(7004)(6,830)(6,624)9,335 9,616 9,942 10,318 TAXES @51%(1,371)(39379)(15369)(4,040)(3,573)(3,483)(3,378)4,761 4,904 5,070 §,262 INVESTMENT TAX CREDIT 7,660 ENERGY TAX CREDIT 11,490 NET INCOME (1,317)(3,247)17,835 (3,881)(37433)(3,347)(3,244)4,574 4,712 4,871 5,056 AFTER TAX CASH FLOW AND RATE OF RETURN TOTAL CAPITAL COST (60,748)(25,167) DEBT DRAWDOWN 37 270 25,167 DEBT REPAYMENT (1,594)(1,802)(2,034)(2,300)(2,599)(2,937)(3,319)(35751)(4,238) NET INCOME (1,317)(3,247)17,835 (3,881)(3,433)(3,347)(3,246)4,574 49,712 4,871 §,056 DEPRECIATION 11,490 16,852 14,086 16,086 16,086 INT.DUR CONST.AMORT.2,688 3626 DEPLETION 368 368 348 368 NET CASH FLOW (20,107)39379 27 5731 11,149 10,418 10,439 10,241 2,005 1,761 1,489 1,186 PROJECT RESULIS RETURN ON EQUITY 10.1 165.8 66.8 63.5 62.4 61.2 12.0 10.5 8.9 7.1 AVERAGE ROE 6.7 46.5 50.6 52.7 54.1 55.0 50.2 496.2 42.8 39.9 IRR 26.1 41.7 99.6 §3.8 54.1 56.4 56.5 56.6 56.6 NaREP2/REPINC/REPINC UNALASKA GEOTHERMAL NET INCOME AND CASH FLOW STATEMENTS (Thousands) 1998 1999 2000 2001 2002 2603 2004 2605 2004 2007 2008 REVENUES: GIGAWATT HOURS 70.08 '70.08 70.08 70.08 70.08 70.08 70.08 70.08 70.08 70.08 70.08 MILL RATE PER KWH 300 300 300 300 300 300 300 300 300 300 300 REVENUES TQ WELL 4,205 4,205 4,205 4,205 4,205 4,205 4,205 4,205 4,205 4,205 4,205 REVENUES TO PLANT 16,819 16,819 16,819 16,819 146,819 16,819 16,819 16,819 16,819 16,819 16,819 TOTAL REVENUES FROM POWER SALES 21,024 21,024 21,024 21,024 21,024 21,024 21,024 21,024 21,024 21,024 21,024 EXPENSES: OPERATING &MAINT.1,078 1,132 1,189 1,248 1,311 1,376 1,445 1,517 1,593 1,473 1,754 GENERAL &ADMINISTRATIVE 108 113 119 125 131 138 144 152 159 1467 176 INSURANCE 867 Sil 954 1,604 1,054 1,107 1,162 1,220 1,281 1,345 1,413 ROYALTY PAYMENT 1,752 1,752 1,752 1,752 1,752 1,752 1,752 1,752 1,752 1,752 1,752 DEPRECIATION INT.DUR CONST.AMORT. INTEREST EXPENSE S,182 4,559 3,854 3,061 2,162 1,147 DEPLETION 348 368 348 368 348 368 348 3648 3468 368 368 PROPERTY TAX 915 934 952 971 991 1,011 1,031 1,052 1,073 1,094 1,116 TOTAL EXPENSES 10,270 9,769 9,192 8,529 79769 6,898 5,902 6,041 67226 67399 6580 NET OPERATING INCOME 10,754 11,255 11,832 12,495 13,255 14,126 15,122 14,943 14,798 14,625 14,444 TAXES @51%5,484 5,740 6,035 63373 69760 75204 7,712 77631 7,547 73459 74366 INVESTMENT TAX CREDIT ENERGY TAX CREDIT NET INCOME 59269 5,515 5799 6,123 69495 69922 77410 7,332 7,251 79166 7077 AFTER TAX CASH FLOW AND RATE OF RETURN TOTAL CAPITAL COST DEBT DRAWDOWN DEBT REPAYMENT (45789)(5,412)(6,115)(6,910)(7 809)(By 824) NET INCOME 57269 §,515 55798 6,123 67495 6,922 79410 79332 7,251 77166 74077 DEPRECIATION INT.DUR CONST.AMORT. DEPLETION 348 348 ©368 368 348 368 368 348 348 3468 368 NET CASH FLOW 848 471 50 (420)(944)(1,534)7,778 7,700 7419 7 534 77445 PROJECT RESULTS RETURN ON EQUITY 5.1 2.8 0.3 (2.5)(5.7)(9.2)44.5 46.0 45.5 45.0 44.5 AVERAGE ROE 37.2 34.7 32.4 30.3 28.1 26.1 27.1 28.1 28.9 29.7 30.3 IRR 54.7 56.7 54.7 56.7 56.7 56.6 546.7 56.7 54.7 56.7 56.7 ecx UNAL/UNVI/U1 S0%DEBT -THIRD PARTY OWNERSHIP FIELD.DEV.COSTS POWER PLANT COSTS TOTAL 1983 PROJECT COST ESCALATED COST BID BOND INSURANCE BANK FEES COMMITMENT FEE INV BANK FEE LEGAL FEE TOTAL W/O INTEREST EQUITY ACCUM EQUITY DEBT ACCUM DEBT INTEREST TOTAL W INTEREST FIELD DEV.COSTS POWER PLANT COSTS TOTAL 1983 PROJECT COST ESCALATED COST BID BOND INSURANCE BANK FEES COMMITMENT FEE INV BANK FEE LEGAL FEE TOTAL W/O INTEREST EQUITY ACCUM EQUITY DEBT ACCUM DEBT INTEREST TOTAL W INTEREST nO ea UNALASKA GEOTHERMAL 10 MW PLANT CAPITAL COSTS SCHEDULE (THOUSANDS OF DOLLARS) a a ee 1985 1986 . 1ST ND SRD 4TH 1ST 2ND 3RD 4TH QTR QTR QTR QTR QTR QTR GTR QTR ie)4,290 2,428 138 138 3,545 3,545 138 0 62 63 37 38 3,251 3,253 1,885 0)4,952 2,491 175 176 69796 65,798 2,023 0 5,070 2,953 eit 214 8,486 8,637 2,615 0 358 0 0 0 0 0 0 ta)0 0 0 0 0 0 0 (¢)300 6 0 0 0 0 Q 0 45 45 45 45 45 45 45 0 300 6 0 0 0 0 0 0 30 id)0 ie)0 ie)0 0 6,103 2,998 257 261 8,531 8,682 2,461 0 $6,103 2,998 257 261 8,531 8,482 2,461 0 6,103 9,101 9,358 9,419 18,151 265833 29,494 0 ie)0 0 0 0 0 0 0 ie)ie)0 0 0 i)0 0 0 0 ie)0 Q 0 st) 0 65103 2,998 257 261 8,531 8,482 2,461 198Z 1288 TOTAL 1ST END 3RD ATH isT 2ND 3RD 4TH PROJECT QTR QTR QTR QTR QTR QTR QTR QTR costs 138 300 300 28 88 300 300 821 16,557 1,887 4,283 94236 3,734 3,736 2,937 4,911 340 34,675 2,025 4,583 4,536 3,822 3,824 3,239 5,211 1,181 $1,232 27664 6,134 69177 5296 57371 4,646 7 606 1,754 67,856 0 0 0 0 0 0 0 0 358 0 180 0 0 i}150 e)ie)300 0 0 0 0 0 0 0 ie)300 45 45 93 35 28 él 14 3 553 i?)0 0 0 0 0 0 is)300 0 0 9 0 ie)0 0 0 30 2,709 632?6,220 $,331 5,419 94,817 7,620 1,757 69 697 2570?4,195 0 0 0 0 ie]0 365378 32,203 36,398 36,393 36,398 369398 367398 36,398 36,398 347398 0 2,134 6,284 5,583 5,839 5,412 8,378 2,766 369397 0 2,134 8,418 14,001 19,841 25,253 33,631 36,397 36,397 0 0 64 253 420 595 758 1,009 3,098 2,709 6,329 6,284 5,583 5,839 5,412 8,378 27764 72,795 2»> UNAQA/UNV3/UHL UNALASKA GEOTHERMAL -10 MW PLANT NET INCOME AND CASH FLOW STATEMENTS .f,we 4 (THOUSANDS OF DOLLARS?) ARTY OWNERSHIP Lb Lv Ol mM 5 15 YEAR PROJECT LIF-- 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 REVENUES: GIGAWATT HOURS 0.00 0.00 0.00 0.00 74.46 74.46 74.46 74.46 74.46 74.46 MILL,RATE PER KWH o 0 0 0 510 510 510 510 510 510 REVENUES TO WELL 0 0 0 0 74895 7,595 77595 7,595 7,595 75595 REVENUES TO PLANT ry 0 0 0 30,380 30,380 30,380 30,380 30,380 30,380 TOTAL REVENUES FROM POWER SALES 0 0 0 0 375975 37,975 379975 37,975 437,975 37,975 EXPENSES: OPERATING &MAINT.0 0 0 0 3,203 3,427 3,647 3,924 4,198 4,492 ROYALTY PAYMENT 0 0 0 0 3,165 35165 3,145 3,165 3,165 3,145 DEPRECIATION 0 0 0 0 10,455 15,333 14,636 14,636 14,636 0 INT.DUR CONST.AMORT.0 0 317 2,782 0 0 0 0 0 0 INTEREST EXPENSE 0 0 0 0 4,368 4,251 4y119 3,972 3,808 3,623 DEPLETION 0 0 0 0 645 665 645 665 665 665 PROPERTY TAX 0 0 0 0 697 7h 728 740 754 770 TOTAL EXPENSES 0 0 )0 22,551 27,551 265977 27,101 27 226 12,714 NET OPERATING INCOME 0 0 ry 0 15,423 10,423 10,998 10,873 10,748 25,260 TAXES @51%0 )0 0 75846 5,316 5,609 5,545 5,482 12,883 INVESTMENT TAX CREDIT 0 0 0 0 65970 0 0 0 0 0 NET INCOME 0 0 0 0 14,527 5,108 5)389 5,328 5,267 12,378 AFTER TAX CASH FLOW AND RATE OF RETURN TOTAL CAPITAL COST (9,358)(20,136)(20,906)(22 397)ry )0 0 0 0 DEBT DRAWDOWN 0 0 14,001 22,396 ry 0 0 0 0 0 DEBT REPAYMENT 0 0 0 0 (976)(1,093)(1,225)(1,372)(15536)(1721) NET INCOME 0 0 0 0 14,527 5,108 5,389 5,328 5,267 12,378 DEPRECIATION 0 0 0 0 10,455 15,333 14,536 14,636 14,636 0 INT.DUR CONST.AMORT.0 0 317 2,782 0 ry ry 0 0 0 DEPLETION 0 0 .0 0 665 665 645 645 665 665 NET CASH FLOW (9,358)(20,136)(6,588)2,781 24,670 20,012 195445 19,257 19,031 11,321 PROJECT RESULTS RETURN ON EQUITY 0.0 0.0 0.0 0.0 37.0 60.1 58.5 57.8 57.2 34.0 AVERAGE ROE 0.0 0.0 0.0 0.0 37.0 44.7 48.2 50.1 51.3 48.8 IRR 0.0 0.0 0.0 0.0 0.0 8.3 17.2 22.5 25.7 27.0 »+3sOA+FDFS2» UNAA/UNV3/UH2 UNALASKA GEOTHERMAL -10 MW PLANT NET INCOME AND CASH FLOW STATEMENTS (THOUSANDS OF DOLLARS) THIRD PARTY QWNERSHIP 15 YEAR PROJECT LIFE 1995 1996 1997 1998 1999 2000 2001 2002 2003 REVENUES: GIGAWATT HOURS 74.46 74.46 74.46 749.46 74.46 74.46 74.46 74.46 74.96 MILL:RATE PER KWH 510 $10 $10 510 510 $10 $10 §10 510 REVENUES TO WELL 7,595 7,595 7595 7,595 7,598 79595 75595 7,595 7,598 REVENUES TO PLANT 30,380 30,380 30,380 30,380 30,380 30,380 307380 30,380 30,380 TOTAL REVENUES FROM POWER SALES 37 975 37975 37 5975 37 9975 37975 37 5975 37 9975 37975 37,975 EXPENSES: OPERATING &MAINT.4,807 5,143 5,503 5,889 6,301 6,742 7,214 75719 8,259 ROYALTY PAYMENT 3,145 3,165 3,165 37165 3,165 37165 3145 37165 3,165 DEPRECIATION 0 0 0 0 0 0 0 0 0 INT.DUR CONST.AMORT.0 0 ie)0 0 0 0 ie)0 INTEREST EXPENSE 39417 39186 2,927 2,437 2,312 1,948 1,540 1,084 573 DEPLETION 665 665 665 665 665 665 665 465 665 FROPERTY TAX 785 801 817 §33 850 867 884 902 920 TOTAL EXPENSES 12,838 12,95?13,076 13,187 13,291 13,385 13,467 13,533 13,530 NET OPERATING INCOME 25,137 25,016 24,899 24,787 24,683 24,589 24,508 24,441 24,394 TAXES @51%12,8206 12,758 12,698 12,642 12,589 12,541 12,499 12,445 12,441 INVESTMENT TAX CREDIT 0 0 0 0 0 0 0 QO 0 NET INCOME 12,317 12,258 12,200 12,144 12,095 12,049 12,009 11,976 11,953 AFTER TAX CASH FLOW AND RATE OF RETURN TOTAL CAPITAL COST 0 o 6 0 0 0 0 6 0 DEBT DRAWOOWN 0 0 0 0 0 0 0 0 0 DEBT REPAYMENT (1,927)(2,158)(2,417)(2,707)(3,032)(3,396)(3,804)(4,260)(4,771) NET INCOME 12,317 12,258 12,200 12,146 12,095 12,049 12,009 11,976 11,953 DEPRECIATION 0 0 0 0 ie)9 ie)0 0 INT.DUR CONST.AMORT.17 0 0 0 0 0 0 0 0 DEPLETION 665 665 665 665 665 665 648 665 645 NET CASH FLOW 11,054 10,764 10,443 10,103 9,727 9,317 8,869 8,381 77844 PROJECT RESULTS RETURN ON EQUITY 33.2 32.3 31.4 30.3 29.2 23.0 26.6 25.2 23.6 AVERAGE ROE 96.9 45.2 43.9 42.6 41.5 40.5 39.5 38.8 37.4 sesnnrcas BEBE IRR 27.9 23.5 29.0 29.3 29.5 29.7 29.8 29.9 30.0 UNAB /UNV4/UH1 UNALASKA GEOTHERMAL -10 MW PLANT NET INCOME AND CASH FLOW STATEMENTS (THOUSANDS OF:DOLLARS)THIRD PARTYee 5 ys ?,yQJECTLIFEaayeaFINANG 1985 1984 1987 1983 1989 1990 1991 1992 1993 1994 1995 1996 REVENUES+GIGAWATT HOURS 0.00 0.00 0.00 0.00 74.46 74.46 74.46 74.46 74.46 74.46 74.46 749.46 MILL RATE PER KWH 0 0 0 0 480 480 480 430 430 480 480 4380 REVENUES TO WELL 0 0 0 0 7,148 75148 7,148 7,148 7,148 77148 7,148 74148 REVENUES TO PLANT 0 0 0 0 28,593 28,593 28,593 28,593 28,593 28,593 28,593 28,593 TOTAL REVENUES FROM POWER SALES 0 0 0 0 35,741 385741 35,741 35,741 35,741 355741 355741 35,741 EXPENSES5OPERATING &MAINT.0 0 i]0 35203 35427 3,467 33924 4,198 4,492 9,807 5,143 ROYALTY PAYMENT 0 0 0 0 2,978 2,978 2,978 25978 2,978 2,978 2,978 2,978 DEPRECIATION 0 0 0 0 10,455 18,333 14,636 14,636 14,436 0 0 0 INT.DUR CONST.AMORT.o 0 317 2,782 0 0 0 0 0 0 0 0 INTEREST EXPENSE 0 0 0 ie)47368 4,335 4,298 4,257 4,211 4,160 4,102 4,037 DEPLETION 0 0 ie)6 625 625 625 625 625 625 625 6e5 PROPERTY TAX 0 0 0 i)697 711 725 740 754 770 785 801 TOTAL EXPENSES 0 0 0 Q 22,326 27,410 26,731 27,161 275404 13,025 13,297 13,585 NET OPERATING INCOME ie)0 0 0 13,415 8,331 8,810 8,580 8,337 22,715 22,443 22,156 TAXES @51%0 0 0 0 6,841 9,249 4,493 45376 4,252 11,585 11,446 11,299 INVESTMENT TAX CREDIT 0 0 0 0 6,970 0 i]0 0 )0 is) NET INCOME 0 0 0 G 13,543 4,082 4,317 4,204 4,088 11,131 10,997 10,854 AFTER TAX CASH FLOW AND RATE OF RETURN TOTAL CAPITAL COST (75358)(20,1346)(20,906)(22,397)0 0 0 0 0 0 0 0 DEBT DRAWOOWN 0 0 14,001 225396 0 0 0 0 1°)ie 0 0 DEBT REPAYMENT 0 0 0 (873)(306)(342)(384)(430)(481)(539)(603) NET INCOME 0 0 ie}o 13,543 4,082 4,317 4,204 4,085 11,131 10,997 10,854 DEPRECIATION 0 0 0 0 10,455 15,333 14,436 14,634 14,636 0 0 0 INT.DUR CONST.AMORT.Q 0 317 2,782 i)0 0 0 0 0 0 0 DEPLETION 0 0 0 0 625 625 625 625 625 625 625 625 NET CASH FLOW (9,358)(20,136)|(6,588)2,781 24,350 195735 19,236 17,083 18,917 11,275 11,034 10,878 PROJECT RESULTS RETURN ON EQUITY 0.0 0,9 0.0 0.0 3656 59.3 57.8 57,3 56.8 33.9 33.3 32.7 SREMRERT ASERRTER BRESSETH FATEETTE SERRE BEEBET (keGE FESMMES RSRERE BREERE BEM BBRST AVERAGE ROE 0.0 6.8 6.6 6.8 36.6 44.1 47.6 4946 50.7 48.3 46.4 449 IRR 0.0 0.0 0.0 0.0 0.0 79 16.9 a2.25.4 26.7 a7 .6 28.3 >UNAB/UNV4/UH2 UNALASKA GEOTHERMAL -10 MW PLANT NET INCOME AND CASH FLOW STATEMENTS (THOUSANDS OF DOLLARS) THIRD PARTY OWNERSHIP 30 YEAR PROJECT LIFE 25 YEAR FINANCING 1997 1993 1999 2000 2001 2002 2003 2004 2005 2006 2007 REVENUES5GIGAWATT HOURS 74.96 74.46 74.646 74.96 749.48 74.46 74.46 74.446 74.46 74.46 74.46 MILL RATE PER KWH 480 490 480 480 430 480 480 480 480 430 430 REVENUES TO WELL 7,148 77148 74148 75148 7,148 7,148 7,148 74148 7,148 7,148 7,148 REVENUES TO PLANT 28,593 28,593 28,593 28,593 28,593 28,593 28,593 28,593 28,593 28,593 28,593 TOTAL REVENUES FROM POWER SALES 35,741 359741 35,741 35,741 359741 35741 35,741 355741 359741 35,741 35,741 EXPENSES: OPERATING &MAINT.§,503 5,889 6,301 63742 75214 745719 8,259 8,837 9,454 10,118 10,826 ROYALTY PAYMENT 2,978 2,978 2,978 2,978 2,978 2,978 2,978 2,978 2,978 2,978 2,978 DEPRECIATION 0 0 0 0 0 0 0 0 0 0 0 INT.DUR CONST.AMORT.ie]0 0 0 0 ie)0 0 ie]0 0 INTEREST EXPENSE 3,965 3,884 3s793 3,491 35577 3,450 3,307 3,147 29967 25766 2,541 DEPLETION 625 625 625 625 625 625 625 625 625 625 625 PROPERTY TAX 817 833 850 867 884 902 920 938 957 976 995 TOTAL EXPENSES 13,889 14,209 14,547 14,903 155279 15,674 16,089 16,526 16,984 17,464 17,947 _NET OPERATING INCOME 21,852 21,532 21,194 20,837 20,442 20,0467 19,652 17,215 18,757 18,277 17,774TAXES@51%11,145 10,981 10,809 10,627 10,436 10,234 10,022 9,800 9,566 9,321 9,065 INVESTMENT TAX CREDIT 0 0 0 0 0 0 0 0 0 ie)8] NET INCOME 10,708 10,551 10,385 10,210 105026 9,833 9,629 9,415 9,191 8,956 8,709 AFTER TAX CASH FLOW AND RATE OF RETURN TOTAL CAPITAL COST 0 0 i)0 o ie)9)0 0 0 (e) DEBT DRAWDOWN 0 0 0 °]o 0 0 9)0 0 0 DEBT REPAYMENT (676)(757)(848)(950)(1,064)=(1y191)(1334)(1,494)(1,673)(1,874)(2,099) NET INCOME 105708 10,551 10,385 10,210 10,026 9,833 99629 9,415 9,191 8,956 8,709 DEPRECIATION 0 0 0 0 0 0 0 0 0 o 0 INT.DUR CONST.AMORT.0 0 0 8]0 0 0 0 0 (4)0 DEPLETION 625 625 625 625 625 625 625 625 625 625 625 NET CASH FLOW 10,657 10,419 10,163 9 884 9,588 9267 8,921 8,547 8,143 7707 7238 PROJECT RESULTS RETURN ON EQUITY 32.0 31.3 30.5 29.7 28.8 27.8 26.8 25.7 24.5 23.1 2a1.7 AVERAGE ROE 93.6 42.5 41.5 40.6 39.7 38.9 38.2 37.5 36.7 36.0 35.3 IRR 28.7 29.1 29.3 29.5 29.6 27.7 29.8 27.8 29.9 29.9 29.9 UNAB/UNV4/UH3 UNALASKA GEOTHERMAL -10 MW PLANT NET INCOME AND CASH FLOW STATEMENTS THIRD PARTY OWNERSHIP 30 YEAR PROJECT LIFE 25 YEAR FINANCING (THOUSANDS OF DOLLARS) 2008 2009 2010 2011 20ie 2013 2014 2015 2016 2017 2018 REVENUES: GIGAWATT HOURS 74.46 74.46 749.46 74.46 749.46 74.46 74.46 749..46 74.46 74.46 74.46 MILL RATE PER KWH 480 480 480 4380 4380 480 480 480 480 480 480 REVENUES TO WELL 7,148 7,148 75148 73148 7,148 7,148 7,148 7,148 7,148 7,148 7,148 REVENUES TO PLANT 28,593 28,593 28,593 28,593 28,593 28,593 28,593 28,593 28,593 28,593 26,593 TOTAL REVENUES FROM POWER SALES 35,741 35,741 35,741 35741 35,741 355741 355741 35,741 35,741 35,741 35,741 EXPENSES: OPERATING &MAINT.11,584 12,395 13,262 14,191 15,184 16,247 17,384 18,601 19,903 21,296 225787 ROYALTY PAYMENT 2,978 2,978 2,978 2,978 25978 2,978 2,978 2,978 2,978 2,978 2,978 DEPRECIATION 0 0 0 ie)0 0 0 0 0 0 0 INT.DUR CONST.AMORT.0 0 i¢)0 8)0 0 0 Q 0 0 INTEREST EXPENSE 2,290 2,007 1,691 1,338 941 497 0 0 0 0 0 DEPLETION 625 625 625 625 625 625 625 625 625 625 625 PROPERTY TAX 1,015 1,036 1,056 1,078 1,099 1,121 1,143 1,166 1,190 1,213 1,238 TOTAL EXPENSES 18,493 17,042 19,614 20,209 20,828 21,469 22,131 23,371 24,697 26,114 27,429 NET OPERATING INCOME 17,248 16,699 16,127 15,631 14,913 14,272 13,609 12,370 11,044 9,627 8,112 TAXES @51%8,797 8,517 8,225 7,921 7 7606 7279 6,941 69309 6,433 4,910 4,137 INVESTMENT TAX CREDIT ()i)0 0 0 0 9 0 0 0 0 NET INCOME 8,452 8,183 7,902 7,610 7 307 65993 6,669 6,061 5,412 4,717 3,975 AFTER TAX CASH FLOW AND RATE OF RETURN TOTAL CAPITAL COST 0 0 i°)0 9)0 0 0 0 0 0 DEBT DRAWDOWN 0 it)0 0 0 0 0 0 Q 0 0 DEBT REPAYMENT (2,351)(2,633)(2,949)=(3,303)=3,700)(4,143)19)0 0 is)(9) NET INCOME 8,452 8,183 7,902 73610 77307 69993 6,649 6,061 5,412 4,717 3,975 DEPRECIATION 0 0 0 0 ie)0 i¢)0"0 0 0 INT.OUR CONST.AMORT.6 0 0 0 0 i)0 7)0 9 i) DEPLETION 625 625 625 625 625 625 625 625 625 625 628 NET CASH FLOW 67726 6,175 5,578 4,933 4,233 3,475 7294 65687 6,037 $5343 4,600 PROJECT RESULTS RETURN ON EQUITY 20.2 18.5 16.8 14.8 1ée.7 10.4 21.9 20.1 18.1 16.9 13.8 AVERAGE ROE 34.6 33.9 33.1 32.3 31.6 30.7 30.4 30.1 29.6 29.2 28.7 IRR 29.9 30.6 30.0 30.0 30.6 30.0 30.0 30.0 30.0 30.0 30.0 MORRISON@KNUDSEN JOB TITLE Ana f ALILA CONTRACT NO DESCRIPTION CASH FLOW Oh 1 2,LL2 O06 Ewa LO tt tt)MLO4IR (72104 Ce SHEET NOMADEBYDEIBuw.WEZ cHeckeo py_/7 22 ;G A DATE 1484 1986S ':.2 ,J .A /}e !1 3 4 4-d'/©128000 |237000 4,008 370.006 1,200.000!Oo @ ©Y IGSE 92? |2 2 "4/2 +.8B.%.f )\lL {]J B08 08 BCO CE IpSepe?y)Mbt,Clb}£06 vb 1846000 40cgor =7bOL00 @ ©oY Notes O Bane ot permiT wae ©sens and suray wvele @ sigaz retinol!besrin @®Down paynont eA Long bal dins cle pastDQ617wR$7827 oNa).©Pebucry ot Lon lose!Li pe operas t Ser arn byanshay :fh,@ shi)mph ceioe ©16S WOT S17E welele FORM ENG 126/74 PROJECT EVALUATION TRIP REPORT NAME:Dave Denig-Chakroff "aleDATE:_1/9/84 -1/11/84 .Lo ee TTLOCATION:Unalaska/Dutch |Harbor ee:WUD an PURPOSE OF TRIP: (1)To attend the Corps of Engineers'(COE)public meeting on two small hydropowerproposalsandtodiscusstheProposalsanddraftfeasibilityreportwithCOEpersonnel...i (2)To meet with the City:'Manager to finalize the professional services contract for a cost-of-power and rate study. (3)To meet with the City Manager,Public Utilities Directors and Electric UtilityManagertodiscussloadforcasts.. ACTIVITIES/AGENDA (participation In meetings seheduTe-[e-appotntments)z>Monday afternoon:Met with the City Manager.to:discuss contractual:artangements forthecost-of-power and rate study.»We.also discussed load'forecasts for the community..7 aan anOece a a Monday evening:Met with.representatives 'of.'CoEstudyfor.two small.hydropower projects.tide Ekipou :Tuesday morning:Met with the City/Manager;iie:Works»-Diréctor,*E ectric UtilityManager,City Planner and representatives:of COE to discuss'the:'draft feasibilitystudyandEIS.cis ;.(over) CONTACTS:Nancy Gross,City Manager Jeff Currier,Public ..Works .Director: Jack Anderson,Electric Utility Manger- Arnie Erickson,City PlannerJurateMazeika,Parks,Culture &Recreation Director Sherry Thompson,City CouncilwomanAbiDickson,citizen (owner of bookstore and gift shop) Kathy Grimnes,Chairman of the Board,Ounalaska Village CorporationFrankandBettyAbello,citizens (owners of construction company) Tom Gould,owner,Maritime Heliocopter,Inc. SIGNIFICANT ITEMS (potential problems): Contractual arrangementsfor the cost-of-power and rate study have been worked out.APA may proceed to finalize the professional services contract."s (over) The Public Works Director and Electric Utility Manager project that electrical demand "will increase significantly in the near future.The major cogenerators of electricity on the island have expressed interest in purchasing electricity from the city if rates are competitive with their own cost of generation.City officials feel that thelong-range population and load forcasts presented by Acres American,:Inc.arespeculativebutnotunrealistic.The new electric system'is:being désigned to handletheoutputofageothermalpowerplantshouldonebeconstructed.New dieselgeneratorsproposed:for the system would be needed for backup:and,peak demand Periodsifageothermalpowerplantisinstalled...3 Os 98:05 (over)873/102 }G.,|:Guo a eS,ooSS "ACTIVITIES/AGENDA:(continued) Tuesday afternoon:Met with the Public Works Director and Electric Utility Manager to discuss load forecasts,capabilities of the present and proposed upgraded system, effect of cogeneration in the community,and the role of and potential for geothermal power in the community. Tuesday evening:Attended COE public meeting on small hydropower projects and answered questions that arose concerning the geothermal project. Wednesday morning:Met with interested members of the community to discuss the status of the geothermal project and to take a driving tour of the island.Talked to Tom Gould of Maritime Heliocopters about the status of the geothermal well. CONTACTS:(continued) Ron Maj,Project Manager,COE John Burns,Project Biologist,COE Diane Walters,Public Information Officer,COE Bruce Batten,Public Information Officer,COE Lt.Colonel Saage,COE SIGNIFICANT ITEMS:(continued)a The COE's two small hydropower projects would provide relatively low installed capacities:(700 kW and 260 kW)and would have a minor effect on the feasibility of a geothermal power project of 10-30 MW.The larger of the COE projects (Shaishnikoff)is not likely to be built due to a minimally positive B/C ratio (1.04).The hydropower projects could not be built for at least 5 to 10 years and their feasibility will be reevaluated after the economics of a geothermal facility are determined. The people of Unalaska are,generally,very interested and enthusiastic about the prospects of a geothermal power plant on Makushin.They want to be kept updated on the project and expressed their willingness to support_the project in any way /c/o PF2 GI *OD MEMO TO THE RECORD WA,.ALASKA |sussect BY DATE tyes)"WGPOWER[Sh form PED fe SHEETNO___,ofr__,_”AUTHORITY V WA.CxrkenBon.prosect__LW ge Ge odo Cilbeicl vw,f22h bebehi | Bir nziaAhethanolan4:68 [US4,fenLCABikvdeaohLudwh,gnD34,999.Nhe Azont bred leds AsBeYoon.Migeral £4 IF6 hy VINE, She oantco Wg we AYA Shawld attengaltoamendRS#hata,mwdk Too.Sh pugocstet 3 jfk!b O6&braneaboutHex.OrfA Jha 6 /IDCO . D215 mor thd ty (2b Breen &<pla 2d brtirrn Le Fore 4 dew Lobored pyran tyne Dl lant An ee ae ree re MEMOTOTHE RECORD MD Ss.OSALASKASUBJECTlLJtAsKAO-Y pate”VeG53 POWER AUTHORITY SHEET NO (or?PROJECT V/A ASK Lea)Max US COC.Cleo f°5 2p Snguiud 22 ©dete Ge lan bf en GEMpralethLitngonlt,Bhalpota:ia Jo Papal ths Deey and!Log ganic.bnplyp is Lath te aeLtthiion20daysoftecgGfYhicAnimatin-Aw»Ls lad af Drvcowothele. b,.Aepuucti Co/24 LE Qrabyeio Wir _xfJoonbaJy Proj.Code:.3 File Cede CS---0 S 4p -- J.Oat:Ln 3/57./ MEMO TO THE RECORD ALASKA SUBJECT BY DATE POWER SHEET NO OF AUTHORITY PROJECT 2 33,05,0°MEMO TO THE RECORD ALASKA suBsect_Un iska Geothermal py _Dave D-C__pateli/9/83 POWER SHEET NO OFAUTHORITYPROJECTUnalaska Todd Hardesty,Reporter for Channel 2 News called to find out the status of the "feasibility study"on Unalaska.I explained that the Reconaissance Study would be complete by the end of December after we receive the final report from the prime contractor.I also explained that last summers field work was being extended into next summer.He inquired as to what APA would do if the Recon.Study showed that geothermal energy was not the best alternative.I suggested that we set up a conference call with Patti some time in the next couple of days to discuss the project further.Hardesty also wants.to know if the video tapes on Unalaska are available for his use. "ifs {Ez Chi Ml om Cnferina Cll )/fpft'Di scucecol esitt Lpbplir .nnd bputtraghninforehinjaacteeSSMerc Vi dhe tape, ALASKA POWER AUTHORITY SUBJECT MEMO TO THE RECORD BY SHEET NO PROJECT 5.95 ALASKA POWER AUTHORITY AGENDA Portland Planning Meeting Unalaska Geothermal October 25,1983,7:00 PM Jantzen Beach,Red Lion Inn Portland,Oregon Multnomah Room Technical Planning -Don Markle,Chairman I --Introduction -Patti DeJong,5 minutes. Video -10 minutes. II --Republic Program -Gerry Huttrer,10 minutes. 1)Project budget 2)Long-term flow test 3)Gradient Well Sugarloaf 4)Drill deeper in present Well 5)Discussion Format will be presentation of recommended program with reasons for recommendations.At end of four part program,audience will critique program.Suggestions for alternatives to,or changesinprogramwillinclude;(15 minutes). 384/057 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) Flow test program Well location,second Well Intent of second Well Test program,second Well Geophysical methods instead of second Well Use of precussion hammer vs.rotary in second Well Can we get participationfor wildcat in Well #2? Should we go for production in Well #2?Proj.Code:3p What are requirements for redrilling Well #1?|File Code:20505 -v.:What type and when should we abandon Well #1?4,298 |J.Data:: -l- 11)Should we bleed Well #1? 12)Pros and cons of winter flow station establishment on Makushin Creek for environmental monitoring. 13)Federal participation. III --Geotechnical Program -Roman Motyka,10 minutes. IV --Land Status Program,30 minutes A) B) Area Overview -Alan Axell Aleut Corporation,5 minutes Land Requirements -Discussions group led by Gerry Huttrer 1)Plant site;Makushin Plateau 2)Plant site;Sugarloaf 3)Transmission corridors V --Economics A) B) C) D) 384/057 Introduction of reconnaissance -Don Markle,5 minutes Overview of Known Economics -Gerry Huttrer,10 minutes Discussion of Feasibility Analysis -Patti DeJong, 10 minutes.Discussion of elements required. Requirements for Private Finance -Discussion,15 minutes Topics a)Drilling guarantees b)State financing c)Take or pay contract d)Divide resource development and plant development e)subsidy Nee bo de weko a kt Were a tee' bat-wot Lathe sk Dore teyaan ,.Bw /pohn lol . | 2 evedn wells nord df. YO Pardons acini,Cth of wm Wi --peypt SY ear,ww ¥*CAML A2cn.J wre loe septs ch . 3¥Conger 42 st WG lathe,)Stet hak eh,EAM/mA,| he | ma 4 to»reel , sy on t Or A 2)UE at ste | oe 4 Thee Bemotenty on AsemeeCRatrofOey\No (2 Dexd wo _X (rae at Pre one do aan N-(16 aul TMD The cor Cd,teeth lol PA ws i,'|rr (soo ia "IPFilgCode:195;05.4%Y2onrn 1 2°v9 MEMO TO THE RECORD ALASKA sussect__8 WY on.daiWuw _Y AK)|pate_S/(€(53POWER(Param Aoi eiencns .\SHEET NO |or__! AUTHORITY PROJECT _LA Weelome,Gres Trewa, CA ema Gerry tr Bre Carlos Gosport onw "Vex Wrevicle 's Pe &enn en mtont en (ena orn is A ee aQ_oint ss th, Malee sr drag sit,»,Twa thieftherer+.Ayre ot det AG au erplag \(DT.+)+>GAS2iwe +.le st pela:atsPhtBAonAntQveuVen.| Uwe.[user tid |+2 Olea wen of \\SU Ven DS -e_ADT ,_nelicated)A,”AD ast se elole :ats Ap LD ;z ure Useshk >Zee ewer omen nonfiornstOlsonosouldberebinedDGyfleeatofrealTLalsoqutshinne|oo aban AD)T-an renin Ww len she Phan?pony a drtWesaclToaeStafeaboy,vvete)eS egal -)pawl enscareotOo«metaTS "peice Pee [ro bst NESS Way) vend ted ai Co aw shit eT:LS\ne |Gowen es ye dha Lo re-5 pe SH te Sub -(opadhee pug userg-PEE worn aper nentCorrs)elredt Wnornrerre SS «)Prot te Se OS VA Pus Guus. J.Data:3,230 | ALASKA POWER AUTHORITY SUBJECT MEMO T0 THE RECORD BY __DATE steSHEET NO OF. PROJECT TRIP REPORT August 3 -8,1983 Unalaska -Geothermal Prospect General conditions: 3K.OS 2.OS The prospect is located on a bench in upper Makushin Canyon. The origin of the bench is in dispute by the geologist.The camp is located at the east edge of the canyon at the point of intersection between the bench and a canyon.The location of the camp is the result of logistical considerations during the spring set-up.There were few areas that were snow free at that time. Camp was therefore set up in what was and is a wind channel. The weather ports are above average for this site camp and cost.The camp is well equipped with showers,hot water,washing facilities,generators,refrigerators,freezers and oil furnaces. The weather ports have wooden floors and good tables and bunks. Extra cots are available for visitors.The camp food is good. The morale at the camp is reasonable considering the progress to date.The communications are excellent when the repeater is operational;when not the communications are very poor. The helicopter pilot is above average and responsible in part to the good morale.His name is Rick Harkness.He should be used as call pilot in future Alaska Power Authority work,due in part to his positive effect on the crew. During the course of earlier drilling,it became apparent that a mechanic on site would be useful.The mechanic was a very good idea and the contractor should be commended on the addition as a permanent fixture.The mechanic himself is a welcome addition to the camp because of his energy,inovation and personality. The drilling crews themselves appear to be standard fare.So far unable to determine the extent of their experience.The A.R.D. management on the job,is questionable at this point.There are two drilling managers on site,one R.G.I.and the other A.D.I.The A.R.D.manager has not spent time at the rig or with the crews.I have seen no evidence of him helping Republic in problem solving. I believe this area needs to be addressed immediately.Republic is responsible as well,for not taking action in what problem. Drilling Progress: 9786/042 is..an.obvious___Pol ttn ye] File Code:2 OS OS:VI J.Date:£3 »2S1 Trip Report October 10,..83 Page 2 The drilling crew had flash set the HQ rods in the hole while trying to cement the steam show at 670 feet.The apparent reason for the flash set was a lost circulator zone at 525 feet that was not detected when drilling.When the crew circulated the cooling fluid,it was only getting to the 525'zone outside and being lost. Therefore,the lower hole was still extremely hot and flash set the cement.The drilling crew then drilled out the center of the HQ and tried to ream the outside of the HQ with HX pipe.The tolarence were too small and the HX twisted off.The HX was fished out.The decision was made to just drill ahead and cut off the HQ pipes where the HX twisted off. One of the major concerns was voids outside the HQ pipe.In the event hot fluids were produced,the water outside the HQ would be instantly flashed to steam and the pipe might well collapse. The collapse pressure of the small pipe is about 7000 p.s.i. which is twice the strength of the larger pipe 8 or 9 inches in diameter.This fear has been somewhat discounted after confirming this fact. The crew is drilling ahead with the NX casing while waiting on cutting tools.The reduction at this point,is somewhat inopportune in that some sacrifice is being made on hole integrity and our ability to go deeper if we have to case off a lost circulation zone. Once the tools arrive,the HQ will be cut off as close to where the HX reaming was completed.The rest of the hole will then be cemented to the surface around the HQ. Coring was initiated again on 8/4.THe NX pipe was twisted off at depth during the nightshift.It was fished out and coring resumed.Additional water will be sent down hole to try and cool the bit.The thought is that the extra water will keep the bit from sticking and help bring cuttings to the surface.The crew appears to be going ahead at a reasonable pace since 8/4. General Comments -crew working well under severe weather conditions.Equipment holding up well under extreme conditions. Pipe may be poor quality -at least mentioned by drillers. The major concern that Republic has verbally reported and I have now personally observed,is ARD's poor support of Field Operations.The specific examples of this are as follows: A)Cutting tools were requested August 3,1983,when the HX rods twisted off.They were located and sent to Anchorage.They were to be sent down to Dutch Harbor on 9786/042 . Trip Report October 10,..83 Page 3 AirPac.The airline did not fly for two days and the tool was not sent on four Reeve flights while they waited.The drill rig waited at least a (part of 1 day)on the tools which finally arrived on August 9.This had the potential to be a much larger problem. B)The crew requested mud.The answer reported to me was that no mud was available.One pallet was sent,three were requested.There are a number of oil field supply firms such as Macobar that could easily have supplied the material,no time was lost but,it could have been if we would have lost circulation problems. These examples confirm several Republic reported and investigation problems with A.R.D.on their capabilities in support of the drilling operations.This problem has probably cost theAlaskaPowerAuthoritybetween$30,000 -$40,000. Republic has reported and confirmed the problem but,has not taken decisive action to correct it.Republic appears to be reluctant to step in on the internal affairs of the contractor. They have voiced three concerns verbally for not taking action(1)They should not have to "hold their hands"(2)they recommended against the low bidder (3)liability problems in making the subcontractor accept recommendations.I would add that the element of risk to Republic is in fact less if they do nothing in that the Power Authority is the financial loser in our contract with Republic.Republic may in fact benefit from increased operating revenues,although they do not make a profit on delays. I believe ARD's logistical support problem was an anticipated problem,has been a serious problem from the inception of the project and Republic,as our mangement contractor is remiss and perhaps liable for letting the problem go this long.In considering Republic's reluctance to deal with the problem,I offerthefollowing:(1)As our technical and management contractor theirjobisto,if necessary,"hold the hand of the contractor,"(2) Since they knew of the contractor deficiencies,they should haveanticipatedandcorrectedtheproblemlongago(3)as for liability,they have insurance Recommendations:I recommend we direct Republic to solve this problem within one (1)week.I also suggest they direct A.R.D.to replace their drilling supervisor in the same time period. These two actions would address the two problems I have seen on the project,that can and should be addressed. We have learned a great deal on the project from the technical and managerial point of view.On the technical side,there have been several judgment errors,that have gone poorly for us. 9786/042 * Trip Report October 10,..83 Page 4 1)Size of rig;too small for required job. 2)Use of rotary bit with inserts questionable.I believe we could have used down hole precussion hammer -I suggest we have Republic's response.We would have needed air compresser at added cost. 3)Should have used more water pressure to keep bit cooler and make sure cuttings were getting out of hole. 4)Tolarance too small to ream HQ with HX may have further problems with small tolerance due to small size hole.One of major concerns is small diameter drilling. 5)Cementing problems without down hole temperature reading. 6)Use of API rod not considered until after lost hole. It should be noted that all these items are hindsight obser- vations,and I do not believe that they are any more than knowledge gained as a result of the project.I therefore,recommend against additional technical management. I believe that the Power Authority contracting and management has one serious flaw.That is a lack of positive incentives to complete the prescribed work.I believe any further contracts should have minimum footage requirements and incentives for completion such as footage bonuses,i.e.the contractor will be paid a bonus of some dollar figure perfect for footage drilled beyond anticipated footage rate. I believe we should also require a field report every other day from Republic for the rest of the drilling project until demobilization. Highlights of ARD/Republic contract pertinent to this report by section. 9786/042 Trip Report October 10,..83 Page 5 Section 6.inspection provision of the drilling contract allows rejection of work.-None to date appears necessary. Section 1.Republic can require written changes to the contractor. Appendix I 1.1-03 Full-time -drilling foreman part of contract. Republic can remove personnel at contractors expense. 1.1-04 Requires list of all equipment to be submitted to Republic.If equipment is not on hand,this relieves contractor of the responsibility. 9786/042 PE.LYvoovGed ,'°s MEMORANDUM State of Alaska TO:File DATE:March 18,1983_er TELEPHONE NO: FROM:Patricia DeJong ed SUBJECT:Telephone Conversation Director of Project Evaluation with Paul Sanders, Utility Manager, Unalaska Municipal Utility After hearing from Ray Benish that Ed Eboch had been unable to confirm that there would be a significant market for power which would be produced by the geothermal project when and if the project proceeded to plant construction and operation,I was frankly quite surprised.My previous conversations with Mr.Sanders,the utility manager,had led metobelievethattheutilityprojections,which I had included in my life cycle cost analysis for Mr.Eboch,were relatively firm.For this reason,I called Mr.Sanders to further research the situation. Mr.Sanders not only confirmed what he previously had indicated to me,but he also told me that he has letters of intent to purchase power in hand and extremely strong indications of intent from additionalcustomers(Table).These are firm commitments only.Other sales are anticipated.The utility considers the load and demand forecast indicated to the Alaska Power Authority to be firm enough to justify their additional investment to meet this demand.The utility is pro- ceeding with plans to construct a new transmission system and expand diesel capacity to serve these customers.Mr.Sanders offered the comment that he had been contacted by a "woman who didn't seem to know what she was doing"who was calling to obtain this information for © Mr.Eboch.It sounds like she misinterpreted the information which she was given in relaying it to Mr.Eboch. Proj.Code: File Code:BK.OS.OS J.Date:B23.T7:[ 02-007 A(Rev.10/79) Memo to File March 18,1983 Page 2 TABLE Potential Written Minimum Peak New Intent to MWH/Yr.Base Demand Customer Purchase Load Only *(MW)| Pan Alaska Seafoods Yes 3.942 1.750 kk American President Lines Yes 525.6 2.500 Standard Oi]Bulk Plant Yes 438 0.105 Standard Oi1 Hill "Insist"on being(Residential)able to purchase 876 0.200 Strawberry Hill (Residential)No letter requested 144 Not available Whitney Fidelgo Negotiating Not available Not available Universal Seafoods (Residential/ Commercial)Letter forthcoming 4.818 0.950 (Industrial)Letter forthcoming 5.256 1.500 Panama Marine Letter forthcoming 3.000 Not available Pacific Pearl To be negotiated 1.314 0.570 Sea Alaska To be negotiated 3.942 1.750 *Base load only is load to maintain minimal activities to exist.Commercial activities are added to this figure.This is the utility's conservative approach to determining whether they will be able to sell power from the expanded diesel with new distribution system. kk This is minimum base load only and does not include 250 freezer vans at 7.5 KW demand each during fishing season. a ee -Senne NLPLY (92_- Dlewinckohe men hn deve7FOOKL,*So (ee --- -- Proj.Code:---___]:File Code: 24.0S OS _ J.Date:BQ.3UP./f----ee tnaten, PaAY VoceiT AGENDA S09UnalaskaGeothermalDrillingProject Alaska Power Authority November 5,1982 9:45 AM Introduction Purpose:Brief the Power Authority on findings to date and preliminary interpretation and analysis Information transfer between DGGS,Republic and U of A Plan next field season drilling Introduce attendees 9:55 AM Geophysical findings Republic -Mercury and resistivity DGGS -gravity 10:45 AM Geochemistry Republic DGGS 11:30 AM Surface geology -Republic Noon Ground water association meeting:informal discussion of the project and slides. 1:00 PM Continue surface geology -DGGS 2:00 PM Subsurface geology (results of drilling)Miler Seaneeel,8 SoM euow=t aehyn »2:45 PM The resource and logistics of afte ey plant construction and operationAwe|Avce 3:45 PM Next summer's program drilling testing 5:00 PM End of meeting Proj.Code: File Code:78 OS.OS' J Date:So),SOP /_: Lhhkhdeve.ObertMacks(eit eeplenty Viteeboy -Gov -Gee »Hed, Asiae Colo fhe Mec MT.Economiass GN.Arce Plc.Ye Se Conky Tsselhnatt fom J.Motads (cHhhbh CAZENGA DOA)AT CareyJokeWw.Keeler 9h BilleSvernenU-nravrncei Clay Maghols"oO .hhh HenninlargQ.A Jeet arn.be VM Le arc Tepe TER. Orrin 7 fe Lie ee / Un.of RLas baVfA Aig Vouer ATA Phone E203)FYS-Sb/ (92,YG FP Boe C909)AI4 9758S {or -2tF-PUY / Ryoubls ©(AI)7 F-368/ DGCS ,Fabby (70)979-T 47Cif.AUnchaske 274 Y1i Pepeuc-dwy,AEFMRS 213-945-366[ DEES 274-76&] US6S,Alecha raved (378 357) Danes *M ese ZRA-C673 DGGS 274-768) DCGS CEE -25°S5<- OECS Fautanks (Fo 2)¥74-1147 DEsy Hach.Go)27.0Sos Repuecic (Gevireems ©U3-9 XS=3 66, BPahadeyeterbatNRterteyOBmena"BA =aghekDcheage. oe OB"Agraie Dutt foaben.Piilcminesy Reemnnniocance 4n Unakscka la 0aa -,00am S820pm _8.5 hy.PLASy"Pigg, &4oe--Toa ---Cc 1.5.has2D132am-4100.9.=[hearing aaee ee oe¢ _dA sto peocsh photosae"oy ablige _Bao tamp..fooka.igheVA*y t ve ___Fo¥dane JOeeDb).himan0.5 lew Aa gied.ee Be wantLb _.bologna),|Diseuoaed© Rh 'oleWipes _ lweee thi.vaheuldn:44be kip Chats Bcermwrlt was fet a "e7Jooltfeath_oll.Leo.cagpeiuiat at -ot ieee"foes JGH Sth Racal alist égeCGct4_€BC Ton He:,min (;_ TCH dett_at hig Behip :oA stone'a Aon- ere at.OE BIL-quetiyypolte bacm bo. Sie4TN.dis MECLIL.paper)-{"9SP.Sok ren anbandanonde - Moo -a¥ney 7 be Aue...vid.pet:VIE tole,af a es -_a”my Orak yt rene tiene a nT ”"*' -oS Fis Coda:3E.05.0S.ey x ”,»jdneey:i 82:217G Leees.ind?Bi nas,xs Jin aatttt M A tie i AAS eat metaoak aSa,Taam en « |.Pith him site__[eobsfg pscsaED._lofae Titaiva Addn,ADRoecEtihicezy,Waseei|||mMMi rn UNA <a,anda fu ty pet OL,"ioe eed LS py ineeal fay mabelwap.ebban eeations haig tow Mitteve SeatDaeanoheib[Z©1 Pat pb ae ben _Crfitts.who ui pu.|bled vf Jon Peny?Woyptle Spur2..,taal?Sutely.Epate,ee eee Pan Tt)ZalDeH,tA.Gage : ;|Fadi going 2a#L z thestf elesPETERSMeAeldatefo6/24:Pk bien ene Fis,ADEx3]p_Sth.tn (noi ¢Fadylli@nakez,USSaeOA.ipiga Oa bp.ALL Atoms MyicdyrsCleateAntCie:om,eetBEi,ICANT]IPT NI |tam:rn_asina.IL.Aadiemoefut.a_lat iesRcGAL,_cdf on:Pa cbse jell Hote lfa -AVY So. (LS (SL ay Geese Gvabe ci CQa =Wioeve '4 ates =,ae also Proj.Code: File Code:32.08.08 J.Date:Sa Su "/ . OO Py.4.Y REPUBLIC GEOTHERMAL,INC. 11623 EAST SLAUSON AVENUE SANTA FE SPRINGS,CALIFORNIA 90670 TWX .910.586.16.96 (213)945.3661 February 25,1982 Alaska Power Authority PLICUA POWER ALTETy334West5thAvenue,2nd Floor -oe Anchorage,Alaska 99501 PHASE Ia PROGRESS REPORT Data Review Republic has acquired copies of most,if not all,available publications concerned with geologic,geochemical,environmental,economics,meteorologic, logistic and sociologic aspects of the Unalaska Project.Much of this litera- ture was obtained directly from the authors subsequent to relevant conversa- tions.Republic has also acquired copies of the few available maps that cover the area of interest and is attempting to get copies of 1958 air photos taken by the federal government.Republic's staff is carefully reviewing these materials so that project plans can be formulated to maximize the extent to which new information is developed and to minimize the duplication of previous work. Technical Planning Meeting On Monday,February 1,1982,a technical planning meeting was convened by Republic and the Alaska Power Authority pursuant to contractual obligations. The meeting was attended by 24 representatives of federal,state and local governmental entities,native corporations,the University of Alaska,and the private business sector.A 266 page verbatim transcript of the meeting pro- ceedings was produced,three copies of which are submitted to the Alaska Power Authority herewith. Topics covered during the meeting are listed on the agenda (attached). Conversations flowed freely between the participants,and a great deal of relevant and useful information was volunteered and recorded.The use of 35 mm slides and "viewgraphs"augmented the discussions of Drs.Reeder, Motyka,Turner and Wescott. --e Prop.G. Fils sds:38.OS.OS_ 1.0;B2.S0.__| REPUBLIC GEOTHERMAL,INC. Alaska Power Authority February 25,1982 Page 2 Environmental:and:Permit Related Matters Republic and its primary subcontractor,Dames &Moore,have made initial contacts with representatives of the following federal,state and local agencies to discuss the proposed project and to begin the process of deter- mining surface and resource ownership,the regulations appropriate to and permits required for planned geologic,geochemical and geophysical activities, drilling of thermal gradient wells and drilling of the deep geothermal re- source well,and the appropriate extent of a baseline environmental data ac- quisition program: U.S.Bureau of Land Management Alaska State Office Anchorage District Office U.S.Fish and Wildlife Service Realty Division Alaska Maritime National Wildlife Refuge Alaska Department of Fish and Game Alaska Department of Environmental Conservation Permit Coordination Section Air Quality Section Solid Waste Section Water Quality Section Alaska Department of Natural Resources Division of Minerals and Energy Management Division of Forest,Land and Water Management The Aleut Corporation The Ounalashka Corporation Written project information packets have been distributed to these agencies to facilitate their input.The first permit applications will be filed during the first week of March.Basic data pertaining to the status of the land surface and geothermal resource ownership have been obtained and are now being reviewed. REPUBLIC GEOTHERMAL,INC. Alaska Power Authority February 25,1982 Page 3 Logistical and-Exploration Planning Republic and Dames &Moore staff have met with drilling contractors,heli- copter companies,camp provisioners,communications specialists,aerial photo- grammetrists,and geoscientists with experience on Mt.Makushin.These inter- views have yielded information concerning the costs of these services,time requirements for accomplishing various tasks,and practical methods for achieving some early project objectives. Pursuant to these contacts,bids for services have been requested from at least three contractors in each service category named above.Responses to these requests are expected by March 1,1982. Unalaska Meeting and Reconnaissance Trip On February 23,1982,Republic and the Alaska Power Authority held a meet- ing on Dutch Harbor at which films and slides depicting geothermal activities and Unalaska Project plans were shown to a gathering of Unalaska residents. Sincerely, acoG.'W.Huttrer Project Manager GWH:sjo UNALASKA GEOTHERMAL PROJECT TECHNICAL INFORMATION MEETING February 1,1982 9:00 AM 2nd Floor,334 West 5th Avenue,Anchorage Sponsored by Alaska Power Authority and Republic Geothermal,Inc. VI. -AGENDA - INTRODUCTION OF PARTICIPANTS -Name,affiliation,field(s)of expertise. PROJECT OBJECTIVES -ALASKA POWER AUTHORITY:Patty DeJong,Project Manager. REPUBLIC'S PROPOSED PLAN OF OPERATIONS -Brief description:Gerry Huttrer,Project Manager LOCAL IMPACT OF THE PROJECT:Unalaska residents and/or spokesperson(s). TECHNICAL INFORMATION EXCHANGE ON THE FOLLOWING TOPICS: 1.Maps and Air Photos 2.Environmental,Permitting,and Land Matters 3.Geology 4.Geochemistry 5.Geophysics 6.Drilling 7.Weather 8.Hous ing a.Dutch Harbor Db.Makushin Vicinity 9.Transportation and Accessibility ae Personnel b.Equipment and Materials 10.Storage Facilities 14. Communication Medical Matters Possible Contractors f. g. Helicopter Barge Housing -Camps Drilling Aerial Survey Construction Equipment Labor Availability Other Topics as Raised by Participants Jesse Burton Marvin L.Jones Vincent M.Tutiakoff,Sr. Wayne Lewis John Beebee John W.Reeder Jim Riehle Gerry Huttrer Dave Hedderly-Smith Patty DeJong Paul Neff Steve Grabacki Gary Arce Jamal Ansari Courtney F.Isselthardt Donald R.Markle Dwight L.Carey R.E.Yarter Gene Wescott Don Turner Roman J.Motyka Jim Robison Clay Nichols Mark Larsen LIST OF ATTENDEES Unalaska City Manager Ounalashka Corp.,Unalaska Ounalashka Corp.,Unalaska The Aleut Corporation Energy Systems,Inc. State of Alaska USGS,Branch of Alaskan Geology Republic Geothermal,Inc. Division of Minerals and Energy Management Alaska Power Authority Dames &Moore Dames &Moore University of Alaska,Fairbanks University of Alaska,Fairbanks Republic Geothermal,Inc. State of Alaska Republic Geothermal,Inc. Republic Geothermal,Inc. Geophysical Institute U.A. Geophysical Institute U.A. Alaska Geological Survey USGS,Menlo Park,CA - USDOE,Grand Junction,CO State of Alaska "ona7 aN ; ;,Pot.A. OFFICE MEMORANDUM |ANCHORAGE 7 ACTION INFO S.O S To:P,Neff AN File:-12023-007-20 G.Huttrer RFI APA/Republic Geothermal D.Carey RGI ; P.De Jonq APA X-Ref:RECEIVED oy 4 f iaiena) prin EAUER PUTEOSITY La hi Jr Date:February 19,1982 From:Stephen Grabacki ay)Le Reply Required By: . aa " Subject:"Makushin Land Status Reference(s):Conversations w/Larry Calvert -NWR Operations &Bill Mattice -Chief,Realty,USFWS,Anchorage 1.Geothermal Steam Act and NWR regulations prohibit geothermal leasing in NWR. 2.Since leasing is prohibited,there is no point to geothermal exploration. 3.No geothermal exploration of any kind will be allowed by USFWS. 4.No special use permits will be issued. LAND STATUS 1.These townships are part of NWR and therefore: , .USFWS has authority,not BLM. °Aleut selection of this land does not alter USFWS's authority. »|_USFWS's authoritywillend only if the land is conveyed to the Aleuts. 1.Fred Zeillemaker -Adak -Manager of Aleutian Island Unit of Alaska Maritime NWR. 2.John Martin -Homer -Manager of Alaska Maritime NWR (235-6546). oo ooR 2 Coto De ee TRAD OHO Doo oe OD 3.Larry Calvert -Anchorage -Operations Manager for NWR:ROUTING in southern/coastal half of Alaska.° 4,Redfearn -Anchorage -Manager/Superintendent of all NWR in Alaska. 5.Bill Mattice -Anchorage -Chief,Division of Realty. +roj.Code: Fil Cote:if OS O'S-STG/ebm re ot i Date:2859 DAMES &MOORE »_.OFFICE MEMORANDUM ANCHORAGE »» 'ACTION INFO an To:P.Neff AN File:12023-007-20C:G.Huttrer RGI APA/Republic Geothermal D.Carey R&l P.De Jong APA X-Ref: Date:Feburary 23,1982.From:Stephen Grabacki ffCll Reply Required By:)ee '"Makushiin/Unalaska (snd Status i,Reference(s):Conversation with Wayne Lewis of Aleut Corporation ee USFWS has no control over the land on which we will be exploring because: °Unalaska Island,along with the rest of the Aleutians,was put into the Aleutian NWR in 1913. «At some time well before passage of ANCSA,most of Unalaska was removed from NWR (Lewis could not cite this order) Ce °The townships we are interested in were therefore available for "overselection under ANCSA 14(h)(8),and the Aleuts selected them (in 1977),along with "half the western hemisphere." °-ANILCA excluded any/all Native-selected land from its definition of "public lands"and then went on to say that all public lands in the Aleutians will go back into NWR. bev _e Since the Aleuts had selected almost all_Temaining Aleutian tand,REEEAG very Little went into NWR.PR pees Le BME Peo ag ated Sena Ba °The selected townships on Makushin did not,therefore,go into NWR. e These overselected townships (and many others)are administered by BLM (not USFWS)until conveyance to,or relinquishment by,Aleut Corporation.If Aleuts relinquish their selection,the lands will then go back to NWR/USFWS. Ce SS ROUTING :7 .noe .:.Toms cot Dae es 4 Ly .len wd vt tne mae :paw:Se hee Bea a 'a teense ws»114.7 AN . . ee :rn fe o ae .reo,-DAMES ©MOORE DAMES &NOORE Office Memorandum February 23,1982 Subject:Makushin/Unalaska Land Status Page 2 e USFWS has,apparently,not connected: -ANILCA's exclusion of Native-selected lands from the definition of public lands,with which lands actually went into NWR. Lewis suggested that I call Doug Strandberg (276-2201)for the proper citation of the order removing the townships from NWR. Further notes: °Aleut Corporation now knows that approximately 52,000 acres are available to it under ANCSA 14(h)(8). °No one has ever tested this logic against USFWS --RGI/D&M will "wake them up." e USFWS and BLM have recognized Aleuts'overselection.They could/ should not have done this if the land was,in fact,part of NWR. STG/ebm .es .a '€ Ot .: ||-Noyv.22011[S28 .,(S55) Grecutive Oroer ALEUTIAN ISLANDS RESERVATION RECEIVED ALASKA -=Po tm an ALLOA POE ASTRONTY | oo.HEItisherebyorderedthatExecutiveOrderofMarch5,1913 (No.1733), reserving all islands of the Aleutian chain,Alaska,for a preserve and breeding . ground for native birds,for tho propagation of reindeer and fur-bearing animals, and for the encoursgement and development of fisheries,be and it is_hercby evoked in so faras it affects the following named islands as shown upon U.8."Geodetic and Coast Survey Chart No.8302 jAkun,Akutan,Sanak,Ticalda,Umnak and Unalaska,including¢Sedanka."And it is also hereby ordered pursuant to Public Resolution No.29 of Feb- ruary 14,1920 (41 Stat.434),as amended January 21 and December 28,1922 (42 Stat.358,1067),that the public lands in the above named islands shall,subject to valid rights and the provisions of existing withdrawals,be opened only to entryundertheapplicablehomesteadJawsrequiringresidencebyqualifiedex-service men of the Werld War,under the terms and conditions of said resolution and the regulations issucd thereunder,for a period of 91 days beginning with the 63rd day from and after the dute hereof,and thereafter to appropriation under any public land law applicable thereto by the general public.Subsequent to the date hereof and prior to the date of restoration to general ,disposition as hereia:provided,no rights may bo acquired to the excluded lands by settlement in advance of entry,or otherwise except strictly in accordanco herewith. CALVIN COOLIDGE Tue Wire House, November 23,1928. [No.5090] --_-foe nnecrapentoeteen i.bdtnebeeemeeeoecmeow,ee it -_-.r 3 |a ]6 4 REPUBLIC GEOTHERMAL,INC. 11823 EAST SLAUSON AVENUE SANTA FE SPRINGS,CALIFORNIA 90670 TWX .910.586.1696 VED (213)945.3661IREGEI FEB22 1982 February 18,1982 ALASKA POWER AUTHORITY. 7k ° Mr.Paul Neff , Dames &Moore On 800 Cordova,Suite 101 ----Anchorage,Alaska 99501 Dear Paul: On Friday,February 5,1982,a meeting was held in yourofficeduringwhichD.L.Carey,Steve Grabacki,you and I discussed the scope of services that Republic wishes Dames & Moore to undertake in connection with Phase Ia,Stages 1 and 2 of the Unalaska Geothermal Exploration Project. This letter will document the list of tasks identified at the referenced meeting and serve as a "Letter Agreement" between Republic and Dames &Moore.It is understood that this list is preliminary and may be modified as the project "matures.Any major modifications will be documented in 'letters similar to this one. Tasks to be accomplished by Dames &Moore staff as Rer discussions on February 5,1982: 1.Steve Grabacki will draft letters describing the project plans.These letters will be sent to the Aleut Corporation and the Ounalashka Corporation following Republic's approval and signature.hoeSteve Grabacki will assist the Aleut Corporation and the Ounalashka Corporation in preparing appropriate responses to questions posed in the letters referenced above. 3.Steve Grabacki will obtain status documentation (MT plats)and copies of cited documents from the Bureau of Land Management for lands in 1715S, R117,118,119W;T72S,R117,118,119W;and 1173S, R118,119,120wW. Proj.Code: File Code:26,O5:O0S J.Date:KR.UF / REPUBLIC GEOTHERMAL,INC. Mr.Paul Neff Dames &Moore' February 18,1982 Page 2 4.Dames &Moore will write a narrative describing the various permits that will be required. 5.Dames &Moore will coordinate closely with all appropriate state and/or federal officials to make them aware of the proposed project and ob-. tain their input for the design of permit appli- cations and an environmental baseline data collection plan. 6.Dames &Moore will file Notices of Intent (NOI's) for geologic and geophysical work and thermal gradient drilling (NOI's will be written by Republic)and will coordinate with the Bureau of Land Management to expedite their approval. 7.Dames&Moore will draft a proposal for an envi- ronmental baseline data collection plan in accordance with guidelines developed by respon- Sible state and federal officials (see #5 above). 8.Dames &Moore will draft permit applications in accordance with guidelines developed by respon- sible state and federal officials (see #5 above). 9.Dames &Moore will contact the Fish and Wildlife _°Commission regarding the reconnaissance trip to Unalaska planned for February 21 to February 26, 1982.Fé&W will be invited to attend the public meeting scheduled at 7 p.m.on Tuesday,February 23,in Unalaska. 10.Dames &Moore will provide logistical liaison between Republic staff and Anchorage contractors (communications,drilling,helicopter,camp, medical,etc.),as requested and appropriate. It is estimated that approximately 80%of this work will be accomplished by Steve Grabacki and that about 20%will be done by Paul Neff.It is also agreed that $27,720 will be 'sufficient to accomplish these Stage 1 and Stage 2 tasks (and for a few additional anticipated activities of a similar nature).It is further agreed that Dames and Moore will not exceed this amount without prior written approval. REPUBLIC GEOTHERMAL,INC. Mr.Paul Neff Dames &Moore February 18,-:1982 Page 3 If the contents of this letter accurately reflect yourunderstandingofthescopeofDames&Moore services re- quested,on February 5 by Republic,please so indicate by yourSignaturebelow. Please understand that I do not intend to constrain our existing pleasant,informal relationship by constantdocumentation;however,I do believe that some written proof of our corporate relationship should be recorded from time to time during the course of this project. Sincere'x.yaia Ze,euPlodectManager Unalaska Geothermal Project Agreed to: Date By Dames &Moore GWH:sjo cc:E.W.Wellbaum,Republic Geothermal,Inc. P.DeJong,Alaska Power Authority_/T.Andriola,Alaska Power Authority ALASKA POWER AUTHORITY MEMO TO:Robert A.Mohn DATE:November 5,1981 Director of Engineering FROM:Patti DeJong oy Ss OsProjectMartyer SUBJECT:Trip Report for Trip to Houston,Texas for Geothermal Resources Council (GRC)Meeting, October 27-29,1981 I requested out-of-state travel to Houston,Texas in order to attend the 1981 Geothermal Resources Council (GRC)meeting.The GRC is a non-profit membership organization which promotes sharing of geothermal experience from private sector and government backed geothermal projects.My purpose for attending the meeting was two-fold and directly related to the management needs of the Unalaska Geothermal Drilling project: 1)Meet and talk to representatives of firms responding to our geothermal solicitation and discuss their capabilities and reputations with others in the industry. 2)Brush up on the state-of-the-art of geothermal exploration technology including drilling and reservoir testing,and learn from the experience of others who have been involved in programs similar to ours. Both of these objectives were met.I was able to meet with representatives of KRTA,Harding Lawson,Republic Geothermal,Nevin Sadlier-Brown Goodbrand Ltd.,Morrison-Knudsen and several firms which had either been unable to respond to our solicitation or who chose not to for some other reasons. Additionally,I spoke with Jim Bresee,the Acting Director of the U.S.DOE's division of geothermal and hydroelectric systems development.He confirmed information I had obtained previously regarding the availability of federal monies to augment state funding for geothermal projects and the geothermal guarantee loan program--there is no money available for either of these.He did agree to assist us in our review of proposals,and I intend to contact him for specific proposer information and with technical concerns. The technical sessions were helpful.I was too late to attend the drilling session (held October 26,1981)but found the well testing and reservoir chemistry and engineering sessions extremely pertinent to our project. Froj.Code:4 File Gods:Ib ,0OS OS | fd.Date:Sh.207.f | ALASKA POWER AUTHORITY Patricia DeJong DATE:November 4,1981 Project Manager Robert A.Mohn Director of Engineering Eric P.Yould aanExecutiveDirector Unalaska Drilling Contractor Selection Committee committee for the selection of a contractor shall consist of: Patricia DeJong (Chairman) Alaska Power Authority Dr.Michael Economides Consultant to the Power Authority John Reeder DGGS Jim Robison USGS,Menlo Park Dr.Robert Sanders Diamond-Shamrock (formerly DMEM and U.S.DOE) DTD C'sMEMOTOTHERECORDFSALASKASUBJECT_(ARcA arloe Power BY DAT POWER Nee ds SHEET NO OFAUTHORITYPROJECTAustesicnFo|° Sf ce ERGA CT!OL AA New SBZl-1-5] ANAC ASE Prarin Idk Ayo An been,Yu ¢Sek © |__Selreo\_|asepre'T coctem en , is ,42 S-=49-2 fhe ads.leLow te ) aam ol leat Deoi Te i sla: T T ee File Code:_28.OSOS| J.Date:2 /.-7./ fal oe ALASKA POWER AUTHORITY SUBJECT MEMO TO THE RECORD BY ,_. SHEET NO __DATE__! 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