~b /:,~:.' j(. - University of Hawaii › bitstream... · projects in Bolivia, Brazil, Costa Rica, Greece, Japan, Nicaragua and The Phil ippines. SUITE 201 5221 CENTRAL AVENUE GeothermEx,

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GeothermEx, Inc.SUITE 2015221 CENTRAL AVENUERICHMOND, CALIFORNIA 94804-5829

April 23, 1991

Mr. Murray E. Towill, DirectorDepartment of Business, Economic

Development &TourismATTN: Energy Department335 Merchant Street, Room 110Honolulu, HI 96813

Dear Mr. Towill:

Enclosed are six copies of our proposal to provide TechnicalAdvisory Services to the State of Hawaii, Department of Business andEconomic Development and Tourism (DBED).

Please call me or Dr. Subir Sanyal of our office in the eventyou and your staff have questions.

Very truly yours,

/ ~b/:,~:.' " j(. d"IMurr~ C. Gardner ~

MCG:kr

Enclosures

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'l1le Bea.'•.~flfI8

Dames a Moote I

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3. WORK PROGRAM

4. BUDGET

5. CONFLICT OF INTEREST

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CONTENTS

Introduct ion . .Geothermal Power Plant ProjectsGeothermal Consulting AssignmentsGeothermal Operations

IntroductionCapabilities and Business LocationExperience Specific to HawaiiOther Relevant Experience

2.1.12.1.22.1.32.1.4

2.2.12.2.22.2.32.2.4

2.3 Dames and Moore .

2.2 The Ben Holt Company

2.3.1 Introduction2.3.2 Geothermal and Environmental Experience

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2.4 Summary

GeothermEx, Inc.

3.1 Proposed Consultant Team3.2 Proposed Work Plan3.3 Project Timing

4.1 Billing Rates4.2 Proposed Budget .

INTRODUCTI ON

2.1 GeothermEx, Inc.

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2. ORGANIZATION EXPERIENCE

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A List of Clients of GeothermEx

Recent Reservoir Analyses Performed by GeothermEx

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Resumes of Proposed PersonnelA.

C.

B.

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From our review of the RFP, GeothermEx considers that theprincipal role of DBED's selected consultant is to evaluate the resourcefrom eXisting information and to guide future technical efforts to besupported or conducted by DBED. To accomplish these objectives,GeothermEx proposes to evaluate expeditiously all eXisting data, as wellas proposed and continuing field, laboratory and theoretical studies,and to recommend studies or surveys that should be continued orenhanced, and those that should be curtailed or terminated.

The staff at GeothermEx have already had considerableexperience working directly with geothermal exploration and developmentin Hawaii. Therefore, we expect to identify and prioritize those surveytechniques that are useful, and eliminate those that are not foreconomic exploration and development of geothermal resources. Also, weexpect to be able to define the scope of new work that may be undertakenproductively, provide new designs and/or critically review existing SOHplans for activities that DBED considers funding, and to assess

The Department of Business, Economic Development and Tourism(DBED) of the State of Hawaii issued a Request for Proposal forTechnical Advisory Services Relating to Geothermal Resource Assessment(RFP) on March 29, 1991. GeothermEx, Inc. is pleased to submit thisresponse and proposal to perform the services described in the RFP.GeothermEx is proposing to act as principal technical consultant andcontractor to DBED, with subcontracted assistance from selected membersof The Ben Holt Company (Power Engineering) and Dames and Moore(Environmental Engineering). GeothermEx proposes to provide allresource-related advisory services and will be responsible for technicalcoordination and ensuring timely performance of all subcontractedparties.

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qualifications of potential contractors for geotechnical and engineeringwork. If requested by DBED, we will evaluate budgets for such work interms of time, materials and costs. We will participate in meetingswith DBED, DlNR and other agencies as requested by DBED to discuss thesetasks.

We believe that it is still premature, and perhaps imprudent,to fund and schedule major survey efforts, e.g., geochemical samplingand modeling, shallow and deep electrical resistivity, reservoirsimulation, and so forth. Before such major surveys are undertaken, theresults of prior surveys must be interpreted beyond the existing effortsof Ente Nazionale Per l'Energia Electica (ENEl), the private developersand the State of Hawaii. The reports produced by these entities and thematerials presented and discussed during several sessions of the 1990meetings of the Geothermal Resources Council in Hawaii reveal a state ofnear confusion about the results of various exploration efforts.Proponents of a favored technique recommend their survey method as apanacea, when in reality it may only be a research exercise. While suchgeophysical and geochemical research is certainly interesting, webelieve it is more appropriate to focus upon those methods which clearlyincrease the level of understanding of the resource.

To work toward this goal, the consultant must go beyondevaluating individual surveys by synthesizing the subsurface data fromdeep wells in the Kilauea East Rift Zone (KERZ), and making systematiccorrelations between the deep well data and existing information fromgeophysical, geological and geochemical surveys. The relationshipbetween various survey techniques and the resource they are trying tocharacterize can only be determined by taking this type of integratedapproach, which will naturally lead to a prioritization of surveymethods. The State will be requested to expedite delivery of data from

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all developers that has passed the one-year proprietary protection timelimit.

GeothermEx also understands the need for rapidly developingappropriate policies and programs for assuring the productivity andlongevity of the geothermal reservoir, and protecting the environment bypreventing the degradation of air, surface water and groundwaterqualities, and by avoiding noise pollution, visual blight anddetrimental land-use practices. Various methods may be considered toaccomplish goals associated with proper well-field and reservoirmanagement, and design and operation of surface facilities. Forexample, the concept of unitization of geothermal reservoir areas wouldbe studied. Unitization effectively places several owner-developersunder the jurisdiction of one selected unit operator, while maintaining

To provide an orderly framework for the development ofgeothermal resources, the State of Hawaii has adopted a "master plan"approach to deal with the diverse participants and interests inherent insuch development. The State has retained the energy and environmentalfirm ERCE to prepare the master plan and environmental impact statement(EIS) for the 500 megawatt geothermal/cable project. Concurrently,Hawaiian Electric Company (HECD) is negotiating an agreement with aconsortium of private developers to plan and develop this project. Itis clear that DBED and DLNR will require expertise not only for input toERCE for the planning and EIS phases, but also for understandingpotential development scenarios in terms of resource availability, wellfield management, energy conversion technologies, power plants,gathering systems, and transmission facilities. In light of thesensitive nature of geothermal energy use in Hawaii, we appreciateDBED's need for concise, factual information to assist in developing andupdating the master plan for the geothermal/cable project.


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the protection of private property, data confidentiality and equitabledistribution of costs and profits. Unitization is a familiar concept inthe United States, and a suitable regulatory framework is already inplace. Under the terms of a unit agreement, the State could becomebeneficiary of significant royalties from power generated from anefficiently-managed reservoir, without the cost, redundancy and ill willassociated with having an independent organization to regulate theoperators. The state would of course continually receive productiondata on a timely basis and exercise authority as necessary to protectthe public interest.

GeothermEx, together with it subcontractors (The Ben HoltCompany and Dames &Moore), is ready to assist DBED in evaluatingtechnical matters and making objective decisions on the scope of furtherwork, focused on the KERZ or elsewhere. We are prepared to quantify andcharacterize Hawaiian geothermal resources, provide technical input onvarious aspects of the geothermal/cable project, and assist in thedevelopment of well-field and resource management plans to ensure thelongevity of this indigenous energy source. The following sectionsdescribe our qualifications, the proposed work program and the estimatedbudget to accomplish these tasks.

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2.1.1 Introduction

2.1 GeothermEx, Inc.

Since its founding in 1973, GeothermEx has worked for 170clients, divided among:


2. ORGANIZATION EXPERIENCE

• major oil and mineral companies requiring assistance inexploration and development;

• electrical utilities requiring independent resourceevaluations;

This section describes the experience of GeothermEx, Inc., TheBen Holt Company and Dames &Moore in the geothermal industry.

GeothermEx is a U.S. corporation providing consulting,operational and training services in the exploration, development,assessment and valuation of geothermal energy. GeothermEx specializesin geothermal resources only and is the largest and longest-establishedsuch organization in the Western Hemisphere. Its four principals haveadvanced degrees in earth sciences and engineering, and 20 to 30 yearsof domestic and international work experience in geothermal development.The staff, totaling about 20, consists of geologists, geochemists,geophysicists, drilling engineers, well-test engineers, reservoirengineers, computer scientists, marketing and economic analysts, most ofwhom have at least 10 years' experience in geothermal energy, petroleumand groundwater development. Associated consultants provide expertisein power engineering, district heating, environmental analyses, andsystems design.


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2.1.2 Capabilities and Business Location

GeothermEx is headquartered in the San Francisco Bay area at

Richmond, California. We provide consulting services in all aspects of

GeothermEx has conducted technology transfer or trainingprojects in Bolivia, Brazil, Costa Rica, Greece, Japan, Nicaragua andThe Phil ippines.


• financial organizations requiring advice on loan, acquisition

and grant programs; and• land owners, agencies of government, legal counselors, and

engineering companies requiring specialized technical

assistance.

GeothermEx has performed nearly 700 geothermal projects in 35countries. In the United States, the company has worked extensively atThe Geysers and in the Imperial Valley, in numerous geothermal areaswithin the Basin and Range geological province (Nevada, Utah and easternCalifornia), in the Cascade Range and in Hawaii.

In addition to its many domestic projects, GeothermEx hascarried out geothermal exploration, development and assessment projectsfor government agencies or private companies in Costa Rica, Nicaragua,Indonesia, Papua New Guinea, Guatemala, the Azores, Iran, thePhilippines, Honduras, New Zealand, Yugoslavia, Argentina, Italy, Japanand Taiwan. We have carried out geothermal reconnaissance and/orevaluation projects in Viet Nam, Panama, St. Lucia, Kenya, Ethiopia,Mozambique, Yemen Arab Republic, Turkey, India, China, Thailand, Mexico,

E1 Salvador, Bolivia, Djibouti and Fiji for the United Nations or WorldBank.

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the exploration and development of geothermal resources, includingexploration, drilling, well testing, reservoir engineering and numerical

simu1 at-ion.

Our exploration services include the planning, budgeting,management and execution of geologic, geochemical and geophysicalsurveys, shallow temperature gradient drilling, and deep explorationdrilling. Our drilling services range from consultation on specificproblems and work-overs to the complete management of drilling andlogging programs. We have designed and conducted well tests for alltypes of reservoirs: dry steam, low enthalpy, two-phase, single-phasehot water and hypersaline brine.

Our reservoir engineering services typically include:conceptual modeling of the geothermal system based on analysis ofexploration data, well log and well test analysis; numerical simulationof reservoir and we11bore; field development optimization; fieldmanagement planning; and economic analysis. GeothermEx has providedreservoir engineering services for projects which include low enthalpy,single-phase water, two-phase, steam, hypersaline brine and oil/gasreservoirs. These projects have a total of over 3,000 MWe power online.

Modern geothermal reservoir engineering, assessment andmanagement require a high level of database management, computation andcomputer graphics capability. Consequently, GeothermEx has acquiredstate-of-the-art computers and ancillary equipment, and has developedspecialized software for managing and analyzing geothermal explorationand development data and for making three-dimensional numericalsimulations of the reservoirs.

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GeothermEx staff has extensive experience in data basemanagement, computing and computer graphics, including custom orapplication-specific software development and retrofitting currentGeothermEx library programs to specific applications.

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Software

Our programs cover the following areas of application:

• Well log analysis• Geophysical interpretation• Geochemical interpretation• Flow metering analysis• Fluid properties estimation• Well bore simulation• Transient well test analysis• Numerical reservoir simulation• General reservoir engineering• Economics and risk analysis• Probabilistic analysis• Statistics and applied mathematics• Database management• Computer aided design and drafting• Contouring (two- and three-dimensional)• Computer graphics• Computer animation

Hardware

GeothermEx has the following hardware:

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• Time sharing on Boeing Computer Services' Cray II supercomputer system

• Four specially-configured 32-bit desk top computers (fasterperformance than all 386 machines and most VAX or IBMmainframes)

• Eight 16-bit and one 32-bit desk top computers; each equippedwith a full complement of peripherals including hard disks,expanded memory, high speed memory RAM disks, and high clockspeed math co-processor chips

• Two dedicated telephone lines to the Cray II super computer• Modems handling up to 2,400 baud• Communications software• Video graphics capabilities (VGA, EGA, CGA and Hercules)• Several plotters (HP 7475 and Calcomp)• Digitizing facilities (GTCO Digipad-5 and Kurta IS/ONE)• HP Laser Jet Printer• Three HP Paint Jet Color Graphics Printers• Printronix high-speed line printer

2.1.3 Experience Specific to Hawaii

GeothermEx staff have been working with geothermal resourcesin Hawaii for more than 12 years. In this respect, GeothermEx isuniquely qualified to undertake consulting activities for DBED, becausethe Hawaiian experience has been gained even as our staff were workingwith exploration and development of geothermal resources around theworld. Therefore, we have broad views of the geothermal reservoirs onthe Big Island in the context of many other geologically similar areas.Concurrent with our Hawaiian work, we have been conducting explorationin areas of youthful volcanism including Lihir Island (Papua NewGuinea), Sao Miguel Island (the Azores), and several areas in the

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Philippines, Indonesia, Japan, Italy and Guatemala. The successes andproblems of exploration and development in these young volcanic areasare directly applicable to Hawaii.

In 1986, GeothermEx acted as a resource consultant toDillingham Corporation in connection with their negotiations withThermal Power Company regarding drilling and well testing activities atPuna.

In 1987, Thermal Power Company (Diamond Shamrock) retainedGeothermEx to review in-house work done on its leaseholds in the KilaueaEast Rift Zone. Geologic drilling, well testing and reservoirengineering reports from the Thermal/Dillingham/Amfac Puna GeothermalVenture were assessed and a proprietary report was prepared.


Our direct work experience started in Hawaii for BarnwellIndustries (Water Resources International) in 1979. For Barnwell, weinitially performed aerial photo analysis, field geology, review of allpublic geophysical survey information, and consultations with the u.s.Geological Survey Volcano Observatory and University of Hawaiipersonnel. A proprietary report summarizing and evaluating the resourcepotential of The Big Island was written. Rift zones west of Mauna Loaand near Hualalai were examined, as well as the Kilauea East Rift Zone.Following this, GeothermEx provided testimony before the County ofHawaii for drilling permits, and before State and Federalrepresentatives at geothermal resources subzone hearings. When drillingstarted, field wellsite geology and measurements (downhole temperatureand chemistry) services were provided. Most of Barnwell's leases werefound to be hot but impermeable, oWing mainly to their locationsouthward and westward of the Kilauea East Rift Zone. The Barnwellfield operations were suspended in 1985.

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In 1988, one of the potential buyers of Thermal's interestsretained GeothermEx to re-evaluate the available information fromThermal's "data room" in detail and advise on the net worth of the PunaGeothermal Venture leaseholds. Cash flow analyses were produced as wellas a proprietary report.

In 1989, Credit Suisse retained GeothermEx as its independentreservoir analyst prior to lending funds to Ormat Industries (OESI) forits projected 25 MW geothermal project at Puna. OESI had purchasedThermal's Puna Geothermal Venture. All pertinent resource and drillingand well testing data were analyzed by GeothermEx for this purpose.Based on this analysis, a conceptual model of the Puna geothermal systemwas developed and the potential reserves estimated. GeothermEx alsoreviewed the drilling and development plans proposed by OESI on behalfof the bank.

In 1989, the Hawaii Natural Energy Institute (HNEI) selectedGeothermEx to design and conduct injection testing programs for the SOHwells and to interpret the data obtained. In order to conduct thiswork, Geother-mExhas reviewed all subsurface lithologic and drillinginformation as the program has proceeded. We have completed field testsand interim reports on SOH-4 and SOH-I.

In addition to these projects, GeothermEx personnel haveparticipated in every major scientific meeting relevant to thedevelopment of Hawaiian geothermal energy. We have reviewed thegeothermal/cable project RFP of the Hawaiian Electric Company (HECO) forseveral of the proposers and are familiar with the concepts andrequirements of the project. Furthermore, GeothermEx maintains alibrary of several hundred published documents as well as much of thebasic data related to geothermal energy on the island of Hawaii.

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The Italian Government Oil Company (AGIP) retained GeothermExduring 1985-87 as its technical consultants during their negotiationswith a sister agency (ENEL) regarding the development of two majorgeothermal fields (Latera and Mofete). As part of this service,GeothermEx developed detailed numerical models of these two fields from

The requirements of these programs were remarkably similar tothose described in DBED's RFP. We were called upon to analyze existinginformation, recommend schedules and estimate costs of regional andsite-specific exploration programs, monitor work by local and foreigncontractors, and recommend regulatory management and environmentalsuperV1Slon programs. This required the ability to study and appreciatelocal political, social and economic conditions, as well as thetechnical aspects of geothermal resources. A few examples of this typeof work are described below.

One of the principal areas of GeothermEx's business duringthe past 20 years has been consulting for various international fundingagencies, as well as national and local government bodies. In thiscapacity, particularly Dr. McNitt (Vice President, Exploration), Dr.Sanyal (Vice President, Reservoir Engineering), Mr. Koenig (President),Dr. Gardner (Executive Vice President) and Mr. Granados (Senior DrillingEngineer) have provided technical advisory services for numerousregional exploration and development programs to the World Bank, theUnited Nations, the Inter-American Development Bank and numerousgovernment-owned utilities and energy companies. These projects wereundertaken in the Philippines, Fiji, China, Viet Nam, Costa Rica,Argentina, Bolivia, El Salvador, Kenya, Uganda, Mozambique, Ethiopia,Iran, and in other countries.


2.1.4 Other Relevant Experience

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the accumulated data and used these models to help AGIP and ENEL intheir field development planning.

The resources agency of the Government of New Zealandrequired a synthesis of United States (Federal and State) regulations todevelop a new set of drilling regulations for permitting geothermalproduction and injection wells. In 1989, GeothermEx was contracted toprovide a comprehensive report, enabling New Zealand to benefit from theU.S. experience and to create its own regulatory framework.

From 1985 to 1987, GeothermEx was contracted by an agency ofthe Government of Japan (New Energy Development Organization) toevaluate various exploration techniques employed in four undevelopedgeothermal areas. Three of these were located in areas of youngvolcanism; the fourth was located behind the volcanic arc. The dataavailable and survey methods used included:

• detailed geologic mapping and age-dating of volcanic units;• studies of alteration mineralogy;• geochemical sampling of surface waters, hot springs and

fumaroles;• detailed gravity surveys;• seismic surveys;• CSAMT and MT resistivity surveys;• heat flow surveys; and• aeromagnetic surveys.

In all of the areas studied, there were few or no deep wells.However, using our experience in evaluating geothermal systems in youngvolcanic terrains and the extensive survey data mentioned above, we wereable to develop conceptual hydrogeologic models of each of the four

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In 1987, for the Prudential Capital Corporation, we completeda comprehensive report on investment opportunities for geothermal energydevelopment in the U.S. Evaluation of regional and site-specifictechnical information obtained from third parties formed the basis forour conclusions on future investment opportunities.

Our experience in managing numerous geothermal explorationand development projects allows us to appreciate the large scope of thework DBED is undertaking. We have managed many major geothermalprojects in the United States and elsewhere that have involvedexploration, drilling, reservoir analysis, feasibility analysis, and

In 1987, the Los Angeles Department of Water and Powerretained GeothermEx to evaluate and prioritize six potential prospectareas for geothermal energy in the state of Nevada. The six prospectshad exploration data ranging from only basic geology to discovery wells.The Department of Water and Power has also utilized the technical adviceof GeothermEx to evaluate the resource development capabilities oforganizations responding to an RFP to assume the operator's role onDepartment leaseholds.

systems which included heat source, upflow and outflow zones, andchemical evolution along the fluid flow paths. Potential boundaries ofeach system were determined, and both the heat source and the overlyinghydrothermal convection systems were numerically modeled. Commercialviability was assessed with appropriate energy conversion technologiesassigned to subzones within each prospect area. Finally, the usefulnessof each exploration technique and its contribution to the development ofthe reservoir model was evaluated in each area. An earlier contractwith the same Japanese agency led us to review similar explorationtechniques used in the Cascade Range.

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field development, in varying degree. The most important of these

include:

• Coso Hot Springs, CA, for the Los Angeles Department of Waterand Power;

• The Geysers, CA, for Northern California Power Agency;• Miravalles, Costa Rica, for the Instituto Costarricense de

Electricidad, and the Inter-American Development Bank;• Batong Buhay, the Philippines, for Caltex Petroleum; and• Dixie Valley, Nevada, separately for Sunoco Energy

Development Co., Atlantic Richfield, and Dow Chemical, over aperiod of several years.

Each of these projects was valued at several million dollars,including drilling contracts; each resulted in either the discovery of amajor geothermal field, or the drilling of step-out discoveries in aproven field. For example: at Coso Hot Springs and The Geysers, stepout discoveries were made; new field discoveries were made atMiravalles, Batong Buhay and Dixie Valley. A 65 MW plant has beenconstructed at Dixie Valley, a total of 220 MW has been installed withinthe leasehold of Northern California Power Agency at The Geysers, atotal of 250 MW is being generated at Coso, and 55 MW are beinginstalled at Miravalles.

In each of these projects, GeothermEx was responsible forpart or all of:

• the design and implementation of exploration programs;• the analysis of exploration data;• environmental analysis and site permitting;

• the selection of well sites;

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GeothermEx's expertise also covers the area of drilling,logging and testing all types of geothermal wells. We have directeddrilling and logging at a wide range of locations, including:

In the cases of Coso, Batong Buhay and The Geysers,GeothermEx was named as operator by the project owner, and was maderesponsible for all government liaison, bonding, permitting,environmental control and insurance.

• Radium Springs, NM; for Hunt Energy; 1980; 3,000 feet• Ontario, OR (with CH2M-Hill); for Ore-Ida Foods, and the U.S.

Department of Energy; 1979-80; 10,000 feet• Lihir Island, Papua New Guinea, for Kennecott Corporation;

1987-89; several dozen slim holes, 550 to 1,400 feet.• Calipatria, CA; for the City of Calipatria, under a grant

from the CEC; 1978; three holes, cumulatively 4,000 feet.• Sierra Valley, CA; for the County of Sierra, under a grant

from the CEC; 1984-85; five slim holes, cumulatively 4,500feet.


• the design of wells;• the selection of a drilling contractor;• the day-to-day operational management of drilling and

logging;

• well testing;• reservoir analysis and modeling;• budget and time management;• economic and technical feasibility analysis for development;• design of development and reservoir management plans; and• all technical and administrative reporting.

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Cumulatively, GeothermEx has had the direct responsibilityfor the drilling and logging of 120,000 feet in 24 deep, full-diameterholes; and 100,000 feet in 330 slim, temperature-gradient holes, for atotal of some 220,000 feet.

In addition to this responsibility, GeothermEx has beenemployed on numerous projects to undertake geologic logging, geochemicalsampling and geophysical (temperature, pressure, etc.) logging of holesdrilled and managed by others. Some examples are:

• Santiam Pass, OR; for Sunoco Energy Development Co.; 1980-81;a dozen holes, to 1,500 feet maximum.

• Kilbourne Hole, NM, Alvord Desert, OR and Salt Wells, NV; forAnadarko Production Company; 1976-1981; over 50 holes,cumulatively to 15,000 feet.

• Klamath Lake; for Weyerhaeuser Company and Pacific Power andLight Co.; 1976; a core hole to 2,000 feet.

• Antelope Valley and Sulphur, NV; for Atlantic Richfield;1977-78; several tens of holes, to 1,500 feet maximum.


• Zunil, Guatemala: geological, geochemical and geophysicallogging and well testing of a 5,000-foot hole, 1990-91, forMorrison-Knudsen Company, on behalf of the National electricutility of Guatemala.

• Sao Miguel Island, the Azores: geological, geochemical andgeophysical logging of a 7,000-foot hole, 1989, for theregional government of the Azores.

• Salton Sea Scientific Deep Drilling Project: geological andgeochemical logging of a 10,000-foot hole, 1985-86, forBechtel Engineers, on behalf of the U.S. Department ofEnergy.

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A few of the major projects involving resource assessment arelisted below.

Salton Sea, California, for Morgan Guaranty Trust Company, 1984-90. Aspart of Magma Power Company's requirements for financing three 35 MWpower plants, GeothermEx was contracted to analyze geophysical andgeochemical survey data, perform well log correlations, evaluate welltest results, develop a conceptual hydrogeologic model (including the

test results

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Analysis of exploration resultsSiting of wellsAnalysis of drilling, logging and wellPreparation of hydrogeological modelsNumerical simulation modelingProbabilistic assessment of reserves

Cove Fort, UT: geological, geochemical and geophysicallogging of a 3,500-foot hole, on behalf of BarnwellIndustries and Amax Exploration; and geological logging of an8,000-foot hole, on behalf of Hunt Energy.Preston, ID; Gerlach, NV; Wilbur Springs, CA; and Fly Ranch,NV: geological, geochemical and geophysical logging of fiveholes, cumulatively to 35,000 feet, for Sunoco EnergyDevelopment Company.Wendel, CA: geological, geochemical and geophysical loggingof two holes, each to about 1,500 feet, for CarsonDevelopment Company.

Much of GeothermEx's work on behalf of governmental andorganizations has involved resource assessment. This has hadaspects:

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distributions of temperature, pressure and salinity), certifyperformance test results and develop a numerical simulation model forthis hypsersaline brine reservoir.

Coso Hot Springs, California, for Credit Suisse, 1987-present.California Energy Company's development of 250 MW was financed in partby loans from Credit Suisse, who retained GeothermEx to evaluate allresource-related data, including surface surveys, downhole data fromdeep and shallow wells, well test data, and long-term production data.We have developed a conceptual model of the field, and are currentlyundertaking a numerical simulation which includes CO2 as a distinct

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latera, Italy, for AGIP Oil Company, 1986-87. As mentioned above, AGIPrequired independent verification of work done by itself and itspartners (ENEl) towards the construction of a 25 MW power plant.GeothermEx performed independent analysis of all exploration anddrilling data, along with analysis of three years of well-test data.GeothermEx then constructed a conceptual field model incorporating alldata, and used this for numerical simulation of the field. From this,the reserves were assessed, and a plan for field operation (productionand injection wells, gathering system, disposal system) was designed.

Takigami, Kyushu Island, Japan, for Idemitsu Petroleum Company, 1983-88.As part of the process of proving reserves and providing steam supplyand providing steam supply for a 35 MW power plant, GeothermEx analyzedall prior exploration data, designed additional exploration, sited anddesigned wells, participated in well logging and testing, analyzed logsand test results, constructed a hydrogeological model of the field,performed numerical simulation of the field, calculated reserves,including a probabilistic evaluation, and prepared reports for thepresentation to Kyushu Electric Company.


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phase. Most of the produced gas is being reinjected with the wastefluid at Coso.

A list of resource analyses recently conducted by GeothermExmay be found in the Appendix to this proposal, together with a list ofclients for which we have worked.

Steamboat Springs, Nevada, for Ormat Systems, Inc., 1985-86. As a partof Ormat's requirement for financing a 7 MW binary-cycle power plant,GeothermEx was contracted to design wells, log and test wells, interpretall resulting data, construct a hydrogeological model of the field, andestimate of reserves. From this, additional wells were sited and afield development plan designed. Subsequent drilling, testing and plantoperation have confirmed GeothermEx's model and analysis.

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GeothermEx's broad base of experience with exploration,development, project management, drilling and resource assessment hasresulted in a profound understanding of the financial constraints andrisks of geothermal development. For many clients, we have performedcash flow and risk analyses in tandem with reservoir evaluation. Thiskeeps GeothermEx keenly aware of the costs associated with all phases ofexploration, permitting, drilling, rentals, royalties, O&M, plantconstruction and taxes, and the relationship between these costs and

Tiwi and Bulalo, the Philippines, 1981-85, for National PowerCorporation. A total of 660 MW is currently being generated from thesetwo high-temperature geothermal reservoirs. All data -- geological,geophysical and geochemical, drilling, logging and testing -- wereevaluated for these projects, which together have more than 100 wells.Reservoir models were prepared, reserves were assessed, andrecommendations were made on the potential plant capacity to beinstalled at each site.

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2.2.1 Introduction

2.2 The Ben Holt Company

• Generation of electricity by steam flask, binary cycle(closed loop and direct contact) and hybrid systems.


• Utilization of geothermal fluids for direct uses such asdistrict heating.

The Ben Holt Company provides consulting, design,procurement, construction and operating services covering a wide rangeof geothermal applications, including the following:

GeothermEx has worked for many of the operators in TheGeysers geothermal field of California and is cognizant of the effectsof over-stressing a reservoir which may result in pressure declines andreduction of delivered steam. The financial effects of de-rating and/orclosing geothermal power plants are certainly far-reaching. We havebeen working for the California Energy Commission with data fromdevelopers in The Geysers to develop a clear understanding of the fieldand to recommend development methods to help mitigate steam pressuredeclines. We are currently under contract to Lake and Sonoma Countiesto investigate the possibility of augmenting injection to mitigate thesteam flow rate decline.

risks and the value of the power produced from the resource. In thisarea, GeothermEx can provide a much more realistic outlook than might bedeveloped by academic or research institutions.


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2.2.2 Geothermal Power Plant Projects

• Control of air, water and noise emissions.

• Developed the conceptual design.


• Assisted in negotiating the electrical power sales contract.

• Assisted in obtaining the necessary environmental andconstruction permits.

The Ben Holt company participated in every phase of thisproject as follows:

• Field measurement of fouling characteristics of geothermalfl uids.

• Pumping and transmission of geothermal fluids to the point ofuse.

Mammoth-Pacific Geothermal Project. This project near theTown of Mammoth Lakes, California is the world's first commercialinstallation of an air-cooled modular binary geothermal power plant,rated at 8 MWe net.

Oxbow Geothermal Project. In 1988 Ben Holt designed the 55MW dual flash geothermal power plant for Oxbow Geothermal Corporation atDixie Valley, Nevada. The scope of the design work included the powerplant, the cooling water system, the gathering system, and the brinedisposal system. The facility is operating at full load, deliveringpower through a 210 mile transmission line to Bishop, California.


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• Constructed all the facilities.

• Procured all the material and equipment.

• Managed the well drilling and well testing.


• In late 1989 entered into a contract with the Owner (PacificEnergy) to design two new plants at Mammoth, each rated at anet capacity of 10 MWe and employing the same technology asthe first plant. These plants are expected to be on line bythe end of 1990.

• Operating the facility, which has now been in successfuloperation for over five years.

• Designed and programmed the distributed control system tooptimize the operation of the facility.

• Performed the mechanical, electrical and structural detailengineering for the whole project including the wells, theresource distribution system and the power plants.

Air Cooled Hydrogen Sulfide Abatement Facility. In 1986 Holtcompleted the design and construction of a facility to condensegeothermal steam during power plant outages at The Geysers. Air coolersare used to condense wellhead steam and cool the resulting condensateand non-condensible gas for injection back into the reservoir. All ofthe hydrogen sulfide in the wellhead steam, whether dissolved in thecondensate or remaining in the gas phase, is injected into the reservoir

• Developed the process design.



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with no emissions to the atmosphere. Stainless steel was used as thematerial of construction for all components in contact with the process

fluids.

Construction of the commercial facility was preceded by afeasibility study and a pilot scale demonstration of the concept. Thecommercial facility is now in operation and serves two power plants.

Hybrid Power Plant for Geopressured Resource. Under contractto Eaton Operating Company who are contractor to the U.S. Department ofEnergy, Holt has installed a demonstration hybrid cycle power plant onthe geopressured resource at Pleasant Bayou, Texas and are operating thefacility. Construction was to be completed in mid 1989 and operationsare continuing as of February 1990.

Under contract to EPRI, Holt designed the 1 MW hybrid cyclepower plant. New equipment was procured and existing equipment wasrefurbished under contract to EPRI. Electricity on this project isgenerated by two devices in the hybrid scheme: a gas engine and abinary cycle turbine for a combined output of 1 MWe.

Geothermal Loop Experimental Facility (GLEF). This nominal10 MWe test facility was sponsored by San Diego Gas &Electric Companyand the United States Department of Energy (DOE). It was located in theNiland area of the Imperial Valley and operated from May 1976 to October1979. The facility was designed to process the hypersaline brinecharacteristic of the area. The facility utilizes the flashing andscrubbing techniques developed in the pilot facility as described in"Flashed Steam Purification" later in this section. It was the world'sfirst large-scale demonstration of the use of a binary cycle forgeneration of power from geothermal fluids.

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Holt provided all design services in connection with the workand subsequent modification including process, mechanical,instrumentation, piping, civil, structural and electrical; also, Holtprovided consulting and engineering services during the operation of thefacil ity.

Flash Crystallizer Test Facility. Holt completed thedetailed design for and fabricated a skid-mounted facility for testingthe effectiveness of the flash crystallizer scale control concept. Thiswork was done for the Electric Power Research Institute. The test unithas been field tested at the Cerro Prieto geothermal field in Mexico.

A feasibility study prepared by Holt and another firmindicated that a power plant utilizing double-entry steam turbines wouldprove more economic for this reservoir than a binary cycle. Thefacility was then modified to flash and wash the steam at two pressurelevels suitable for feeding a double-entry turbine. The facility,costing more than $6,000,000, was the first to demonstrate on asignificant scale the utilization of the Imperial Valley hypersalinebrines.


Cove Fort, Utah Geothermal Project. In early 1989 Holt wasretained by the Utah Municipal Power Agency to expand their existingfacility at Cove Fort, Utah. The new facility with a net capacity of7.6 MWe will be on line in September 1990 and will consist of acondensing steam turbine with associated vacuum system, cooling towerand other facilities including an HzS abatement system, at a total costof $10,000,000. The contract with UMPA provides for testing of newwells, developing the optimum design of the new facility, followed bydetailed engineering, procurement services and start-up assistance.

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2.2.3 Geothermal Consulting Assignments

Holt provided technical support to Instituto de InvestigacionesElectricas during start-up of the test facility.

Hawaii Geothermal Studies. In conjunction with the HawaiiDeep Water Cable (HDWC) project, Holt performed conceptual design and


Feasibility Study - 25 MWe-50 MWe Low Salinity HydrothermalDemonstration Plant. This $750,000 contract with the Electric PowerResearch Institute (EPRI) was a 12-month feasibility study to determinethe technical, economic, and environmental feasibility of ademonstration plant to generate 25 MWe - 50 MWe electrical power from alow-salinity, hydrothermal (liquid-dominated) geothermal reservoir. Thework was performed as a Joint Venture of The Ben Holt Company andProcon, Inc.

Two geothermal reservoirs were evaluated and the binary cycleconversion option was compared with the steam flash and hybrid optionsat each site. At the conclusion of the first phase of the work, thestudy indicated that the binary cycle process offered the lowest powercost. EPRI, therefore, commissioned Holt to proceed with the conceptualdesign of a 50 MWe plant at the Heber reservoir in California's ImperialValley. The work included purchase specifications for long-deliveryequipment, together with a cost estimate, project schedule,implementation plan and environmental report.

Holt continued to work on the design of the Heber plant undera subcontract to another firm. We were responsible for the processdesign and optimization of the binary loop. The project was terminatedin October of 1979 and has since been reactivated.

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Assessment of Advanced Geothermal Energy Conversion Concepts.This assignment with EPRI evaluated the technical and economicfeasibility of some 19 concepts for energy conversion.

Comparison of Biphase Rotary Separator Turbine to AlternateGeothermal Power Systems. This assignment with EPRI evaluated thetechnical and economic feasibility of the Biphase Rotary Separator.

Direct Contact Heat Exchange. This research and developmentprogram was sponsored by ERDA. The $130,000 program was designed totest the feasibility of a modification of the closed loop binary cycle,in which the heat from the geothermal fluid is transferred to a selectedworking fluid by direct countercurrent contact in a vertical trayed orpacked tower. Bench scale studies have been conducted in Holt'slaboratory to determine design parameters for the countercurrent towerand to obtain solubility data. This work was followed by makingconceptual design studies in order to estimate technical and economicfeasibility together with a preliminary design of a portable field testunit.

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power cost economic studies for the development of 500 MW of geothermalpower production on the Big Island of Hawaii for the Hawaiian ElectricCompany and the State of Hawaii. This work (Geothermal Plant CyclingStudy Kilauea Volcano East Rift Zone Island of Hawaii) included anassessment and characterization of the resource and the development ofseveral alternative resource production/plant designs to utilize thisresource that could provide daily load cycling capability. The workalso included the generation of busbar power cost economic comparisonfor base load operation and two levels of daily load cycling.

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2.2.4 Geothermal Operations

Examples of operating contracts are:

• Support operation of the air cooled pilot plant at TheGeysers for Union Geothermal.


• Operation of the hybrid geopressurized demonstration plant atPleasant Bayou, Texas.

• Support operation for the EPRJ scale removal demonstrationunit at various geothermal resources.

• Complete staffing, operation and maintenance of theMammoth-Pacific geothermal power plant at Mammoth Lakes,California.

Feasibility Studies. Holt made a number of feasibilitystudies for private clients examining the economics of geothermal powergeneration and employing both the binary cycle and the steam flashcycle.

Holt offers a complete service for the operation andmaintenance of geothermal facilities. This includes power plants, welltest facilities and research facilities.

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2.3 Dames and Moore

2.3.1 Introduction

Dames &Moore is a worldwide professional firm providingconsultation in planning, engineering, the earth and environmentalsciences, waste management, design, construction management andregulatory assistance.

Founded in 1938 by Trent R. Dames and William W. Moore, thisprivately owned and operated firm has completed more than 85,000projects for 22,000 clients. Our client base includes business andindustries in the private sector, public and private utilities,financial institutions, developers, architect-engineers/constructors,and agencies from all levels of government, both in the U.S. and abroad.

In the United States, Dames &Moore has offices in 35 states(including Hawaii) and in Washington, D.C. We have major internationaloffices, subsidiaries and affiliates in Australia, Canada, Chile,England, France, Germany, Hong Kong, Indonesia, Japan, Malaysia, PapuaNew Guinea, the Philippines, Saudi Arabia, Senegal, Singapore, Spain,Taiwan and the United Arab Emirates. Our Executive headquarters arelocated in Los Angeles, California.

Our staff worldwide consists of 3,200 men and women from thefollowing professional disciplines.

• Engineering and Design - Areas of engineering expertise andrelated services: geotechnical, foundation, civil,earthquake, environmental, structural, process, chemical,nuclear, coastal and offshore, mining, systems, wastewater

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2.3.2 Geothermal and Environmental Experience

• Construction Management - Civil projects, earth structuresand water resources facilities.

• Earth Sciences - Geology, geophysics, hydrology, seismologyand geohydrology.


treatment, transportations, manufacturing, forensic, buildingsciences, and water supply.

• Waste Management - Waste management planning, facility siteselection and engineering, hydrogeologic assessment, groundwater monitoring, toxicology and industrial health, facilitydesign, closure, remedial actions and construction,environmental audits and emergency response.

• Environmental Sciences - Meteorology and climatology, airtoxics, aquatic, marine and terrestrial ecology; waterquality, planning, cultural resources, radioecology andpublic involvement.

• Planning Services - Urban planning and design, master landuse studies, transportation planning and traffic engineering,landscape architecture, park/recreation design and wetlandmitigation.

Dames &Moore provides environmental and geothermalconsulting services to firms and government agencies from its geothermalconsulting group headquarters in Santa Rosa, California and branchoffice in Honolulu, Hawaii. The Santa Rosa Geothermal Group has been

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Select projects completed by Dames &Moore which emphasizegeothermal experience include:

Environmental Review: 500 MW Geothermal Development, Hawaii.Dames &Moore provided input into the environmental review of thisproject, published by DB ED in March 1989. Services included geology,noise and air quality, soils, volcanic hazards studies and hydrology.

Dames &Moore has professionals and specialists withcapabilities that can support all environmental aspects of a proposedproject including biologists, air quality and noise specialists, socioeconomists, public involvement specialists, planners, geologists,geochemists, geophysicists, and geohydrologists.

Environmental Site Assessment, The Geysers, California.Dames &Moore has performed environmental assessments for fivegeothermal steam fields and power plants. Specific focus was oncondition and operation of production facilities, waste streamsassociated with power plants, solid waste disposal facilities, andgeologic hazards such as landslides and subsidence.

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government agencies.

established to support Dames &Moore's involvement in the geothermalindustry in the western u.s. and overseas. The group has extensiveexperience in disciplines related to geothermal development, includingenvironmental permitting and compliance, environmental impact analyses,resource assessment and project development. The group has successfullycompleted projects in The Geysers, the Philippines, Japan and Nicaragua,and has consulted to many of the major geothermal operators and many

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Geothermal H2S Emissions Analysis - Japan. Dames &Moore hascompleted a status report of United States H2S emission regulations forHokkaido Electric of Japan.

Cooling Tower Drift Survey, The Geysers, California. Dames &Moore provided deposition rate modeling, soil sampling and analysis toevaluate the effects of deposition of airborne metals from cooling towerdrift on adjacent soils. The study was used to evaluate accumulation ofmetals in adjacent soils.

Groundwater Monitoring Program - City of Calistoga,California. Dames & Moore has completed a groundwater monitoringprogram that will assess impacts of future geothermal development. Theprogram consisted of geochemical and groundwater elevation datacollection for baseline studies and prediction of environmental impactsof development.

Third Party Review, Geothermal Resource Development - thePhilippines. Dames & Moore is currently working as a part of aconsulting team for review of environmental and public effect of eightgeothermal sites in Luzon and Leyte. The review is being completed forthe Philippine National Oil Company under a grant from the United StatesTrade and Development Program.

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Power Transmission Line, Sacramento Municipal UtilityDistrict. Dames &Moore completed a study of over 300 miles ofalternative transmission line corridors to determine the best routes forgeothermal power from The Geysers to the Sacramento Valley. Issuesincluded accumulation impacts of geothermal and multiple powerlinedevelopment, health effects and impact on agricultural, biological andcultural resources.

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In summary, the proposed project team of GeothermEx, The BenHolt Company and Dames &Moore considers itself especially, if notuniquely, qualified to conduct the contract scope of work for DBED.

Final Closure and Post Closure Maintenance Plan, WasteManagement Facility. Dames &Moore prepared the subject plans for ageothermal drilling mud and cuttings waste management unit. The planincludes design of a final cap, grading, drainage and revegetation aswell as post-closure monitoring of groundwater, leachate collection andremoval systems, surface drainage, settlement monitoring and landfillsecurity. Costs for closure and post closure were estimated so that theoperator could demonstrate financial assurance for the facility toregulatory agencies.

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We are completely familiar with all available resourceassessment methods, all aspects of geothermal power plantengineering and environmental impact assessment. Our work inHawaii to date has kept us aware of results of existingmapping, geophysical and geochemical surveys, drilling, welltesting, and the operation of the HGP power plant in theKilauea East Rift Zone. This experience provides us with aninformed and unbiased basis from which to approach furtherwork. Furthermore, we are sensitive to the costeffectiveness of exploration techniques in young volcanicareas. We are particularly concerned that academicallyinteresting programs such as geochemical and geophysicalmodeling, which often do not help identify and characterizegeothermal reservoirs, are not employed in Hawaii without

Summary

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2.4

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understanding the often impractical nature of their results.

We are familiar with the history, progress, data developedand immediate future directions of the SOH program. We arenot wedded to the site selection, drilling design andscheduling of the program, and are prepared to give unbiasedassistance in utilizing alternative economical methodologiesto obtain data critical to the quantification andcharacterization of geothermal resources in Hawaii.

We have designed and conducted numerous successfulexploration and testing programs, including all usefuldisciplines, to private and public owners of geothermalresources. Our staff is expert in field application oftechnology as well as computer-assisted interpretation ofdata resultant from surveys and tests. Our experience can beused to assist DB ED and DNLR to identify and prioritizetechniques which will be useful to the State's explorationand development efforts.

We have provided similar technical guidance for "masterplanning" large geothermal resources for clients ranging fromthe City of Los Angeles to government agencies in foreigncountries. Our understanding of the requirements and viewsof field operators, utilities and public regulatory agenciesallows us to appreciate the effects of each entity on thetotal project.

GeothermEx has provided more "bankable" reports to financialagencies than any other geothermal consulting firm. Thesereports are based upon objective, scientifically documented

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research and calculations leading to "reasonable judgements"about reserves, deliverability, decline, well spacing,replacement well schedules, and financial and risk factors(discount rates, inflation indexes, maintenance, etc.), allof which are used to make sound investment decisions.

• A master plan for development of geothermal resources musthave input based on detailed reservoir engineering forappropriate well-field design and management. Unitization isone concept which may assist DBED and DNLR to apply reservoirmodels and give the State authority to supervise rates ofproduction and avoid thereby the competitive depletion ofgeothermal resources.

Finally, we are prepared to commit to the anticipated workefforts and products described by DBED.

• Attendance at key meetings of DBED, other agencies andinstitutions is recognized as requisite to performance of theconsultant's work. The principal consultant (Dr. Gardner)would maintain his availability as his first priority of workduring the term of the contract; we anticipate that monthlyor more frequent attendance at meetings in Honolulu andperhaps elsewhere in the State would be required.

• We are prepared to furnish reports on a timely basis. Ourreports are always prefaced by specific conclusions andrecommendations and an executive summary which provide clearguidance to the recipient.

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The final resource assessment report, upon advice and consentof DBED, five days prior to end of the contract term isagreed, as long as DBED's suggested changes are received in atimely manner after the draft final resource assessmentreport has been submitted.

The deliverable of a draft annual report 45 days prior to theconclusion of the contract year is also accepted for itsappropriate content and schedule. The addition of sectionsdescribing accomplishments of the consultant andrecommendations for needs, priorities and plans areappropriate additions to the interim draft report. Theelements of the scope of work also would be described.

The anticipated December 1, 1991 date for an interim draftreport is acceptable target date from our knowledge of thepresent status of exploration, State-wide. The principalsubjects of (1) status report of exploration activities, (2)description and analysis of information sources, and (3)objective conclusions and recommendations about the extentand nature of geothermal resources are appropriate majorheadings for the interim draft report.


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The other team members proposed are Dr. Subir K. Sanyal(reservoir engineering and modeling), Dr. Christopher W. Klein(geochemistry and hydrogeochemical modeling), Mr. Eduardo E. Granados(drilling engineering and well testing), Dr. Roger Greensfelder(geophysics) and Mr. Anthony J. Menzies (well-test analysis). Otherprofessional staff from GeothermEx may be called upon to perform various

The proposed principal consultant and team coordinator isDr. Murray C. Gardner. His expertise includes volcanology andstructural geology, geotechnical exploration methodologies, drillingpractices, environmental and regulatory procedures. His ten years ofexperience with Hawaiian geothermal resources and work in similar youngvolcanic terrains will be invaluable for the project. He will besupported by Dr. James R. McNitt, whose expertise in subsurfacegeological, analyses and hydrogeological modeling is recognizedinternationally.

A large body of technical and economic information exists forthe geothermal resources of Hawaii. The history of exploration in theBig Island's Kilauea East Rift Zone is well documented, but quitecomplex. Prospective geothermal targets in other parts of the BigIsland as well as other neighbor islands, particularly Maui, are lesswell-known. A multi-disciplinary team of consultants is needed toprovide appropriate advisory services to DBED; one or two individualscannot provide the required expertise. GeothermEx proposes to providesuch expertise mainly from a team of regular staff who have workedeffectively and efficiently together for more than 10 years.


3.1 Proposed Consultant Team

3. WORK PROGRAM

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data synthesizing and analysis tasks. Resumes for all GeothermExpersonnel who may participate in the project can be found in theAppendix to this proposal. Schedules of hourly fee costs are provided

in Section 4.

GeothermEx will be supported for power and transmissionengineering and economics by Mr. John Brugman of The Ben Holt Company.Mr. Brugman's resume can also be found in the Appendix to this report.GeothermEx and Ben Holt have been working as joint consultants forseveral years, where projects require the talents of both companies. In1990 and 1991, we are serving together as consultants to Sierra PacificPower Company of Nevada and have submitted a joint report on explorationdevelopment and the effectiveness of resource utilization for twocommercially exploited geothermal areas of Nevada.

GeothermEx will be supported for environmental planning bysenior staff, Mr. John Everingham, Mr. Dana Brock and/or Ms. NancyOlmstead from Dames and Moore, Inc. Resumes from Dames and Moore arealso found in the Appendix to this report. Dames and Moore maintainoffices in Honolulu.

The proposed project team (figure I) is qualified to examine

all information and data, realistically interpret the data, andappropriately advise DBED. The principal consultant would act ascontact, attend meetings and present reports. Special expertise wouldonly be used where necessary and cost-effective. For example, a meetingconcerned mainly with reservoir behavior predictions might include orsubstitute the reservoir engineer for the principal consultant.

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- - - - - - -- - - - - - - -- - --FIGURE 1 • PRO~ECT ORGANIZATION

Mr. J. M. Everingham

DAMES AND MOORE

Environmental Engineering

Project Manager

DEPARTMENT OF LANDAND NATURAL RESOURCES

Engineering Stoff

GEOTHERMEX, INC.

Dr. S. K. Sanyal(V. P., Engineering)Mr. E, E. Granados

(Senior Drilling Engineer)Mr. A. J. Menzies

(Senior Reservoir Engineer)

Project Manager

GEOTHERMEX, INC.

DEPARTMENT OF BUSINESS,ECONOMIC DEVELOPMENT

AND TOURISM

Project Manager and Principal Consultant

Dr. Murray C. Gardner

GEOTHERMEX, INC.

Geoscientific Stoff

Dr. J. R. McNitt(V. P., Exploration)

Dr. C. W. Klein(Senior Geochemist)

Dr. R. W. Greensfelder(Senior Geophysicist)

Mr. J. P. Brugman

Power Plant Engineering

THE BEN HOLT COMPANY

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3.2 Proposed Work Plan

The general scope of work described in the Request for Proposalconsists of providing assistance to DBED and DLNR for seven tasks:

1. establishing priorities for resource assessment methodologies;

2. planning the direction of the SOH program, with particularemphasis on the cost-effectiveness of various exploratorydrilling methods;

3. planning appropriate well tests, surveys and mapping projects,including input on instrumentation, equipment, methods,procedures, personnel, and budgets;

4. providing technical guidance relative to the geothermal/cableproject master plan and EIS;

5. providing technical guidance relative to the planning anddesign of the geothermal/cable project by the Consortium andHECO:

6. providing objective, scientifically supported conclusions aboutthe extent and characteristics of geothermal resources inHawaii for use in policy-making or investment decisions; and

7. providing geothermal well-field design and resource managementexpertise to avoid over-production and premature depletion ofgeothermal resources.

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Dr. Gardner will perform this task, with the assistance ofDr. McNitt and others.

Our understanding of the relationships between these tasks isillustrated in figure 2.

Task 2 (Evaluate SOH Drilling Methods, Assist with Planning!Managing SOH Program). While GeothermEx has been involved in theevaluation of data from the SOH drilling project, we have not been partof the process of making decisions on the drilling methods to be used.GeothermEx's experience in the design and drilling of core holes,

temperature-gradient wells and geothermal production wells will be fullyutilized in developing other cost-saving measures without compromisingthe quantity or quality of data obtained from the SOH wells or the


Task 1 (Obtain and Evaluate Data, Prioritize AssessmentMethodologies). Initially, GeothermEx proposes to rapidly andsystematically review pertinent documents. This would not cover thesame ground as the ENEl report, but would go forward to synthesize theresults of the surveys. As discussed previously, GeothermEx has in itslibrary most of the documents describing the results of the work carriedout to date in the KERZ. This mature area of exploration should firstbe analyzed as completely as possible to determine which explorationmethods have been most successful. In particular, the subsurfaceinformation from deep wells will be systematically analyzed andcorrelated to anomalies in geophysics and geochemistry. The State maybe asked to obtain confidential releases of some additional deep welldata from operators in order to complete the critical task ofdetermining which methods of survey are useful for identifyinggeothermal reservoirs in Hawaii. The results of this task will provideinput to Tasks 3 and 6.

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FIGURE 2.INTER-RELATIONSHIPS BETWEEN TASKS

TASK 2

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Evaluate SOH drillingmethods, assist withplanning/managing

SOH program

TASK 6

TASK 7

TASK 3

Design and planadditional work toimprove resource

evaluation

Quantify the extentand characteristics ofHawaiian geothermal

resources

Provide well-fielddesign and management

expertise for policymaking and effective

resource use

TASK 1

TASK 5

TASK 4

Obtain and evaluatedata, prioritize

assessmentmethodologies

Provide planning andEIS assistance for

the geothermal/cableproject

Evaluate implementationplans of the Consortium

and HECD for thegeothermal/cable project

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This tasks will be carried out principally by Mr. Granados,with contributions relative to geology from Dr. Gardner.

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evaluation of the geothermal resource. The RPA report and the drillingdata from all slim holes will be reviewed in detail.

Work programs for additional geological/geophysical/geochemicalsurveys will be devised including personnel, budget, instrumentation andprocedures. Studies of chemistry of fluids will be part of the program.The work done by ENEL will be reviewed for completeness and the validityof the conclusions reached. Some additional plotting and simpleanalysis of the existing data is planned.


Task 3 (Design and Plan Additional Work to Improve ResourceEvaluation). The results of the first two tasks will be criticallyevaluated by Dr. Gardner, with assistance from Dr. McNitt, Dr. Klein,Dr. Greensfelder and Dr. Sanyal. Dr. Gardner will evaluate drillingrelated activities, and advise DB ED if and where further drilling iswarranted. Dr. McNitt, with input from Dr. Klein and Dr. Greensfelder,will provide support in evaluating potential new geological, geophysicaland geochemical survey methods. Dr. Sanyal will evaluate well-testoptions for improving the understanding and quantification of Hawaii'sgeothermal resources.

Any re-sampling of warm and cold water points for chemical andisotopic analysis, with certain field and laboratory analyses, chemicalthermodynamic modeling of the various cool and warm groundwaters, tofurther determine or illustrate conditions of water-rock interaction,such as temperature and gas pressures, and possible mixing relationshipswould likely be deferred until priorities of exploration are discussedwith DBED and DNLR. It is not yet certain whether new sampling and

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The first step in this task is to develop a conceptualhydrogeologic model of the Hawaiian geothermal reservoir(s} from allavailable geoscientific and well test data. This model will be a

Task 6 (Quantify the Extent and Characteristics of HawaiianGeothermal Resources). The objective of this task is a familiar one toGeothermEx because it is the objective of most reservoir assessmentactivities that we perform. Our judgements on reservoir capacity areoften the basis of investment and/or policy-making decisions.

computer modeling have sufficient priority to be included in the overallprogram, relative to other activities and budget. The priority of thiswork will have to be judged in relation to possible acquisition of otherkinds of data (drilling, temperature gradient, well test, reservoirmodeling), which may be more useful in reaching conclusions about thesize, location and extent of the resource.


Tasks 4 and 5 (Provide Technical Guidance Relative to theGeothermal/Cable Project). The engineering and economic feasibility ofthe 500 megawatt inter-island electric cable program have beendemonstrated; however, the resources to supply the electricity have yetto be developed. Because geothermal is an indigenous energy source, ithas high priority for development and ultimate transfer of electricityto the market in Oahu. Under Tasks 4 and 5, GeothermEx, The Ben HoltCompany and Dames &Moore will correlate the issues described in thegeothermal/cable master plan and EIS to actual and potential developmentplans of the existing operators, the Consortium and HECO. The precisescope and personnel assigned to these two tasks will be developed afterdiscussions with DBED, DLNR, HECO, ERCE and the Consortium (KEP); Dr.Gardner, Mr. Brugman, and Mr. Everingham will participate in thesetasks.

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written and graphical description of fluid sources, location of upflowand outflow zones, fluid flow paths, structure and lithology (includingthe locations of faults and hydrologic discontinuities), chemicalevolution along the fluid flow paths, and the distributions oftemperature, pressure, enthalpy and chemical characteristics within thegeothermal systems. This task will allow the boundaries of theexploitable reservoir(s) to be defined.

The second step of this task normally is to volumetricallyestimate the reserves available within the boundaries of the exploitablereservoir. We have developed an improved version of the volumetricmethod, originally developed by the U.S. Geological Survey, for thispurpose when sufficient data exists. Our improved methodology alsotakes into account the probabilities associated with the reserveestimate. It should be noted that this technique estimates reserves; itcannot address the number of wells required or potential operationalproblems with delivering those reserves to the wellhead.

If the resource is too deep or has unsolvable drilling problemsor corrosion or scaling problems, it cannot be exploited commercially,no matter how great the reserves. If the reservoir rock has such alimited transmissivity that an inordinately large number of wells will

be required to supply a power plant, no project can be developed even ifthe reserves exist. If the production comes solely from a fault, thedevelopment prospects may be limited by the difficulty of injectionoutside the fault zone because injection within the fault zone may cooldown production while injection outside the fault zone may not providesufficient pressure support to the production wells. If the reservoirtransmissivity and/or storativity is small, the wells may have to bespaced so far from each other to avoid severe interference that theavailable leasehold cannot accommodate all the wells. If there is

43

44

Dr. Sanyal, Dr. McNitt, Dr. Klein, Dr. Gardner and Mr. Menzieswill be responsible for this task.

strong natural recharge, the initial wells may be sufficient for thelife of a project, if not, make-up wells will need to be drilled.

Task 7 (Provide Geothermal Well-Field Design and ResourceManagement Expertise). The results of Task 6 will be used as a basis

for developing well-field design and management policies for the highenthalpy Hawaiian geothermal resources. These policies will be used toensure that yield can be sustained once the resource is developed. Forthis, we would provide the State with technical advice on theappropriate spacing of well and maintenance of offset distances. Wehave participated with several companies during negotiations forinclusion of leases into Federal Unit areas; were GeothermEx to beselected by DB ED as consultants, we would work closely with DBED andState regulators to examine unitization as one possible method of


Therefore, the practicability of any level of development needsto be verified by forecasting well productivity and injectivity undervarious plausible operating scenarios. This is the goal of numericalmodeling. Numerical reservoir modeling follows conceptual modeling andis a task which GeothermEx frequently accomplishes (see Appendix B). Itconsists of mathematically simulating the heat transfer, fluid flow,thermodynamic behavior of the system based upon exploration, drillingand production/injection data. The model is then used to forecastreservoir and well behavior. Numerical modeling is not part of theinitial proposed technical advisory consulting program but should berecognized as a future goal and task. For the KERZ, a useful modelwould cost at least $30,000 and at present would only include arelatively small area.

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assuring orderly and sustained yield from geothermal resources in

Hawaii.

Under unitization regulations, the owners of leases in aparticipating area agree to appoint one of themselves as operator forall. Generally the owner with the largest interest (acreage) within ageologically defined reservoir area is appointed operator. The operatoris responsible for planning well spacing, drilling, production andinjection and so forth. Unitization has been used at Roosevelt HotSprings and Cove Fort, Utah, and Medicine Lake, California and is onemanagement concept worth investigating.

Another critical aspect of well-field design and resourcemanagement will be to assess the injection programs proposed bydevelopers. Considering the need for protecting the environment, asound injection program must be developed. The current plan at Punacalls for injecting the waste water along with the gases. Similarinjection of gases at another U.S. geothermal field has causedbreakthrough of gases into production wells, reducing plant efficiencyand requiring unplanned discharge of gases into the atmosphere. Atleast five commercial geothermal projects in the U.S. are suffering fromcooling due to improper injection strategy. At least one geothermalproject in the U.S. has been accused of causing pollution of thegroundwater aquifers with arsenic. If injection takes place into theproducing reservoir, there is a risk of cooling or gas breakthrough atthe production wells (if gas is being injected). If injection takesplace outside the reservoir, it provides no pressure support to theproduction wells and may incur the risk of groundwater pollution andexcessive pressure buildup; even increased seismicity is possible. Wehave developed optimum injection schemes for many geothermal projects.


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The following section provides details of the overall worktime, costs and personnel to be associated with each task.

Dr. Gardner, assisted by Dr. Sanyal will work with DB ED andDLNR on this important task.

Rather than presenting a rigid schedule for completion of theabove tasks, we believe it will be beneficial to prioritize activitiesafter interviews with DBED and DLNR. Short reports may be requiredperiodically throughout the project at DBED's request. The specifiedreporting dates in the RFP (December 1, 1991 and 45 days prior to theend of the contract year) will be strictly adhered to.

46

Project Timing3.3

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The category "Vice President" of Principal is charged at an assigned billing rateless than actual cost, and is offered as a "cost-sharing" item.

GeothermEx proposes the following billing rates, which areequal to those charged for the EPRI and BPA programs associated with SOHslim hole tests. Those rates were calculated for the 1989 - 1990 fiscalyear; they are valid for DBED until July 1, 1992. All figures aredollars and cents.

Billing Rates4.1

5.65

4.60

3.76

19.71

19.71

19.71

19.71

Overhead Profit/Hr.

7.16

8.97

14.12

Benefits/Hr.

BUDGET

47

4.

26.99

20.79

13.55

SalaryRate/Hr.Rate.Hr.

44.18

75.00

54.07

66.47

Vice Presidentand Principal

Category

Supervisory Senior

Geologist

Computer Technicians

(c. W. Klein,E. E. Granados,R. W. Greensfelder,A. J. Menzies,D. J. Brock,N. E. Olmstead)

(M. C. Gardner,S. K. Sanyal,J. R. McNitt,J. R. Brugman,J. M. Everingham)

(A. Robertson-Tait,R. C. Henneberger)

(P. J. Brown,M. H. Peterson)

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Direct Costs

4.2 Proposed Budget

Direct project associate costs (Travel, subsistence, equipment,telephone and telefax, document reproduction, and so forth) are billedat actual charges, without markup.

3.61


19.715.93

GeothermEx, Inc.

13.2242.47

Benefits include: Life insurance, workmen's compensationinsurance, state unemployment and federal unemployment insurance, FICA,pension and profit sharing trust plans contributions, sick leave andvacation.

Overhead includes: Rent of office facilities, depreciation ofequipment, taxes, licenses, advertising, commercial promotion,conference and seminar costs, dues and subscription's interest, legal,accounting, office expenses, administrative time, postage, rent ofoffice equipment, repairs and maintenance, telephone, gas and electricservice. According to appropriate accounting practices, this is equallydivided according to total hours worked by all employees.

The times assigned to the various tasks are our bestestimates from assumptions about the described scope of work. The DBEDwould actually control the level of effort for most of the tasks (2-8especially) .

Word Processing/Drafting

(K. Crain,K. Robinson,R. Schultz)


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Task 2. Assist DBED and DLNR to plan and manage the SOH program anddrilling methods.

Task 3. Assist in designing well tests, geophysical, geological andgeochemical surveys and mapping projects.

Time/Days Extension ($)

M. c. Gardner 3.5 2,100.00

J. R. McNitt 2.5 1,500.00

S. K. Sanyal 1.0 600.00c. w. Klein 1.5 797.64

E. E. Granados 1.5 797.64R. W. Greensfelder 2.5 1,329.40

TOTAL: 7,124.68

Assist DBED and DLNR to prioritize resource assessment methods,

6,000.00

2,127.04

1,200.00

5,317.60

7,200.00

7,976.40

15,176.40

Extension ($)

Extension ($)

12

15

TOTAL:

10

4

2

10

Time/Days

Time/Days

49

including initial review.

M. C. GardnerE. E. Granados

Task 1.

M. C. GardnerC. W. KleinJ. R. McNittE. E. Granados

(About 2 M.D./month)

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Task 5. Assist DBED and DLNR with planning and design of thegeothermal/cable project as prepared by the consortium and HECO.

Task 4. Assist DB ED and DLNR with technical guidance relative to thegeothermal/cable project master plan and EIS as prepared by ERCE.


M. C. Gardner 10 6,000.00J. Brugman, Ben Holt Company 10 6,000.00J. M. Everingham 15 9,000.00

TOTAL: 21,000.00

3,000.00

5,317 .60

22,962.24


5

10

TOTAL:

GeothermEx, Inc.


M. c. Gardner 10 6,000.00

J. Brugman 3 1,800.00S. K. Sanyal 12 7,200.00J. M. Everingham 5 3,000.00

TOTAL: 18,000.00

S. K. SanyalR. W. Greensfelder


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Task 6. Assist DBED and DLNR with determinations of extent andcharacteristics of geothermal resources.

Task 7. Advise DBED and DNLR on well-field redesign and management,development of resources administration policy and sustaining energyyield.


M. C. Gardner 10 6,000.00J. R. McNitt 3 1,800.00S. K. Sanyal 6 3,600.00J. Brugman 6 3,600.00A. Menzies 5 2,658.80

TOTAL: 17,658.80



M. C. Gardner 10 6,000.00J. R. McNitt 3 1,800.00S. K. Sanyal 6 3,600.00C. w. Klein 3 1,595.28R. W. Greensfelder 5 2,658.80

TOTAL: 15,654.08

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Task 9. Prepare reports and memoranda related to Tasks 1-7.

This task is directly controlled by invitation and direction of DB ED toattend meetings. For attendance at meetings in Hawaii, one-half oftravel time or a maximum of 6 hours for each trip from the mainland byGeothermEx will be billed.


M. C. Gardner 14 8,400.00

J. R. McNitt 6 3,600.00

S. K. Sanyal 10 6,000.00J. Brugman 10 6,000.00

E. Granados 10 5,317.60

R. Greensfelder 8 4,254.08J. M. Everingham 6 3,600.00

TOTAL: 37,171. 68

Task 8. Attend key meetings related to Tasks 1-7.

679.52

679.52

1,359.04


Extension ($)

TOTAL:

Time/DaysWithin Tasks

2

2

52

Senior ProfessionalWord ProcessingDrafting



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Task 10. Prepare interim draft report prior to December 1, 1991.

Task 12. Prepare final resource assessment report.

53

Time/Days

4,800.001,698.801,698.80

8,197.60

1,800.00679.52679.52

10,597.60

3,159.04178,061.16


Extension ($)

Extension ($)

7,200.001,698.801,698.80

Extension ($)

3

2

2

8

5

5

TOTAL:

TOTAL:

Time/Days

Time/Days125

5

TOTAL:SERVICES, TOTAL:

GeofhermEx, Inc.

Senior ProfessionalWord ProcessingDraft i ng

Task 11. Prepare draft annual report.



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5. CONFLICT OF INTEREST

GeothermEx, Inc., The Ben Holt Company, and Dames and Moore(the proposers) presently are not parties to any Agreement or Contractto provide services to any private firms or groups of private firmsinvolved as operators in geothermal exploration or development in Hawaiifor said exploration and development in Hawaii. The proposers are notcurrently members of any consortium involved with the 500 MW geothermalcable project; several of the proposers to HECO have listed thequalifications of GeothermEx, but none have either defined tasks orprovided work contracts to GeothermEx for participation and GeothermExis under no obligations to any such party. Several members of Dames andMoore's staff in Honolulu have contributed to ERCE's EIS work on thegeothermal/cable project by subcontract. It is understood that thesetasks are now complete.

The proposers do not hold leases or interests in leases inHawaii. The officers, owners, employees and relations of the proposersdo not serve on boards or committees of leaseholders and firms involvedin geothermal exploration and development in Hawaii.

GeothermEx is presently engaged in three professional

activities in Hawaii. Two of these are funded by the Electric PowerResearch Institute (EPRI) and Bonneville Power Association (BPA) throughthe University of Hawaii. The third is for the Credit Suisse Bank.

For the EPRI projects, GeothermEx has: 1) developed ageothermal reservoir assessment methodology using slim hole data; 2)developed a plan for data acquisition and analysis; 3) designed andconducted tests of the SOH holes as they are completed; and 4) analyzedand interpreted test data. Several reports describing methodologies andthe results of well testing to date have already been submitted. A

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final probabilistic interpretation of results will be presented by mid1991.

The BPA project is mainly theoretical and describes the useof slim holes for developing geothermal energy purchase options.Specifically, the aim of this project is to apply the slim holetechnology experience in Hawaii to potential option agreements anddevelop computer software and a users manual for this purpose. It isscheduled for completion later this year.

In summary, these current projects, together with projectscarried out by GeothermEx in the past, have served to advance ourunderstanding of Hawaiian geothermal resources. Because we have nofinancial interests in geothermal developments in Hawaii, there is noforeseeable Conflict of Interest between our existing projects in Hawaiiand the one described in this proposal.


As independent resource analyst for Credit Suisse, GeothermExhas reviewed the exploration and development plans, budgets and progressof the Puna Geothermal Venture of OESI. The responsibility ofGeothermEx is to review all resource related activities associated withthe Puna development. Such reviews are required before milestones areapproved and funds transferred from the financier to the operator.Because Credit Suisse has fiduciary responsibilities and interests asfinancier, GeothermEx is required to maintain an independent and "armslength" relationship with the operator, and does not provide anyconsulting services or recommendations to the operator or its equitypartners.

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APPENDICES

SUITE 2015221 CENTRAL AVENUERICHMOND, CALIFORNIA 948()4.5829

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GeofhermEx, Inc.

APPENDIX A

Resum's of Proposed Personnel

SUITE 2015221 CENTRAL AVENUERICHMOND, CALIFORNIA 948Q4.5829

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APPENDIX B

Recent Reservoir Analyses Performed by GeothermEx

RESERVOIR ANALYSES PERFORMED BY GEOTHERMEX, INC., 1979-1990

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I


Papua New Kennecott (BP North America)Guinea

United States California Department of WaterResources

United States Thermogenics, Inc.

I FIELD

Bacon Manito,(BacMan),

ILuzon

Bulalo (MakBan), LuzonDaklan, Luzon

IMai barar a (MakBan),

LuzonPalimpinon, Negros

I Tiwi, LuzonMiravalles

I Zunil

Iuenotai, Honshu I.

Takigami, Kyushu I.IOkuaizu, Honshu I.

Niseko, Hokkaido I.;

IMinami Aizu andHakkoda, Honshu I.;and Kokubu, Kyushu I.

Duri

I DiengOlkaria

ILat er aMofeteKocaniMomotombo

Iseveralnatural gas

fieldsILihir Island

The Geysers, California

IIrhe Geysers, California

COUNTRY

Phil ippines

Phil ippinesPhil ippinesPhil ippines

Ph il i ppines

Phil ippinesCosta Rica

Guatemala

Japan

JapanJapan

Japan

IndonesiaIndonesiaKenya

ItalyItalyYugoslaviaNicaragua

Bolivia

CLIENT

National Power Corporationand World Bank

National Power CorporationCaltex Petroleum CorporationNational Power Corporation

National Power Corporationand World Bank

National Power CorporationInstituto Costarricense de

Electricidad &InteramericanDevelopment Bank

Instituto Nacional deElectrificacion and MorrisonKnudsen Engineers

Akita Geothermal EnergyDevelopment Co.

Idemitsu Geothermal Co., Inc.Mitsui Mining and Smelting

Co., Ltd.Electric Power Development Co.,

Ltd. and New EnergyDevelopment Organization

Caltex Petroleum CorporationAsian Development BankEast African Power and Lighting

Company &The World BankAGIPAGIPCommune of Kocani & the World BankEmpresa Nacional de Luz y Fuerza

National Petroleum Agency

YEAR

1984-85

19811982-831982

1982;19831983-851980and 1982

1989-90

1987-90

1983-881986-90

1986-87

1982-8319831982

1985-8619861983-841979

1983-84

1986-91

1979,1982,1988

1981

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I The Geysers, Cal iforn i a

I FIELD

The Geysers, CaliforniaThe Geysers, CaliforniaI The Geysers, Cal iforn i a

I East Mesa, ImperialValley, California

East Mesa, Imperial

IValley, California

East Mesa, ImperialValley, California

East Mesa, Imperial

I Valley, CaliforniaSouth Brawley, Imperial

Valley, California

IIsouth Brawley, ImperialValley, California

ISal t on Sea, Imperial

Valley, CaliforniaSalton Sea, Imperial

Valley, California

I Sal t on Sea, ImperialValley, California

IThe Geysers,The Geysers,The Geysers,The Geysers,I The Geysers,

I The Geysers,The Geysers,The Geysers,The Geysers,

I The Geysers,The Geysers,

CaliforniaCal iforni aCal iforni aCaliforniaCalifornia

CaliforniaCal iforni aCaliforniaCal iforniaCal iforniaCal ifornia

COUNTRY CLI ENT YEAR

United States Petro Lewis Corporation 1981United States MSR Ut il it i es 1982United States Northern California Power Agency 1979, 1982,

1984-85,1986-87,1988-89, 1991

United States Sacramento Municipal Utility 1979District

United States Occidental Geothermal, Inc. 1981-82; 1985United States Geothermal Kinetics, Inc. 1982United States Aminoil USA, Inc. 1981-82United States MCR Geothermal Corporation 1981-85United States Central California Power Agency; 1982-84,

Geothermal Resources 1985,International, Inc. 1986,1988-90

United States Phillips Geothermal Co. 1985-86United States Morgan Bank 1987-90United States Freeport McMoRan 1987-88, 1989United States Swiss Bank Corporation 1988United States Prudential Power Corporation 1989-91United States Calpine Corporation and Credit 1988-91

Suisse CorporationUnited States Bankers' Trust Co. 1986-88

United States Los Angeles Department of Water 1980-81and Power

United States Ormat Systems 1986

United States U.S. Department of Energy 1984-88

United States California Department Water 1983Resources &BechtelEngineering Co.

United States U.S. Department of Energy 1984-85

United States Magma Power Company &Morgan 1984Guaranty Trust Co.

United States Kennecott 1985

United States Mission Energy Co., Morgan Guaranty 1987-88, 1990Trust Co. and Magma Power Co.

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United States Munson Geothermal

United States Ben Holt Co. (U. S. Energy Co.),Brady Hot Springs Geothermal

AssociatesUnited States Enervest, Inc.

United States Sierra Pacific Power Company

United States Credit SuisseUnited States Sierra Pacific Power CompanyUnited States Sun Geothermal Co., U. S. Energy

Corporation, TranspacificGeothermal, Inc.

YEAR

1985-86

1982

1980

1988-911985, 1987

1986

1987-91

1981-83

1982-83, 19901986, 1990

19841987-88

1987-88

1980-83

1984-851979-811982

198419901980-81

1986

1987-88

1990-91

1979-81;1990-9119901979-811983-85

CLIENTCOUNTRY

United States DOE/Bechtel Engineering

United States U. S. Department of Energy

United States Southern California Edison Co. &U. S. Department of Energy

United States Pillsbury, Madison &SutroUnited States Los Angeles Department of Water

and PowerUnited States Morgan Guaranty Trust Company

United States Credit Suisse

United States Stanford University PetroleumResearch Institute(U. S. Department of Energy)

United States Carson Development Co.United States Pacific Lighting Energy Systems

United States Carson Development Co.United States Rhode Island Hospital Trust

National BankUnited States Ormat Systems, Inc.

United States U. S. Department of Energy &Carson Development Co.

United States Steam Reserve Corporation (AMAX)United States Sierra Pacific Power CompanyUnited States Chevron Resources Company &

Bear Creek Mining CompanyUnited States Southern California Edison Co.United States Credit SuisseUnited States Geothermal Food Processors

I BradY' s Hot Springs,Nevada

Desert Peak, Nevada

IDesert Peak, NevadaDixie Valley, NevadaDixie Valley, Nevada

II

IEmPi re (Gerlach),

NevadaSusanville, California

IFishlake Valley, NevadaBeowawe, NevadaBeowawe, Nevada

I Beowawe , NevadaBeowawe, Nevada

IBradY' S Hot Springs,

NevadaBrady's Hot Springs,

Nevada

I BradY' s Hot Springs,Nevada

I Litchfield, Cal iforniaLong Valley (Casa

Diablo), California

I wendel , CaliforniaAmedee, California

I FIELD

Salton Sea, ImperialValley, California

I Niland, Imperial Valley,Cal ifornia

Heber, Imperial Valley,

I Cal iforni aHeber, Imperial Valley,Coso Hot Springs,

Cal iforniaI Coso Hot Spri ngs,

Cal iforniaCoso Hot Springs,

ICal ifornia

Kern River, California

III



United States Credit Suisse

United States Oxbow CorporationUnited States Oxbow Geothermal and CiticorpUnited States CiticorpUnited States Ormat Systems, Inc.

United States Swiss Bank and Caithness Corp.

United States Sierra Pacific Power Company

I FIELD

Dixie Valley, Nevada

IDi xi e Valley, NevadaDixie Valley, NevadaSteamboat Springs,

Nevada

I Steamboat Spri ngs,Nevada

Steamboat Springs,

INevada

Soda Lake, Nevada

Soda Lake, Nevada

I Stillwater, NevadaStillwater, NevadaKlamath Falls, Oregon

I Ontari 0, Oregon

I Roosevel t Hot Springs,Utah

Roosevelt Hot Springs,UtahI Roosevelt Hot Springs,Utah

COUNTRY

United States

United StatesUnited StatesUnited StatesUnited States

United States

United States

United States

CLIENT

Ormat Systems, Inc. and ChevronResources Company

Prudential Power CorporationBankers Trust Co.Prudential Power CorporationCity of Klamath Falls &

U. S. Department of EnergyU. S. Department of Energy &

CH2M-Hill EngineersUtah Power and Light Company &

AMAX Exploration, Inc.Utah Power and Light Co.

YEAR

1985-861986-8719881985, 1989

1987

1990-91

1986-87

1990198819901980-82

1979-81

1983

1984-85

1990

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APPENDIX C

A List of Clients of GeothermEx

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A PARTIAL LIST OF GEOTHERMEX CLIENTS

International Lenders and Donors

Asian Development BankInterAmerican Development BankThe OPEC FundUnited Nations Development ProgrammeUnited Nations Revolving FundUnited Nations Special FundUnited States Agency for International DevelopmentWorld Bank

Electric Power Utilities in the United States

Beowawe Geothermal Power CompanyBountiful (Utah) Gas &Electric DepartmentCalifornia Department of Water ResourcesCentral California Power AgencyEast Bay Municipal Utilities DistrictEugene (Oregon) Water &Electric BoardLos Angeles Department of Water &PowerModesto (California) Irrigation DistrictMSR Public Power AgencyNorthern California Power AgencyPacific Lighting Energy Systems &Pacific Energy CorporationPacific Power &Light CompanyPortland General Electric CompanySacramento Municipal Utility DistrictSan Diego Gas &Electric CompanySanta Clara, California, Electrical DepartmentSierra Pacific Power CompanySouthern California Edison CompanySouthern California Gas CompanyUtah Power &Light Company

Exploration Companies/Resource Developers/Pipeline Companies

AGIP S.p.A. (Italy)Al-Aquitaine Exploration, Ltd.Amax Exploration, Inc.American Overseas Petroleum, Ltd.Aminoil USA, Inc.

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(continued)Anadarko Production CompanyAtlantic Richfield Company (ARCO)Barnwell Industries, Inc.Bear Creek Mining CompanyBrinco, Ltd. (Canada)British Petroleum Company (Britain)Buttes Gas and Oil CompanyCaltex Petroleum CorporationChevron Resources CompanyDowa Mining Company (Japan)Earth Power CorporationEntex, Inc.Freeport Mineral Co.General Crude Oil CompanyGeothermal Kinetics, Inc.Geothermal Power CorporationGeothermal Resources International, Inc.Grace Geothermal Company, Inc.Gul f Oil CompanyHunt Energy CorporationHunt Oil CompanyIdemitsu Geothermal Co., Ltd. (Japan)KennecottKerr-McGee CorporationMagma Power CompanyMCR Geothermal CorporationMission Energy CompanyMission Power Engineering CompanyMitsui Mining &Smelting Company (Japan)Monterey Energy CompanyNorthern Natural Resources CompanyNorthgate Exploration, Ltd.Occidental Petroleum CompanyOxbow CorporationPacific Energy CorporationPetro-Lewis CorporationPhillips Petroleum CompanySanta Fe Minerals, Inc.Shell Oil CompanySunoco Energy Development Co.

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(continued)

Thermal Power CompanyThermogenics, Inc.TransCanada Pipeline Co. (Canada)Transpacific Geothermal, Inc.Trend Exploration Co.US Energy CorporationUtah International, Inc.

Direct Heat Consumers

Anderson GroupBasic Vegetable Products, Inc.Carson Development CompanyCity of Boise, IDCity of Klamath Falls, ORCity of Susanville, CACity of Ukiah, CADow Chemical U.S.A.GeoProducts Corp.Geothermal Development AssociatesGeothermal Food Processors, Inc.Hewlett-Packard CorporationKlamath Wood Products, Inc.Las Vegas HiltonMoapa Band of PaiutesModoc Lumber CompanyOre-Ida Foods, Inc.Sierra County, CA

Research Organizations and U.S. Governmental Agencies

Electrical Power Research Institute (EPRI)Idaho National Engineering LaboratoryLawrence Livermore National LaboratoryLos Alamos Scientific LaboratoriesStanford University Petroleum Research

Inst ituteU.S. Agency for International DevelopmentU.S. Bureau of ReclamationU.S. Department of Energy

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Research Organizations and U.S. Governmental Agencies

(continued)U.S. Fish and Wildlife ServiceUniversity of AlaskaUniversity of California t BerkeleyUniversity of Utah Research Institute

Agencies of Other Governments

Bureau of Energy and Electric Power of TibetAutonomous Region, People's Republic of China

Comision Ejecutiva Hidroelectrica del Rio Lempa (El Salvador)Commune of Kocani, Macedonian Republic (Yugoslavia)Electricite de Djibouti (Djibouti)Empresa de Electricidade dos A~ores (Portugal)Empresa Nacional de Electricidad (Bolivia)Empresa Nacional de Energia Electrica (Honduras)Empresa Nacional de Luz y Fuerza (Nicaragua)Electric Power Development Corporation (Japan)Geosciences Institute of The Azores (Portugal)Instituto Costarricense de Electricidad

(Costa Rica)Instituto Nacional de Electrificaci6n

(Guatemala)Kenya Power & Lighting CO. t Ltd. (Kenya)Ministry of Energy (Iran)National Power Corporation (The Philippines)National Science Council, Republic of China (Taiwan)New Energy Development Organization (Japan)Provincial Government of Mendoza (Argentina)Provincial Government of San Juan (Argentina)Yacimientos Petroliferos Fiscales Bolivianos

(Bolivi a)Yemen Oil and Mineral Resources Corporation

(Yemen Arab Republic)

Architectural and Engineering Firms

Bechtel CorporationBen Holt Co.CHzM-Hill, Inc.Cooper &ClarkFluor CorporationGibbs and Hill, Inc.Golder Associates

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Architectural and Engineering Firms

(continued)

International Engineering Company, Inc.Ormat Systems, Inc.Mission Power Engineering Co.Rogers Engineering Co., Inc.SAl Engineers, Inc.

Organizations With Large Land Holdings

Andrus TrustBurlington NorthernInternational Paper CompanyKimberly-Clark CorporationL-W Land &Cattle Co., Inc.Simmons EstateThe Irvine CompanyWeyerhaeuser Company

Banks/Investment Groups/Insurance Companies

Bank of CaliforniaBankers Trust CompanyBonneville Pacific Investment CompanyCentury Capital AssociatesChase Manhattan BankCit icorp USACredit SuisseHartford Steam Boiler Inspection and Insurance Co.Heller Financial, Inc.Kidder PeabodyMerrill Lynch, Pierce, Fenner &SmithMorgan Guaranty Trust CompanyPrudential Capital CorporationPrudential Power Funding AssociatesRhode Island Hospital Trust National BankSwiss Bank CorporationWells Fargo Bank and Trust Company

OthersCoopers and LybrandEcoviewFairchild SemiconductorGeonomics, Inc.

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Others

(continued)

IBM CorporationJones &Stokes Associates, Inc.Lahontan, Inc.Northwest Biological ConsultingRockwell InternationalTeledyne IsotopesWestec Services

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Documents

~b /:,~:.' j(. - University of Hawaii › bitstream... · projects in Bolivia, Brazil, Costa Rica, Greece, Japan, Nicaragua and The Phil ippines. SUITE 201 5221 CENTRAL AVENUE GeothermEx,