Pagosa Springs Work Plan For

Geothermal Direct Use AnalysisBy

Gerry HuttrerGeothermal Management Company, Inc.

October 6, 2011

Work Plan Objectives

1. Learn the status of current geothermal usage by installing monitoring instruments on existing wells.2. Study local hydrology to identify direction of thermal fluid flow and reservoir characteristics.3. “Stress” the reservoir so as to record reactions at monitored sites.4. Determine if resource is “under-utilized.

Well Instrumentation

• Install pressure and temperature recording instruments on each well.

• Measure flow rates “opportunistically” at various outflow sites.

• Measure barometric pressures for optimum accuracy

• Record data on dedicated computer files.• Obtain this baseline information throughout the

2011-2012 winter.

Reservoir Test

• 1. Flow PS-5 at full adjudicated volume for about 24 hours in the Spring of 2012.

• 2. Record effects of this flow on the instrumented wells.

• 3. If data indicates that there are modest effects, consider increasing the flow rate for a short time.

• 4. Analyze the data to quantify reservoir characteristics.

• 5. Conduct of a 24 hr. static test (if possible) would also be useful to determine the hydrologic gradient.

Comments and Assurances

• 1. Information gleaned can not be used in any negative way against well owners.

• 2. Information will serve to protect both well owners and potential new developers.

• 3. Records will only be available to official entities as required by law.

• 4. If the resource is found to be fully used, no further development will be allowed.

Conclusions

• The Pagosa Springs geothermal resource belongs to all citizens. If it is possible to use more of it without injuring existing well owners, then it represents a fairly unique opportunity to help brand the Town as being forward thinking, environmentally friendly, and “on the cutting edge” of renewable energy development in Colorado.

THANK YOU