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179-085
IMIL • ' , • STATE OF ALASKA • ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG la.Well Status: Oil El Gas[ SPLUG ❑ Other L Abandoned 2 Suspended[j 1 b.Well Class: 20AAC25.105 2OAAC25.110 Development [j Exploratory 2 GINJ — WIND 0 WAGE WDSPL❑ No.of Completions: Service ❑ Stratigraphic Test ri 2.Operator Name: 6. Date Comp.,Susp.,or 14. Permit to Drill Number/ Sundry: M-W Drilling, Inc. (Contractor) Aband.: 8/24/2015 179-085 / 5(S- 315 tn.(% 3.Address: 7. Date Spudded: 15.API Number: PO Box 110389 Anchorage AK 99511 11/1/1979 50-031-20002-00-00 4a.Location of Well(Governmental Section): 8. Date TD Reached: 16.Well Name and Number: Surface: 11/1/1979 PS-2 Top of Productive Interval: 60' 9. KB(ft above MSL): 17. Field/Pool(s): GL(ft above MSL): Pilgrim Hot Springs Total Depth: 150'(open to 75') 10. Plug Back Depth MD/TVD: 18. Property Designation: GR Fee-Uaatuq, LLC 4b. Location of Well(State Base Plane Coordinates, NAD 27): 11.Total Depth M�D: 19. Land Use Permit: Surface: x- N65 05.398' y- W154 55.735' Zone- ) 0 TPI: x- y- Zone- 12.SSSV Depth MD/TVD: 20.Thickness of Permafrost MD/TVD: Total Depth: x- y- Zone- 5. Directional or Inclination Survey: Yes (attached) No Q 13.Water Depth, if Offshore: 21. Re-drill/Lateral Top Window MD/TVD: Submit electronic and printed information per 20 AAC 25.050 (ft MSL) 22. Logs Obtained: List all logs run and,pursuant to AS 31.05.030 and 20 AAC 25.071,submit all electronic data and printed logs within 90 days of completion,suspension,or abandonment,whichever occurs first.Types of logs to be listed include,but are not limited to:mud log,spontaneous potential, gamma ray,caliper, resistivity,porosity,magnetic resonance,dipmeter,formation tester,temperature,cement evaluation,casing collar locator,jewelry, and perforation record. Acronyms may be used.Attach a separate page if necessary RECEIVED scoNEU JAN 2 2 NIS NOV 0 2 2015 A0000 23. CASING, LINER AND CEMENTING RECORD CASING WT.PER GRADE SETTING DEPTH MD SETTING DEPTH TVD HOLE SIZE CEMENTING RECORD AMOUNT FT. TOP BOTTOM TOP BOTTOM PULLED 6 5/8" 17.56 ASTMB 0 150 24.Open to production or injection? Yes No Eil 25.TUBING RECORD If Yes, list each interval open(MD/TVD of Top and Bottom; Perforation SIZE DEPTH SET(MD) PACKER SET(MD/TVD) Size and Number): 60-105'perforated. See sketch. Perforation description unknown. 26.ACID, FRACTURE, CEMENT SQUEEZE, ETC. Was hydraulic fracturing used during completion? Yes Q No Per 20 AAC 25.283(i)(2)attach electronic and printed information DEPTH INTERVAL(MD) AMOUNT AND KIND OF MATERIAL USED 27. PRODUCTION TEST Date First Production: Method of Operation(Flowing,gas lift,etc.): Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: Test Period — Flow Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity-API(corr): Press. 24-Hour Rate .— Form 10-407 Revised 5/2 15 CONTINUED ON PAGE 2 `� 2015 -/-/� RBDM gl ii NOV 1 0 Submit ORIGINIAL only, 28. CORE DATA Conventional . -(s): Yes ❑ No '❑ Sidewall Cores. es ❑ No If Yes, list formations and intervals cored(MD/TVD,From/To),and summarize lithology and presence of oil,gas or water(submit separate pages with this form, if needed).Submit detailed descriptions,core chips, photographs,and all subsequent laboratory analytical results per 20 AAC 25.071. 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? Yes ❑ No El Permafrost-Top If yes, list intervals and formations tested,briefly summarizing test results. Permafrost-Base Attach separate pages to this form, if needed,and submit detailed test information, including reports, per 20 AAC 25.071. Formation at total depth: 31. List of Attachments: 1. Estimated well sketch 3. P&A Summary 2. Pictures 4.Slurry Mix Information to be attached includes, but is not limited to:summary of daily operations,wellbore schematic,directional or inclination survey, core analysis, paleontological report,production or well test results, per 20 AAC 25.070. 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: MW Drilling, Inc. Email: rnwks.,1mwdrillinginc.corn Printed Name: Wa ne,Westber• Title: President %/ / 07 Signature: � � Phone: 907-345-4000 Date: 1074/6.--- INSTRUCTIONS General: This form and the required attach -n provide a complete and concise record for each well drilled in Alaska. Submit a well schematic diagram with each 10-407 well completion r;..rt and 10-404 well sundry report when the downhole well design is changed.All laboratory analytical reports regarding samples or tests from a well must be submitted to the AOGCC, no matter when the analyses are conducted. Item 1 a: Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 1 b: Well Class-Service wells:Gas Injection,Water Injection,Water-Alternating-Gas Injection,Salt Water Disposal,Water Supply for Injection, Observation,or Other. Item 4b: TPI(Top of Producing Interval). Item 9: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 15: The API number reported to AOGCC must be 14 digits(ex:50-029-20123-00-00). Item 20: Report measured depth and true vertical thickness of permafrost. Provide MD and TVD for the top and base of permafrost in Box 29. Item 22: Review the reporting requirements of 20 AAC 25.071 and,pursuant to AS 31.05.030,submit all electronic data and printed logs within 90 days of completion,suspension,or abandonment,whichever occurs first. Item 23: Attached supplemental records should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: If this well is completed for separate production from more than one interval(multiple completion),so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26.(Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 27: Method of Operation: Flowing,Gas Lift,Rod Pump, Hydraulic Pump,Submersible,Water Injection,Gas Injection,Shut-in, or Other(explain). Item 28: Provide a listing of intervals cored and the corresponding formations,and a brief description in this box. Pursuant to 20 AAC 25.071,submit detailed descriptions,core chips,photographs,and all subsequent laboratory analytical results, including, but not limited to: porosity, permeability,fluid saturation,fluid composition,fluid fluorescence,vitrinite reflectance,geochemical,or paleontology. Item 30: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Item 31: Pursuant to 20 AAC 25.070,attach to this form:well schematic diagram,summary of daily well operations,directional or inclination survey,and other tests as required including,but not limited to:core analysis, paleontological report,production or well test results. Form 10-407 Revised 5/2015 Submit ORIGINAL Only ! • PS-2 Note: Original construction detail sketch unavailable. 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I� • /. ;"1' .�+ 14,~ • 11 � SFJ �1 a j ,� Il \ \ *, a aE•. \.r y p°1,1,,,, 1� ,�` y,�'.,• • ' 'a 6' , v � ms `^4VI , / S•• tr �v e; z irr4a, #n , p( 't; tit, a �x +, • 4. if f. 11' co , •• `r° t t , F mhfr{R � 14 '{' f tqft t -, w, t �I � )b >,Piyt'iuiit "I'' '','''1a,Ir' ti " ' s �tiy. 1),' � .*,,,i,' \ i, t g ,� t ; .I;� 7vt r^, �'„�ri;l { Piy". yy } 0'�w a � �y as ?WiH*t � IfyLu11„\ sa1�i ' �r � rws ` +�M , y ` ', Ft�/ /` ; / a ! • 'tv /v �4I" t f t t ` 7 � q,!v. y„I, J43, eg )11 1,v ,ir '''''''''''.71?'7: f , i .01\ + l ' ' r\ r !�i / ,/'' i.10.41'ipi 14 419 14111.” • • • M-W Drilling, Inc. Work Summary- Pilgrim Hot Springs P5-2 1. Remove flange, open valve, run 1.5" tremie to 90,_.'and_pump 24 cf of cement slurry up to cutoff level 2. Let cement sit five days 3. Cutoff valve and well on Ib plate V 4. Backfill site with local sand ♦ P.O. Box 110389 ♦Anchorage, AK 99511 • • Phone: 907-345-4000 ♦ Fax: 907-345-3287 • • mw@mwdrillinginc.com ♦www.mwdrillinginc.com • • 's are our business!!! • M-W Drilling, Inc. API Class A cement slurry components: - Class A Cement, 1 sack 0.48 CF - Sand, Fine 1.00 CF - Water (9 gals) 1.20 CF - Bentonite, fine grained (4 lbs) Total slurry yield for each cement sack 2.68 CF One grout mix batch equals 3 volumes of above slurry mix ♦ P.O. Box 110389 ♦Anchorage, AK 99511 • ♦ Phone: 907-345-4000 ♦ Fax: 907-345-3287 • ♦ mw@mwdrillinginc.com ♦www.mwdrillinginc.com • 's are our business!!! III 0 TIME DRILL LOG , CASING g m[../v Drilling,.. n Inc. O7 41/ /ad 77g.111:rin ma 0 I, f 1 4ii ir dill / CREW diir/k/ 4115 14/./ Siyi,(,,105-' . /11/XIteV/ar I/171 1 f ,61,14/ :k'- --_' .: ' ;.si Ar4 1* ADDRESS i eiZA/Y A2-4•1Z,• . 171 /-- .- 1,' i .11/4/1/49 , CITY PHONE lei.P12 1 ./e/ ;:- .Af JOB LOCATIOt*i-/r/01:457*V; ni a / \\ / ' ' ; e? S.- EQUIP.# fze--/tY7,' alti ol'a END f/ / /1 7a/fif --/ifer START Ali j/f ) iri.tr'fif if TOTAL HOURS al(16/137 )774ar ) A/1 ./.2",/f//,:16?4/34w Abill Bags of Bentonite t fii.a/lcf /.75-1 Static Level GPM Yield pt4e5e7nitar1 .a , A . _ivii 0-4,/,,zirif xiffi a/ AA. ,./( ' , 41.. I •/ ,,,p‘p/1 -,K, nwitiv 012 ,-,47 #,Ixt , 'j ' DEPTH Ai ,vieife4 I f. il,/f/i e/(17x/a 4v, .0 - i A T‘ 0- DEPTH WELL LOG CASING STICK UP 0 1 _... Tim•12•••••••1...../PVT".cp cx..e. 111AlklICE.inbrrIncc• nrrw,n Ir. • 0 • _.."011111111111111.. 11E511 DRILL LOG • * 1 ILIIIII ...IJ M.w2NNT Drillinginc. ,,,, ., ,„ iri7D ,i- .7, ) ,, 7/ /144 ...1 • 1 11 .6.- °,,, ,-, cc r 1 ,,..--- 1"'. 4 '' of = DATE ir i s' 4-,„45 lb II MININglitiMin111 . .. - ' 0 moslow, r, A. i Aviinis. CREW/ 1 ' //;1 i '4/71.111? ‘0#11,/ (Ks , „,16, ,p ,„, _ ,, VA.i.e_ NAME PROJ.NO. It r ,./.gr," / .' ! p, 1 11 ADDRESS 2'q.710 /Mr#1''0'1.6 -1 I i VG / ' CITY ) PHONE 1‘ 71/ri Yo'AfiT;Ife- 47, lilit. i - JOB LOCATION , t -1 E .-1-- ----- - END FraNZFEMENZI START IV 44.134MC 42//falit7. TOTAL HOURS Static Level GPM Yield we .--., se ' e A( Bags of Bentonite , • , f a,' , ' if 'AY .7,,--7 ,it/ va f- DEPTH WELL LOG 0- CASING STICK UP 1 • • 0 • TIME i DRILL LOG CASING- C2 is: MW Drilling Inc. liRiti /e1Q'OJ-- ..i ....1 . /1.: 1/: iy4 . ' - . , , cc DATE '3 9 j 7/:f5 CREW pi 75(iitrj /A/f„9/411/14 61,2?//,(1/10 - 7aPfte ,i''.<:, 01-.)7;7.'/;1 ;11:11XO1 NAM-,'''' ; • - .. /17/4/.1ri ' PII0J.NO. 31917,7:577/1‘k3r),./r ADDRESS / 7914.1- ,:d7'- /„ 4 •//A, ' ç .';/,,, / ,-7, crn, 447(-7/ ...i. PHONE 1.-7- ./4i4if ,/ipia,(, // 17-7,/ JOB LOCATION Al g9414117/1/41/le EQUIP# END gv-,-Aff---- START - / 7 1Yr 7 a 7:7C/I fif/FAIX/t'lli; -rg TALs ''.:- I ,,,e 1 / ......4 tr: Static Level GPM'Yield 4Bags of Bentonite /. 4/ it" ,, fr -----k`'-' / g :74 /1 41/4 " , /‘ff;4#4/-, -it- tiria/ lti8j ii(7' — DEPTH WELL LOG 0- CASING STICK UP The Porter Inc 13071 2r.Rene ,-.,.. ....... . . 0 • ;-"... r DRILL LOG dCASING '11 IP iffii- lilt( -i- , M-W Drilling, Inc. a - 4,,,a, /ii eial , • : c ie Ia. DATE ,,...„ = ' //t/fie if -- 51trii / AA/i/g.z/6-44 CREW()././i/V(1V4 i.4Y4. ,) ii,arxe, ,•.:(//‘y/i11:/r11 /A0'Ar ZrL;.;g...,-/ e YNAME i" 4 /PROJ5NO / rADDRESS .2/7 ./J .7 /VWi7CITY PHONE 1. ,../ 5 jr•jz:/:„//i /2'i41/7 JOB LOCATION f",./ "-- // " '' -7 ' /f . i --.4V'r--12-12 EQUIP.# Al. i'i dfil1--- END A.II(' (c' / 4 ,, /4/ )/1':( ' START TOTAL HOURS Static Level GPM Yield Bags of Bentonite ___ RS DEPTH WELL LOG 0- CASING STICK UP _J .. . . • • TIME DRILL LOG CASING 41iM-W Drilling, Inc. 47"730 11/' l,f51 )11/4///-' (7, j4) s LMil 2Aia 5fdr / ifiti5li ita,g f Ea DATE L2710 ; ' dX i,iee ilitlik „171-dei9116-M4/1 r,,(4,9 ,i 74 1.), CREW ii;:ie,././ 4 i, , ,id, ) if /4 i. , i lif-,, i-fir„,----4,../.,-- (//e/4 114 1 gr, NAME i /q)-.. J // PROJ.NO. A I /4;1'1 2 ie451 / i''' ''? 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Q V) V) V) V) V) 00 a UJ E E E E E t' N M a1 0 'L 'L •C •L •L N N M Q 'n. •a a a 2 • a o.. a * • • Colombia. J (DOA) From: Alan P. Baldivieso <ABaldivieso@aidea.org> Sent: Monday,June 15, 2015 1:57 PM To: Bettis, Patricia K(DOA) Cc: Guhl, Meredith D (DOA);Colombie,Jody J (DOA) Subject: RE: Pilgrim Springs 1-5 and Mary's Igloo 1 Hi Patricia, During our earlier conversations, Guy had indicated that the applications for sundry approvals should be submitted by the contractor selected to perform the work. I just spoke with the contractor—MW Drilling—who indicated that he intends to submit the applications later this week. I understand that Wayne Westberg from MW Drilling has been in touch with Guy to clarify expectations for the applications. Best, Alan Baldivieso Program Manager Alaska Energy Authority (907) 771-3027 From: Bettis, Patricia K(DOA) [mailto:patricia.bettis@alaska.gov] Sent: Monday,June 15,2015 1:38 PM To:Alan P. Baldivieso Cc:Guhl, Meredith D (DOA); Colombie,Jody J (DOA) Subject: Pilgrim Springs 1-5 and Mary's Igloo 1 Good afternoon Alan, The AOGCC has not received any sundry applications for the plugging and abandonment of the Pilgrim Springs 1-5 and Mary's Igloo 1 wells. Does AEA plan to submit those application in the near future? Thank you, Patricia Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage,AK 99501 Tel: (907) 793-1238 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review,use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Patricia Bettis at(907)793-1238 or patricia.bettis@alaska.gov. 1 • • r's isilskr_AKsA\ MUM ENERGY AUTHORITY March 9, 2015 Commissioner Cathy Foerster Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Re: Pilgrim Hot Springs Geothermal Wells Docket No: OTH-14-019 Dear Commissioner Foerster: The Alaska Oil and Gas Conservation Commission (AOGCC)has requested that the Alaska Department of Commerce, Community, and Economic Development(DCCED) submit a plan to suspend or plug and abandon six geothermal wells: Pilgrim Springs 1 - 5 and Mary's Igloo 1. The Alaska Energy Authority(AEA) is working on behalf of DCCED to develop a plan for these wells in compliance with 20 AAC 25.105 and 20 AAC 25.112. Alan Baldivieso, AEA geothermal program manager,has consulted with Patricia Bettis and Guy Schwartz at AOGCC to gather information and outline the steps required to plug and abandon all six wells. Alan has also contacted representatives of local landowners to confirm this is the preferred outcome. Based on these conversations and recommendations from AOGCC staff, AEA proposes to solicit bids through AEA's procurement process and select a contractor to perform the work; submit applications for sundry approval for the six wells to AOGCC;plug the wells according to the accepted plan with work estimated to be completed by September 30, 2015. I understand AOGCC staff has voiced support with the proposed course of action. Please let me know if you require additional information. Si rely, Sa a fisher-Goad Executive Director cc: Fred Parady, DCCED Acting Commissioner akenergyautherity.orc 813 West Northern Ughts Boulevard Anchorage,Alaska 99503 T 907.771 3000 Toll Free(Alaska Only)888.300.8534 F 907.771.3044 • oF , THE STATE Al.,s a Oil. and Gas � � of \ Conserv.do Commission 333 West Seventh Avenue GOVERNOR BILL WALKER Anchorage, Alaska 99501-3572 ' 7ti Main: 907.279.1433 ®F A Fax 907.276.7542 www.aogcc.alaska.gov January 7, 2015 CERTIFIED MAIL— RETURN RECEIPT REQUESTED 7012 3050 0001 4812 6839 Fred Parady Acting Commissioner Alaska Department of Commerce, Community, and Economic Development P.O. Box 110800 Juneau, AK 99811-0800 Re: Pilgrim Springs Geothermal Wells-Request for Extension Docket No: OTH-14-019 Dear Mr.Parady: The Alaska Oil and Gas Conservation Commission (AOGCC) received the Alaska Department of Commerce, Community, and Economic Development's (DCCED) request for an extension to the December 15, 2014 deadline for submittal of an acceptable plan and schedule for either the plugging and abandoning in compliance with 20 AAC 25.105 and 20 AAC 25.112 or suspension under 20 AAC 25.110 for the Pilgrim Springs-1 through 5 and the Mary's Igloo-1 geothermal wells. The AOGCC hereby GRANTS an extension until March 10, 2015 for the submittal of an acceptable plan and schedule for either the plugging and abandoning or suspension of the Pilgrim Springs 1 through 5 and the Mary's Igloo 1 geothermal wells. If the AOGCC does not receive an acceptable plan and schedule for the fore-mentioned wells, the AOGCC will notice a public hearing to determine whether remedial action is necessary with regard to the wells and which entity will bear responsibility for compliance. Please call Ms. Patricia Bextis at (907) 793-1238 if you have questions concerning this matter. Sincerely, Cat y P/Foerster Chair, Commissioner • • I S. Postal Service TM CERTIFIED MAILTM RECEIPT (Domestic Mail Only;No Insurance Coverage Provided) For delivery Information visit our website at www.usps.com® rU , r3 Postage $ Certified Fee Return Receipt Fee Postmark (Endorsement Required) Here Restricted Delivery Fee (Endorsement Required) u'1 m Total Postage&Fees Fred Parady rt.l Sent To Acting Commissioner Alaska Department of Commerce, ® Street,Apt.No.; • r._ or PO Box No. Community,and Economic Development City,State,ZIP+4 Post Office Box 110800 Juneau,AK 99811-0800 P Form 3800.Aug .,, - SENDER: COMPLETE THIS SECTION COMPLETE THIS SECTION ON DELIVERY • Complete items 1,2,and 3.Also complete A. Signature 0 Agent item 4 if Restricted Delivery is desired. X ®Addressee • Print your name and address on the reverse so that we can return the card to you. B. Received by(Printed Name) C. Date of Delivery • Attach this card to the back of the mailpiece, or on the front if space permits. D. Is deliverOcidrel$differept,flom item 1? 0 Yes 1. Article Addressed to If YES,enter delivef`y addres below: 0 No TATE OF ALASKA t•�P�IfVIf�l�TlCJr. Fred Parady Acting Commissioner 3. Service Type Alaska Department of Commerce, 0 Certified Mail® 0 Priority Mail Express'" Community,and Economic Development 0 Registered 0 Return Receipt for Merchandise Post Office Box 110800 0 Insured Mail 0 Collect on Delivery Juneau,AK 99811-0800 4. Restricted Delivery?(Extra Fee) 0 Yes 2. Article Number 7012 3050 0001 4512 6539 (Transfer from service label) PS Form 3811,July 2013 Domestic Return Receipt ti OF Ty ce,AI%%7 sTHE STATE Department ofCommerce, Community, , of and Economic Development ALAsKA OFFICE OF THE COMMISSIONER u !D GOVERNOR BILL WALKER 1 t P.o.Box 110800 _ �, �, Juneau, Alaska 99811-0080000 OF ALAS*P Main:907.465.2500 D E C I 5 7014 Programs fax:907.465.5442 O December 8, 2014 Ms. Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage,AK 99501 Dear Ms. Bettis: As you know from our conversation last week, DCCED has been working diligently to respond to your letter of September 12th regarding the Pilgrim Springs Geothermal Wells issue,Docket No: OTH-14-019. We have gathered substantial historical information and believe a proposed plan for the wells with the current project proponents is the solution although it remains unclear as to the specifics of DCCED's current responsibility and best path forward. Any action regarding the wells for which DCCED is listed as the operator appears to require coordination with the land owners Unataaq and Mary's Igloo Native Corporation. Regardless,pending completion of this research and sorting out these responsibilities,we would like to request a 60 day extension. We understand that ACEP has been or will be in contact with you regarding the four wells for which ACEP is the operator of record. Please feel free to contact me at any time regarding this matter. Sincerely, Fred Parady Acting Commissioner cc: Sara Fisher-Goad, Executive Director,Alaska Energy Authority Sean Skaling, Program Development and Project Evaluation Director,Alaska Energy Authority ti of T�� • ,„.0"\��j�,s� THE STATE Alaska Oil and Gas �� —'� of Conservation Commission � - - ALAS `• trit = 333 West Seventh Avenue k 1 GOVERNOR BILL WALKER Anchorage, Alaska 99501-3572 OF Main: 907.279.1433 ALAS P Fax: 907.276.7542 ` �En AUG 1 2 2015 www.aogcc.alaska.gov 5 Wayne E. Westberg President 1:------------624C M-W Drilling, Inc. (ADCCED) P.O. Box 110389 Anchorage, AK 99511 Re: Pilgrim Hot Springs Field, Undefined Geothermal Pool, PS-2 Sundry Number: 315-395 Dear Mr. Westberg: Enclosed is the approved application for sundry approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, Cathy P Foerster Chair DATED this day of July, 2015 Encl. r RECEIVED STATE OF ALASKA JUN 2 2 "c3 iJ Ls ALASKA OIL AND GAS CONSERVATION COMMISSION ?-s APPLICATION FOR SUNDRY APPROVALS AOG 20 AAC 25.280 1.Type of Request: Abandon❑✓ Plug Perforations❑ Fracture Stimulate ❑ Pull Tubing ❑ Operations shutdown❑ Suspend❑ Perforate ❑ Other Stimulate ❑ Alter Casing ❑ Change Approved Program Li Plug for Redrill❑ Perforate New Pool ❑ Repair Well ❑ Re-enter Susp Well ❑ Other: ❑ 2.Operator Name • _ ,:& -,& y, - 4.Current Well Class: 5.Permit to Drill Number: M-W Drilling,Inc.( ty y - ,-\ Exploratory El Development El I ?'i —0 SS— g�^) 3.Address: ) Stratigraphic ❑ Service 1:1 6.API Number: ¶ PO Box 110389,Anchorage AK 99511 50- oI- 9,000 a-o _c& 7.If perforating: 8.Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? /J,j- PS-2 AOGC 179-085 Will planned perforations require a spacing exception? U Yes No Q 9.Propertx Designationj (Lease Number): Ah 10.Field/Pool(s): FEE - Vf1 • L.LC Pilgrim Hot Springs ()nJL -c<J l iw 11. 1 PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth ND(ft): Plugs(measured): Junk(measured): I /SC 150 Unknown Casing Length Size MD TVD Burst Collapse Structural Conductor Surface Intermediate Production 150 6 5/8" Liner Perforation Depth MDr(ft): Perforation Depth ND(ft): Tubing Size: /I H Tubing Grade: Tubing MD(ft): 60 -/cs 60-105 V 6 Packers and SSSV Type: Packers and SSSV MD(ft)and ND(ft): 12.Attachments: Description Summary of Proposal ❑✓ 13.Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory ✓J( Stratigraphic❑ Development❑ Service ❑ 14.Estimated Date for 1-Aug-15 15.Well Status after proposed work: Commencing Operations: OIL ❑ WINJ ❑ WDSPL ❑ Suspended ❑ 16.Verbal Approval: Date: GAS ❑ WAG ❑ GSTOR ❑ SPLUG ❑ Commission Representative: GINJ ❑ Op Shutdown ❑ Abandoned ❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Email mw@mwdrillinginc.com Printed Name Wayne .Westberg President cc.7- WO-2,3;54 6/21/2015 1 Signature /1/ /—,/7/ -hone 907-345-4000 Date COMMISSION USE ONLY Conditions of approval: Notify Commission so that epresentative may witness Sundry Number: X15 3CjS Plug Integrity BOP Test ❑ Mechanical Integrity Test ❑/ Location Clearance Q❑ Other: i Ph-CA pat,c-c.v►— J C.4.--&;C.4.--&; cJ-f( E Jnc /0 Spacing Exception Required? Yes ❑ No [i Subsequent Form Required: (©--L/0 7 P Y APPROVED BY Approved by: /M-� COMMISSIONER THE COMMISSION Date: 7_3/_l S ley 7-3 1- ORIGINAL , 7/ 4 Submit Form and Form 10-403 Revised 5/2015 Approved application is valid for 12 months from the date of approval. Attachments in Duplicate RBDMSk AUG - 2 2015 • M-W Drilling, Inc. RECEIVED June 22, 2015 JUN 2 2 2015 AOGCC: To: Commissioner, Alaska Oil & Gas Conservation Commission RE: Pilgrim Hot Springs Geothermal Wells/AEA Construction Contract 15-121 Subject: Notice of Intent to Plug &Abandon 6 Geothermal Exploration Wells Dear Sir: This is to notify the commission per 11AAC87.160 our intention to plug the following geothermal wells at Pilgrim Hot Springs: PS-1 AOGC 179-078 C_______ps_ PS-2 AOGC 179-085 - C 179-090 PS-4 AOGC 100-274 PS-5 AOGC 100-275 MI-5 AOGC 100-276 Enclosed are our applications for sundry approvals. Tha ,ou, / 7/ — a e E. Westberg, M ( C President M-W Drilling, Inc. ♦ P.O. Box 110389 ♦Anchorage, AK 99511 • • Phone: 907-345-4000 ♦ Fax: 907-345-3287 • • mw@mwdrillinginc.com • www.mwdrillinginc.com • • 's are our business!!! Attachment to Application for Sundry Approvals Description Summary of Proposal PS-2 AOGC 179-085 - Cement from bottom to surface - Cutoff well head and cap with welded %" plate on casing • Schwartz, Guy L (DOA) From: mw@mwdrillinginc.com Sent: Wednesday,July 29, 2015 4:48 PM To: Schwartz, Guy L(DOA) Subject: ASOG Well No. 179-085 (aka PS-2): Plug and Abandonment Plan Description 1. Remove 6" blind flange and open 6"gate valve. 2. Run 1.25"tremie pipe to 120 feet or as far as it will go. 3. Cement from bottom up to-3 feet from surface using the Class A cement slurry described in the attachment. 4. Cut off the wellhead at-3 feet and weld a 0.250" plate on the casing with the AOGC well rater welded on it. 5. Note: this well has not been entered since it was drilled to 150 feet inel,S82'. i vie 1171 Wayne E. Westberg, MGWC President M-W Drilling, Inc. 907-345-4000 Cell:440-2536 N,;f;i lc s. G ,l 3) S � Giara l° G `` e •03 S6'.5/ft-- ,s-e) h /f-r-S'o x ,03s - 541 66`- T3c,-1 1 Schwartz, Guy L (DOA) From: mw@mwdrillinginc.com Sent: Thursday,July 30, 2015 8:33 AM To: Schwartz, Guy L(DOA) Subject: Attachment to Pilgrim P&A Plan Descriptions API Class A cement slurry components: --Class A Cement, 1 sack 0.48 CF --Sand,fine 1.00 CF --Water(9 gals) 1.2 CF --Bentonite,fine grained (4 lbs) Total slurry yield for each cement sack 2.68 CF Wayne E. Westberg, MGWC President M-W Drilling, Inc. 907-345-4000 Cell:440-2536 1 PS-1 Well PS-1 was drilled in November of 1979. Originally the well was drilled to a depth of 160 feet and cased with 6" casing. The casing was perforated at a depth of 60 feet to 100 feet. Recent loging equipment has only been able to get 90 feet deet I've never seen a diagram of the well casing. I believe it is 6"to TD. silk 1 4t, y I C ^a , PS-2 Well PS-2 was drilled in November of 1979. It was drilled 150 feet deep and cased with 6 inch casing. The casing is perforated from 60 feet to 105 feet below GL. The well has not been opened since 1982 and it is unknown how deep the well is open to. It is sinking into the cround and the valve on the wellhead is half burned. It does not appear to be leaking, but its full condition is unknown due to its half burned position and the lack of recent experience with the well. For calculation sake, I'd assume it is open to^'120 ft. The well is likely cased with 6"casing all the way to TD. i t.":10tv t'71 N? ''N-N.k 71.A.roo-- '''' '' ,!*it, ,,,,,ti ,tu, *._ .. ,,,,,, f--,,,--' i 'w •As it, , A. F ,g.,,,,,,,,,,, „,,,../4/p0„ .1, 3,, � �':: r t ✓'^.. R — ALAS 14\ aim ENERGY AUTHORITY March 9, 2015 Pw Os- Commissioner Cathy Foerster Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Re: Pilgrim Hot Springs Geothermal Wells Docket No: OTH-14-019 Dear Commissioner Foerster: The Alaska Oil and Gas Conservation Commission (AOGCC)has requested that the Alaska Department of Commerce, Community, and Economic Development(DCCED) submit a plan to suspend or plug and abandon six geothermal wells: Pilgrim Springs 1 - 5 and Mary's Igloo 1. The Alaska Energy Authority(AEA)is working on behalf of DCCED to develop a plan for these wells in compliance with 20 AAC 25.105 and 20 AAC 25.112. Alan Baldivieso, AEA geothermal program manager, has consulted with Patricia Bettis and Guy Schwartz at AOGCC to gather information and outline the steps required to plug and abandon all six wells. Alan has also contacted representatives of local landowners to confirm this is the preferred outcome. Based on these conversations and recommendations from AOGCC staff, AEA proposes to solicit bids through AEA's procurement process and select a contractor to perform the work; submit applications for sundry approval for the six wells to AOGCC; plug the wells according to the accepted plan with work estimated to be completed by September 30, 2015. I understand AOGCC staff has voiced support with the proposed course of action. Please let me know if you require additional information. Sit - rely, Sa-a isher-Goad Executive Director cc: Fred Parady, DCCED Acting Commissioner akoner 9yaut flci ity.or 813 West Northern L,ghts ElooJevsrd Met orege,Alaska 99503 T 907 771 3000 Toll Free(Alaska Only)888 300 6534 F 907 771.3044 Transmittal letter to be sent to: Chris Hladick, Commissioner Alaska Department of Commerce, Community, and Economic Development P.O. Box 110800 Juneau,AK 99811-0800 Wayne E. Westberg, President M-W Drilling, Inc. PO Box 110389 Anchorage,AK 99511 Cc: Alan P. Baldivieso,Geothermal Program Manager Alaska Energy Authority 813 West Northern Lights Blvd. Anchorage,AK 99503 Bettis, Patricia K (DOA) I �—O$S From: Bettis, Patricia K (DOA) Sent: Monday, June 15, 2015 1:38 PM To: 'Alan P. Baldivieso' Cc: Guhl, Meredith D (DOA); Colombie, Jody J (DOA) Subject: Pilgrim Springs 1-5 and Mary's Igloo 1 Good afternoon Alan, The AOGCC has not received any sundry applications for the plugging and abandonment of the Pilgrim Springs 1-5 and Mary's Igloo 1 wells. Does AEA plan to submit those application in the near future? Thank you, Patricia SCPatricia Bettis �Ea JUN :3 0Z01 Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage,AK 99501 Tel: (907) 793-1238 CONFIDENTIALITY NOTICE:This e-mail message, including any attachments,contains information from the Alaska Oil and Gas Conservation Commission (AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it, and,so that the AOGCC is aware of the mistake in sending it to you, contact Patricia Bettis at(907)793-1238 or patricia.bettis(Dalaska.gov. 1 $5FroBettis, Patricia K (DOA) / 77— °%6---- From: m: Alan P. Baldivieso <ABaldivieso@aidea.org> Sent: Monday, June 15, 2015 1:57 PM To: Bettis, Patricia K(DOA) Cc: Guhl, Meredith D (DOA); Colombie,Jody J (DOA) Subject: RE: Pilgrim Springs 1-5 and Mary's Igloo 1 Hi Patricia, During our earlier conversations, Guy had indicated that the applications for sundry approvals should be submitted by the contractor selected to perform the work. I just spoke with the contractor—MW Drilling—who indicated that he intends to submit the applications later this week. I understand that Wayne Westberg from MW Drilling has been in touch with Guy to clarify expectations for the applications. Best, Alan Baldivieso Program Manager Alaska Energy Authority %CANNED ,llIkl 2 (e 2015 (907) 771-3027 From: Bettis, Patricia K(DOA) [mailto:patricia.bettis@alaska.gov] Sent: Monday,June 15, 2015 1:38 PM To:Alan P. Baldivieso Cc: Guhl, Meredith D (DOA); Colombie,Jody J (DOA) Subject: Pilgrim Springs 1-5 and Mary's Igloo 1 Good afternoon Alan, The AOGCC has not received any sundry applications for the plugging and abandonment of the Pilgrim Springs 1-5 and Mary's Igloo 1 wells. Does AEA plan to submit those application in the near future? Thank you, Patricia Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Tel: (907) 793-1238 CONFIDENTIALITY NOTICE:This e-mail message, including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you, contact Patricia Bettis at(907)793-1238 or patricia.bettis@alaska.gov. 1 1-x-9-obs 0254" 73 Guhl, Meredith D (DOA) From: Bettis, Patricia K (DOA) Sent: Tuesday, March 03, 2015 1:51 PM To: Guhl, Meredith D (DOA) Cc: Schwartz, Guy L (DOA) Subject: FW: ACEP Reconnaissance Trip Report Pilgrim Springs Geothermal Wells Dated 2010 Attachments: AppD_wellhead repairs.pdf Meredith, Per our discussion, please put a copy of the Wellhead Repair Report into Laserfiche Well History Folder for each of the following wells: Pilgrim S•r.i - I '-1 9) Pilgrim Springs-2 (PTD 179-085) Pilgrim Springs-3 PTD 179-0.1 Pilgrim Springs-4 (PTD 109-274) SCANNED MAR 0 4 2015 Pilgrim Springs-5 (PTD 100-275) Mary's Igloo-1 (PTD 100-276). Please also place a reference in RBDMS for each PTD that the report was received March 3, 2015. Thanks, Patricia From: Alan P. Baldivieso [mailto:ABaldivieso@aidea.org] Sent: Tuesday, March 03, 2015 1:00 PM To: Bettis, Patricia K (DOA); Schwartz, Guy L (DOA) Subject: RE: ACEP Reconnaissance Trip Report Pilgrim Springs Geothermal Wells Dated 2010 Thank you, Patricia. I spoke with Chris and he sent the attached report detailing the repairs that the University had done to some of the wellheads. Based on the conversation I had with Guy this morning, the application for sundry approvals will need to include specifics from the contractor that is ultimately selected to perform the work. I have identified several contractors that are familiar with the Pilgrim Hot Springs wells, but will need to accept bids through our procurement process prior to awarding the contract. I anticipate that the earliest the work can begin will be in July, although the road to the site may be clear of snow earlier than usual this year. I will specify that the work be completed by Sept 30, 2015. Is this approach to plugging and abandoning the 6 wells acceptable? Thank you, Alan Baldivieso Program Manager Geothermal, Hydrokinetic, Emerging Energy Technologies 1 Alaska Energy Authority (907) 771-3027 From: Bettis, Patricia K(DOA) [mailto:patricia.bettis@alaska.gov] Sent:Tuesday, March 03, 2015 11:51 AM To:Schwartz,Guy L(DOA) Cc:Alan P. Baldivieso Subject:ACEP Reconnaissance Trip Report Pilgrim Springs Geothermal Wells Dated 2010 Guy and Alan, This report may be of use to you. UAF may have worked on some of the wells. Christopher Pike may be able to provide you with that information. His telephone number is(907) 272-1522; cell is(907)888-3850. Regards, Patricia Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage,AK 99501 Tel: (907)793-1238 CONFIDENTIALITY NOTICE:This e-mail message, including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Patricia Bettis at(907)793-1238 or p_atricia.bettis@alaska.gov. 2 Bettis, Patricia K (DOA) ?J6 /�?- ow - From: Mattson, Linda J (CED) Sent: Wednesday, December 10, 2014 9:05 AM To: Bettis, Patricia K (DOA) Cc: Fishergoad, Sara L (AIDEA); Skaling, Sean M (AIDEA); Parady, Fred E (CED) Subject: Signed Letter from Acting Commissioner Fred Parady Attachments: 12.08.14 Patricia Bettis Pilgrim Springs Letter.pdf (SCANNED Good Morning Ms. Bettis, Attached you will find a copy of a letter regarding the Pilgrim Springs Geothermal Wells issue that has been signed by Acting Commissioner Fred Parady. The original is in the mail to you. Please feel free to contact us at 465-2500 if you have any further questions. Cordially, Linda Mattson Executive Secretary Office of the Commissioner Department of Commerce, Community and Economic Development THE STATE Department of Commerce, Community, and Economic Development p f ALASKA OFFICF OF THE COMMISSIONER GOVERNOR BILI. WALKER P.O. Box 110800 Juneau, Alaska 99811 0800 Main: 907.465.2500 December 8, 2014 Ms. Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, AK 99501 Dear Ms. Bettis: Progroms fox: 907.465.5442 As you know from our conversation last week, DCCED has been working diligently to respond to your letter of September 12" regarding the Pilgrim Springs Geothermal Wells issue, Docket No: OTH-14-019. We have gathered substantial historical information and believe a proposed plan for the wells with the current project proponents is the solution although it remains unclear as to the specifics of DCCED's current responsibility and best path forward. Any action regarding the wells for which DCCED is listed as the operator appears to require coordination with the land owners Unataaq and Mary's Igloo Native Corporation. Regardless, pending completion of this research and sorting out these responsibilities, we would like to request a 60 day extension. We understand that ACEP has been or will be in contact with you regarding the four wells for which ACEP is the operator of record. Please feel free to contact me at any time regarding this matter. Sincerely, Fred Parady Acting Commissioner cc: Sara Fisher -Goad, Executive Director, Alaska Energy Authority Sean Skaling, Program Development and Project Evaluation Director, Alaska Energy Authority Bettis, Patricia K (DOA) �l� / �-Y- 08S From: Sent: To: Cc: Subject: Attachments: Sara Fisher -Goad <SFisherGoad@aidea.org> Thursday, December 04, 2014 4:48 PM Bettis, Patricia K (DOA) Parady, Fred E (CED); Bittner, Jon S (CED); Skaling, Sean M (AIDEA); Baldivieso, Alan P (AIDEA) RE: Pilgrim Springs AOGCC-correspondence.pdf SCANNED DEC 10 2014 Patricia —I've attached some scanned correspondence relating to the Pilgrim Hot Springs wells listing Commerce as the operator. The 2009 AOGCC correspondence with AEA regarding the wells is attached. Also attached is a letter from AOGCC to BSNC regarding wells 197078 and 179085. Could you please confirm who AOGCC considers responsible for the 6 wells that have Commerce listed as the operator? I understand UAF and Unaatuq will be responding to AOGCC's September 12, 2014 letter and addressing the 4 wells listing UAF as the operator of record. Sara Sara Fisher -Goad Executive Director Alaska Energy Authority 907-771-3012 (Office) 907-301-0103 (Cell) From: Bettis, Patricia K (DOA)[mailto:patricia.bettis@alaska.gov] Sent: Wednesday, December 03, 2014 2:01 PM To: Sara Fisher -Goad Cc: Parady, Fred E (CED); Jon Bittner Subject: Pilgrim Springs Sara, The AOGCC records show the Division of Energy & Power as the operator of record for Pilgrim Springs -1, Pilgrim Springs - 2, Pilgrim Springs -3, Pilgrim Springs -4, Pilgrim Springs -5 and Mary's Igloo -1 geothermal wells. Hence, AOGCC's September 12, 2014 Pilgrim Springs Geothermal Wells letter was sent to the Alaska Department of Commerce, Community, and Economic Development. Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Tel: (907) 793-1238 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Patricia Bettis at (907) 793-1238 or patricia.bettis@alaska.gov. - i � r _:. i L_.. 1 4• i i t� til, ASH& OILL AND GAS CONSERVATION COMMSS»ON► November 18, 2009 SEAN PARNELL, GOVERNOR i. CERTIFIED MAIL RETURN RECEIPT REQUESTED 7009 2250 0004 3911 4986 Irene Anderson Bering Straits Native Corporation PO Box 1008 SWIND 110 Front Street, Suite 300 Nome, Alaska 99762 333 W. 7th AVENUE, SUITE 500 ANCHORAGE, ALASKA 99501.3539 PHONE (907) 279-1433 FAX (907) 276-7542 Re: Wells Pilgrim Spring I (PTD 179078), Pilgrim Spring 2 (PTD 179085) Dear Ms. Anderson: In October, 1979 the Alaska Oil and Gas Conservation Commission (AOGCC or Commission) issued permits to drill the subject wells. The Commission is currently reviewing records for the purpose of identifying Alaska wells that have not been properly plugged and abandoned, and which thus may constitute safety or environmental hazards. Our records reveal that the wells identified above require remedial action to bring them into com- pliance with current Commission regulations. This remedial work will include cementing the wells in accordance with 20 AAC 25, Article 2. AOGCC is contacting you to request assis- tance in identifying current property ownership so that the required action can be taken. The Commission is also sending copies of this correspondence to the Catholic Church Fairbanks Diocese, to the entity identified as Mary's Igloo, and to Mr. Steve Haagenson, Executive Director of the Alaska Energy Authority, to make them aware of the potential hazards presented by these wells. It is our intention to have the responsible well owner properly plug and abandon the wells. Should the owner fail to do so, then AOGCC intends to contract to plug and abandon the wells, reserving the right to hold responsible parties financially accountable for costs incurred. if you have questions regarding this finding, please contact Mr. Winton Aubert, Senior Engineer, at 907-793-1231 or winton.aubert@al&ska.gov. Sincerely, Cathy P. erster Commiss oner cc: Catholic Church Fairbanks Diocese Steve Haagenson, SOA, Dept of Commerce �y �Alaska Industrial Development and Expo rt Authority October 14, 2009 Ms. Cathy P. Foerster, Commissioner Alaska Oil and Gas Conservation Commission 333 W 7'" Avenue, Suite 100 Anchorage, AK 99501-3539 Re Status of Oil and Gas Wells Dear Ms Foerster j4F 1___..); ALASKA dt ) ENERGY AUTHORITY RECEIVED OCT 1 6 2009 Abda til $ Gn Colts. Cwwr i:tion Anchonp I'm writing in response to your September 30, 2009, letter wherein you requested a letter to verify suspended, long-term shut-in and observation wells Subsequent to receiving the letter, AEA's Mike Harper conferred with Winton Aubert of your office. To the best of our knowledge, there has been no significant activity at Pilgrim Hot Springs since 1982 Our brief research shows that the only interest has been potential development of the geothermal hot springs in the area However, most significant is the ownership of this parcel containing the wells It is our understanding that Pilgrim Hot Springs is owned by the Catholic Church for surface estate while the local Native Corporation, Mary's Igloo, is subsurface owner. If you desire further information about land issues you may wish to contact Irene Anderson of Bering Straits Native Corporation in Nome There has been talk of further research and exploration with the Mary's Igloo group possibly partnering with Alaska Center for Energy and Power at UAF. There is data that one can easily attain through the internet, but I have included two reports that will provide some background. If you desire further information please feel free to contact David Lockard, PE with our office at (907) 771-3062. Sincerely, ALASKA ENERGY AUTHORITY (. VaLy'y-- Steve Haagenson Executive Director Attachments: 1982 Stanford University Report AEA 2007 Feasibility Report cc: Tab Ballantine, Department of Law Irene Anderson, Bering Straits Native Corporation Gwen Holdmann, Alaska Center for Energy and Power David Lockard. AEA 813 West Northern Lights Boulevard • Anchorage, Alaska 99503-2495 www.aidea.org • 907/771-3000 0 FAX 907/771-3044 0 Toll Free (Alaska Only) 888/300-8534 • Nvww.akenergyauthority.org 1-1-X - 0-1 -,�- SEAN PARNELL, GOVERNOR R���gT �+l �s�iu�a�.►�y,NA Q'M A" GA 333 W. 7th AVENUE, SUITE 100 CIGNSL:fRVAT ON C®MMSSIOW ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 September 30, 2009 CERTIFIED MAIL - RETURN RECEIPT REQUESTED 7005 1160 0001 5753 9158 Steve Hagenson AEA Executive Director 813 W. Northern Lights Blvd. Anchorage, AK 99503 Re: Failure to Respond to Request for Information (20 AAC 25.300) Status of Oil and Gas Wells Dear Mr. Hagenson: Under 20 AAC 25.300 you are required to provide information requested by the Alaska Oil and Gas Conservation Commission (Commission). On January 28, 2009 the Commission requested verification of suspended, long-term shut-in and observation wells. To date you have provided no response to the Commission. This correspondence constitutes the Commission's final request for you to verify the wells as suspended, long-term shut-in or observation wells. If the requested information has not been received by the Commission by the close of business on December 1, 2009, you will be considered in violation of 20 AAC 25.300 and the Commission will take such action as it deems appropriate including, but not limited to, initiation of a public hearing, initiation of an enforcement action, and imposition of penalties as authorized under AS 31.05.150. If you have any questions regarding this request, please contact Winton Aubert at 907.793.1231 or winton.aubertnalaska.gov. Sincerely, CatjPoerster Commissioner Attachment cc: Tab Ballantine Department of Law � —I vt - crl y� CERTIFIED MAIL RETURN RECEIPT REQUESTED 7005 1820 0001 2499 6057 Steve Hagenson AEA Executive Director 813 W. Northern lights Anchorage AK 99503 SCANNED Re: Notice of Revised Suspended Wells Regulations and Request for Verification of Suspended and Shut-in Well hili» •mation Dear Mr. Flagenson: Enclosed are the Alaska Oil and Gas Conservation Commission's revised regulations regarding suspended wells (i.e., 20 AAC 25.110). Also enclosed is a list of suspended and long-term shut-in wells operated by the Alaska Energy Authority or your predecessor, the Division of Energy and Power Development. For each list, please verify the information for each well and provide any corrections by April 1, 2009. Location inspections required under 20 AAC 25.110 should be coordinated with Jim Regg at 907-793-1236 or jim.regg@alaska.gov. If you have any questions regarding this notice, please contact Tom Maunder at 907-793- 1250 or tom.maunder@alaska.gov. Sincerely, /5� Cathy. oer Commissioner Enclosures � K /A SARAH PALIN, GOVERNOR j ALASIIiAOIL AND GAS J 333 IN 71h AVENUE, SUITE 100 CONSERQI�TIOV COMMISSION / ANCHORAGE. ALASKA 99501-3539 PHONE (907) 2791433 January 28, 2009 FAX (907) 276-7542 CERTIFIED MAIL RETURN RECEIPT REQUESTED 7005 1820 0001 2499 6057 Steve Hagenson AEA Executive Director 813 W. Northern lights Anchorage AK 99503 SCANNED Re: Notice of Revised Suspended Wells Regulations and Request for Verification of Suspended and Shut-in Well hili» •mation Dear Mr. Flagenson: Enclosed are the Alaska Oil and Gas Conservation Commission's revised regulations regarding suspended wells (i.e., 20 AAC 25.110). Also enclosed is a list of suspended and long-term shut-in wells operated by the Alaska Energy Authority or your predecessor, the Division of Energy and Power Development. For each list, please verify the information for each well and provide any corrections by April 1, 2009. Location inspections required under 20 AAC 25.110 should be coordinated with Jim Regg at 907-793-1236 or jim.regg@alaska.gov. If you have any questions regarding this notice, please contact Tom Maunder at 907-793- 1250 or tom.maunder@alaska.gov. Sincerely, /5� Cathy. oer Commissioner Enclosures Bettis, Patricia K (DOA) From: Sara Fisher -Goad <SFisherGoad@aidea.org> Sent: Wednesday, December 03, 2014 2:12 PM To: Bettis, Patricia K (DOA) Cc: Parady, Fred E (CED); Bittner, Jon S (CED) Subject: RE: Pilgrim Springs SCANNED DEC 10 2014 Thank you. Although we have no one on staff who was here during that time, it does appear with some of the documents we uncovered that it was a division in Department of Commerce and not a part of AEA or old APA. Fred — regardless of that issue, we can still help get this issue addressed. Sara From: Bettis, Patricia K (DOA) [mailto:patricia.bettis@alaska.gov] Sent: Wednesday, December 03, 2014 2:01 PM To: Sara Fisher -Goad Cc: Parady, Fred E (CED); Jon Bittner Subject: Pilgrim Springs Sara, The AOGCC records show the Division of Energy & Power as the operator of record for Pilgrim Springs -1, Pilgrim Springs - 2, Pilgrim Springs -3, Pilgrim Springs -4, Pilgrim Springs -5 and Mary's Igloo -1 geothermal wells. Hence, AOGCC's September 12, 2014 Pilgrim Springs Geothermal Wells letter was sent to the Alaska Department of Commerce, Community, and Economic Development. Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Tel: (907) 793-1238 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Patricia Bettis at (907) 793-1238 or patricia.bettis@alaska.gov. Bettis, Patricia K (DOA) ?-Ib 1 ;� 9 - Z) From: Bettis, Patricia K (DOA) Sent: Wednesday, December 03, 2014 2:01 PM To: Fishergoad, Sara L (AIDEA) Cc: Parady, Fred E (CED); Bittner, Jon S (CED) Subject: Pilgrim Springs Sara, SCANNED DEC 10 2014 The AOGCC records show the Division of Energy & Power as the operator of record for Pilgrim Springs -1, Pilgrim Springs - 2, Pilgrim Springs -3, Pilgrim Springs -4, Pilgrim Springs -5 and Mary's Igloo -1 geothermal wells. Hence, AOGCC's September 12, 2014 Pilgrim Springs Geothermal Wells letter was sent to the Alaska Department of Commerce, Community, and Economic Development. Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Tel: (907) 793-1238 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Patricia Bettis at (907) 793-1238 or patricia.bettis@alaska.gov. Bettis, Patricia K (DOA) Pt / % — 0.8 From: Sara Fisher -Goad <SFisherGoad@aidea.org> Sent: Wednesday, December 03, 2014 11:41 AM To: Parady, Fred E (CED) Cc: Bettis, Patricia K (DOA); Bittner, Jon S (CED) Subject: RE: Pilgrim Springs Geothermal Wells SCANNED DEC 10 2014 I have our geothermal project manager looking into this and we have a call into Gwen at UAF. The years associated with the drilling from "Division of Energy and Power" is probably old AEA nea APA (Alaska Power Authority). This is an interesting puzzle and I was not aware of this deadline or requirement prior to your email earlier today. It will take us at least a day to close the loop with UAF and come up with a plan, we are researching our library on old documentation. I agree with you, we need to apply for an extension. Patricia — do you know why this was not sent to AEA directly? Do the original documents from 1979 and 1982 mention Alaska Power Authority (I think the name change to AEA happened in 1990)? Sara PS — congratulations on the Acting Commissioner assignment. Sara Fisher -Goad Executive Director Alaska Energy Authority 907-771-3012 (Office) 907-301-0103 (Cell) From: Parady, Fred E (CED) [mailto:fred. parady@alaska.gov] Sent: Wednesday, December 03, 2014 9:36 AM To: Sara Fisher -Goad Cc: Bettis, Patricia K (DOA); Jon Bittner Subject: FW: Pilgrim Springs Geothermal Wells Sara Attached is a copy of a letter we received regarding DCCED well closure obligations from the Pilgrim Springs Geothermal project from 1979-1982. The operator is listed as DCCED Division of Energy and Power. Did that migrate into AEA, and can you help me run this to ground? We need to come up with an abandonment plan or plan of suspension. We also likely need to apply for an extension. We are working against a 12/15/14 deadline. Thanks for your help. Fred From: Bettis, Patricia K (DOA) Sent: Wednesday, December 03, 2014 9:21 AM To: Parady, Fred E (CED) Cc: Schwartz, Guy L (DOA) Subject: Pilgrim Springs Geothermal Wells Good morning Acting Commissioner Parady, I checked the USPS certified return receipt (green card) and the Alaska Department of Commerce, Community, and Economic Development received the Pilgrim Springs Geothermal Wells letter dated September 12, 2014 on September 15, 2014. I attached the wellbore schematics for those wells operated by the Division of Energy & Power for which the AOGCC has a record. This includes Mary's Igloo -1, PS -3, PS -4 and PS -5. Please note that these are old wellbore schematics contained in a 1983 Woodward -Clyde Consultants report entitled "Geothermal Energy Development at Pilgrim Springs, Alaska, Phase 11: Results of Drilling, Testing and Resource Confirmation" and may not reflect the current conditions of the wells. If you have any further questions, please do not hesitate to call or e-mail me. Regards, Patricia Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Tel: (907) 793-1238 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Patricia Bettis at (907) 793-1238 or patricia.bettis@alaska.gov. Bettis, Patricia K (DOA) 1-/b /;49 -108S_ From: Parady, Fred E (CED) Sent: Wednesday, December 03, 2014 9:36 AM To: Fishergoad, Sara L (AIDEA) Cc: Bettis, Patricia K (DOA); Bittner, Jon S (CED) Subject: FW: Pilgrim Springs Geothermal Wells Attachments: MI-1.pdf; PS -3 Wellbore schematic.pdf; PS -4 Wellbore schematic.pdf; PS -5 Wellbore schematic.pdf; Pilgrim Springs Geothermal Wells.pdf %MNED DEC 10 2014 Sara: Attached is a copy of a letter we received regarding DCCED well closure obligations from the Pilgrim Springs Geothermal project from 1979-1982. The operator is listed as DCCED Division of Energy and Power. Did that migrate into AEA, and can you help me run this to ground? We need to come up with an abandonment plan or plan of suspension. We also likely need to apply for an extension. We are working against a 12/15/14 deadline. Thanks for your help. Fred From: Bettis, Patricia K (DOA) Sent: Wednesday, December 03, 2014 9:21 AM To: Parady, Fred E (CED) Cc: Schwartz, Guy L (DOA) Subject: Pilgrim Springs Geothermal Wells Good morning Acting Commissioner Parady, I checked the USPS certified return receipt (green card) and the Alaska Department of Commerce, Community, and Economic Development received the Pilgrim Springs Geothermal Wells letter dated September 12, 2014 on September 15, 2014. I attached the wellbore schematics for those wells operated by the Division of Energy & Power for which the AOGCC has a record. This includes Mary's Igloo -1, PS -3, PS -4 and PS -5. Please note that these are old wellbore schematics contained in a 1983 Woodward -Clyde Consultants report entitled "Geothermal Energy Development at Pilgrim Springs, Alaska, Phase Il: Results of Drilling, Testing and Resource Confirmation" and may not reflect the current conditions of the wells. If you have any further questions, please do not hesitate to call or e-mail me. Regards, Patricia Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Tel: (907) 793-1238 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Patricia Bettis at (907) 793-1238 or patricia.bettis@alaska.gov. THE STATE olALASKA (;OVERIVOR SEAN PARNF.1.1. September 12, 2014 CERTIFIED MAIL - RETURN RECEIPT REQUESTED 7012 3050 0001 4812 6808 (Unaatuq) 7012 3050 0001 4812 6815 (DCED) 7012 3050 0001 4812 6822 (UAF) Matt Ganiey, Resources !nd External Affairs Unaatuq, LLC c/o Bering Straits Native Corporation P.O. Box 1008 N- --c. AK <)'t762 Alaska Oil and Gas t ,onserva(ion f nmini.,•iort Ms. Susan K. Bell, Cnmmissioner Alaska Department of Commerce, Community, and Economic Development P.O. Box 110800 Juneau,AK 99811-0800 Gwen Holdmann, Director UAF Alaska Center for Energy & Power P.O. Box 755910 Fairbanks, AK 99775-5910 Re: Pilgrim Springs Geothermal Wells Docket No: 0TH -14-019 Dear Mr. Ganlev, Ms. Bell and Ms. Holdmann: 333 wee! Seventl• A,c sue: Anc4loge. A100-0 99501-3572 -toiv: 907 279.; 43s vv� . As operators or landowner of record, you are advised that the ten geothermal wells drilled in the area of Pilgrim Springs, Alaska (see attached list) must either be plugged and abandoned in compliance with 20 AAC 25.105 and 20 AAC 25.112 or suspended under 20 AAC 25.110. Alaska Oil and Gas Conservation AOGCC regulations can be found at the following internet address: h-ttp.Jldoj?,a-lpska-.gQvlggcJ-Rvg-ula ions-1-Reginclex._html. A Sundry application form (Form 10-403) for the submittal of a plan of abandonment or a plan of suspension for a well to the AOGCC can he found at: http://doa.alaska.gQv/ogc/formslforms.htmi. Please note that each application for Sundry Approval must include a well schematic diagram showing the well's current condition and a well schematic diagram showing proposed downhole well design changes to comply with applicable regulations for plug and abandonment or suspension. Pilgrim Springs Geothermal Wells September 12, 2014 Page 2 of 2 If the AOGCC does not receive an acceptable plan and schedule for all ten wells within ninety (90) days of receipt of this letter, the AOGCC will notice a public hearing to determine whether remedial action is necessary with regard to the wells and which entity will bear responsibility for compliance. The applicable University of Alaska, Fairbanks Alaska Center for Energy & Power's (UAF) lease will be expiring soon relative to the PS# 12-1, PS 12-2, PS 12-3 and PS 13-1 wells. Under 20 AAC 25.105, all permitted wells on a property must be properly abandoned before expiration of the operator's rights. Upon expiration of the lease, if these wells are not plugged and abandoned to the satisfaction of the AOGCC, UAF's bond will be forfeited. Forfeiture of the bond will not relieve UAF of responsibility for plugging and abandoning of the wells under AS 31.05. If Unaatuq, LLC desires to take over operatorship of these four wells, a Designation of Operator Form (Form 10 411) must be submitted to and approved by the AOGCC, as provided under 20 AAC 25.020 in addition to filing the bond required by 20 AAC 25.025. Please call Ms. Patricia Bettis at (907) 793-1238 if you have question concerning this matter. Sincerely, e4 P ;4 Cathy P Foerster Chair, Commissioner Attachment cc: Kit Duke, Associate Vice President University of Alaska Facilities and Land Management 1815 Bragaw St., Ste. 101 Anchorage, AK 99508 Larry Hartig, Commissioner Department of Environmental Conservation P.O. Box 111800 Juneau, AK 99811-1800 ?'° a s`' ' PILGRIM SPRINGS GEOTHERMAL WELLS `SOA, Department of Commerce and Economic Development, Division of Energy and Power Attachment 1 DATE TOTAL DEPTHSTATUS WELL NAME PTD No. OPERATOR Of RECORD Location DRILLED (feet) Pilgrim Springs -1 179-078 SOA, Division of Energy% Power` 36, T4S, R31W, KRM 1979 150 Shut-in Pilgrim Springs -2 119-085 SOA, Division of F nergy & Power, 03, TSS, R31W, KRM 1979 150 Shut-in Pilgrim Springs -3 179 090 SOA, Division of Energy & Power` 03, T5S, R31W, KRM 1982 260 Shut-in Pilgrim Springs -4 100-274 SOA, Division of Energy & Power' 03, TSS, R31W, KRM 1982 881 Shut-in Pilgrim Springs -5 100-275 SOA, Division of Energy & Power' 03, TSS, R31W, KRM 1982 1001 Shut-in Mary's Igloo -1 100-276 SOA, Division of Energy & Power' 03, TSS, R31W, KRM 1982 307 Shut-in PS 12-1 212-077 UAF Alaska Center for Energy & Power 36, T4S, R31W, KRM 2011 1000 Suspended PS 12-2 212-109 UAF Alaska Center for Energy & Power 36, T45, R31W, KRM 2012 1294 Suspended PS 12-3 212-126 UAF Alaska Center for Energy & Power 36, T4S, R31 W, KRM 20:1 1183 Suspended PS 13-1 213-102 UAF Alaska Center for Energy & Power 36, T4S, R31 W, KRM 2013 1036 Suspended `SOA, Department of Commerce and Economic Development, Division of Energy and Power Attachment 1 2 -inch side ports with 2 -inch valves -::).— 10 -inch blind flange -<:)--I 0 -inch master gate valve G. L. 17 ft ft 16 -inch casing in 20 -inch Z. auger hole 1. Cement 56 ft 10 -inch casing in 14A inch hole L4 -.Co— 6 -inch casing in 9-7/9 inch hole 167.5 ft III 3- X 5 -inch concentric reducer III welded on 3 -inch pipe overlap 12 ft .p -3 -inch slotted casing Total length 105 ft T.D. drilled 260 ft Project No. Pilgrim Springs CASING PROFILE OF WELL PS -3 Figure WoodwarxMyde Consultants 6 • 10 -inch master valve 2 -inch outlets with valves G. L. 19ft 86.5 ft U° ° Cement '0 o/ /O 187.4 ft 5 ft drill pipe, 3 drill collars, 7-7/8 in, stabilizer, sub float & bit for total length of 70.2 ft of steel left in hole TD drilled 881 ft 10 -inch blind flange with 1 -inch nipple for flow •cam— 19 ft: 16 -inch casing in 20 -inch hole 86.52 ft: 10 -inch casing °s in 14-3'. inch hole r� e' 187.42 ft:8-inch casing in 9-7/8 inch hole GO O� Open hole 97/8 inch to 520 ft; 7.7/8 inch below Lost drill stem in open hole Project No. 15267A Pilgrim Springs CASING PROFILE OF WELL PS -4 Figure 7 Woodward-Ctyde Consultants 981 it T.D. drilled 1001 it r 1 U 2 -inch side ports with 2 -inch valves - 2 each ••o .e ;•o -�3 16 -inch casing in 20 -inch auger hole 06 of10 0 10 -inch blind flange 14-% inch hole 10 -inch master gate valve-----C>- --C>•G.L. oG G. L. �6e 0�6d 11 it 42 ft 6:0 Cement oo, 178 ft � L°e 588 it Q ee 981 it T.D. drilled 1001 it r 1 U 2 -inch side ports with 2 -inch valves - 2 each ••o .e ;•o -�3 16 -inch casing in 20 -inch auger hole 06 of10 -inch casing in 66 14-% inch hole ea e oG �6e 0�6d - 8 -inch casing in 14-:Y. inch hole 6:0 oo, � L°e Q ee °' •e Overlap 10 it n as 6- X 7 -inch concentric • e reducer -�� 6 -inch casing in 7.7,g inch hole rV 20 it cement at bottom of 6 -inch casing. 3- X 5 -inch concentric reducer f --- 441 ft: 3 -inch slotted casing Project No. 15267A Pilgrim Springs F igure CASING PROFILE OF WELL PS -5 8 Woodward-Ctyde Consuttants 10 -inch blind flange 10 -inch master gate valve G. L. oueo •0 20 ft 0 4- 1.5 �,..b 0-65. V 80 ft Cement 151 ft 232 ft T.D. 307 ft 2 -inch side ports with 2 -inch valves 20 ft: 16 -inch in 20 -inch hole 0, 8 -inch in 14% inch hole —c:*— 6 -inch in 14-% inch hole 3 -inch slotted casing 84 ft Project No. 15267A Pilgrim Springs CASING PROFILE OF WELL MI -1 F igure Woodward-CWe Consultants 9 Bettis, Patricia K (DOA) P i� /7'V7 -CS From: Bettis, Patricia K (DOA) Sent: Wednesday, December 03, 2014 9:21 AM To: Parady, Fred E (CED) Cc: Schwartz, Guy L (DOA) Subject: Pilgrim Springs Geothermal Wells Attachments: MI-1.pdf; PS -3 Wellbore schematic.pdf; PS -4 Wellbore schematic.pdf; PS -S Wellbore schematic.pdf SCANNED DEC 10 2014 Good morning Acting Commissioner Parady, I checked the USPS certified return receipt (green card) and the Alaska Department of Commerce, Community, and Economic Development received the Pilgrim Springs Geothermal Wells letter dated September 12, 2014 on September 15, 2014. I attached the wellbore schematics for those wells operated by the Division of Energy & Power for which the AOGCC has a record. This includes Mary's Igloo -1, PS -3, PS -4 and PS -5. Please note that these are old wellbore schematics contained in a 1983 Woodward -Clyde Consultants report entitled "Geothermal Energy Development at Pilgrim Springs, Alaska, Phase II: Results of Drilling, Testing and Resource Confirmation" and may not reflect the current conditions of the wells. If you have any further questions, please do not hesitate to call or e-mail me. Regards, Patricia Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Tel: (907) 793-1238 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Patricia Bettis at (907) 793-1238 or patricia.bettis@alaska.gov. 2 -inch side ports with 2 -inch valves ._ G. L. 17 ft ft Cement _ 58 ft — 167.5 ft _ T.D. drilled 260 ft Project No. Pilgrim Springs 15267A Woodward -Clyde Cormk*arft a-- 10 -inch blind flange 4-104nch master gate valve •'D �0 16 -inch casing in 20 -inch auger hole 10 -inch casing in 14-% inch hole .cJ--- 6 -inch casing in 9-7/6inth hole 3- X 5 -inch concentric reducer welded on 3 -inch pipe overlap 12 ft -p-3-inch slotted casing Total length 105 ft CASING PROFILE OF WELL PS -3I Figure 6 • 10 -inch master valve _��... 2 -inch outlets with valves \ G. L. p;. •1 19 ft 4� 111 86.5 ft Cement 187.4 ft 5 ft drill pipe, 3 drill collars, 7-7/8 in, stabilizer, sub float & bit for total length of 70.2 ft of steel left in hole TO drilled 881 ft �— 10 -inch blind flange with 1•inch nipple for flow oC}-- 19 ft: 16 -inch casing ` in 20 -inch hole s r• 86.52 ft: 10 -inch casing as in 14-% inch hole 'e 187,42 ft:8 inch casing oe in 9.7/8 inch hole ca ..q.__ Open hole 97/8 inch to 520 ft; 7-7/8 inch below Lost drill stem in open hole 'roject No. 15267A I Pilgrim Springs CASING PROFILE OF WELL PS -4 Figure Woodward -Clyde Consultants 7 10 -inch blind flange--c-1-1n.- 1 0-i nch ---1�-10-inch master gate valve —ter G. L, 11 ft 42 ft Cement 176 ft 588 ft 981 ft T.D. drilled 1001 ft • 2 -inch side ports with 2 -inch valves - 2 each -4------ 6 -inch casing in 7.716 inch hole 0 y 20 ft cement at bottom of 6 -inch casing. 3- X 5 -inch concentric reducer 441 ft: 3 -inch slotted casing Project No. 15267A Pilgrim Springs Figure CASING PROFILE OF WELL PS -5 8 Woodward -Clyde Consukants 16 -inch casing in 20 -inch auger hole S� o� o� q 10 -inch casing in 6s 14-% inch hole ea oG a b .a 8 -inch casing in Off 14-34 inch hole Oo, G6� Q .a °' •' Overlap 10 ft n �a 6- X 74nch concentric �•� reducer -4------ 6 -inch casing in 7.716 inch hole 0 y 20 ft cement at bottom of 6 -inch casing. 3- X 5 -inch concentric reducer 441 ft: 3 -inch slotted casing Project No. 15267A Pilgrim Springs Figure CASING PROFILE OF WELL PS -5 8 Woodward -Clyde Consukants 10 -inch blind flange 10 -inch Master gate valve G. L. toPRi ,!o 20 ft 80 ft Cement - 151 ft 2 -inch side Ports with 2 -inch valves 20 ft- 16 -inch in 20 -inch hole :3— 8 -inch in 14% inch hole —:3— 6 -inch in 14-% inch hole w. L 8p 232 ft 3 -inch slotted casing B4 ft T.D. 307 ft Project No. 15267A Pilgrim Springs CASING PROFILE OF WELL MI -1 F igure %*dWard-C—tyde Cortsuftrft L 9 1 OF 71, THE STATE Alaska Oil' and Gas s, n`-7 T c.tn in" 4 ii i ii ! J, GOVERNOR SEAN PARNELL September 12, 2014 CERTIFIED MAIL - RETURN RECEIPT REQUESTED 7012 3050 00014812 6808 (Unaatuq) 7012 3050 00014812 6815 (DCED) 7012 3050 00014812 6822 (UAF) Matt Ganley, Resources and External Affairs Unaatuq, LLC c/o Bering Straits Native Corporation P.O. Box 1008 Nome, AK 99762 Ms. Susan K. Bell, Commissioner Alaska Department of Commerce, Community, and Economic Development P.O. Box 110800 Juneau, AK 99811-0800 Gwen Holdmann, Director UAF Alaska Center for Energy & Power P.O. Box 755910 SCANNEV Fairbanks, AK 99775-5910 Re: Pilgrim Springs Geothermal Wells Docket No: OTH-14-019 Dear Mr. Ganley, Ms. Bell and Ms. Holdmann: 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 As operators or landowner of record, you are advised that the ten geothermal wells drilled in the area of Pilgrim Springs, Alaska (see attached list) must either be plugged and abandoned in compliance with 20 AAC 25.105 and 20 AAC 25.112 or suspended under 20 AAC 25.110. Alaska Oil and Gas Conservation AOGCC regulations can be found at the following internet address: http//doa.alaska.govlogc/Regulations/Reglndex.html. A Sundry application form (Form 10-403) for the submittal of a plan of abandonment or a plan of suspension for a well to the AOGCC can be found at: http://doa.alaska.gov/ogclforms/forms.html. Please note that each application for Sundry Approval must include a well schematic diagram showing the well's current condition and a well schematic diagram showing proposed downhole well design changes to comply with applicable regulations for plug and abandonment or suspension. Pilgrim Springs Geothermal Wells September 12, 2014 Page 2 of 2 If the AOGCC does not receive an acceptable plan and schedule for all ten wells within ninety (90) days of receipt of this letter, the AOGCC will notice a public hearing to determine whether remedial action is necessary with regard to the wells and which entity will bear responsibility for compliance. The applicable University of Alaska, Fairbanks Alaska Center for Energy & Power's (UAF) lease will be expiring soon relative to the PS# 12-1, PS 12-2, PS 12-3 and PS 13-1 wells. Under 20 AAC 25.105, all permitted wells on a property must be properly abandoned before expiration of the operator's rights. Upon expiration of the lease, if these wells are not plugged and abandoned to the satisfaction of the AOGCC, UAF's bond will be forfeited. Forfeiture of the bond will not relieve UAF of responsibility for plugging and abandoning of the wells under AS 31.05. If Unaatuq, LLC desires to take over operatorship of these four wells, a Designation of Operator Form (Form 10-411) must be submitted to and approved by the AOGCC, as provided under 20 AAC 25.020 in addition to filing the bond required by 20 AAC 25.025. Please call Ms. Patricia Bettis at (907) 793-1238 if you have question concerning this matter. Sincerely, P Cathy P Foerster Chair, Commissioner Attachment cc: Kit Duke, Associate Vice President University of Alaska Facilities and Land Management 1815 Bragaw St., Ste. 101 Anchorage, AK 99508 Larry Hartig, Commissioner Department of Environmental Conservation P.O. Box 111800 Juneau, AK 99811-1800 PILGRIM SPRINGS GEOTHERMAL WELLS *SOA, Department of Commerce and Economic Development, Division of Energy and Power Attachment 1 DATE TOTAL DEPTHSTATUS WELL NAME PTD No. OPERATOR OF RECORD Location DRILLED (feet) Pilgrim Springs -1 179-078 SOA, Division of Energy & Power* 36, T4S, R31W, KRM 1979 150 Shut-in Pilgrim Springs -2 179-085 SOA, Division of Energy & Power* 03, T5S, R31W, KRM 1979 150 Shut-in Pilgrim Springs -3 179-090 SOA, Division of Energy & Power* 03, T5S, R31W, KRM 1982 260 Shut-in Pilgrim Springs -4 100-274 SOA, Division of Energy & Power* 03, T5S, R31W, KRM 1982 881 Shut-in Pilgrim Springs -5 100-275 SOA, Division of Energy & Power* 03, T5S, R31W, KRM 1982 1001 Shut-in Mary's Igloo -1 100-276 SOA, Division of Energy & Power* 03, T5S, R31W, KRM 1982 307 Shut-in PS 12-1 212-077 UAF Alaska Center for Energy & Power 36, T4S, R31W, KRM 2012 1000 Suspended PS 12-2 212-109 UAF Alaska Center for Energy & Power 36, T4S, R31W, KRM 2012 1294 Suspended PS 12-3 212-126 UAF Alaska Center for Energy & Power 36, T4S, R31W, KRM 2012 1183 Suspended PS 13-1 213-102 UAF Alaska Center for Energy & Power 36, T4S, R31W, KRM 2013 1036 Suspended *SOA, Department of Commerce and Economic Development, Division of Energy and Power Attachment 1 • i?9 0$~., ~ Pagelofl Aubert, Winton G (DOA) From: Gwen Holdmann [gwen.holdmann@alaska.edu] Sent: Thursday, August 19, 2010 10:50 PM To: Aubert, Winton G (DOA) Subject: Pilgrim Hot Springs Winton, I would like to confirm that the work conducted through the Alaska Center for Energy and Power (University of Alaska Fairbanks) at Pilgrim Hot Springs is purely intended for research purposes. The purpose of our project, funded primarily through the Department of Energy, is to test the validity of an innovative geothermal exploration technique which involves an advanced airborne infrared survey. To verify this technique we will conduct ground truthing using more traditional geophysical and geologic techniques, as well as collection of new data from six existing wells which will all be used to develop a conceptual model of the site. Eventually, we plan to confirm this model through the drilling of two SOOft gradient holes and two 2500ft confirmation holes to identify the recharge point for the hot springs and measure total heat loss to the surface to correlate to our airborne infrared data. Please let me know if you need any additional information, I am happy to provide it. Gwen Gwen Holdmann, Director Alaska Center for Energy and Power University of Alaska Physical Address: 814 Alumni Drive Mailing Address: PO Box 755910 Fairbanks AK 99775-5910 Cell.(907) 590-4577 www.uaf.edu/aceU www.energy-alaska.com www.akenergynetwork.com ~•,; , o f~ i, a ~~ ~~ 8/23/2010 Memorandum To: Well History Files 1790780, 1790850, 1790900, 1002740, 1002750, 1002760 State of Alaska Oil and Gas Conservation Commission August 4, 2010 Re: Pilgrim Spring Geothermal Drilling and Testing Program -Notes and Coordinates for Wells From: Steve Davies ~ ~-~.'~,~~~% 1~U is A total of six exploratory geothermal wells have been drilled at Pilgrim Springs, located about 60 miles north of Nome, Alaska. This area is governed by Conservation Order No. 159, issued September 12, 1979, which requires a permit to drill from the Commission for "all wells to be drilled or borings into the soil for any purpose and to any depth in Sections 29, 30, 31, and 32, T4S, R30W, KRM, Sections 35 and 36, T4S, R31 W, KRM, and Sections 2,3,and 4, TSS, R31 W, KRM..." Three of these wells, Pilgrim Spring 1, 2, and 3 received permits to drill during 1979 (Permit Nos. 1790780, 1790850, and 1790900). Commission well history files indicate that Pilgrim Spring 1 and 2 were drilled to approximately 150' measured depth and suspended on November 25 and 20, 1979, respectively. There are no records in the Commission's well history file 1790900 to indicate that Pilgrim Spring 3 was drilled. During the summer and fall of 1982, Woodward-Clyde Consultants (Woodward-Clyde), under contract to the Alaska Division of Energy and Power Development, conducted an intensive drilling and testing program at Pilgrim Springs. t The initial well drilled was Pilgrim Spring 3, which had been previously permitted by the Commission. This was followed by the drilling of three additional, unpermitted wells: Pilgrim Spring 4, Mary's Igloo 1, and Pilgrim Spring 5. The results of this program are summarized in Woodward-Clyde's 1983 report, a copy of which has been placed in well history file 1002740. In 2010, Peter Illig of the Alaska Center for Energy and Power at the University of Alaska, Fairbanks conducted a reconnaissance trip to the site to Pilgrim Springs to locate and determine the status of the existing geothermal wells.2 Descriptions and photos of each wellhead indicate that all six wells are shut- in rather than suspended, as indicated by artesian flow and mineralization. The exact location coordinates for these wells are problematic. Coordinates for Pilgrim Spring 1, 2, and 3 listed as footages from section lines on the permits to drill were converted to latitude/longitude using the Commission's RBDMS database. These coordinates are shown on the accompanying satellite photograph by small yellow squares (Figure 1). Latitude/longitude coordinates stored in the RBDMS ~ Woodward-Clyde Consultants, 1983, Phase II: Results of Drilling, Testing and Resource Confirmation, Geothermal Energy Development at Pilgrim Springs, Alaska, Contract 82-0782 with the Alaska Department of Commerce and Economic Development, 62 p. z Illig, Peter, 2010, 6-29-2010 Preliminary Reconnaissance Trip Report, Pilgrim Hot Springs Geothermal Exploration, Alaska Center for Energy and Power. i • Coordinates provided by Illig in UTM, meters, when converted to NAD 83 lattude/longitude using CorpsCon 6.0, plot at the locations indicated by yellow stars on Figure 1. Well locations spotted by Illig on an air photo that accompanies his 2010 reconnaissance trip report are more difficult to translate to the satellite photo. It appears as though Illig's photo is rotated about 20 degree clockwise from north and is also severly stretched along its north-south axis. A prolonged trial and error session was needed to squeeze and rotate this air photo to approximate a close match of the streams and lakes to the satellite photo. But the match is not perfect: lakes and stream meander loops do not match closely between the photos. The well locations from the best-match fit between the air and satellite photos are indicated by the red circles on Figure 1. Accompanying Woodward-Clyde's 1983 report on the results of drilling and testing is a site map that, when uniformly scaled, matches the satellite photo almost exactly. The locations for the Pilgrim Spring and Mary's Igloo wells are indicated on Figure 1 by small, blue circles. When uniformly scaled, the USGS topographic map of this area also nearly perfectly matches the satellite photo and Woodward- Clyde's map. This topographic map is the source for the yellow section lines depicted on Figure 1. Because of the nearly exact match between the map accompanying Woodward-Clyde's 1983 report, the USGS topographic map and the satellite photo, and because Woodward-Clyde field personnel spent weeks in the field (rather than the single day spent by Illig), it is judged that the most accurate locations for the Pilgrim Spring and Mary's Igloo wells are those mapped by Woodward-Clyde. Based on these locations and the section lines derived from the USGS topographic map overly, the best estimates for the well locations are presented in the table, below. Footages measured from section lines converted to latitude/longitude using RBDMS: RBDMS AD 27 Well X Y S-T-R-PM Latitude Lon itude Pilgrim Spring 1 825' FEL 110' FSL 36-045-31 W-K 65.0917760142764 -164.925283825097 Pilgrim Spring 2 2565' FEL 55' FNL 03-OSS-3IW-K 65.0913250627542 -164.926042200407 Pilgrim Spring 3 2770' FEL 220' FNL 03-OSS-3IW-K 65.0908741108309 -164.927370965319 Pilgrim Spring 4 2580' FEL 270' FNL 03-OSS-3IW-K 65.0907374577024 -164.926138003074 Pilgrim Spring 5 .2595' FEL 790' FNL 03-OSS-3IW-K 65.0893162733042 -164.926231665414 Mary's Igloo 1 3295' FEL 220' FNL 03-OSS-3IW-K 65.0908741129814 -164.930776865159 RBDMS latitude/longitude values converted to NAD 83 using CorpsCon 6: RBDMS (NAD 27) NAD 83 Well Latitude Lon itude Latitude Lon itude Pilgrim Sprin 1 65.0917760142764 -164.925283825097 65.091028837 -164.927929670 Pilgrim S ring 2 65.0913250627542 -164.926042200407 65.090577861 -164.928687996 Pil im Spring 3 65.0908741108309 -164.927370965319 65.090126874 -164.930016710 Pilgrim Spring 4 65.0907374577024 -164.926138003074 65.089990242 -164.928783737 Pilgrim S ring 5 65.0893162733042 -164.926231665414 65.088569025 -164.928877249 Ma 's I loo 1 65.0908741129814 -164.930776865159 65.090126809 -164.933422601 Plotting the results on the same photo (as close as I could reproduce it), yields the following plot of the accuracy of the coordinate measurements and conversions. The accuracy of measured footages from the section lines appears to be within about 150'. The footages measured from the satellite photo will be used in RBDMS as the best estimate of rpoet~""and bounds coordinates for these wells. .... ~,-c~-~C_~- Pilgrim Hot Springs sale approved,~tay denied • Alaska Beat Pilgrim Hot Springs sale approved, stay denied Scott Woodham Page 1 of 1 Tod~'~ According to the Fairbanks Daily News-Miner, the sale of Pilgrim Hot Springs will go through unobstructed after a decision to deny a stay requested by two people who had been acting as caretakers of the property. This means that Unaatuq LLC, a consortium of Alaska Native corporations, other entities and nonprofit groups will be able to take title of the 320-acre property for its successful $1.9 million bid at an auction held in U.S. Federal Bankruptcy Court in early March. The auction generated funds to pay a settlement between the Fairbanks Catholic Diocese and the victims of sexual predators it employed as priests. Read more about the newest development here, and read more about Pilgrim Hot Springs and the back-and-forth between parties interested in acquiring it at auction, here, from an earlier News-Miner report. t'~~- o~ 5 ~ ey ~l~~llt http://www. alaskadispatch. com/dispatches/alaska-beat/8 8-alaska-beat/4413 -pilgrim-hot-spri... 7/3/2010 Pilgrim Hot Springs sale goes thro~h • Page 1 of 1 rant 1~ -- Pilgrim Hot Springs sale goes through by l~~a~-y Ii~il~ Sz~~etzez~ ! a~}sn7evez (c,ic~~~szr7i»ea~.cr~zri t}.~. l 1.1 Cf - i~ :~~~~ az~~ FAIRBANKS -The Pilgrim Hot Springs sale to Unaatuq LLC, a consortium of Alaska Native and nonprofit entities from the Bering Straits region, is being carried out without obstruction. The 320-acre parcel was auctioned off March 5 for $1.9 million in U.S. Federal Bankruptcy Court as one of the final conditions fulfilling the Fairbanks Catholic Diocese's Chapter 11 reorganization plan. Within an hour of the auction last week, a U.S. District Court judge in Anchorage issued a temporary stay order of the sale at the request of legal representatives for Louie and Nancy Green, of Nome, who have been seasonal caretakers for a former hot springs lessor since 1975. The Greens, who were asking for title to the property, were previously unsuccessful in getting the sale stopped. Before the diocese could file a response to the stay Tuesday, the District Court judge vacated the order and denied the Greens the stay they requested, said Kasey Nye, a Tucson attorney representing the diocese. "We're lodging an order approving the sale to Unaataq," Nye said. The diocese recently provided a $9.8 million financial settlement to be divided among almost 300 abuse victims. Fifty thousand dollars of the hot springs sale will be added to the victims settlement amount and $1.85 million will go to cover the diocese's remaining administrative and legal fees. Contact staff writer Mary Beth Smetzer at 459-7546. © newsminer.com 2010 http://newsminer.com/printer friendly/6679885 7/3/2010 Fairbanks Catholic Diocese sells Prim Hot Springs as part of bankruptcy flan Page 1 of 2 print. Fairbanks Catholic Diocese sells Pilgrim Hot Springs as part of bankruptcy plan by Ma7-r Bctii S»aetze~~ / ~r~7s~7~e~zet~ui~3eV=s7~.1iz~~er.c~z,1 C~3.~~6.1 C} - X1_,:2.0 a~,; FAIRBANKS - Unaatuq LLC, a consortium of Alaska Native and nonprofit entities from the Bering Straits region was the successful bidder at $1.9 million for Pilgrim Hot Springs at an auction Friday in U.S. Federal Bankruptcy Court in Anchorage. The sale of the 320-acre property, owned by the Fairbanks Catholic Diocese, was one of the diocese's final requirements to fulfill its court-approved Chapter 11 reorganization plan. The diocese filed for bankruptcy two years ago after being overwhelmed with nearly 300 civil lawsuits claiming sexual abuse. A financial settlement providing $9.8 million in compensation to be divided among abuse victims was reached earlier this year. All but $50,000 of the $1.9 million hot springs price tag will go to cover the remaining legal and administrative fees owed by the diocese. The remaining $50,000 will be added to the victims settlement fund. Chena Power Group also offered a bid of $1.9 million, which was not accepted because it failed to comply with all of the financial bidding terms to close the sale. Bernie Karl, representing Chena Power Group, asked the judge fora 90-day stay, saying it would be in the best interest of the church. "We developed the only hot springs in the state. We would do that well and for the church. I promise you, I would give you a better bid than you have today and be it would be better for everyone involved." Judge Donald MacDonald turned down the 90-day stay request, saying it has taken years to get to this point, and approved the Unaatuq consortium's bid. Unaataq is an Inupiaq word meaning hot springs. The consortium is made up of the Bering Straits Native Corporation; Sitnasuak Native Corporation; Kawerak, Inc.; Norton Sound Economic Development Corporation; White Mountain Native Corporation; Teller Native Corporation; and Mary's Igloo Native Corporation. Pilgrim Hot Springs, 38 miles north of Nome, is located in a large area of lands owned by the Bering Straits and Mary's Igloo Native corporations. According to a Bering Straits press release, the hot springs has been visited for centuries for its curative and spiritual powers, and has "tremendous cultural and historical significance for the residents of the region, and many families trace http://newsminer.com/printer friendly/6590766 7/3/2010 Fairbanks Catholic Diocese sells Pjlgrim Hot Springs as part of bankruptcy flan Page 2 of 2 their ancestry to relatives who were raised at the Catholic orphanage." The orphanage was closed in the early 1940s. Bering Straits CEO Gail Schubert said, "It has great potential as a place of cultural renewal and healing, and agricultural and geothermal development." After Friday's court session, attorneys were surprised to learn that a temporary stay for closing the sale of the hot springs that had been denied Thursday in the Superior Court in Nome was accepted at U.S. District Court in Anchorage after the bankruptcy court auction Friday. Louie and Nancy Green of Nome, who have seasonally worked at the hot springs as caretakers for a former lessor since 1975, are seeking a quiet title for the property. Kasey Nye, a Tucson attorney representing the diocese, said the diocese will have until Tuesday to file a response. "I fully expect that once we file a response the stay will be lifted and the sale will go forward to the consortium," Nye said. © newsminer.com 2010 http://newsminer.com/printer friendly/6590766 7/3/2010 The Nome Nugget -Alaska's Olde ewspaper • Page 3 of 4 `fix ~ of $100,000 to $200,000 receive a 100 percent tax credit while lesser donations receive a 50 percent credit. The gifts have kept the militarystyled program alive a e headed for the chopping block at the start of this school year. The program has tee e edge of existence er of years as the district first pulled JROTC out of it r t e 2008-2009 school coi~tinu_ed oi~_~age 4_' PoF ~_ Pilgrim to go to the highest bidder By Diana Haecker In the continued bankruptcy proceedings of the Catholic diocese of Fairbanks the end is in sight as the diocese and the claimants filed a joint consensual bankruptcy plan at the federal bankruptcy court in Anchorage on Monday, Dec. 14. The diocese -the business side of the church is known as the Catholic Bishop of Northern Alaska or CBNA has filed for bankruptcy protection when confronted with hundreds of claims of sexual abuse at the hands of priests and lay workers decades ago. On Monday, CBNA's chancellor Robert Hannon, director of finances George Bowder and business administrator Tom Buzek told The Nome Nugget that the claimants have agreed to a third amended bankruptcy plan which includes an agreed upon minimal payment of $9.8 million to the close to 300 victims of sexual abuse at the hands of former priests, including KNOM founder and former Nome priest Jim Poole. Part of the settlement money is to cotne from the sale of Pilgrim Hot Springs to the highest bidder. The cemetery is excluded from the property and will not be sold. Hannon said that the estimated price for the 320-acre property is somewhere in the neighborhood of $1.8 million on the low end. The deadline to submit a bid has been extended from Dec. 10 to Feb. 24, 2010 at 5 p.m. The sealed bids will then be opened in the bankruptcy court in Anchorage. The court will then decide if the con-ect financial information is included in the bid, and if equal amounts are bid, the court will then decided if there will be an oral auction. Hannon said whoever wins the bid on Feb. 25 has to transfer the cash of the sale within 30 days to the settlement trust account administered by acourt-appointed official. A recent U.S. Department of co_nt~~ued_oil_page_6_~ PoF throws $100,000 into the pool By Laurie N1chFiclLolas The Noine Common cil voted unanimously to allocate the City's 2009 community benefit $100,000 from Norton Sound Economi velopment Corp. for repair of the Nome-Beltz High Sc imming pool at a meeting on Monday. During a public hearing prior to the decision, Mitc ~ sori asked part of the community benefit share funds be used to add lighting at the skating rink for the safety o players and others, and to plsant grass at ball fields at the Nome Recreation Center to reduce dust. However, council members cited a wri recommendation from Acting Project er Randy Romenesko to use the $100,000 to complete re einent of old pumps, valves, controls, fans and piping ' e heating system, both air and water, at the .Last year the council allocated the 2008 community benefit share 00,000 from NSEDC to the sw' mg pool project, which originally was estimated to cost $155,000. Romenesko sai additional components had been added at the school's request - $6,000 to replace all valves in the pool heat' ystein and $30,000 for a new motor and VFD for the main air handling unit -bringing the total project st close to $200,000. contnuedgi~ _page 16_" PoF http://www.nomenugget.net/20091217/index.php 1 /25/2010 back to home Date 6 THURSDAY. DECEMBER 17. 2009 LOC"~r. THE NOME NUGGET Planners to call in the expert Commission tackles full slate as Irene Anderson retires By Sandra L. Medearis The Nnme Planning Coinnission has a table loaded with piannmc issues and has staned to roll up sleeves to get bast' in 2010. Issues needing attention include updating the comprehensive plan, deciding on a process for permitting ]and use changes under [he re- cen0yadopted zoning mdinaoce, honoring and identifying historic buildings, and the transfer of [he Nome Bypass Road to City of Nome. Nome's planningpanel met Uec. 8 in a work session to discuss [here work orders and fol- krwed with abrief reenlar commission meeting. The Bypass Road is ofC the slate as a pend- ing punch-list of work orders has been com- pleted. The city has already taken responsibility for that tome north of town Thal runs from Front Street to the Nome-Teller Highway. The utmmission voiced strong support for once more retaining the expert services of con- tract planner Eileen Bechtol of Bechtol Plan- ning and Devchrpment in Homer for work nn zoning and historic huiiding issues. Bechtol worked with the planning commission in cre- atinu [he zoning padrage and other cumprc- hensive and coastal lands issues. Planners also diswssed a solution [o [he ap- paren[practice of some people picking tip ham- mer and saw and Bening a project underway before buying a building pernilt. Some members Aerieuluvc grant administrated by the University of Alaska Pairbanks ro locate the geothermal source has eleva[c0 the propem's value, Han- non said. Church officials hope for many bidders to participate in the sale and get the word out via ads, contacts in the geothermal energy development community and other business contacts. Buzek said there has been a great deal of interest in Pilgrim Ho[ Springs, both in and outside oP Alaska. While outside companies may see Pilgrim as a business oppm-- tunig, it harbors memories and emo- tional connectkms to Norneltes. In meetings with Nome residents, Tom Buzek said, everybody expressed the wish to keep Pilgrim Hot Spring open Cor public use. '7ha[ will be difficult [o add as a sripulation to the sale," Ruzek said. "B is going [o be up to the new owner how accessible the hot springs will be:' CBNA is m release details n timeline, location and required infor motion for the sealed bidding process within the next week. I-Iannon said that the parries are still working out last details, and if [he court accepts the consensual joint bankruptcy plan, money has to he in the settlement account in the last week of January and first payments may fie out as early as the beginning of February 20] 0. VALLtABLE PROPF.RTI'-The properly surrounding Pilgrim Hot Springs could somt he out of the Catholic Church's hands. Er' ~o'' y K THE "TOP TEN" WAYS TO AVOID THE EMERGENCY ROOM DURING THIS HOLIDAY SEASON #10 #9 #8 #7 #6 #5 #4 #3 #2 #1 - 'V'i.,shPr fiir a Health) and Hnp1~J HolidicJ Sea~o~~, from the 1'OJVIE NOL ~T ~'TEER .~/YIB llL.r1.NCE DEP.gRT.~E.NT Vickie Erickson, Chief (EMT-11) John Handeland (CPR/First Aid) Daniel Sfang (ETT) Dr. Karen O'Neill, Medical Director Josh Hearn (MICP) Danielle Sylvester (EMT-I) Kevin Knowlton, Lieutenant (EMT-11/FF1) Geoff Hubert (CPR/First Aid) Craig Teesateskie (CPR/First Aid) Tom Vaden, SecretarylTreasurer (EMT-III) Scott Johnson (EMT-II) Bill Tweet (EMT-q Charlene Saclamana, Training Officer (EMT-II) Bertha Koweluk (EMT-I) Darell Tweet (EMT-I) Rahnia Parker, Officer-At-Large (EMT-I) Todd Langley (MICP) Elsie Vaden (EMT-I) Alaine Tate, Administrator (CPR/First Aid) Charlie Lean (EMT-I) Jim West, Jr. (EMT-I/FFt) Seijiro Heck, Technician (EMT-I) Leah Noyakuk (ETT) Heather Williams (EMT-II) James Agloinga (CPR/First Aid) M Mike Owens (M(ICP)P) Graham Becherer-Bailey (MICP) Wes Perkins (EMT•II, FF7) Hunter Michelbrink (Honorary Memb Jay Craft (EMT-II) Loren Prosser (EMT-I) Clyde lyatunguk (Honorary Membe Ben Froehle (CPR/First Aid) Lisa Schubert (EMT-I) Lillian Komakhuk (In Memorium; Don't go `through the river and over the woods". (Be careful of ice and overflow when traveling by snowmachine and four-wheeler.) Don't "roast chestnuts on an open lire". (Be careful not to overload electrical outlets or leave wood stoves unattended.) Be careful "rocking around the Christmas tree". (Celebrate sanely and wisely.) Respect the "silent night". Ji;~~i0 (Drive cautiously in the dark.) Beware of the "the new fallen snow". (Shovel snow slowly, stop periodically to rest.) ~ ~ Use caution "up on the house top". r (Be careful hanging lights outside the house.) r Watch for "Frosty the Snowman". y (Dress appropriately for the weather.) Yield to sleighs. ~'~ (Obey the rules of the road when walking or driving.) Don't partake in "sugar plums". (No street drugs.) The Christmas spirit is NOT what you drink; of the commission advocated adding a. penalty amount to tardy buildiog permits. Overall, mem- bers thought this suggestion could go to dre city and the issue would properly become an NCCI-Nome Common Council Issue. Through Nov. 30, the city has collected about $200,000 for pemrits fur a $55 milhon valuation in build- ine and remodelinn projuts staned in 2009. In other business, the commission g anred m Alaska Gold a hvo-year extension for Phase 2 of the Nome 21st Cemmy Subdivision. The Commission approved Phase 1 and Phase 2 in October 2007; [he Phase 2 approval was about to expire. The request for a time extension stems from "unanticipated cash flow restric- tions anendanr with the Rock Creek D1ine,' ac- cording to a note to the commission from subdivision surveyor George Krier. He sail he expected work orders attached to approval to he finished within the next two years. Chair of the Nome Plaiming Commission Irene Anderson announced her retirement from the group after many years' service. She and hubby Babe Anderson plan kr beaime snowbirds. Planners praised Anderson's dedication. "She is the definition of professional," com- mission member Jeff Darling said in a sepa- rate inten•icw. "She has worked hard in everything she bas undertaker,. Shc cols right through the BS and gets it done:' back to home Datc nest Date • ~v- --- con(inued fiom page 1 if is how you THINK! back to home nape THE NOME NUGGET DECEMBER 3, 2009 5 $4.6 million grant may locate the hot spot at Pilgrim University of Alaska Fairbanks project would use remote sensing techniques to evaluate geothermal potential at less cost Coal mine fires, volcanoes and Pilgrim Hut Springs seems like an unusual combination. But a technlyue used w study the first two may prove valuable in trac- ingthe heat source of [he third. Such is the aim of a Univere_ily of Alaska Fairbanks smdp slated w take place at the ho[ springs just north of Norne with the help oL Sa.6 million U.S. Departutent of Energy grans. `As part of this project the Uni- veasity ofAlaska is proposing a new and innovative item[ive method of digital processing of acquired ther- mal in4ared data adapted from ther- mal data processing techniques successfully used to identify small and subtle coal minefires and in vol- canology research," reads a project description from the U.S. Depart- ment of Energy. h[ shoe, the Alaska Center for En- ergy and Power at UAF is proposing to utilize aerial infrared phowgtaphy m help evaluate the potential of ge- o[hcrmal resources fur power proj- ects. The project; te~hich requites a $1 million Incas match, would back up the aerial research through tradi- tional, ground-based geophysical surveys and drilling, according to a press release from UAF. "While these traditional methods are mli- ableahe associated rnsts may nn[ al- ways be economical, preventing esplora[lon in many areas. Remote sensing could offer atoll-costly al- temativc; -the release reads. °We arc pmmering with cur col- leagues at the Alaska Volcano Ob- servatory;~ ACEP director Gwcn Holdmann said m the release. "If w e can prove [his less-expensive tech eulogy c n provide rel able data, it opens up a nerd world for geothermal exploration in the stale:' The Alaska Center fur Energy and Power is seeking the $1 million match from the State ofAlaska's Re- newable Energy Fund. Holdmann told the Fairbanks Daily Newsminer that the prujen could get underway cx[ sumnrcr if the matching funds m'e obtained. The Alaska Center for F,nergry and Powerhas teamed with the Catholic Diocese of Fairbanks which owns the properly surrounding the hot sprines, well as adjacent landowner cMary's Igloo Native Corp. The location of [he main soarcc of hot sprines is cnrrentlyun- known anct could actually be on the Mary's Igloo property. The project comes just as the dio- cese prepares to put the hot springs pmperq up for sale m fund the se~- tlement of multiple sexual abuse claims.A S10 million settlement has nearly been finabzed between the church and attorneys representing claimanls (sec story on page i). This would nor be the firs[ time studies have uocurred at the hot sprines. Work wok place at Pilgrim in the late 1970s and early 1980x. Dow from those studies world be used in this latest endeavor. While the project is designed m, n a sense, testa [es[ for geothertnal evaluation, the work could also de- termine that the resource al Pilgrim is a viable source of energy fur Nome. The thought is not new, how- er,the costs oC a transmission Iiue from the site to Nome as well as the elosr veness of the soarcc has thwarted any real puraml of tappine the resin rce for such a purpose. R~GIOI~TALr Archive photo Gy Tyler Rhodes NOT SPOT-A steamy stream cuts a path along the cottonwood trees on a -3U" F day near the historic buildings tlml dot the Pilgrim Hot Springs property north of Nome. U $1 million in matching funds can be found, a $4.! million federal gran) a~i11 cover the remaining vests to study techniques (re~ evaluating ge- othermal potential. • Settlement cmtlinurd froru yaps L Poole was among the dozen priests accused of sexually abusing juvenile parish members. Nn criminal charnel could he filed because of a statute of limita- tions. As [ho civil cases piled up and some of CBNA's insurance cnmpa- niesrefused to pa}', CBNA declared bankruptcy in Febmaty 2005. Since then, CBNA coned Ihrnugh ill pos- sessions and put nvo plans before the bankruptcy sour[. The victims rejected both- CBNA chancelkx Robcr[ Hannon told The Nome Nagger that prior to last week's heat7ng, mediation talks were held and the victims' represen- tatives agreed [o the third amended CBNA banluuptcy plan. "In broad terms, [he parishes chipped in; an insurance carriu paid and then we expect money raised from the sale of Pilgrim Hot Springs," Hannon said.ln addition to the parishes, KNOM also con- tributed money to the bankruptcy plan, Rosenbere said. Anchorage attorney Ken Roosa, who represents most of the viotims, said that the plan "is the best we can get, nos as much as we wooled, bus u've go[ to take what you geC' v, forest payout sums could 6c reached when the victims' lawyers gn after CANA's insurers. Hannon said that the CBNA signed Duet [he ability to the claimanls to sue the dioceses' insurers. Hannon said that Catholic Muma] and Aetna Trav- elers Jnsurance are nor fulfilling the obligations under the policies CBNA had with them. Rosenberg added that the insurers know they have to pay, but at dispme is the amount of rnuney. If the creditors go after the insur- mtce companies and win a court ba[- tlu, itcould bring an additional $100 million in payments to the victims. The sale of Pilgrim Hot Springs to the highest bidders is also pars of the plan to pay out [he victims. A sealed bidding deadline is set for Dec. ]0. Rosenberg said ,she hopes [he bankmplcy proceedings are soon over ac the process is very costly. She said that some of the lawyers involved apply discounts but she expects legal fees to be a[ least $2 million. After the diocese is out of hank- ruptcy, Hannon said, the real work is to make amends and to rcswrc the truss. "We have to do a lot of heal- ing:' Hannon said. Of the perpetrators, lames E. la- cohson and lames Poole are still alive and livine in a Jesuit retire- ment home In Spokane, Wash. Rosenberg said they have not been t contact with the Diocese of Pair- bankc and have not issued. any statements or apologies. Rather, Rosenberg said, once the bankruptcy proceedings aze over, Bishop Donald Kelt1er would go around on trips and apologize and focus nn healing sessions. Rosenbere also mentioned that more money might be i^ store for the survivors of sexual clergy abuse as the Oregon Province of the Susiety of Jesus-the Jesuit order-also fled Pot bankruptq~. The deadline to file claims w'as on Mandny. Nov. 30. ~~~I. It starts with you 1 Get seasonal and H1N1 vaccinations Vaccinations are the best way to protect yourself and your family against the influenza virus. 1-888-9PANFLU ~) pandemicflu.alaska.gov back fo home oafTc neat DaQe 14 THURSDAY, AUG ~~-o~ '1~-~4ss Lt©CAL THE NOME NOGGET • More Obituaries i CELEBRATION- Rev. Ross Tnazi, pastor or St. Joseph Cathoac Church in Nome says Mass at Oar Lady of Lourdes church a[ Pilgrim Hot Springs Aug. ]. nonprofit corporation By Laurie McNicholas The Friends of Pilgrim Hot Springs filed anicles of incorpora- tion as a nonprofit corporation with the State of Alaska on July 37 fol- lowing a brief meeflng. The organi- zation aims to preserve historical sites at Pilgrim Ho[ Springs. Gary Longley. Sr. is the registered agem of the corporation, and he will serve as one of its initial dvectors, along with Nancy McGuire and Louie Green, Sr. Longley recently obtained a copy • Friends of Pilgrim Hot Springs continued from page I Z of the right-of-way grant for the Pil- grim Hot Springs road issued April 4, 1985 by the U.S. Bureau of Land Management to the Alaska Dept, of Transportation. The document describes the right- of-way as a road from mile 53.4 of the Nome-Taylor Road to Pilgrim Hot Springs. The road is 60 feet wide (30 feet centerline) and ap- proximately 7.5 miles long contain- ing approximately 55 acres. The right-of-way document says the road is necessary to facilitate develop- ment of Pilgrim Hot Springs. "This right-of-way grant is for 20 years, with the right of renewal, un- less it is relinquished, abandoned, terminated, or otherwise modified pursuant to the terms and conditions of this grant or of any applicable Federal law or regulation," the docu- menC states. The BLM right-of-way grant for the road to the DOT expired in 2005. The Friends of Pilgrim Hot Springs are seeking to have it renewed. Members of the organization plan to hold a meeting in September when Tom Buzek, business administer for the Catholic Diocese of Fairbanks is in Nome. The diocese owns Pilgrim Hot Springs. Buzek spent a week at Pilgrim Hot Springs in late July, painting the in- side of the church and cleaning other structures on the grounds with the help of Louie Green, Sr, and several volunteers. Court Week ending 8!7 CIVII Swann, Mary Analisa vs. Pennini JR., Stevan Allen; DV: Both ExParte & Long Term Davis, Kaitlan vs. Davis, Johnea; DV: Both EzParte & Long Term Johnson, Stephanie M. vs. Lopez, Gabino B.; Petition for Custody -Superior Court Sockpick, Roy vs. Sockipck, Helen M.; DV: Both ExParte & Long Term r•PI ~ I r ~... P..........I.,,L c.......... n . 1Y..4.. _ n........, 1...~... completing 100 hours of community work service, by 1/15110; Probation for 1 year (date of judgment: 8/3/08); Shall not consume inhalants or possess or consume controlled substances or alcoholic beverages; Shall pay tine or show proof of com- munity work service, as ordered. State of Alaska v. Jessica Oozeva (10/5/91); 2N0.09446CR Notice of Dismissal; Charge 001: Minor Consuming Ak;ohol; Filed by the DAs office 6/3/09. State of Alaska v. Frank Anderson (1/23/59); Order to Modity or Revoke Probation; ATAI~ 11 nRPR'1Pa~ \/inlaia.l rnnAinnnc nfi nrnhaiinn~ Prnhaiinn cviunAaA fn R/R/t n' law; Shall not possess or consume alcohol in any dry or damp community; Subiect to warrantless breath testing of the request of any peace officer in such community; Parson and baggage are subject to warrantess search at any airport or en route to (by any means) adry/damp community; Subject to warrantless arrest for any vi- olation of these conditions of probation. State of Alaska v. Leroy Martin (6/19/90); Notice of Dismissal; Charge 001: Minor Con- suming Ak;ohol; Filed by the DAs Office 8/6/09. Ciafa of AlaeLa ., I n„ia> ~Aarlin /1/glgdl~'JAln.ngAOql^.R flrrlar in AAnrlih. nr Ra.nMu • administrator for the Catholic Diocese of Fairbanks on Aug. ].In the background is Our lady of Lourdes Catholic Church. Buzek and several volunteers spent a week painting the inside walls of the church and clean- ing other buildings on the site. The former mission was developed as an orphanage and boarding school fol- lowing the 1918 Influenza Pandemic and operated until the early 1940s. It was added to the National Register of Historic Places in 1977. oT my work." In between seasonal jobs, he attended the University of Walter "Boysa" 5avok Alaska Fairbanks, where he received Outwater Jr. academic awards for his writings. Catholic Diocese of Fairbanks Fair~ks Diocese TZevie~~~s Pilgrim Hot Spri~~Develop... Page 1 of 2 :Diocese o -~.: ~~:- . f I. ~ .iii ~ "!~ ~:.~, .~ ~1~~~ ~~ ~ ~ ~, - . ~~: Home Page ~~ -~ F alrb an s ~ ~~~ -~ ~; ~1j4 ., ,~~., -- >. 1 ~~ ~`. _~~ ~'.'i~'f ' V _ ' Fairbanks Diocese Reviews Pilgrim Hot BISHOP > Springs Development DIOCESE > I CHANCERY > Catholic Bishop of Northern Alaska PARISHES ~ > : 1316 Peger Road Fairbanks, AK 99709 ALASKAN (907) 374-9500 SHEPHERD NEWSLETTERS > ! press Release ~~ For immediate release OVERVIEW ~; POLICIES > TRAINING VICTIM ASSISTANCE I! MINISTRIES > AGENCIES > CELEBRATIONS I OF WORD AND HOLY COMMUNION S I LIBRARY FAIRBANKS DIOCESE REVIEWS PILGRIM HOT SPRINGS DEVELOPMENT The Catholic Diocese of Fairbanks will be offering a public presentation on Tuesday, February 17th as part of a public comment period on Pilgrim Hot Springs. The diocese has been offering informational presentations to help it prepare for future development of the property. The first presentations were given in Nome on February 2nd and Teller on February 7th. As in Nome, participation will be available both online via Webex and by telephone. Pilgrim Hot Springs, located on the Seward Peninsula about 45 miles NE of Nome, offers rich potential for geothermal energy for the region, and has attracted the attention of local entrepreneurs and state officials interested in developing alternative energy sources for communities around the State of Alaska. The informational meeting takes place at the Kobuk Center, 2890 N. Kobuk Avenue at 3 PM. Tom Buzek, Business Administrator for the Diocese, will lead the presentation and a panel including a geothermal consultant will take questions. Pilgrim Hot Springs was deeded to the Church in 1917. Soon after, it was the site of a boarding school and orphanage to serve children whose parents were taken by the Great Influenza pandemic which swept the globe in 1918. The orphanage closed in the early 1940s and there are still buildings and a cemetery http://www.dioceseoffairbanks.org/homepagenews/fairbanks_diocese_reviews~i}grim_ho... 1 /25/2010 Catholic Diocese of Fairbanks Fair~ks Diocese Reviews Pilgrim Hot Sprin~Develop... Page 2 of 2 remaining from this period on the property. The property was listed • ~ on the National Register of Historic Places in 1977. CATHOLIC LINKS coNTACT us _ ~ Besides having sentimental attachments by prior inhabitants of the EMPLOYMENT orphanage and their relatives, the property also offers potential for TERMS OF USE agriculture, producing fresh greenhouse vegetables for the area. The tourism industry may also be interested in the land because of f its natural hot springs. Any other viable development ideas proposed by interested parties will be reviewed. The area around Pilgrim Hot Springs has also been the site of many traditional and 4 subsistence use activities for many years. t N For more information contact (907) 374-9510; Robert Hannon, Chancellor - robertr'a~cbna,org (907) 374-9528; Tom Buzek, Business Administrator -tom@cbna.org. Tqp ~f Page. http://www.dioceseoffairbanks.org/homepagenews/fairbanks_diocese reviews~ilgrim_ho... 1/25/201.0 Andeora~n Drolly Neyyg ,~ Sunday, Mzrch 7, 2010 A,•~ f~41RBANPtS Group buys auctiotced diocese hot springs A consortium of Alaska Native and nonprofit groups from the Bering Straits region ' is the successful bidder for ..Pilgrim Hot Springs. The 320-acre property was auctioned Friday in U.S. Banla~uptcy Courtin Anchor- age. The sale was one of the Fairbanks Catholic Diocese's final requirements to fulflits court-approved Chapter 11 reorganization plan. The auction is part of a re- organization plan in response to a settlement of lawsuits in sexual abuse cases. The plan calls for the diocese to provide $9.8 million to claimants. The hot springs sold for $1.9 million and all but $50,000 will pay for the remaining legal and administrative fees owed by the diocese. The re- maining money will be added to the victims settlement fund. - T7ie Assocuxted i?r~ess • C.~ ~S~ 1~5-0`~~ ~'~5 -o8S ..~,; ~ ~ ~~~'~~~~ \~~~'~~~ J~ ~.~ 15~ ~ C~+ im_, C`*.:t 4m- ~~. k c~_1i t~,~,~ ~~ ~ ~~;"~c 10 PET'ROLEI~M ;VE1NS • WEEK OF NOVEMBER 15. 2009 I GOVERNMEM I $15M for Alaska geothermal projects The Obatva adminishation's economic stinwlus package is providing S15 million in funding through the U.S. Department of Energy for geothern~al projects in the State ofAtaska, U.S. Sen. Mark Begich, D-Alaska, announced Oct. 29. The funding which comes from the Ameriean Recovery and Reinvestment Act, includes S123 million for Naknek Electric Association's geothennal projeet near King Saimon; S4_6 The Alaska funding comes as million to the Universiry ofAlaska Fairbanks part Of a D~~' distribution of for testinQ of geothe~7na1 exploration teeh- $33$ mi1HOn in Stimulus n'iques for~e at Pitgrim Hot Sprin s,g near package geothermal funding Nome; and 52.1 million to Alaska-based 7rabits Group LLC for the development of fOt' 123 pt'o~jects in 39 stateS, ~ cement that can be used in higll4emperaYUre t0 I'eCipiCnCS 1nCluding ]liivate geothermal weils. indus[ry, academic "Alaska already leads the nation in pro- ins6tutions; tribal entities, ducing electricity fiom the lowest tempera- ~OCdl gOV2rnments and D~E's ture geothemial waters. However, our efTorts n8ti0n31 labOra[ories. to use ti~is abundant energy soucce have bare- ly broken the surface of potential energy pro- duction;' Begich said. "The Department of Ener~y is right to look to our state when developing new elean energy technologies. Alaskons have as much to gain from the development of affordable and clean eneroy technology as anyv,~here in the United States°' ~[Ch11N~ fIMIdS fC1~111fCd The Alaska funding comes as part ot~ a DOE distribution of 5338 miliion in stim- ulus package geothermal fundin~ for 123 projects in 39 states, to recipients indud- ing private industry, academic institutions, triba] entities, local governments and DOE's notional laboratories. The grnnts will be matched more than one-for-one with an additiona] S353 million in private and nonfederal cost-share funds, D06 says. "The United Stares is blessed with vast geothemial energy resources, which hold enormous poteiitial fo heat our homes and power our economy," said Energy Secretary Steven Chu. "T}~ese investments in Aroerica's technoiogical innovation e~ill allow us to eapture more of this clean, eacbon &ee energy at a Lower cost ther~ ever before. We will create thousands of jobs, boost our economy and help to jumpstart tUe geothern~al industry across Ihe United States" -AIAN BAILEY ~` ~~ ro ~ J~ ...~ ~~ ~~~ ~ ~~: x .£~ ~ Q r , ~ a ANYNIF9ERE IN AIASKp, iHE LOINER 4 8 & GANADA ~ ~4aF~~1U~s (~1~-C7EII~iAt~D (;19!!RT[RS ~ ~, ~ & CAfiGO SEfilif~E ~ . Nonn Stopr in 2 houtc, putch Nnrboi ir,' Hours . Cie!~:n ano Freiyln 24~ ~ Last minute meeiings on your time ~ F I N A N C E & E C 0 N O M Y ~ S~skatchewan a ~eal-making hot a \ By GARY PRRK F~,' Petialeum Ne~cs utside of iitish Columbia's siz- O zli~g tigbt d shale gas prospects, the hottest piece o il pateh real estate i~ Canada these ys is southern Saskatchewan, led the Bakken oi1 field. TYs the scene of a he vyweight contest between PetroBakken rmed from a CS2.4 billion merger of Pe obank Energy and Resources and TriStai 'I & Gas) and Cescent Point Energy, whic has pushed its 2009 deal making to aMt st CSL25 billion. Trying to move up the ra ~ings is Glamis Resources, whieh 6as m e five invesmienu totaling CS535 milli this year. 7he attraction is simple: Powere by new technology, the industry has dril d more than 1,000 wells in the last fi years, raising oil-in-place by about tet~fol to almost 5 billinn barrels and current out- put to 65,000 barrels per day. Crescent Point has Iocked up about two-thirds of the Bakken land and has similar share of the Lower Shaunav~ which contains heavier crude. TriA~con latest deal ]ts letest deal on Noc. 9 is an ag ement to take over privately owned riAxon Resources for CS249 millio , adding 1,40Q barrels of oil equivale per day to its third-quarter output of o~t 41,000 boe per day. It has also corralled 12 million boe of proved and probabl reserves (in Saskatchewan and AI rta); 91.000 net acres of undeveloped nd 4Q00 acres of which are in the Ba en and Vikmg plays of SaskatcUewan; 99 net drillmg loca- tions; and CS99 Ilion m tax credrts. The transa ion v.~orks out to CS142,643 per owing boe and CS16.10 a boe for the pr ved and probable reserves. Oil Fieltl Passenged Frelght Support ~~ Crescent oint Chief Executive Offieer y Z 9PassengerJe(-TurbinePassenger8CargoService 18 Passenger Super DC-3 Service w/Wrgo ~ ~ Scott Sax rg said TriAxon has aggres- sively p sued high quality plays rner . recent ars with a significant recovery a Depatl fmm our passenger lounge or our Anchorage Airpod gate TwnNourxtaxAvuuax factor d established ]eading positions in ~ Flying thmughoutAlaska SinCe 1994 0. oew.e/. IIak n and Viking, establishing a base , for s~gnificant production and reserves ~ ' ~ ' gr th" . . And Crescent Point is making no secret Tisdale credited new hor" ontal drilling and fracture tec nology with making rocks prev' usly seen as aneconomic cand' ates for of the fact Yhat its buyi binge is not over. Chief Financial icer Greg Tisdale said the company . es "some consolida- timi opportuniti available" in the Saskatcl~ewan ,pl s, suggesting the list of potential tekeov targets is lengthy. "We do ha a critical mass in all our core areas,° said. Tisdale edited new horizontal drilling and fractu teehnology with making rocks previous seen as uneconomic candidates for nro ction. Unlo ing the potentiai riAson Chief Executive Officer Jefl' S. onja said [he basin is now less about ploration and more about returning to areas where there are knoNm hydrocarbon ccumulations and using seience to uniock t epotenoal. e said that is ttie "essence about what we elieve the new junior (companies) ace all a ut now." Tn xon did not even require Crescent Point dip into the proceeds from a CSS75 illion share oflering which it complete Nov.3. Scotia apital analyst Jerenry Kaliel said in a r earch note that "numerous opportunitie, ere currently emerging across the (Sa atehewan) bacin" He said Cre ent Point is ideally posi- tioned to make cquisitions, "given the rapid emergence o. new resource plays and the company's cos of capital advantage over most of its peer " 7effMartin, a Perec Co. analyst, esti- mated Crescent PoinYs iking wells would break even at an oil pric f CS64 per bar- rel. On a more cautionar note, Dean Oriico, ehief investmen officer at Middlefield Capital. wamed a out the per flowing-boe acquisition cost be g paid by Crescent Point. He said it is now up to manag enY to focus on what it has, drill the pr erties and prove thnt what they are paying jus- tified. • SEAN PARNELL, GOVERNOR IL L 11 FIL 4IASAA OIL AND GALS1 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMSSION ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 November 18, 2009 CERTIFIED MAIL RETURN RECEIPT REQUESTED 7009 2250 0004 3911 4986 Irene Anderson Bering Straits Native Corporation PO Box 1008 SCNED jCT 1 32014 110 Front Street, Suite 300 Nome, Alaska 99762 Re: Wells Pilgrim Spring 1 (PTD 179078), Pilgrim Spring 2 (PTD 179085) Dear Ms. Anderson: In October, 1979 the Alaska Oil and Gas Conservation Commission (AOGCC or Commission) issued permits to drill the subject wells. The Commission is currently reviewing records for the purpose of identifying Alaska wells that have not been properly plugged and abandoned, and which thus may constitute safety or environmental hazards. Our records reveal that the wells identified above require remedial action to bring them into com- pliance with current Commission regulations. This remedial work will include cementing the wells in accordance with 20 AAC 25, Article 2. AOGCC is contacting you to request assis- tance in identifying current property ownership so that the required action can be taken. The Commission is also sending copies of this correspondence to the Catholic Church Fairbanks Diocese, to the entity identified as Mary's Igloo, and to Mr. Steve Haagenson, Executive Director of the Alaska Energy Authority, to make them aware of the potential hazards presented by these wells. It is our intention to have the responsible well owner properly plug and abandon the wells. Should the owner fail to do so, then AOGCC intends to contract to plug and abandon the wells, reserving the right to hold responsible parties financially accountable for costs incurred. If you have questions regarding this finding, please contact Mr. Winton Aubert, Senior Engineer, at 907-793-1231 or winton.aubert@alaska.gov. Sincerely, -9 Cathy P. oerster Commiss oner cc: Catholic Church Fairbanks Diocese Steve Haagenson, SOA, Dept of Commerce ■ Complete items 1, 2, and 3. Also complete Rem 4 if Restricted Delivery is desired. ■ Print your name and address on the reverse so that we can return the card to you. E Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to A. signal X Agent td Addressee B. Received by (Prfpta� Name) C. Date of Delivery D. Is delivery address different from item 1? ❑ Yes If YES, enter delivery address below: o ` ( (5( li o. aery a type tified Mail ❑ Express Mail ❑ Registered V' letum Receipt for Merchandise ❑ Insured Mail ❑ C.O.D. — 4. Restricted Delivery? (Extra Fee) ❑ Yes 2. Article Number (Transfer from service label) 7009 2250 0004 3 91,1. 4986 PS Form 3811, February 2004 Domestic Return Receipt 102595-02-M-1540 Postal RECEIPTCERTIFIED MAIL,, ...n (Domestic Only;ail Coverage D Postage $ r m USPS p Certified Fee Return Receipt Fee (Endorsement Required) O Restricted Delivery Fee C d N (Endorsement Required) S i O tly (L Total Postage 8 Fees $ ru qk, ,t>)5 Sent To Er `l_ / _ o ------•- -�1� Street. Apt. No.; _. ------------------ - or PO BOX N - - /> . 7� *�41s Alaska Industrial Development and Export Authority October 14. 2009 Ms. Cathy P. Foerster, Commissioner Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501-3539 Re: Status of Oil and Gas Wells Dear Ms. Foerster: ALASKA W= ENERGY AUTHORITY RECEIVED OCT 1 6 2009 Alaska Oil & Gas Cons. Coanission Anchorapa I'm writing in response to your September 30, 2009, letter wherein you requested a letter to verify suspended. long-term shut-in and observation wells. Subsequent to receiving the letter, AEA's Mike Harper conferred with Winton Aubert of your office. To the best of our knowledge, there has been no significant activity at Pilgrim Hot Springs since 1982. Our brief research shows that the only interest has been potential development of the geothermal hot springs in the area. However, most significant is the ownership of this parcel containing the wells. It is our understanding that Pilgrim Hot Springs is owned by the Catholic Church for surface estate while the local Native Corporation, Mary's Igloo, is subsurface owner. If you desire further information about land issues you may wish to contact Irene Anderson of Bering Straits Native Corporation in Nome. There has been talk of further research and exploration with the Mary's Igloo group possibly partnering with Alaska Center for Energy and Power at UAF. There is data that one can easily attain through the internet, but I have included two reports that will provide some background. If you desire further information please feel free to contact David Lockard, PE with our office at (907) 771-3062. Sincerely, A1LnASAKA ENERGY AUTHORITY VVI - (. 6 --- Steve Haagenson Executive Director Attachments: 1982 Stanford University Report AEA 2007 Feasibility Report SCANW OCT 1 3 2014, cc: Tab Ballantine, Department of Law Irene Anderson, Bering Straits Native Corporation Gwen Holdmann, Alaska Center for Energy and Power David Lockard, AEA 813 West Northern Lights Boulevard • Anchorage, Alaska 99503-2495 www.aidea.org • 907/771-3000 0 FAX 907/771-3044 0 Toll Free (Alaska Only) 888/300-8534 • www.akenergyauthority.org Alaska Energy Authority NMI V. T ' 1 i ii►��. PRELIMINARY FEASIBILITY REPORT Pilgrim Hot Springs Nome, Alaska April 19, 2007 Lorie M. Dilley, PE/CPG Principal Geologist �j'y �, HATTENBURG DILLEY & LINNELL_ Engineering Consultants 3335 Arctic Blvd., Ste. 100 Anchorage, AK 99503 Phone: 907.564.2120 Fax: 907.564.2122 TABLE OF CONTENTS 1.0 INTRODUCTION....................................................................................1 2.0 BACKGROUND AND GEOTHERMAL RESOURCE CHARACTERIZATION............................................................................1 2.1 LOCATION........................................................................................................ 1 2.2 PREVIOUS STUDIES OF PILGRIM SPRINGS AREA .................................... 2 2.3 GEOLOGY......................................................................................................... 2 2.4 HYDROGEOLOGY........................................................................................... 3 2.5 GEOCHEMISTRY............................................................................................. 3 3.0 POWER PLANTS........................................................................5 4.0 ENERGY EFFICIENCY..........................................................................5 5.0 ALTERNATIVES..........................................................................6 5.1 ALTERNATIVE 1: SHALLOW SOURCE; UTC SYSTEM ........................................... 7 5.2 ALTERNATIVE 2: DEEP SOURCE; UTC SYSTEM ................................................... 8 5.3 ALTERNATIVE 3: DEEP SOURCE; TRADITIONAL BINARY PLANT ......................... 8 6.0 CAPITAL COST COMPONENTS..............................................................9 6.1 SITE DEVELOPMENT............................................................................................. 9 5.2 EXPLORATION & CONFIRMATION...................................................................... 10 5.3 PERMITTING....................................................................................................... 11 6.4 PRODUCTION WELL DRILLING...........................................................................I1 6.5 GATHERING SYSTEM/POWER PLANT.................................................................. 12 6.6 TRANSMISSION LINE.......................................................................................... 13 7.0 CONCLUSIONS.........................................................................14 7.1 ALTERNATIVE DISCUSSION................................................................................ 14 7.2 FOLLOW ON STEPS............................................................................................ 14 8.0 LIMITATIONS............................................................................15 9.0 BIBLIOGRAPHY........................................................................16 LIST OF TABLES Table 1 Program Components and Costs Table 2 Summary of Alternatives LIST OF FIGURES Figure 1A-13 Vicinity Maps Figure 2 Site Map Figure 3 Area Photos Figure 4 Geologic Map of Seward Peninsula Figure 5 Ownership Map Figure 6 UTC Generator Photo Figure 7 Drilling Costs HATTENBURG DILLEY E LINNELL E ray ire: ny Cunsuitan is LIST OF APPENDICIES Appendix A Model Schematics/Order of Magnitude Cost Estimates J. • HATTENBURG DILLEY & LINNELL ��.�.r E. gm—irid Cunsuiisnts Alaska Energy Authority Preliminary Feasibility Study HDL 07-301 Pilgrim Hot Springs, Alaska PRELIMINARY FEASIBILITY STUDY PILGRIM HOT SPRINGS, ALASKA 1.0 INTRODUCTION This study presents the results of our preliminary feasibility study of Pilgrim Hot Springs, Alaska. The purpose of this preliminary study was to evaluate the previous scientific studies conducted in the area and to indicate the feasibility of developing Pilgrim Hot Springs into an active geothermal resource. Alternatives were developed as to the power plant type and geothermal well requirements. A decision matrix, the benefits and faults, and order of magnitude costs are provided for each alternative. This report is based entirely on the literature review conducted and no field studies or additional evaluation of the geothermal resource has been conducted. This is a preliminary study to indicate the potential feasibility of developing Pilgrim Hot Springs into an active geothermal resource for power generation. 2.0 BACKGROUND AND GEOTHERMAL RESOURCE CHARACTERIZATION 2.1 LOCATION Pilgrim Hot Springs is located on the Seward Peninsula, Alaska, approximately 60 road miles north of Nome and 80 miles south of the Arctic Circle. The area is located at Latitude 65° 06' N, Longitude 1640 55' W. Vicinity maps are presented in Figures 1A and 1113, a site map in Figure 2, and photos of the area in Figure 3. The area is accessible by air via a small landing strip. A 7.5 mile rugged dirt road leading off from MP 53 of the Nome -Taylor Road accesses the area. Pilgrim Hot Springs stands out as an approximately two square mile "thawed zone"; an area of warm soil, dense underbrush and tall cottonwoods seemingly out of place within the harsh conditions of frozen soil and stunted vegetation in the surrounding subarctic tundra. Pilgrim Hot Springs lies in an area of low relief in the wide flat valley of the Pilgrim River, which meanders generally east to west approximately a half mile to the north. Figure 2 presents a site map. Pilgrim River is a tributary of the Kuzitrin River to the north. Several low flowing springs and seeps flow into the Pilgrim River from the underlying alluvial sands and silts. Water temperature near the springs ranges from 145°to 160'F (63° to 71'C). In 1918-19, a worldwide pandemic f lu epidemic struck Mary's Igloo and Pilgrim Hot Springs area and killed every Alaska native adult and a majority of the children living there. Most of the surviving orphans were raised by the Catholic Jesuit priests and Ursuline nuns at the orphanage constructed at Pilgrim Hot Springs. The April 2007 Page 1 _HI 111 ��;�'r I'!NFz Alaska Energy Authority Preliminary Feasibility Study HDL 07-301 Pilgrim Hot Springs, Alaska children and grandchildren (approximately 150 descendants) now comprise the tribe of Mary's Igloo, a federally recognized Alaska Native Tribe. They were moved to surrounding villages when the children's orphanage closed in the 1930's. The surface ownership of Pilgrim Hot Springs is in the Catholic Church, which has leased the area to Pilgrim Springs Limited. It is our understanding that Mary's Igloo Native Corporation (MINC) owns the surrounding area and the subsurface rights (see Figure 4). Currently there is a caretaker on the property and occasional visitors. 2.2 PREVIOUS STUDIES OF PILGRIM SPRINGS AREA The most recent and comprehensive investigation of the geothermal characteristics of Pilgrim Springs was a cooperative investigation begun in 1979 by the State of Alaska, Geophysical Institute of the University of Alaska and Woodward Clyde Consultants (WCC). The study, done in two phases and completed in 1982, included the drilling of six test wells to depths between 150 and 1001 feet. In addition, surveys of soil helium and mercury, gravity, and electrical resistivity; surficial geology and bedrock mapping, seismic refraction, geomagnetic profiling, shallow thermal conductivity measurements, hydrologic measurements, and geochemistry analysis were undertaken. While this program was able to confirm a significant geothermal resource at Pilgrim Springs, the exact location, depth, and characteristics of the source of the geothermal activity remains to be identified. 2.3 GEOLOGY The Kigluaik Fault, a range -front fault trending east -west several miles to the south, separates the northern edge of the Kigluaik Mountains from the down -dropped (graben) Pilgrim River valley (Figures 1A and 1B). This seismically -active fault has experienced displacement within the past 10,000 years. These mountains, rising to elevations of generally 3500-4000 feet, are composed of various metamorphic rocks of Precambrian age, including granitic gneisses and amphibolites. A remnant of similar Precambrian metamorphic rock outcrops several miles north of Pilgrim Springs in the Hen and Chicken Mountains. Local Cretaceous intrusives consisting of biotite granite and diabase are found in a belt from the Seward Peninsula to the Kobuk valley; geothermal springs in this belt appear to be associated with these intrusive plutons. Geologic mapping indicates a number of north trending faults, with one projected underneath the Pilgrim valley fill approximately 1.5 miles east of Pilgrim Springs. Based on seismic and gravity surveys, the Pilgrim River valley is filled with sediments at least 1500 feet thick. Surface soils consist of alluvium deposits of the Pilgrim River. A April 2007 Page 2 Icy HATTFNBURcoaLEvB UNNELL Alaska Energy Authority Preliminary Feasibility Study HDL 07-301 Pilgrim Hot Springs, Alaska vicinity map showing the topographical features surrounding Pilgrim Springs is presented in Figure 1B, and a geologic map of the Seward Peninsula is presented in Figure 4. 2.4 HYDROGEOLOGY Much of Northwest Alaska is underlain by permafrost. Severe winter temperatures maintain permafrost at shallow depths below the surface. This permafrost impedes both the downward and the lateral movement of water, so that most precipitation runs off as surface water. Pilgrim Springs is located in the wide lower end of a drainage system which drains the Kigluaik Mountains to the south and the western end of the Bendeleben Mountains. Both the Pilgrim and Kuzitrin Rivers flow sluggishly across meandering floodplains at a very low gradient, through a poorly -drained lowland studded with ponds, lakes and swampy flats with elevations generally less than 25 feet above sea level. The rivers flow north into the Imuruk Basin, eventually draining out through Grantley Harbor and Port Clarence into the Bering Sea. The extent and thickness of the permafrost in the region has been adequately determined in the past using resistivity surveys and Landsat imagery (Forbes, 1979); however, further investigation of surface temperature profiles using a temperature probe and thermister is necessary. The area of warm thawed soil in the vicinity has been estimated in size from 20 to 30 acres (HLA, 1974) to 0.7 square miles (WCC, 1983) to 2 square miles. Six wells were installed by WCC in 1982 ranging in depth from 150 to 1001 feet. They were clustered in the hottest part of the anomaly approximately '/< mile southwest of the historic Pilgrim Springs Church; see Figure 2. One well was located on MINC property. Flow rates for the wells ranged from 30 to 250 gallons per minute. All six wells penetrated an extensive shallow geothermal system, having fluid temperatures of 1940 F (900 C), were under artesian pressure of six feet above the land surface, and appeared to feed the surface springs and seeps in the local vicinity of Pilgrim Springs, principally to the southwest of the church. Temperature profiles of the two deepest drill holes indicate the thermal gradient of sediments below the surficial groundwater zone to be increasing about 4° F (2.20 C) per 100 feet of depth. 2.5 GEOCHEMISTRY Pilgrim Springs can be characterized as an alkali -chloride spring, a type often associated with areas of recent volcanism. Saline waters can also be associated with Tertiary sedimentary rocks, which may compose some of the extensive depth of fill in the Pilgrim INN (71 April 2007 Page 3 � y SHEnnin er LLIEYB Lt,ms o vrr 6�niriu� no cor�su�6�rn, Alaska Energy Authority Preliminary Feasibility Study HDL 07-301 Pilgrim Hot Springs, Alaska River valley. Warm brine (NaCl) water has been reported from other wells penetrating Tertiary sediments around Kotzebue and another location on the Seward Peninsula. Geochemical analysis of Pilgrim Springs was undertaken by the Alaska Division of Geological and Geophysical Surveys, on samples taken from the six wells. In general, water from wells PS -1 and PS -2 was hot 198-205° F (92-961C), high in dissolved solids, low in salinity, and low pH. Well MI -1, which is tapping water that lies below the shallow thermal aquifer, is cooler 750 F (24C), low in dissolved solids and salinity, and has high pH. Available geochemical data of Pilgrim Spring's exploration wells and springs imply contradictory evidence of a deep, but diluted thermal fluid and a more saline, shallow aquifer. Geothermometry of waters indicate maximum deepwell temperatures (Fournier, 1981) of 266°F (-130°C) yet these values are not consistent with the mixing curves provided by the existing major chemistry. Despite extensive exploration in the Pilgrim Spring's valley by previous researchers, "neither the heat source nor the water source of the circulating geothermal system have been identified (Lofgren, 1983)." Deep drilling (Well PS -5) into the intersection of two high angle faults propagating through the Pilgrim Spring's property was unsuccessful in identifying a conduit connecting deeper thermal waters with the shallow artesian aquifer, yet the resulting temperature profile confirmed the possibility for high temperature thermal waters 2480 F (120+ OC) at depths greater than 2600 feet. However, testimony of past researchers implies additional grounds for locating such a structural conduit. Economides (1982) and Wescott (1981) agreed that a thermal aquifer containing fluids of 3000 F (1 501C) at 4,800 feet depth are supplying heat to the surface waters near the present-day well field. Forbes (1979) however recommended further investigation 2 miles to the northeast along the thawed fault -bounded foothills of Hen & Chickens Mountain. A geothermal reservoir is dependent upon the hydrology of the reservoir and the heat balance. The conceptual geothermal reservoir model developed by WCC, 1982 was developed considering the inflow and outflow of fluids and heat into an idealized reservoir area. The model indicates that there could be a continuous supply of 19 to 24 megawatts (MW) of geothermal energy fed into the reservoir from some yet unidentified source. The 19 to 24 MW of energy fed into the reservoir is balanced by outflow from the reservoir of 6 MW to the atmosphere, 2 MW to the thermal springs, and 11 to 16 MW into the groundwater. A 20 -year supply of energy at a use rate of 1.5 MW is believed stored in the shallow thermal aquifer system. More than 90 percent of the resource available is from the as of yet unidentified source. The useable part of the resource is estimated to be 13 to 18 MW or the energy in the thermal springs and the groundwater. This is prior to any energy conversion into power production. HATTENBURG DILLEYSLINNFLL April 2007 Page 4 _ E,�, , Alaska Energy Authority Preliminary Feasibility Study HDL 07-301 Pilgrim Hot Springs, Alaska 3.0 POWER PLANTS Corresponding to progressively lower resource temperature, geothermal energy is used for electric power generation, direct heating and geothermal heat pumps. Two main types of geothermal systems are utilized for electric power generation: steam dominated and hot water systems. Steam dominated systems have pure high temperature steam that is greater than 455°F (235°C) and typically have production wells 3,000 to 13,000 feet in depth. The steam is brought to the surface and it is used directly to spin the generators to create electricity. Hot water geothermal systems in production have a typical temperature range of 300 to 570°F (150-300°C) (DOE 2003). A flash steam power plant is most common in these systems. The geothermal fluids are brought to the surface through production wells as deep as 13,000 feet. They are highly pressurized; up to 40 percent of the water flashes or in a series of steps boils explosively and turns to steam. The steam is then separated and is fed to the turbine generator unit directly to produce electricity. For hot water systems with lower temperature reservoirs, those between approximately 255°F and 430°F (125°C and 225°C) a binary cycle power plant instead of a flash steam plant is required. In the binary cycle plant the geothermal waters are passed through a heat exchanger to heat a secondary working fluid that vaporizes and that vapor is then used to turn the turbines. United Technologies Corporation (UTC) has developed a binary geothermal power plant currently operational at Chena Hot Springs which produces power from even lower temperature fluids. A reverse -engineered refrigeration unit is used as the binary plant and only requires a 100°F (38°C) temperature differential between heat source and sink to generate power. At Chena Hot Springs, this differential is achieved by using 164°F (73°C) water from the geothermal wells and 40 to 45°F (4 to 7°C) water from a local cold water source. This system is currently only produced by UTC and hereafter will be referred to as the UTC system. See Figure 5 for a photo of a UTC system at Chena Hot Springs. 4.0 ENERGY EFFICIENCY Based on the conceptual model there is approximately 13 to18 MW of energy available prior to power production. The amount of energy that can be produced is based upon the energy available at the well heads, losses in the hot water delivery system, and the efficiency of the generators. Losses in the transmission line to Nome would also impact the amount of power that reaches the customer. The energy available at the well heads is based upon the flow rate and the temperature of the fluid. Table 1 provides an estimate of well productivity or the amount of energy available per reservoir temperature. For the low temperature source (90 °C) the energy available is approximately 0.4 MW H April 2007 Page 5 Enginucring ConsWi:rats Alaska Energy Authority Preliminary Feasibility Study HDL 07-301 Pilgrim Hot Springs, Alaska per well. For the higher temperature source (150 °C) the energy available is approximately 2.5 MW per well. Flow rates for each alternative to produce 5 MW of power are presented in Section 5.0 for each alternative. One of the most important concepts about the operation of a power plant is that the efficiency of the process is determined by the temperature difference between the boiler and the condenser. In a conventional fossil fuel power plant the temperature of the steam leaving the boiler may be 1,000 IF and the condenser may operate at 100 OF. Theoretical efficiency of the cycle is about 60 percent. Due to losses in equipment, heat transfer processes, the actual efficiency might be on the order of 40 percent. In addition, boiler, combustion, and generator all have efficiencies less than 100 percent therefore a traditional fossil fuel power plant operates at about 30 to 35 percent efficiency. Geothermal resources produce temperatures far less than those of a traditional fossil fuel plant. Geothermal power plants conversion efficiency of heat to electricity is generally less than 10 percent (Rafferty, 2000). This impacts the feasibility of producing geothermal power by increasing the quantity of heat needed thereby increasing costs for resource development. Furthermore the higher heat requires more waste heat requiring more cooling and therefore a larger parasitic load on the plant. In binary plants, discussed in Section 3.0, the temperature of the vapor leaving the boiler is always less than the temperature of the geothermal fluid. Binary power plant efficiency is based the entering temperature of the geothermal fluid and the leaving temperature of the fluid. Most plants are capable of achieving leaving geothermal water temperatures of approximately 160 IF (701C). By knowing the plant efficiency and the resource temperature, the quantity of water flow required can be determined. Given the reservoir temperature of 300°F (150°C) and assumed plant efficiency of 10 percent, the required geothermal water flow is about 2,400 gallons per minute (gpm) for a 5 MW plant. The calculation conducted to determine flow for a given plant efficiency and reservoir temperature breaks down below a temperature of about 200°F (95°C) and therefore does not work for the shallow source identified at Pilgrim Springs. 5.0 ALTERNATIVES Given the identified shallow source of geothermal fluids at Pilgrim Hot Springs near 195°F (90°C), and the presumed deeper source of up to 300°F (150°C) geothermal water, we modeled three possible alternatives to generate electricity. Because of the relatively cool temperatures of the two possible sources, we considered options using either the UTC system or a traditional binary power plant. If the lower, hotter reservoir exists, the temperatures are believe to range from 250°F to 300°F (120°C to 150°C) which is too cool for a flash steam power plant. The alternatives modeled in this report are as follows: HATTENBURG Dlt LF1 8 '. I YPoFI .. April 2007 Page 6 k_ - .. � - Enpinecr�np Cunsuianrs Alaska Energy Authority Preliminary Feasibility Study HDL 07-301 Pilgrim Hot Springs, Alaska Alternative 1: Shallow Source; UTC System. Alternative 2: Deep Source; UTC System. Alternative 3: Deep Source; Binary Plant. For each alternative, we assumed that there was a developable resource able to produce 5 MW of electricity, which needs to be proven by drilling. Because so little is known about the nature of the resource, including total size, or the sustainable flow rates of the geothermal fluids, this assumption may prove to be either much lower or higher than the real potential of the resource. This can only be verified by more onsite investigation of the resource. A resource capable of producing 5 MW's may be more likely to hold for the deep, higher temperature, geothermal source. The current peak power needs of Nome are in the neighborhood of 5 MW, and they are projected to exceed this by around 9 MW with the Rock Creek Gold Mine on line. Table 1 presents components and costs associated with confirming the existence of the geothermal reservoir. Table 2 presents a summary of the alternatives. The order of magnitude cost estimates for each alternative are based on a completed 5 MW capacity power plant, with enough geothermal wells drilled for supplying the necessary fluids and providing for reinjection wells in order to maintain reservoir pressures. Schematic diagrams of the alternatives are presented in Appendix A, Figures Al — A3. The cost estimates are an order of magnitude costs and should only be used to compare costs between the alternatives and as an assessment of the feasibility of the models, should further research prove out the resource. Further analysis of the components of the cost estimates follow in Section 5. 5.1 Alternative 1: Shallow Source; UTC System In this alternative we modelled tapping the shallow, 195°F (90°C) geothermal waters. This temperature is well suited to the temperature differential utilized in a Chena Hot Springs -style UTC system; assuming cooling is achieved by winter air or local, cold stream waters used in the power plant. The Pilgrim River runs nearby, and would provide the necessary cooling water. We assume a depth of 500 feet below the surface for wells utilizing this source. According to Chena Power, LLC, a flow rate of approximately 1200 gallons per minute (gpm) would be necessary to generate 1 MW with the assumed 195°F (90°C) fluid. For the 5 MW, a flow rate of about 6,000 gpm would be necessary. The efficiency of the larger 5 MW system may require additional flow, which is unknown at this time. If the attainable flow rate for each well was near 300 gpm, approximately 20 production wells would be necessary. Simple calculations based on fluid temperature (Hanse, 2005) give a productivity of 0.4 MW per well (see Table 1). This calculation results in 13 wells necessary to generate 5 MW of power. The number of wells with this low-temperature April 2007 Page 7 HATTFBU:qCx, IN ,a UR DILIF� F &LINN FI Alaska Energy Authority Preliminary Feasibility Study HDL 07-301 Pilgrim Hot Springs, Alaska resource was set at between 13 to 20 wells. This number of wells may be unfeasible in such a small area, leading to well interference among other problems. At least one reinjection well, and likely more, would be necessary to maintain the pressure and fluid flow within the reservoir. The existing UTC power plant technology as utilized at Chena takes advantage of a temperature range very similar to that found in the shallow resource at Pilgrim. The geothermal waters utilized at Chena are 164°F (731C), and the cooling river waters are 40°F (41C). The generators at Chena are 200 KW units. Twenty-five of these units would be required to produce 5 MW. UTC is reported to be developing a 1 MW generator, in which case this rather unwieldy number of generators would be cut to 5. 5.2 Alternative 2: Deep Source; UTC System In this alternative we consider the as yet to be determined deeper, hotter, geothermal source. We model this source using the 300°F (150°C) fluid temperature and well depths at 5000 feet below the ground surface. Alternative 2 investigates the costs associated with using a UTC power plant with this source. According to Chena Power LLC, the flow rate of geothermal fluids necessary to generate 1 MW at this temperature is approximately 350 gpm, much lower than the preceding alternative. Using an assumed plant efficiency of 10 percent, we calculated the flow rate at about 480 gpm per 1 MW. Therefore to produce 5 MW of electricity the geothermal fluid flow rate would be between 1,750 to 2,400 gpm. Drillhole productivity calculations from Table 1 indicated each well in this alternative would produce about 2.5 MW. For the anticipated 5 MW, 2 wells would be needed. However, based on the high flow rates needed 3 wells may be necessary. For this alternative we have assumed 2 to 3 production wells would be necessary. The existing UTC technology would have to be modified to take advantage of this higher temperature source. The larger temperature differential would at least require a different secondary fluid to maximize the efficiency of power generation. Assuming this technological problem is adequately solved, the greater temperature differential should help increase the power available, perhaps lowering the cost per MW. 5.3 Alternative 3: Deep Source; Traditional Binary Plant In this alternative we again consider the inferred deeper, hotter, geothermal source. We modeled this source assuming 300°F (150°C) fluids at 5000 feet depth below the ground surface. Alternative 3 investigates the costs associated with using a traditional binary power plant. As with Alternative 2 above, calculations in Table 1 give us roughly 2.5 MW per well, necessitating 2 wells to produce 5 MW. Flow rates would be similar to those in Alternative 2 therefore we have assumed 2 to 3 wells would be needed to achieve the necessary flow rates at the assumed plant efficiency of 10 percent. J.,MHATTENBURG Dh tFY &I NNFI, April 2007 Page E ngine¢nnr, Consunants Alaska Energy Authority Preliminary Feasibility Study HDL 07-301 Pilgrim Hot Springs, Alaska The temperature of this source is in the range of fluid temperatures that have proved to be economically exploitable by traditional binary power plants. Ormat is a major supplier of this type of power plant with generators in the 5 MW range. 6.0 CAPITAL COST COMPONENTS Presented are the components of the capital cost for the alternatives dicussed. All costs detailed are order of magnitude only. Summaries of these costs are found on the schematics of the alternatives in Figures Al through A3 in Appendix A and in Table 2. All costs are based on 2008 construction with no inflation. The large capital costs required for these types of projects necessarily involve borrowing money and long delays in construction can add significant costs to any of the projects. The components considered were the following: • Site Development • Exploration & Confirmation • Permitting • Production Well Drilling • Power Plant and Gathering System • Transmission Line For the geothermal components such as exploration and confirmation, and well drilling, we relied on calculations in Table 1 developed by Hanse, 2005. Site development and transmission line costs were developed based on experience of local engineers, the new Nome Power Plant, and contacting suppliers. Power plant costs were based on Hanse and quotes from suppliers of the power plants. 6.1 Site Development Site development would include upgrading the gravel access road and developing an area for the power plant site and well pads. An existing, approximately 7.5 -mile, 4 -wheel drive road that connects the Nome -Taylor Highway to Pilgrim Springs would need to be upgraded to provide access for drill rigs and other equipment (see photo in Figure 3). The last 200 yards of this road is especially swampy and difficult for vehicles according to the on-site caretaker. Costs for this improvement will depend on a number of factors, including number and type of stream crossings necessary, size and adequacy of existing road section, availability and grading of local materials, subsurface conditions at the site, etc. For our cost analysis we assume that the current 4 -wheel drive road is approximately 16 feet wide and has a April 2007 Page 9 �HATTF'JBURG 01LLEY&HNNR' E^ginee• no Con.u�t.nts Alaska Energy Authority Preliminary Feasibility Study HDL 07-301 Pilgrim Hot Springs, Alaska 2 -foot thick section and will be upgraded to 24 feet wide and 3 -foot thick section. We assume that adequate gravel will be available from quarries near Nome. Bid tab estimates were used plus additional increase in the cost for hauling material to Pilgrim, we estimated approximately $40 to $80 per cubic yard for gravel. These numbers are on the low end for rural Alaska projects, but Nome generally has a reasonably available source of gravel from local mining operations. We further assume that two stream crossings will be necessary, and that these will be provided by road culverts at approximately $200,000 per crossing. This gives a total range for the road upgrade of about 3 to 5 million dollars (M$). Based on the new Nome Power Plant size and scaling for the size and number of generators that would be used at Pilgrim we estimated a building size of about 15,000 square feet. Pad development for the power plant will be on the order of $250,000 to $500,000 assuming a 15,000 square foot building and cost for gravel of $40 to $80 per cubic yard. Well sites and additional upgrades to on-site roads will probably add an additional $250,000 to $400,000 in gravel to the project. Site development would add an additional 0.5 to 1 M$. This assumes that the power plant would not need a specialize foundation. The new Nome Power Plant needed a specialize foundation with a cost of about 1 to 1.2 M$ for the foundation alone. 5.2 Exploration & Confirmation The exploration phase consists of investigating the geothermal resource, beginning with prospecting and field analysis, and ending with the drilling of the first full-scale commercial production well. Some of this work has already been accomplished. For example, a full regional reconnaissance is not necessary as the focus has already been narrowed to the region of apparent geothermal activity at Pilgrim. Some district exploration has already been accomplished in the 1979 study of Pilgrim Springs. However, much work does remain to be done to characterize reservoir morphology, flow rates and temperature for both the shallow and deep resource. It is expected that exploration of the shallow resource, (though it may be less likely to satisfy the power generating needs of Nome) would be less costly due to being nearer the surface and better characterized at this time than the deeper source. According to Hanse (2005), exploration costs typically run in the range of $100 to $200/kW depending on the nature and size of the project, the amount of information already available, and the technologies employed in exploration. Factors affecting drilling costs also greatly influence exploration. The size of drill rig will also affect the drilling costs. For the proposed shallow wells, a shallow gas drill rig may may be preferred to a large oil drill rig. The shallow gas drill rigs are capable of drilling depths on the order of 3,000 feet and are transported on a single, heavy duty truck. Support trucks are used for carrying supplies, mud tanks, and some associated gear April 2007 Page 10 Lr��HEngi. r!nQCEYdltanls. �1�. RG ..................... -�En�ineerino Conyulrams Alaska Energy Authority Preliminary Feasibility Study HDL 07-301 Pilgrim Hot Springs, Alaska however the drilling footprint is much smaller than the large oil drill rigs. The deeper depth of 5,000 feet is near the cut off for some of the more advanced shallow drill rigs and it may still be possible to use this type of drill rig for this depth. Currently, drilling costs are expected to be high because of the high cost of oil and the high demand for rigs for petroleum exploration projects. Figure 7 presents drilling costs of oil and gas wells in 2003. The costs for the shallower depths use the smaller drill rigs. If one doubles these numbers to account for the current (2007) level of exploration, and then doubles the cost again as a rough "Alaska factor" to try to compensate for remoteness, a range of about 0.8 to 2 M$ per well results. Confirmation costs are those costs necessary to confirm 25 percent of the total project capacity. Table 1 provides the costs for administration, unsuccessful drill holes, regulatory compliance for exploration drilling, reporting documents, and well testing. These costs are needed to confirm a geothermal reservoir prior to production drilling. If the costs from Table 1 are added up for the two sources and multiplied by an Alaska factor of 2, this gives a low-end total confirmation cost of around 5 M$ for the shallow resource and 9 M$ for the deeper resource. If we double these numbers again to give a rough estimate to the high end of the expected range (to allow mainly for more expensive drilling costs due to the competition for drilling equipment with the petroleum industry, etc.), and add on the range above for the exploration costs we get the numbers listed on Figures Al through A3 for the costs of exploration and confirmation of 7 to 14 M$ for the shallow resource and 11 to 22 M$ for the deeper resource. This is the range of costs needed to confirm that the resource is actually there. 5.3 Permitting Permitting costs are necessary for compliance with state and federal regulations. Hanse gives a range of typical project costs for permitting of from about 0.2 M$ with a completion time for permitting of less than a year (best case scenario) to over 1 M$ with a permitting time of over 3 years, mostly depending on the stringency of local regulations. Air permitting on the Nome Power Plant was extensive and required two years of monitoring data before permitting would take place. However geothermal power plants generally have better air quality than traditional fossil fuel plants and therefore air permitting will probably be less rigorous. Additional permitting issues may arise particularly with transmission lines and migratory birds as well as discharge of waters into the surrounding environment. These costs are included into the Exploration and Confirmation costs on Figures Al through A3 of Appendix A. 6.4 Production Well Drilling Although some well drilling is included above in costs to confirm the resource, additional wells would need to be drilled to complete the development of the resource to 5 MW. April 2007 Page 11 7�J'y HEiainecrGnq Cons, W11 ft �LJL� Eta nub np Consult. fly Alaska Energy Authority Preliminary Feasibility Study HDL 07-301 Pilgrim Hot Springs, Alaska Drilling costs are affected by depth of hole, availability of equipment, how well the resource is characterized, temperature, chemistry and permeability of the resource, and cost of construction materials, among other factors. A little over half of the drilling costs are explained solely by the depth of the well. Assuming the brine in this resource is not corrosive and given that the relatively low temperatures of these resources should not result in high pressure, the drilling conditions at Pilgrim should not be unduly adverse. One method for assessing base cost for drilling each well is that given by Table 1. This value is significantly higher, however, than drilling costs averaged from onshore oil and gas drilling (Augustin, 2006), see Figure 7. Either of these costs must be multiplied by an "Alaska Factor" to take local conditions and remoteness into account, as well as availability and cost of drilling equipment in the current market. The number of wells that need to be drilled depends most strongly on the productive capacity of each well, which has been estimated in Section 4.0. The success rate of holes drilled during this phase is in the range of 80 percent. It is strongly recommended to drill at least one extra production well during this phase to help offset the common occurrence of well productivity decline. Reinjection wells will also be necessary to maintain the resource. Taking all of these factors into account, a range for the cost of drilling is around 4 to 8 M$ for the shallow resource and 5.5 to 11 M$ for the deep source, keeping in mind that 25 percent of the production capacity for the shallow resource and 33 percent of the production capacity for the deep resource was developed in the confirmation phase. Competition for drilling services from the oil and gas industry could drive these figures up even higher. 6.5 Gathering System/Power Plant In costs for the power plant we include costs for the generators and generator building and pumps and piping to bring the geothermal fluids to the generators. The hot water gathering system includes the pipes and pumps. Under a reasonable assumption that our geothermal fluids are not too highly corrosive, we can start with the industry average of around $250 per kW from Hanse(2005), which gives about 1 M$ for a 5 MW project. Doubling this for the Alaska factor, one obtains a range of roughly 1 to 2 M$. The number of pipes necessary to develop the shallow resource will undoubtedly be greater, as we require a greater number of wells in our model. At the new Nome Power Plant, a traditional fossil fuel plant, building costs were on the order of 5 to 7 M$, with the final project costs approaching 30 M$. Geothermal power plant costs include the cost of land, and physical plant, including buildings and power - generating turbines. Geothermal plants are relatively capital -intensive, with low variable April 2007 Page 12 HATTF?fBU gICE .;t tE E �TFNB(J.:ag Can A Ltants Alaska Energy Authority Preliminary Feasibility Study HDL 07-301 Pilgrim Hot Springs, Alaska costs and no fuel costs. Plant lifetimes are typically 30-45 years. Financing is often structured such that the project pays back its capital costs in the first 15 years. Costs then fall by 50-70%, to cover just operations and maintenance for the remaining 15-30 years that the facility operates. In the case of the traditional binary power plant, we use numbers from Hanse, multiplied by a factor of 2 ("Alaska Factor") to estimate a range of from 23 M$ to 30 M$ for a 5 MW power plant, assuming a resource temperature of 150°C. According to the Renewable Energy Policy Project (REPP) in Washington DC, capital cost for geothermal power plants in the 5 MW range using a medium quality resource ranges from $1600 to $2400 per installed kW. Applying a factor of 2 for the remoteness of the project, construction cycles and Alaska weather the REPP numbers are in the same range as Hanse. Chena Power, LLC gives a cost of $1300 per KW for the UTC generators. Based on conversations with Chena Power, LLC, this cost is expected to hold for the currently produced 200 kW generators and the 1 MW generators they are developing. Shipping for the 200 kW generator to Chena Hot Springs was around $50 per kW. We also assume the construction of a 15,000 square foot building to house the generators, shops, and apartment space at around $350 to $500 per square foot. Using these values we get a cost of roughly 12 to 17 M$ for the UTC plant. 6.6 Transmission Line To bring the power produced to Nome, approximately 60 miles of transmission line would be necessary. For a single pole structure, Dryden and LaRue (personal communication) provided a rough estimate of $500,000 to $750,000 per mile. This assumes winter construction for tundra protection, and further assumes that topography is gentle along the path of the transmission line. This gives a total cost of between 30 to 45 M$. Hanse reports costs for construction lines of from $164,000 to $450,000 per mile, doubling these numbers for the Alaska Factor we get a total of around 20 M$ to 54 M$. We take a middle range to be a reasonable rough cost estimate, and assume transmission costs to be approximately 20 M$ to 45 M$. HTENBUG D EY8LIY E April 2007 Page 13 Enain-ing Consuts Alaska Energy Authority Preliminary Feasibility Study HDL 07-301 Pilgrim Hot Springs, Alaska 7.0 CONCLUSIONS 7.1 Alternative Discussion The following presents a summary of the alternatives and associated costs. PROJECT ALTERNATIVE COSTS ($M) 1. Shallow Source; UTC System 48-92 2. Deep Source; UTC System 54-103 3. Deep Source; Binary Plant 64-116 Based on cost alone, it seems that Alternative 1 would be the preferred alternative. It is possible that this alternative would not produce 5 MW. We do not know the total capacity of either resource for power generation. It is more plausible that the inferred deeper source would be able to generate power in the range of 5 MW. The shear number of wells and generators needed to generate power may also preclude the use of the UTC system. Well interference may also be a major problem with Alternative 1. Alternatives 2 and 3 utilize a source, that while less well characterized than the shallow source, has greater theoretical potential for power generation due to its higher inferred temperature (150°C vs 90°C) and potentially greater heat capacity. Using a UTC system may have cost advantages because of the small size of the plant and relatively low temperature of the source. However, the UTC system currently utilized in geothermal setting at Chena Hot Springs runs off of a lower temperature source and the technological problems of working with the hotter fluid at Pilgrim will need to be overcome. This may delay the time until a working plant is available, thus raising the cost. Although projected to be slightly more expensive than the other options, Alternative 3 at this time seems to be the option most likely to succeed. Prior to more research into the characteristics of the resource, this appears to be the best option. If the deeper resource proves to have greater than 5 MW capacity then the cost per megawatt will decrease. Many of the costs are fixed and therefore additional power capacity beyond the 5 MW would provide a lower cost per megawatt which could benefit the mine coming on line. 7.2 Follow On Steps At this time neither of the resources has been confirmed. The shallow source has been identified however its full character has not been confirmed. The deep source is only known through limited geochemistry and modeling the shallow source. An exploration L. April 2007 Page 14 HIM E,pi URi— C.Y 1011t I E�pinecr nn COr1YUI,N r11Y Alaska Energy Authority Preliminary Feasibility Study HDL 07-301 Pilgrim Hot Springs, Alaska followed by a confirmation phase needs to be conducted prior to any decisions about type of power plant and number of wells. We would recommend that the exploratory phase focuses initially on both the shallow and the deep source. A better characterization of each would help immensely in refining the feasibility estimates of the available options. We would recommend the following for assessing the resources: 1. Identifying the regional thermal and hydrologic gradient; 2. Repeat equilibrium temperature profiles for existing wells; 3. Accurately and uniformly characterize the chemistry of the well, spring and river waters; 4. Complete mapping of regional geothermal system; 5. Characterizing regional aqueous geochemistry; and 6. Quantifying thermal budget and environmental impacts. In addition to these items, a conceptual model of the shallow and deep geothermal reservoirs with our improved understanding of structurally controlled geothermal systems should be developed. Based on the exploratory phase one or both of the sources will be identified and a more thorough understanding of the sources will be achieved. After the exploratory phase a decision can be made as to which source to pursue and a confirmation phase can begin. The costs associated with exploratory and confirmation phases including the drilling of test holes and well tests is on the order of 7 to 22 M$. 8.0 LIMITATIONS If substantial time has elapsed between submission of this report and the start of work at the site, or if conditions have changed because of natural causes or construction operations at or adjacent to the site, we recommend that this report be reviewed to determine the applicability of the conclusions and recommendations considering the time lapse or changed conditions. Prepared By: Hattenburg Dilley & Linnell Michelle Wilber Staff Geologist Reviewed By: Hattenburg Dilley & Linnell Lorie M. Dilley, PE/CPG Principal Geologist � HATTFIBURG DIU.EY B UNNRL April 2007 Page 15 t�ginee na Consu'.�. nfs- Alaska Energy Authority Preliminary Feasibility Study HDL 07-301 Pilgrim Hot Springs, Alaska 9.0 BIBLIOGRAPHY Economides, M.J., Economides, C.E., Kunza, J.F., and Lofgren, B.E. (1982) A fieldwide reservoir engineering analysis of the Pilgrim Springs, Alaska, geothermal reservoir. Proceedings, 81h Workshop in Geothermal Reservoir Engineering, Stanford University, Stanford, CA. Forbes R.B., Wescott, G., Turner, D.L., Kienle, J. (1979) A Geological and Geophysical Assessment of the Geothermal Potential of Pilgrim Springs, Alaska: Unpublished preliminary report to Alaska Division of Energy and Power Development and U.S. Department of Energy Forbes, R.B., Gedney, L., Van Wormer, D., and Hook, J. (1975) A geophysical reconnaissance of the Pilgrim Springs, Alaska: Geophysical Institute Report UAG- R231. Hanse, Cedric Nathanael. (2005) Factors Affecting Costs of Geothermal Power Development. Geothermal Energy Association. Kirkwood, P. (1979) Status of Pilgrim Springs: Topical Report — Energy Systems, Inc. prepared for U.S. Department of Energy. Kline, J.T. (1981) Surficial Geology of the Lower Pilgrim River Valley and Vicinity, Western Seward Peninsula, Alaska. Alaska Division of Geological and Geophysical Surveys, Alaska Open File Report AOF-140 Lofgren, B.E. (1983) Results of Drilling, Testing and Resource Confirmation - Geothermal Energy Development at Pilgrim Springs, Alaska: Unpublished report of Alaska, Woodward -Clyde Consultants to Alaska Division of Energy and Power Development. Rafferty, Kevin (2000) Geothermal Power Generation, a primer on Low -Temperature, Small -Scale Applications: Fact Sheet by Department of Energy Geo -Heat Center. Wescott, E., and Turner, D.L. (1981) Geothermal reconnaissance survey of the central Seward Peninsula, Alaska: Alaska Geophysical Institute, Report UAG-R284. April 2007 Page 16 I— v�� HETnpinilURGDILLFYBLINNFII. ae•:ng C.>n xuil:nis Table 1: Confirmation Program Components and Unit Costs Method Unit Cost per unit For 500 ft For 5000 ft dee /90°C dee /150"C Administration project 7.5 % of total 0.2 M$ 0.3 M$ confirmation costs Drilling : Full diameter hole foot Cost = 0.3 M$/Well 1.8 M$/Well 240,000 + 210 (depth in feet) +0.019069 z (depth) Drilling : Hole productivity `F MW/Well = 0.4 MW/well 2.5 MW/well reservoir Temp. (F)/50 —3.5 Drilling : Unsuccessful hole % 40% 5 wells 2 wells factor needed* =1.5 needed` =3.6 M$ M$ Other project 20,000 0.02 M$ 0.02 M$ Regulatory Compliance project 5 % of drilling 0.08 M$ 0.2 M$ (includes permitting and environmental compliance) Reporting document: project 5 % of drilling 0.08 m$ 0.2 M$ (data integration/analysis/modeling) Well Test: Full diameter hole, well 70,000 0.2 M$ 0.07 M$ 3-10 days Well Test: Multi -well field test, project 100,000 0.1 M$ 0.1 M$ 15-30 days Source: GeothermEx, "New Geothermal Site Identification and Qualification" (Table IV - 1),2004. * Number of wells needed to confirm 25% of the production capacity, which in our case is 25% of 5 MW = 1.25 MW. Note that in the case of the deep, 5000 ft resource, one successful well at 2.5 MW/well will confirm 50% of the capacity as modeled in this paper. Table 2: Summary of Alternatives Alt Temp Depth # of Wells Flow Rate # Generators Costs M$ 1 195 OF 500 Feet 1320 6,000 gpm 25 UTC @ 200 kW 48-92 90 °C + 4 reinjection 5 UTC @ 1 MW 2 300 OF 5,000 Feet 2 - 3 1,750 gpm — 5 UTC @ 1 MW 54-103 150 °C production 2,400 gpm 1 reinjection 3 300 OF 5,000 Feet 2 - 3 1,750 gpm — 1 Binary @ 5 MW 64-116 150 °C production 2,400 gpm 1 reinjection gpm: gallons per minute: M kilowatt, MW: megawatt PROJECT LOCATION I;7 Arctic Ocean --V „Kue c;Km Nom FalrDanks Ceneda SD 'Bethel • `�� Hering Sea ao Dlllinghom a 0 Pacific Ocean LOCATION MAP - -- ARCTIC_ _CIRCLE espenim rg ^�<� Kividlgp� Sinfl,eak - - ---- r r �(Ai� Espcnberg s, — ��, �tiitt ( .a L :Tjf� shim N fkYin�'1•{t„pdPn i 1 IS , , "LGGI ° OE MI Z7 N /g r' ' I �i Als�fhishmaret'. v �i SMDnWN I'MNri` ``:(;.il C'_"-• y v e I AND URI lxai ` Go; d'lOp( owy ae (� NAT 1 Ar, tr Z Little lkpekpr ! , ,, Fj(R M7N PRESER Id, MliletukerVE: i- Diornuh i f r- ���5 Serpenline n.�(c rer is rj + 1 Mugisltoki + 167 o' Itot Springs Fink CreekP. ipp J 8r it i Cape I AL. ;,,, rT t{ `°W'„^ 5 r 26401— ,_Cottonwood ' Prince , <, s tR�, of Wales ��r/ r- 11uluk t I b •X0 3 IrRlales Shelter , f'7�ttaylor , 1 ”?B70i " r �^ Tin sCifVc*j,a g71yuts - BROOKS MN 45 ,` ; �� Ir+,,,rt � •2898 ,oL F'" 1 t 1 ,., YOYo�;Mrs w%S EVV 3 p, Cape �Y ork�int{s* tStgtoo ._ f aw. 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Catholic Church built 1918-1920 and Mission grounds. View facing mostly north. The 7-1/2 mile access road from Road Marker 53 of the Nome -Taylor Road. April 2007 FIGURE 3 7 H:\jabs\07-301 Pilgnm Springs Assessment\CAD d,-in9s\07-301—FO4. 1=200, 04/06/07 al 13:49 by unknown LAYOUT: FIGURE 4 I I I 1 ' 11 1 i r I, 1! G i I I I! I I I k�6 1 i HATTENBURG DILLEY 6 LINNELL P/LGRIM SPRINGS Engines nor pgonsuNanla olHeeseag NOT FOR ^pp m ALASKA ENERGY AUTHORITY a ars C""'e Se 4. PILGRIM SPRINGS. ALASKA s•Naaec, r4ANAoeMeHr Inn'Ir • o�ANr+wc .�.... .. ..em R \jobs\07-301 Flgr;m Springs Assessment\CAD gl o—gs\07-301-FO<, 1=200. 04/06/07 01 0907 by unknown LAYOUT: FIGURE I {�{ PILGRIM SPRINGS �� m ALASKA ENERGY AUTHORfTY € PILGRIM SPRINGS, ALASKA a v> of �D m ~ 2 I @O' n A cz O � v O O to Ln n b x co I � - 1 1' 3 Z, c o Cot N T _ 9 2 N i G / /1 f/// / m , {�{ PILGRIM SPRINGS �� m ALASKA ENERGY AUTHORfTY € PILGRIM SPRINGS, ALASKA I_MHATTEBU DILLEY Q LINNELL Englnee ring Consolt•nts ENGINEERINGOT � NN�F'�OR EMTN SCIENCE nO vwOlECi NAN/,GEMENi PLANNING .w,..iwY.w��a., H:\lobs\07-301 Pfignm Springs Assessment\CAD\07-301_FO6, 1=200, 04/18/07 of 15.-52 by combo LAYOUT: FIGURE 6 HATTENBURG DILLEY & LINNELL Engineering Consultants • ENGINEERING • EARTH SCIENCE • PROJECT MANAGEMENT • PLANNING DAT E (907)564-2120 SCALE' www.hdlalaska.com PILGRIM SPRINGS UTC GENERATOR PHOTO ALASKA ENERGY AUTHORITY PILGRIM SPRINGS, ALASKA 4/18/07 DRAWN BY: MMHN s"EET NONE CHECKED BY: LMD I JOB NO.: FIGURE 6 07-301 H.\jobs\07-301 Pilq,im Sp,mq, Assessment\CAD\07-301—FO7, 1-200, 04/18/07 of 15:58 by mmn„ LAYOUT: FIGURE 7 `�rillina • Drilling Interval Average Depth Average Depth (feet) (meters) (feet) Average Cost (Year 2003 US M$) 1250-2499 557 1826 0.227 2500-3749 964 3162 0.267 3750-4999 1329 4359 0.3 5000-7499 1912 6272 0.543 7500-9999 2613 8572 1.01 10000-12499 3380 11087 2.033 12500-14999 4092 13424 2.949 15000-17499 4868 15969 5.168 17500-19999 5648 18526 11.177 x - HATTENBURG DILLEY & LINNELL Engineering Consultants ENGINEERING EARTH SCIENCE PROJECT MANAGEMENT DATE' (907)564-2120 SCALE PLANNING W W.hdlalaskaxom PILGRIM SPRINGS DRILLING COSTS ALASKA ENERGY AUTHORITY PILGRIM SPRINGS, ALASKA 4/18/07 DRAWN BY: MMHN SHEET FIGURE 7 NONE CHECKED BY LMD I JOB NO.: 07-301 APPENDIX A Model Schematics and Order of Magnitude Cost Estimates 60 MILES OF TRANSMISSION LINE NOME -TAYLOR HIGHWAY -65 MILES 8 MILES OF 4 -WHEEL ROAD 5 MW UTC GEOTHERMAL POWER PLANT 2000 FT PIPING ' ) 90'C ( ' ) U 13 - 20 PRODUCTION WELLS + -4 REINJECTION WELLS TO 500 FT. PILGRIM HOT SPRINGS NOME ORDER OF MAGNITUDE COSTS: EXPLORATION AND CONFIRMATION 7-14M$ SITE DEVELOPMENT 4-6M$ DRILLING 4-8M$ PIPING 1-2M$ TRANSMISSION LINE 20-45M$ 5 MW PLANT 12-17M$ TOTAL 48-92M$ HHATTENBURG DILLEY & LINNELL PILGRIM HOT SPRINGS ASSESSMENT Engineering Consultants ALTERNATIVE 1: SHALLOW SOURCE/UTC POWER PLANT • ENGINEERING ALASKA ENERGY AUTHORITY • EARTH SCIENCE NOME, ALASKA • PROJECT MANAGEMENT DATE: 3-02-07 DRAWN BY. MMW SHEET: FIGURE Al (907)564-2120SCALE: CHECKED BY: JOB NO.: • PLANNING www.hdlalaska.com 1 = XX' LMD 07-301 60 MILES OF TRANSMISSION LINE NOME -TAYLOR HIGHWAY -65 MILES 8 MILES OF 4 -WHEEL ROAD 5 MW UTC GEOTHERMAL POWER PLANT ^2000 FT PIPING U 150'C 1 ' ) U 2-3 PRODUCTION WELLS + 1 REINJECTION WELL TO 5,000 FT. PILGRIM HOT SPRINGS NOME ORDER OF MAGNITUDE COSTS: EXPLORATION AND CONFIRMATION 11-22M$ SITE DEVELOPMENT 4-6M$ DRILLING 6-11M$ PIPING 1-2M$ TRANSMISSION LINE 20-45M$ 5 MW PLANT 12-17M$ TOTAL 54-103M$ HHATTENBURG DILLEY & LINNELL PILGRIM HOT SPRINGS ASSESSMENT Engineering Consultants ALTERNATIVE 2: DEEP SOURCE/UTC POWER PLANT • ENGINEERING ALASKA ENERGY AUTHORITY • EARTH SCIENCE NOME, ALASKA • PROJECT MANAGEMENT DATE: 3-02-07 DRAWN BY: MMw SHEET: FIGURE A2 (907)564-2120 wSCALE. CHECKED BY. JOB NO.: • PLANNING ww.hdlalaska.com 1 = XX' LMD 07-301 60 MILES OF TRANSMISSION LINE NOME -TAYLOR HIGHWAY -65 MILES 8 MILES OF 4 -WHEEL ROAD 5 MW BINARY GEOTHERMAL POWER PLANT 2000 FT PIPING 1 I ) 150'C( \ I LL ) ( ' ) 2-3 PRODUCTION WELLS � + 1 REINJECTION WELL TO 5,000 FT. PILGRIM HOT SPRINGS HATTENBURG DILLEY & LINNELL Engineering Consultants ENGINEERING EARTH SCIENCE PROJECT MANAGEMENT DATE. (907)564-2120 SCALE: PLANNING www.hdlalaska.com NOME ORDER OF MAGNITUDE COSTS: EXPLORATION AND CONFIRMATION 11-22M$ SITE DEVELOPMENT 4-6M$ DRILLING 6-11 M$ PIPING 1 -2M$ TRANSMISSION LINE 20-45M$ 5 MW PLANT 23-30M$ TOTAL 64-116M$ PILGRIM HOT SPRINGS ASSESSMENT ALTERNATIVE 3: DEEP SOURCE/BINARY POWER PLANT ALASKA ENERGY AUTHORITY NOME, ALASKA 3-02-07 DRAWN BY: MMW SHEET: FIGURE A3 7 " = XX I CHECKED BY: LMD JOB NO.: 07-301 Proceedings tighth Workshop Geothermal Reservoir Loin arin6 6taufard University, 6tanford. California, December 1962 6CP-TR-60 A FIELDWIDE RESERVOIR ENGINEERING ANALYSIS OF THE PILGRIM SPRINGS, ALASKA, GEOTHERMAL RESERVOIR Michael J. Economides , Christine A. Ehlig Economidesl Jay F. Kunze2, Ben Lofgren3 1University of Alaska, 2 Energy Services Inc.,3Woodward-Clyde Consultants INTRODUCTION In an attempt to identify the geothermal potential of the Pilgrim Springs aiea in the Seward Peninsula, Alaska, exploratory drilling was undertaken in the Summer of 1982. A total of four wells were drilled through a State appropriation. The Division of Energy and Power Development acted as the Project Manager while Woodward -Clyde Consultants were selected as the principal contractor. Two other shallow wells were drilled in 1979. The six wells were completed at various depths ranging from approximately 70 ft to 1000 ft. The drilling activity followed an extensive geological and geophysical assessment done by Forbes et al. (1979), Turner and Forbes (1980) and Wescott and Turner (1981). Their work indicated the existence of an extensive, liquid dominated, shallow geothermal reservoir in the area. The shallow reservoir, confirmed by the 1979 drilling, wpe delineated within a 1 to 1.5 km area, bounded by permafrost at least 350 ft thick. The results of the 1979 drilling were presented by Kline (1981). Table I is a summary of the well completion data. Figure 1 shows the well locations. Wells PSI and PS2 were drilled to 150 ft., Air -lifted flowrate was estimated at 200 GPM and 350 GPM, respectively, with a flowing wellhead temperature of 910C. The wells were then filled with mud and cemented until 1982 when they were reopened. The mud settled at 105 ft in both wells, making them inaccessible below that depth. They were perforated using shape charges at the interval 70-100 ft (PSI) and 60-90 ft (PS2). The unaided flowrate never exceeded 30 GPM in PSI and 65 GPM in PS2. The first well, drilled in 1982 was PS3 at a total depth of 260 ft. A 3 - -25- inch slotted liner was installed between 155 and 255 ft. The completed interval produced 60 GPM at over 650C. Wells PS4 and PS5 were attempts towards an intermediate depth. They were drilled to 881 ft and 1001 ft respectively. Well PS4 is an open hole completion from 186 ft and below. A flowrate of 100 GPM and a wellhead temperature of 46oC were recorded. Well PS5 was completed below 540 ft with a 3" slotted liner. This interval presented siglnificant problems during drilling. The formations encountered were often very hard materials. The total flowrate in Well PSS was only 10 GPM, with a temperature of 350C. A sixth well, MI1, was drilled in land owned by Mary's Igloo. It was completed between 227 and 307 ft using 3" slotted liner. The flowrate was 120 GPM at 25oC. The successively lower flowing temperatures observed in the deeper completions were later explained by the data from temperature versus depth surveys. Interpretation of the temperature surveys will be discussed in detail in this article. REGIONAL GEOLOGY The thermal activity at Pilgrim Springs is located in the Pilgrim River Valley, a tectonic depression (graben) bounded by Precambrian amphibolites and Mesozoic plutons. In some areas it is overlain and overthrust by Paleozoic carbonates. Potassium -Argon dating done by Turner and Swanson (1981) indicated a cooling age of 84 m.y. suggesting igneous intrusive activity in mid -Cretaceous time. Gravity surveys conducted in the region by Kienle and Lockhart (1980) suggest that Pilgrim Springs is near the intersection of two possible fault zones which form the corner of a Figure 1. Drill Sites in the Pilgrim Springs Geothermal Reservoir downdropped basement block. Other faults in the area have been verified by seismic data and geologic mapping, and one or more of these faults could provide a deep conduit for the geothermal anomaly. The possible existance of a major rift system is of significance for the regional geothermal potential. A helium survey was conducted to teat this rift model, and nine out of eleven helium anomalies occur near the proposed rift segments and suggest abnormally high heat flow in these -26- areas. Furthermore, extensive basaltic fields north of Pilgrim Springs area have been interpreted as resulting from eruption in a zone of crustal weakness produced by the general north -south extension (Turner and Swanson, 1981). The amount of separation along this proposed rift is less than the widths of the Quaternary depressions which have probably been enlarged by normal faulting and marginal subsidence, along with rifting. Potassium -argon dating indicates that volcanism which l / �•r Table 1 WELL -COMPLETION SUMMARY, PILGRIM SPRINGS, ALASKA Well Drilling Drilled Remarks Date Depth PS -1 Fall 79 150 Cemented from 1979-1982. Perforated in 1982 1982 between 60-90 ft. PS -2 Fall'79 150 Cemented from 1979-1982. Perforated in 1982 between 70-100 ft. PS -3 Sum. 82 260 Static head 12 ft. above land surface. Artesian flow- 60 GPM Ps -4 Sum.'82 881 76 feet of drill stem stuck in bottom. Static Head -12 ft. Latest artesian flow - 250 GPM at 1140F. PS -5 Sum. 82 1001 Latest artesian flow -10 GPM at 98oF MI -1 Sum. 82 307 Static head - 11 ft, above land surface. Latest artesian flow --100 GPM at 780F very soft, sweet 400 Figure 2. Temperature Versus Depth Profiles of the Pilgrim Sprinpn Wells -27- was associated with .rifting began in the Upper Miocene (Turner and Swanson, 1981). Finally, a permafr9st boundary, enclosing a i to 1.5 km area has been identified. The thickness of the permafrost is over 350 ft. TEMPERATURE DATA INTERPRETATION Previous temperature data were limited to shallow depth, (4.5 meters) by Wescott and Turner (1981), soil Helium surveys by Turner and Forbes (1980), and geothermometry by Motyka at al. (1980) Motyka's estimate for the source water temperature using Na— x—Ca as the temperature indicator was 1500C t 100C. The data of Wescott and Turner indicated a regional geothermal anomaly and suggested that the well sites chosen for PS3. PS4 and PS5 were likely locations for the source fluid. The temperature data for this study were taken from temperature versus depth data recorded in the wells drilled in the Pilgrims Springs region. Two months after completion of the last well, temperature surveys were run in all six wells. The temperature versus depth profiles for all wells were identical in shape, as shown in f•— C� W 0 SURFACE I TEMPERATURE ISHALLOW RESERVOIR I 1 i WELL A I WELL B I I I I GEOTHERMAL GRADIENTS I I SOURCE I I I 1 1 TEMPERATURE ^150• C j SOURCE DEPTH 1 I -1300M TEMPERATURE Figure 3. Conceptual Representation of the Shallow and Deep Reservoirs at Pilgrim Springs. -28- Fig. 2. All showed a trend toward a maximum temperature at depths from 40 to 100 feet, followed by a sharp decrease in temperature with depth from 100 to 250 ft, followed by a constant geothermal gradient ranging from 1.8°C to 2.19C per 100 ft that was recorded down to 900 ft in the deepest well. The two wells, drilled deep enough to determine the geothermal gradient at depth (PS4 and PS5) show temperature trends that would intersect at about 1550C at a depth of 4875 ft. Hence, the geothermometer temperature estimate of 1500C is corroborated by the latest findings. In addition,_ and more importantly, the data suggest that all of the wells overlay the source reservoir at the 4875 ft depth. Figure 3 is a schematic representation of the temperature versus depth profile that would be expected at a well (A) near the source from depth of the hot water flowing in the shallow zone. Well B, further away from the source, shows a lower maximum temperature in the shallow zone which grades to a lower temperature at the base of the shallow temperature anomaly and results in a higher geothermal gradient to reach the source temperature at depth. The shallow temperature anomaly observedin all the wells suggests that somewhere in the immediate region, water from the hot source at depth is flowing upwards through a fissure or fault which extends vertically from a depth of about 50 feet to the 4875 foot depth identified as the source depth. Aerial variations in the maximum recorded temperature for the six wells are contoured in Figure 4. These data suggest that the hot source fluid enters the shallow formation at some point to the north of the six well sites. The fluid then flows radially and laterally away from the fissure source towards springs such as the Pilgrim Springs or perhaps in the surrounding stream beds, thus creating a steady state flow pattern for the shallow hot water zone. Locating the hot water source for the shallow zone is relatively unimportant, since the fluid at depth provides a high temperature source formation extending aerially at least as far as the total area drilled. The temperature data provide a most compelling V+. justification for deeper drilling in the area. SHALLOW FORMATION PROPERTIES Core samples were taken from the 87 to 95 foot depth interval in Well PS4. Three plugs were taken and analyzed for porosity and permeability. The uppermost sample was a large -grained, poorly cemented, primarily quartz sandstone with a porosity of 40% and air permeability in excess of 4 Darcys. This sample is believed to be representative of the shallow hot water zone. The middle sample was a fine grained, well cemented, quartz sandstone with a porosity of 28% and exceptionally low permeability. The deepest sample was a loose conglomerate with a porosity of 24x. The permeability of this sample could not be determined. The middle sample could represent the impermeable base for the shallow hot water zone. W f 0 100 200m ® 1982 WELLS 1 6 1979 WELLS / / / / 100 90 / PS -1 80 -100--��PS-2 MI -I PS -3 ®PS - 80 ® PS -5 70 N S PILGRIM ` SPRINGS 4-E Data from an interference I well test are shown in Table 2. Shut-in pressures we re Figure 4. Temperature Contours in the Shallow Reservoir. recorded in PS2 while PSI was flowing at a rate of 30-35 GPM. A log -log graph of the drawdown pressures in Well PS2 versus time was analyzed by type curve matching with the line source solution, as shown in Fig. 5. From the pressure match, the permeability is estimated at 4.5 Darcys. The time match gives a porosityomprey ability product of 5.4 R 10 Ilpsi , whick results in an estimate of 14 R 10 psi for the compressibility, if the porosity is assumed to be 40%. The results of the interference test agree with the core analysis data from Well PS4 and suggest that the shallow hot water zone hats similar properties throughout the region of the six wells. rnwri acrnoc The wells drilled in the region of the geothermal anomaly near Pilgrim Springs provide considerable insight into the general characteristics of the geotherml system. Previous work, including resistivity studies and geothermometry are corroborated by the temperature profiles observed in the six wells. The existence of a hot -29- Table 2 Pressure Interference Data Between Wells PSI and PS2 PSI (flowing), q - 30-35 GPM PS2 (wellhead pressures recorded) Time(min) P(psig) Time(min) si 0 3.5 20 1.6 8 2.9 22 1.5 12 2.4 24 1.3 14 2.3 27 1.1 16 2.1 29 1.0 17 2.0 30 0.9 18 1.9 31 0.8 Distance between wells - 269 ft Water viscosity - 1 cp Reservoir porosity - 40% Reservoir thickness - 60 ft IC .1 LO 1.0 ; lam; A a / a / 10t / / / / / 10 100 t (minutes) 10 I I.0 10 to/ rp Figure 5. Type -Curve Matching of the Pressure Interference Data Between Wells PSI and PS2. water zone of about 1500C and at a depth of around 5000 ft is now virtually certain. Acknowledgements The authors wish to thank the State of Alaska through its Department of Energy and Power Development for funding to do this study and to present our findings. We also wish to acknowledge the effects of Mr. Paul Chamberlin to keep an accurate record of all the tests run and the data taken during drilling and completion of the new wells. REFERENCES Forbes, R.B., Wescott, S.H., Turner, D.L., Kienle, J., Ostercamp, T., Hawkins, D.B.,Kline, J.T., Swanson, S., Reger, R.D. and Harrison, W.: "A Geological and Geophysical Assessaent of the Geothermal Potential of Pilgrim Springs, Alaska', Geophysical Institute, UAF and Alaska D.G.G.S. Preliminary Rept., 39 pp., 1979. Kienle, J. and Lockhart. A. in Turner, D.L. and Forbes, R.B. (Ede), 1980. Kline, J.T.: "Surficial Geology of•the Lower Pilgrim Valley and Vicinity, Western Seward Peninsula Alaska", Alaska D.G.G.S., AOF-1 0, 1981. Motyka, R., Moorman, M. and Forbes, R.B. in Turner, D.L. and Forbes, R.B. (Ede), 1980. -30- Turner, D.L. and Forbes, R.B. (Ede): "A Geolazical and Geophysical Study of the Geothermal Energy Potential of Pilgrim Springs, Alaska", Geophysical Institute, UAF, Report DAG R-271, 166 pp., 1980. Turner, D.L. and Swanson, S.E. in Wescott, E.M. and Turner, D.L. (Ede), 1981. Turner, D.L. (and 13 other authors): "Summary of Results of a Geological and Geophysical Investigation of the Geothermal Energy Potential of the Pilgrim Springs KGRA, Alaska," Geothermal Resources Council, Trans. v.4, pp. 93-95, 1980. Wescott, E.K. and Turner, D.L. (Ede): "Geothermal Reconnaissance Survey of the Central Seward Peninsula Alaska", Geophysical Institute, UAF, Report UAG. R-284, 123 pp., 1981. Initial estimated total funding for this award is listed at $10,000,000 in FY'2009; with additional anticipated funds of $25,000,000 in FY'2010 and FY'2011, subject to change and Congressional appropriations. Domestic applicants are eligible to apply including institutions of higher education, non- profit entities (as described in section 501(c)(4) of the Internal Revenue Code of 1986), for-profit private entities, State/Local Governments, and Indian tribes. DOE and non -DOE Federally Funded Research and Development Centers (FFRDCs), National Laboratories, and federal agencies will be allowed only as subrecipients to any of the previously mentioned entities. Foreign participants will be allowed as subrecipients only to a domestic applicant. DOE is seeking advanced technology to address key aspects of engineered reservoir creation, management, and utilization identified in the GTP Multi -Year Research, Development, and Demonstration (MYRDD) plan. Projects are sought to develop innovative technology for cost-effective creation, management, and utilization of Enhanced Geothermal Systems (EGS) in reservoir environments. Projects will be evaluated based on their ability to advance technology toward ultimate, specific target specifications to drive market development of EGS. Teaming between academia, industry, and National Laboratories/Federally Funded Research and Development Centers (FFRDCs) is encouraged. For a complete description and important information regarding this FOA, visit littps://e- center.doe.�4ov/i ips/faopor.nsti 8373d2tc6d83b66685256452007963f5/026b964d73bOb8b88525756IU05dec 2a?0penDocument. For a PDF of the full FOA, visit httys://e- center.doe.eov/iips/faopor.nst%UNID/026B964D73BOB8B88525756FO05DI-:('2A/$file/Announcement DE -PS36-096099018.pdf. Employment: Geothermal Project Supervisor, Central American Bank for Economic Integration, Costa Rica The Central American Bank for Economic Integration (Banco Centroamericano de Integracion Economica, BCIE) is looking for an expert in geothermal energy to supervise a project in Costa Rica. It is called Las Pailas and it is financed through BCIE. Contact: Ana Karina Rubi de Reyes, Oficial de Consultorias, BCIE-Tegucigalpa, Honduras Tel. +504-240-2243, Ext. 5214 Fax. +504-240-2228 Visit the BCIE Web site, www.bcie.orc - www.cabei.or Frontier Development Opportunity, Pilgrim Hot Springs, AK (March 25)'-_00g Pilgrim Hot Springs, Alaska: A Frontier Development Opportunity Introduction - Pilgrim Hot Springs (Pilgrim) is a verdant 320 acre enclave of fee land owned by Catholic Bishop of Northern Alaska (CBNA) and located in western Alaska, about 46 miles (75 km) north of Nome. CBNA, which is in Chapter 11 reorganization proceedings under supervision of the U.S. Bankruptcy Court, will make Pilgrim available to a financially and technically qualified entity to explore, characterize, and develop the geothermal resources underlying the property. Geothermal Exploration — In 1979 and 1982, State entities mapped the surface `'. and bedrock, and conducted helium, mercury, gravity, seismic refraction, and electrical resistivity surveys, and undertook geochemical sampling and analyses. They also drilled and logged 8 test wells. The studies found: 10 • 1979 surface thermal spring discharge was about 67 gpm of alkali -chloride water at a temperature of about 1787 (8 VC). • Preliminary Na -K -Ca geothermometry suggests that a deep underlying geothermal reservoir may be as hot as 302°F (150°C) • Springs likely located near intersection of two orthogonal fault zones that form a corner of a graben. • Gravity studies suggest that bedrock is 1,500 feet (458 m) below property. • Resistivity studies suggest Pilgrim Spring reservoir is pancake shaped and about 160 ft. (50 m) thick over a — 0.58 sq. mi. (1.5 sq. km.) thawed area. • Artesian aquifers encountered in a 66-100 ft. (20-30m.) depth interval with flow rates estimated at 200 and 300-400 gpm respectively, at a temperature of 194T (90°C). • In 1982, 6 new wells produced artesian flows of 30 to 250 gpm with about 6 ft. (1.8 m.) of head. Maximum temperature was 194T (90°C). • The thermal gradient in the two deepest wells was —4.0°F per 100 ft. suggesting that 302T (150°C) might be reached at depth of about 4,800 feet (1,463 m). Studies did not determine location and nature of upflow zone or location, depth, and nature of possible "deep" hot reservoir. Market Comments — Nome currently requires 5 MW power at a cost of approximately $0.35 per kwh for residential customers. Using a modern (UTC -type) binary power cycle generation, Pilgrim could be a viable power supplier. Power transmission to Nome must be considered in determining economic viability. Development Rights — CBNA will consider plans from potential developers that optimize use of the geothermal resource at Pilgrim Hot Springs and maximize revenue to CBNA. Contact Tom Buzek, 907- 374-9528 (tom@cbna.org) by March 25, 2009. DOE Multi -Year Research, Development, and Demonstration Plan Published The Department of Energy has published its new multi-year plan for research. The Geothermal Technologies Program (GTP) Multi -Year Research, Development and Demonstration (MYRDD) Plan describes the planned research, development and demonstration (RD&D) activities for geothermal technologies through 2015, with additional information on potential program activities through 2025. This is the first publishing of this document in draft form and represents months of planning, including peer reviews and comprehensive internal analysis and evaluation. On this page you will find links to the full document as well as to a comments form. The MYRDD reflects GTP's focus on advancing enhanced geothermal systems (EGS) technologies and its commitment, in partnership with geothermal energy developers, to demonstrate by 2015 that EGS is technically feasible. The MYRDD Plan describes in detail GTP's activities over the next seven years to achieve this goal and it projects longer-term RD&D activities based upon several EGS development scenarios. The MYRDD Plan and a form for comments are available at http://wwwl.eere.ener!zv.gov/geotherinal/plans.html. California Division of Oil, Gas, & Geothermal Resources Offices Furloughed Effective February 6, California Division of Oil, Gas, & Geothermal Resources offices will be closed on the first and third Friday of each month. Please call 916-322-1110 (Northern California including Mono County) or 714-816-6847 (Southern California) for on -demand field tests or emergencies. They apologize for any inconvenience this may cause. 11 b3/24/2007 17:47 9706683074 GEOTHERMALMAHAGDIETC PAGE 0'% SUMMARY DESCRIPTIONS OF GEOTHERMAL CONDITIONS AT KWINIUK AND PILGRIM HOT SPRINGS AND BENEATH KOTZEBUE, ALASKA NOTES FROM A 24-28 OCTOBER 2002 RECONNAISANCE TRIP TO THE REGION By Gerald W. Huttrer Geothermal Management Company, Inc. P.O. Box 2425, Frisco, CO 80443 For National Renewable Energy Laboratory; Contract ECE-2-3207841 October 31, 2002 Introduction Between the dates of October 24 and 28, 2002, Gerald Huttrer, President of Geothermal Management Company, Inc. (GMC) traveled from Colorado to the Nome, Elim and Kotzebue regions in western Alaska. Mr. Huttrer was accompanied by Mr. Dennis Meiners of A1DEAJAEA in Nome and Elim part of the trip but he traveled alone to Kotzebue. The purpose of the trip was to assess the potential for geothermal development at Quiniuk Hot Springs near Elim, at Pilgrim Hot Springs north of Nome, and beneath the town of Kotzebue. Special thanks are due to Luther Nagaruk, Elim Town Clerk, for arranging guide service and FWD vehicles with which to get to Kwiniuk, John Handeland of Nome for driving us to Pilgrim Springs, to Louis Green, the Pilgrim Springs caretaker, for guiding us around the geothermal wells at Pilgrim, and to Brad Reeve, Director of Kotzebue Electric Association, who totally facilitated the investigations at Kotzebue. Presented below are summary descriptions of the geothermal status at each of the areas examined together with conclusions and recommendations regarding their development potential. Elim and Kwinimk Hot Springs Elim is located 110 miles east of Nome on the shore of Norton Sound, an arm of the Bering Sea. Flight time from Nome via air taxi is about 1 hour; there are no roads into Elim. The population of Elim is about 309, virtually all natives. Their electricity is provided by a locally owned utility that runs three diesels capable of generating 585 kW. 03/24/2007 17:47 9706683074 GEnTHERMAL1,W1AGEMETC PAGE 03 2 Luther Nagaruk, the village clerk, is interested in alternative energy and has personally investigated the potential, for use in Elim, of wind, geothermal and hydo resources. The only hot spring reasonably close to Elim is Kwiniuk. It is situated about 0.25 miles north of the Kwir iuk River, about 8 air -miles northwest of the village but about 15 miles (1.5 hours) via a moderately used, rough four-wheel-drive track. The thermal springs flow from colluvium mantling intercalated meta -sedimentary rocks and quartz monzonite of the Derby pluton. The measured water temperature is 37°C (99°F), the pH is ---6.5 and the flow rate was estimated to be 4-6 (TPM (64-96 L/m). There is some gas ebullition, probably CO2, and a faint sulfur smell. The water was very clear with green algae lining the bottom of a shallow pool. There was no sign of carbonate scaling in the pool or on plastic pipes emanating from the pool. The latter were, at one time, installed to conduct hot waters to a small cabin near the spring. Unfortunately, in mid -winter, when temperatures reach —40°C (40T), the waters cooled too much to be of use for heating despite flowing through a 2 inch plastic pipe covered by 4 inches of foam all enclosed within a corrugated metal pipe. There is no evidence at the site suggesting that this resource will be much hotter at depth than it is at the surface. The Si02 content is only 34 mg/1 and there is no alteration or epithermal mineralization near the spring. It is likely that this spring issues from fractures in the Derby pluton near its contact with metamorphic bed rock and that the heat is derived primarily from circulation of ground waters to significant depths along these fractures. Unfortunately, this spring is too cool, too small and too remote to be of any use to the residents of Elim except for balneology. Some exploration could be conducted to seek more fracture systems, but $250,000 could easily be spent on geoscientific studies without finding more evidence of a hotter resource. Drilling, should it be considered, would cost a great deal as a helicopter, at $650/hr., would be required to get a rig in place. Accordingly, further consideration of geothermal development at Kwiniuk springs is not recommended. Pilgrim Springs Pilgrim Hot Springs is located 53 miles north-northeast of Nome. It can be reached via the well-maintained Taylor Road, then by branching off onto a moderately well graded, second class road about 7 miles long that leads west and north to the vicinity of the upper Pilgrim River. Pilgrim Springs have been utilized since the early 1900's by local natives and by the Catholic Church. An orphanage was constructed, as were vegetable gardens and spa facilities. Currently, there remain the church building, the orphanage bunkhouse, several small cabins in various states of disrepair and one elevated hot tub. Louis Green, of Nome is the caretaker who grew up near the springs and who now periodically visits I 03/24/2007 17:47 9766683974 GEOTHERMALMANAGEMETC PAGE 04 the site and stays for several days at a time in his family's old house. The current owner of the property lease (from the church), on behalf of Pilgrim Springs Corporation, Inc., is Mr. Arthur Neuman, an Alaskan attorney now living in Washington, DC. At the site of the original springs, six wells were drilled in search of geothermal resources. The work was done in 1979 and in 1982 using Alaska State funds. The wells penetrated a thermal aquifer containing waters with temperatures that range from 87°C (188°F) to 46°C (110°F) to 14°C (57°F) in wells PS #1, 44 and 43 respectively; the pHs measured in these wells were 6.6, 6.0, and 5.5 respectively and their respective flow rates were estimated at 12, 20 and 30 GPM (192, 320 and 48 L/m). Wells designated PS #2, MS #5 and MI —1 (Mary's Igloo — 1) were capped. The wellheads were all severely rusted and showed signs of acid degradation. Calcite scale was fairly thick on the wellheads and on attached pipes. The hot tub was floored by green algae and the stream of 46°C (114°F) water piped into it was under an artesian head of 7 feet. It appears as if Pilgrim Springs are located along a major east striking regional structure that controls, from northwest to southeast, the northern shore of Grantly Harbor, the Imuruk Basin, the course of the upper Pilgrim River, the pass between the Bendeleben and Kigluaik mountains, the course of the Niukluk River and the shape of the northeastern shore of Golovin Bay. It is likely that this structure comprises numerous sub -parallel, well developed faults and that at least one of them is a source for the Pilgrim Springs thermal waters. Examination of the geomorphology of the region suggests that there is also a north-northeast trending structural grain. It seem quite likely therefore, that Pilgrim Springs may rise at or near an intersection of these orthogonal fracture systems. The results of exploration drilling revealed that a highly permeable, 50 foot thick, subhorizontal aquifer, about 70 to 120 feet below the ground surface, underlies the thermal area and that below 120 feet, water temperatures cool rapidly. What is not precisely known as a result of the exploration work conducted to date, is the location of the upflow zone feeding the horizontal aquifer. In light of the artesian conditions, this feeder is postulated be located to the west or north of the springs. Geochemical analyses of produced waters suggest that equilibrium temperatures may be at or slightly above 150°C (3000F). This temperature would be high enough to support power generation using binary systems and if adequate permeability were to be confirmed, a 5-10 MWe project could be considered. Because of the distance to Nome, the only logical market for geothermally generated power, this size project might be a minimum to permit development of an economically viable scheme. Pilgrim Hot Springs already has excellent potential for direct use of the geothermal resource. Greenhousing, space heating, timber drying, and/or aquaculture are among 03/24/2007 17:47 9706683074 GEOTHERMALMANAGEMETC PAGE 05 4 those that appear to be eminently feasible and which should be promoted. Creation of a spa like Chena Hot Springs may also be possible and might be an attraction to Nome residents and cruise ship tourists. This prospect is still attractive despite discovery of the temperature reversal at 120 feet. Fracture location would be the next exploration objective, so that seismic, self -potential and possibly gravity, soil radium or soil mercury surveys might be employed. Approximately $250,000 should be budgeted with anticipation that more drilling would then be required to confirm any interesting geophysical or geochemicai findings. The expenditure of funds of this order of magnitude needed to identify the thermal upflow zone is strongly recommended. otzebue The city of Kotzebue has a population of about 4,000, has a first class airport, and is a major trading center for northwestern Alaska. An 80,000 square foot hospital, a college, several lower level schools, municipal buildings and native corporation buildings all occupy the west central part of town. The climate is severe, despite Kotzebue's location on Kotzebue Sound (an arm of the Bering Sea) with more than 16,000 heating degree days and raid -winter wind chill factors that can approach —130°F ! Kotzebue has been built on the western tip of the Baldwin Peninsula. It is separated from the mainland by Hotham Inlet to the north and by the main part of Kotzebue Sound to the south. The peninsula is underlain by about 2,000 feet of Tertiary age sediments, predominantly clays, silts, sands, and gravels deposited by the Noatak and the Kobuk Rivers or their ancestors. The Kotzebue area is above a basement high in the western part of the Sewalik Basin, near where it joins the Hope Basin. Basement rocks include metamorphic, carbonate and volcanic units that outcrop in highlands located to the south of Kotzebue Sound. In two deep (6,000+ and 8,000+ feet) petroleum exploration wells drilled by Chevron to the northwest and southeast of Kotzebue, unequilibrated bottom hole temperatures in excess of 72°C (1607) were recorded together with thermal gradients of 1.7 to 2.5°F/100 feet. If these gradients are used to estimate water temperatures at the contact of the Tertiary sediments with basement rocks about 2,000 feet beneath Kotzebue, they would be from 42°C (107°F) to 71°C (160°F), slightly cool, but adequate for use in a district heating system. It should be noted that equilibrated temperatures in the referenced wells would probably have been about IOT (187) higher than those listed above. There may also be evidence for the existence of waters at this temperature as shallow as 300 feet beneath Kotzebue. Mr. Frank Stein, a local resident claims to know of a well that penetrated such a resource in the 1950-1952 era. This lead is being pursued by contacting several other professional persons and jurisdictional entities believed to be familiar with 03/24/2007 17:47 9706683074 GEOTHERMALMANAGEMETC PAGE 06 events in Kotzebue in those years. Among those to be interviewed for confirmation of this information are the Public Health Service in Anchorage, the Bureau of Indian Affairs in Juneau and four individuals identified by Mr. Jay Farmwald of Anchorage. If 1,500 GPM of 82°C (180°F) water could be produced from shallow wells drilled in the vicinity of the building complex previously mentioned, there is a strong possibility that a technically and economically viable district heating system could be built. Studies utilizing the information from the Chevron wells were conducted in 1979 and 1980 and recommendations were made to take the studies further. The reasons why this project was not pursued will be identified. At this time it is highly recommended that GeoPowering the West resume the studies that were abandoned in the earl 1980s with creation of a Kotzebue geothermal district heating system as the ultimate objective. Ak1002trprop.doc �-1of -c�- s SEAN PARNELL, GOVERNOR ILL I j J AY,A�T�+�t ►�tS� AT OIL AND �F7[AS, �5�+ 333 W. 7th AVENUE, SUITE 100 CONSERVATION C,®1�Bi�i SS101 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907)276-7542 September 30, 2009 CERTIFIED MAIL RETURN RECEIPT REQUESTED 7005 1160 0001 5753 9158 Steve Hagenson SCANO W, AEA Executive Director 813 W. Northern Lights Blvd. Anchorage, AK 99503 Re: Failure to Respond to Request for Information (20 AAC 25.300) Status of Oil and Gas Wells Dear Mr. Hagenson: Under 20 AAC 25.300 you are required to provide information requested by the Alaska Oil and Gas Conservation Commission (Commission). On January 28, 2009 the Commission requested verification of suspended, long-term shut-in and observation wells. To date you have provided no response to the Commission. This correspondence constitutes the Commission's final request for you to verify the wells as suspended, long-term shut-in or observation wells. If the requested information has not been received by the Commission by the close of business on December 1, 2009, you will be considered in violation of 20 AAC 25.300 and the Commission will take such action as it deems appropriate including, but not limited to, initiation of a public hearing, initiation of an enforcement action, and imposition of penalties as authorized under AS 31.05.150. If you have any questions regarding this request, please contact Winton Aubert at 907.793.1231 or winton.auberta,alaska.gov. Sincerely, (J Cathy P. oerster Commissioner Attachment cc: Tab Ballantine Department of Law ■ Complete items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired. * Print your name and address on the reverse so that we can return the card to you. * Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: de 2. Article Number ('Transfer from service Is& PS Form 3811, February 2004 A. X ,w�J / gent r L �1 /6 Addressee B Received by (Printed Name C. Dat of Delivery , ( d D. Is delivery address different from item 1? ❑ Yes If YES, enter delivery address below: __O -,No, s.s ice type ertified Mail ❑ Express Mail ❑ Registered �eturn Receipt for Merchandise ❑ Insured Mail ❑ C.O.D. 4. Restricted Delivery? (Extra Fee) ❑ Yes 7005 1160 0001 5753 9158 Domestic Return Receipt CID , If) r-9 a• • • • lT For delivery information visit our websim mLr,;FFI t t�- U-) Postage $ r=1 Certified Fee E3 C3 Return Receipt Fee r-3 (Endorsement Required) C3 Restricted Delivery Fee rp (Endorsement Required) r -q V S 3334j 74- */ o ;,) Posbratk Here G) r-9 Total Postage & FeesLn EM $ , Sent -To so-eart No; lr1sSQ or PO Box No. Gty, State, ZIP+4 ------ - r r 102595-02-M-1540 0 Operator Suspend ee and 7r?. DIV ENERGY & POWER DEV ST OF AK ,Field Currpnt Date of PermitAPI Number Well Name Status Status Surface Location.................................................... �eA.se(c;................................... 179-078-0 50-031-20001-00-00 PILGRIM SPRING 1 179-085-0 50-031-20002-00-00 PILGRIM SPRING 2 Wednesday, January 14, 2069 SUSP 11/25/1979 45 FNL 956 FEL Sec 36 T 4 S R 31 W KM SUSP 11/20/1979 120 FSL 2745 FWL Sec 3 T 5 S R 31 SIU KM ' 1-1�-CSS AIASKA I SARAH PALIN, GOVERNOR ALAS OIL AND GALS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMUSSION ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 January 28, 2009 FAX (907) 276-7542 CERTIFIED MAIL RETURN RECEIPT REQUESTED 7005 1820 0001 2499 6057 Steve Hagenson AEA Executive Director 813 W. Northern Lights SWNEU DC T 1 3 2014 Anchorage AK 99503 Re: Notice of Revised Suspended Wells Regulations and Request for Verification of Suspended and Shut -In Well Information Dear Mr. Hagenson: Enclosed are the Alaska Oil and Gas Conservation Commission's revised regulations regarding suspended wells (i.e., 20 AAC 25.110). Also enclosed is a list of suspended and long-term shut-in wells operated by the Alaska Energy Authority or your predecessor, the Division of Energy and Power Development. For each list, please verify the information for each well and provide any corrections by April 1, 2009. Location inspections required under 20 AAC 25.110 should be coordinated with Jim Regg at 907-793-1236 or jim.regg@alaska.gov. If you have any questions regarding this notice, please contact Tom Maunder at 907-793- 1250 or tom.maunder@alaska.gov. Sincerely, &IV /�5� Cathy 7 P. Foerster Commissioner Enclosures Postal CERTIFIED MAIL,,., RECEIPT Ln O(Domestic Mail Only; No Insurance �n Coverage Provided) Er 1ALw USE ru Postage $ $0.59 gPS P C3 Certified Fee s2.70 C3 Return Receipt Fee (/ 0 N (Endorsement Required)$2.20 O tJ G � Restricted Delivery FeeEG ` -n (Endorsement Required) 50.00 j Ln total P°sem r Steve HPAnson 01l g C3 AEA Executive Director 0 813 W. Northern Lights or PO Box No. City s6ie,-ziF Anchorage AK 99503 r ■ Complete items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired. Print your name and address on the reverse so that we can return the card to you. V- Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to Steve Hagenson AEA Executive Director 813 W. Northern Lights Anchorage AK 99503 A. ❑ Addressee B. eceived by (P rint ed Naame) C. Date of Delivery �ffinok D. Is delivery address different from item 1? ❑ Yes If YES, enter deliverytris below: ❑ No h z J� 3 0 3, Vvice Type 'f3-6ertified Mail ❑ Express Mail ET Registered Return Receipt for Merchandise ❑ Insured Mail ❑ C.O.D. 4. Restricted Delivery? (Extra Fee) ❑ Yes 2. Article Number (Transfer from service lab 7005 1820 0001 2499 6 0 5 7 PS Form 3811, February 2004V Domestic Return Receipt 102595-02-M-1540 Operator Suspended and Shut In Wells DIV ENERGY & POWER DEV ST OF AK Field Current Date of Permit API Number Well Name Status Status Surface Location .................................................... Lease(s)................................... 179-078-0 50-031-20001-00-00 PILGRIM SPRING 1 179-085-0 50-031-20002-00-00 PILGRIM SPRING 2 Wednesday, January 14, 2009 SUSP 11/25/1979 45 FNL 956 FEL Sec 36 T 4 S R 31 W KM SUSP 11/20/1979 120 FSL 2745 FWL Sec 3 T 5 S R 31 VV KM i aii vaiu~~ liiucc~c ~ccn~ w tca~c tvutuc arcs ll11JJ1Utt: Hr L11QJxd (auILC;Um • • ~nchoiage ~?a~.y News !: adn.com ,*' Web search pov.~ered by `: _1<: _ S~ARCFi Winter in Alaska i}hrltos aid vieeo from ' Aias~a's brats( but ~-- t~eeutful seaso:-~. reader pits ;stories I'!'` °: e'~~~' 0 i'i(~~ ~x.si1 -~e.~..t~ua.., _..t .. ~ ., Tt~: ~, ~ . .. - -' Home Aaska iveavsreader~ ' ;'bitu_.ries ; Ar. hives TV Listr Fairbanks Diocese seeks to lease Nome area mission By MARY BETH SMETZER /Fairbanks Daily News-Miner Published: )anuary 24th, 2009 11:12 PM Last Modified: January 24th, 2009 11:12 PM FAIRBANKS, Alaska -From the age of 3 to until he was 12 years old, Robert E. Lee lived, worked and was educated at Our Lady of Lourdes Mission at Pilgrim Hot Springs, an isolated oasis located in the midst of treeless tundra, 60 miles north of Nome. ~-~~5; ~~ "That's my favorite spot on earth," st.:rY_ t~'l_ said Lee, 80, who now resides in Delta Junction. Comments (t3} Recommend {1) ~~ Lee and others who lived at the mission and were cared for by Ursuline E-mail a friend nuns and Jesuit priests and brothers, are carefully watching what the Print share on Facebook future holds for their childhood home. Digg this seed Newsvine ! The site, all 320 acres of it, is part of the Chapter it bankruptcy send link via AIM ! reorganization of the Fairbanks Catholic Diocese. ', {~ MY ~. Today, the hot springs property is being brokered as part of the ', la Yahoo! Buzz ', diocese's bankruptcy reorganization. a l A A In March, the diocese filed for bankruptcy to settle multiple child sexual abuse lawsuits. With abuse claimants now nearing the 300 mark, and a long list of creditors, the diocese is obligated to file a plan of reorganization that will repay its claimants and creditors on a fair and equitable basis. The diocese doesn't plan to sell the property, said George Bowder, diocesan director of finance. "We have been advised by counsel that we will be going through lease sale option." The diocese recently regained control of the hot springs. In early December, the bankruptcy court rescinded a 99-year lease made in 1969 with Pilgrim Hot Springs Ltd., represented by Arthur Neumann of C-C~ C ~~ rage i or ~ ~ w. for-ec [7a~riaght : 9:7..L~ A ~ 1~.C1-~~5~ http://www.adn.com/news/alaska/ap_alaska/story/666890.htm1 1 /30/2009 i uuvu,u» ,~,~~w~, ~~.~,n~ w i~.a~c 1VVlilc alca 1111JJ1V11. tir L-11QJ1iQ. I Q.U11.l:lIll1 • • Washington D.C. According to Bowder, the diocese had negotiated with the Pilgrim Hot Springs Ltd. several times previously in an effort to regain control of the land, claiming the group hadn't lived up to the lease agreement which included developing the property's geothermal, agricultural and tourism potentials, and historical preservation. Neuman didn't contest the lease demise in court, but has since filed a substantial claim as a creditor against the diocese. Requests for lease proposals on how to develop the property will kick off in Nome with a public meeting on Feb. 2, time and place to be announced, said Tom Buzek, diocese finance administrator. rage ~ or ~+ 3 CTprah's Diet Secrets: Revealed Lose 2 Ibs of body fat per week with this 1 simple rule. Saras~,Vegi~i._oss. co~~t ~ Flat stoma£h Ruie: Obey I Cut Down 2 Ibs of Stomach Fat Per Week by Obeying this 1 Old Rule /~ubreysDiet3lag.coni J Ruie of a Flat Stomach Cut down 25 Ibs of stomach fat in - 1 month by obeying this 1 rule %raDaPI~.~~ o;.,,. Proposal packets will be available after that date at the diocese's office as well. Proposals will be accepted through April 29. Originally, Pilgrim Hot Springs was known as Kruzgamepa Hot Springs. It was homesteaded by Henry Beckus, at the turn of the 20th century at the time of the gold rush on the Seward Peninsula, and catered to miners. Back then, it featured a a roadhouse, saloon, dance hall and spa baths. The roadhouse and saloon burned down in 1908, and in 1917, the James Halpin family bought it and deeded it to the Catholic church. Shortly afterward, it was developed into an orphanage and boarding school by a Jesuit missionary, the Rev. Bellarmine Lafortune, to care for the many children left without parents after the 1918 Influenza Pandemic. The mission closed in the early 1940s. "It's a beautiful, beautiful spot," said Lee, who easily remembers the orphanage director's name, Mother Superior Mary Louise, during his time there, as well "the little Italian nun" who ruled the kitchen, Sister Thecla, and the names of many priests and brothers who worked there. 1 Lee also recalls the daily routines of cutting wood with a Swede saw, bathing in the big bathhouse every Saturday, transplanting plants from the hot springs-heated greenhouse to the fields each summer and harvesting heaps of vegetables in the fall. For Lee and his three siblings, Marion, Nina and Conrad, the mission was home for many years after their mother Mary Willook Lee died after giving birth to her fourth child. Their father, Pete Lee, a miner at Candle, paid the mission $700 a year for their care, Lee said. The U.S. Army housed troops at the site during the Second World War and built an airstrip. During the 1950s and 1960s, various agricultural projects were attempted. Some weathered buildings remain including the mission school, dormitory, church and an elevated pool. The property was listed on the National Register of Historic Places in 1977, and features a small forest of birch and cottonwood trees in an otherwise treeless landscape. http://www.adn.com/news/alaska/ap_alaska/story/666890.htrrtl 1 /30/2009 Ptt11Ua111tJ 1l1VGGJG JCC1~J LU 1CQSC 1VUillC iL1GQ 1111JJ1VI1. Hr H1aJKQ I dUll.GUtll rage ~ or+F • • 3 Today, access is by charter air service from Nome or via an 8-mile gravel road that joins the Nome-Taylor Road at Cottonwood. Diocesan administrators foresee developing the property in phases and are working together with the University of Alaska Fairbanks on a grant to explore the source of the hot springs and long- term geothermal potential. According to Buzek, if the university is awarded the grant, the research will be done this summer. "So much hinges on where the geothermal zone is located," Buzek said. Another consideration in developing the property, Buzek noted, is being sensitive to the survivors and the descendants of the people who lived and worked the property when it was an orphanage. "We are looking for whatever commercial development that will have minimum impact," Buzek said. Because of high energy costs, the geothermal potential of the property is paramount and would be especially beneficial to surrounding communities on the Seward Peninsula. But it is not the only area of potential. Tourism, agriculture and historical preservation are some others. "This is going to be an exciting ride," said Bowder, "Not only for what it can do for the diocese in the long term, but what it can do for and enhance the quality of life for the people of the Seward Peninsula. "We see this as a challenge, to seek opportunity for people have been harmed in the past and to seek ways to give them, as well as others, a better life. What a blessing. What a blessing." E Proxy cannot apply cont~ f This could be caused by a miscon~guration, a content encc ~ Please copy technical details from bottom Of p~,g2 into a web#.,~r raq~.~t`ast f~rrra a ~ UPDATE ON COMMENTS POLICY: Read before posting `°,, Edit your profile and avatar » 3 sub~~i':tir:.g y:;ur can€€ner~t. °~cu areagreeeig ~o adrt.com`s user agreement. ~ You must be logged in to leave a comment. Login ~ Register powercensr ~~1.~._t-~ http://www.adn.com/news/alaska/ap_alaska/story/666890.htm1 1 /30/2009 • Arehrve photo b~ Ttirer Rhodes SCI:\ If° tiPOT--'The tuh ut Pitgcirn Hut Sprini;s steams :tg:~imt the hackdr,yp of the }+iglu• aik Aluuntaim. 'Che chutth cecentl} succeeded in termiruiting a le:t,e cm the prupert}•. Pilgrim Hot Springs back in church's hand By Diana Haecker The Catholic Bishop of Northern Alaska has regained control over a piece property it has owned since 1917 after a judge freed Pilgrim Hot Springs of a 99-year lease held by Pilgrim Hot Springs Ltd. CBNA had tried to rescind the lease for a long time as church administrators felt that Pilgrim Hot Springs Ltd. hasn't kept its end of a lease deal to develop the property's geothermal, agricultural or tourism potential. In February, CBNA filed for Chapter 11 of the federal bankruptcy code when faced with a multitude of victims who claimed sexual abuse at the hands of priests and church workers in a time span between 1960s and 1980s. As part of the reorganization, CBNA filed a motion to legally rescind and default the hot springs property and get its rights to develop back from Pilgrim Hot Springs Ltd. According to Tom Buzek, CBNA's business administrator, Pilgrim Hot Springs Ltd. also filed a creditor's claim. In court, the company did not insist on keeping the lease, Buzek said. The court then officially and legally rescinded the lease on Dec. 5. "This is an exciting development," Buzek said. "We now have an opportunity to develop this property to its full potential and possibly serve the long-term energy needs of communities in the area LO 'P,~~~ rev rc~( ~F • b' C: ko iyome A,c 7HE NC.~ME NUGGET ;,1 -~ t ~ . k, ~, ~'~ THURSDAY, DECEMBER 25, 2 g00 ~ ~•~ ~ ...~ I~ 'x •1' • t . - f • 1 may' •~ } r 3~ { '' ~ ~i~'~ i~~r t 7 y ~r 1 t' _r 1 t f its ~ r ~~ r,' =-~ ~ ~ , !, a/~ ' ~ ,}• s. , f, f t3. by e[*_ .. _ J _ .. . r i x.r r t. ,, y~ •: 1 1 e f r ` Y~ri(/l I~STQRtC'~•,ilt:uty of fire buildings ttR acct t'rnnt Pilgrim IIot Springv' days tts un ot•plrunu~e rear girt un t(re /r~~les crty. Some havt•1'allca inlu p st:,te u; disrepalc., ;tanattcr of coutentlun be{wcrn the. church and ffs furmrr tenant, P p a .~a ccntN,nrecllr,~m pa•~,- [ Under the Icasc agrccntcnt• Pi grist 3lnt Springs (.td. w;lc suppose. to devzIup the hot spring,:' gc•c,th~ ma}• a~rculhtral and tuuriym pour, tial. Thc. ,_ruup, howc,+•cr, did no ac•hicvc notch witkt the prup~.t+.y. Arc,rdin" to Arthur I?. Nettnrtn a ~Yasldnt tort, D.C., uttarnt;}' and t!r Secretary=!'nasurer and llirectur o; Pil~rirn 1-tot Springs Ltd., a tuunbcr of factory made it imposit±Ic for hi; rumpant• to clwclop the site. ••Thr reason Pilgrim Springs Ltd. did nut contest tl;c lease brfurc ;h~ (,;rnt-_ ntplc}~ court wa, hc;caust. fire (ease Duct the years and since I4ti. con- tained a self-defeating Ptut•isirnt tvitich nrtctc it intpossiblc fnr L'ilgt•in; SI'rings to tai.,. dcvclcrptTtcnt funds tv pro.•t:ed Leith tonvcrtin~> the teot_ henna! restntrcr io a prnfitabl: vcr,- {nrc for both !hc church as the landlord and L't'lgrint Sprtnr•s Ltd. as thi' tenant." Ncuma:t tvmtc' in a faz 1'ilr,rint Springs Ltd. contends that the peecetttnge the church was to _nain o!•Fany ccothennal urotltcr nat- urai resoura: dwc(upmcn{ al the pr{,pFf(y ~V.1C (r,rl Irjch• ilT.t.lli;` I! rt,~ C(,ti(i}' tU dQlYlpp pT0lNCiS OC find !n- I- +'c:;tars Iv du sn. d «'ttilc it did n+,; contrs! the clinti- r- n:!tivn of its lcasrr hrfur~ the court, - ('iigrirti Springs Ltd. is tint uu(uf the '• !>iC(nrN, yKt. !t has l~ilyd :t tonf o!• t:l:tim against the clturr•h :t. 4in foe nearly $2.9 miilicxt Cur wh:tr it c•on- ~icl,~rs a brzaclt of th. (case -crnt.. 't'h^ requested dantaj~es cover rental p:,ytncnls ntadc since Nr,r. I, 195cr, capita; intpro:•cntznts. and mpair and tnauttcnancc of huitciin~s and ro:utds at the site. Thy majaritu n:'• the ctaim, $2 rnillian. is attributed to u"ec gcottrcrma( tvcl(s drilE in :; i•~int venture hrtwt:~n Pilgrim Spr;n;rs td, anc! the stole from I9r4 to i9ti3, "Pilgrim [Springs L.trl,~ hcticvi•. chc church shiutic! not, tin(ICr !i1C Cri•- cuntstunccs. reap fur harvest o, l'il- gritn's t:ffurts in developing the sitr~ to a potenti;tl grufh4nnai resnur~t, especially tubes Pilgrim tvas on fire verge o: dcve.lopine the geothermal resanrcc; even though its dcyelop- mcu! svnuld cost almost $!00 mil- lion:'Ncuntan tvrot!:. 'I`hc ecolhernud +utcnti,tl ( the center of athntiun as high ot>tr~lt, S + costa f~rccd ALuka authorities to cx- piur.• a!tcrtt:ttivc energy putenti:rls ar,)uncE the slate. }1ur~ k said CI3N~1 had apphcd fur :t srttc grant to conduct a thurourlt +•~plc)ratiun study un where exactly the source o(' the hot springs lies. (12uch of bolo the ar.•a eau be us«f toil! hinge on the outcunty of thr study,if thegrtnt is au~arc!rd, "hirst tt•e. nci•ct to determine tvltcrc the yonrcc !ti•'• L; ItZC}: :,.;il{. ••:~nd t}li!C tt~iil <b: tcrmin~ what the highest :uuf hest use of the properly is." G~oth~rnta( dvvclupnt::n{ is nor the unit' aft:: o!•pr,tcntia! for the sits. t'ilgrm Fins Cprings also hats ahis- toric. value as the chw•ch built a bnattlin~~ school and orl,hanag4 u~hcn the in!7uenrt pandemic n; (91g left rnan}' childret; a•ititout parcats. r\c•- corrhnft tv CBNA, the orlrhanttj;e clus~d ir, qte early l9gOs tntd many buildings still remain. Thy pcoper(j, +"as iistrd on the National Register of tIi>toric f'iaces in (977, L3uzck said that CRi~'A would unnuunc•r a request for proposals ,y the enrl of Januar}. 2009 on uw to det•c;ic,p the pilgrim L(ot priors proparty. Alaska Science Forum December 18, 1979 .. , . , Pilgrim Hot Springs Article #365 by T. Neil Davis This column is provided as a public service by the Geophysical Institute, University of Alaska Fairbanks, in cooperation with the UAF research community. "T. Neil Davis is a seismologist at the institute. The year 1979 may have put new life into a mineral hot spring 50 miles north of Nome that for many years has bubbled up 175°F water through the permafrost at a rate of 60 gallons per minute. In gold-rush days, the site was named Kruzgamepa Hot Springs, after the nearby river that heads in Salmon Lake and flows westerly into the Imuruk Basin. Up until the saloon and roadhouse burned down in 1908, the Springs was the resort spa where residents of the southern Seward Peninsula went for hot baths and other recreational delights. A severe influenza epidemic in the years 1916-191$ killed twelve hundred people living between St. Michael and Cape Prince of Wales. The flu left many children homeless so the Catholic Church built a home for then at what is now called Pilgrim Springs (the Kruzgamepa has also become the Pilgrim River). This mission survived until 1942, by which time the children had grown up. A church and a few other old buildings mark the site. The solitude of Pilgrim Springs was interrupted this past summer by the frenzied thumping of a helicopter working to support geologists and geophysicists. A combined crew from the Alaska Division of Geological and Geophysical Surveys and the Geophysical Institute had converged on the area seeking to get themselves into hot water. The crew dug dirt, pounded rocks, drove pipes in the ground, strung wires around and appeared to walk aimlessly over the area carrying curious looking electronic gadgets. When it was all over, the scientific prospecting effort pointed toward a hot area 1,500 feet away from the Pilgrim springs itself. To test the results, a drilling rig was brought in. Concern over the danger of drilling into too hot a spot led to the first hole being drilled off to the edge of the indicated hot area. A six-inch hole was put down to depth 150 feet (50 meters) where it struck an artesian flow of 200 gallons per minute at temperature 195°F (90°C). A second well placed midway between the first well and the prime spot dictated by the geophysical work produced similar water at twice the flow rate. Next year, a well will be drilled on the prime spot. When wells are put down to extract the hot water, one worries that the flow generated in one well might decrease the flow from another or from the. natural spring area. But the preliminary geophysical work at Pilgrim Springs suggests that many wells could be drilled without harm. It appears that the Pilgrim (Kruzgamepa) River now carries away much of the heat energy brought to the surface, and that additional wells would merely intercept that energy. Initial measurements indicate that the river is carrying away energy equivalent to that heat energy contained in a flow of nearly 5,000 barrels of oil a day. This rate of oil flow is about the same as that of petroleum products from the North Pole Refinery near Fairbanks. . . /79 -ó8~ ~~/~ ¡1,(/6,d(4~ ;iko ¿J d /#- .. -j ¡qso . J........../~ (<J ?;J~~ ~ SCANNED AUG 162007 JO/7h J Do. -I-d-. WC2/[ J ~r:~r;~~rt>'j' ¡t'v'o. I Ä (3 ,-~ . 1.7 r;¿ i~ fh Pet -Ie swp~o<J.~ ~ ( ~-ò I - IV ð V ZJ 1'7 ., 1 ..I !vtJ\I ë C) ( f"1?<) (v é). I (\1'=>.2 !Jd' (?c:J.fA ~~ ~ Cé".~~ -éo- T: [).j~ ~ ~~ UJ-Ln ~ ~ .-:;¡ C4: ~ rcJd:Þ~. ~ November 7, 1979 Ite~ Pilgrim Spring No. 2 Division of Energy & Power Development Pe~u~t No. 79-85 Sur. Loc.~ 120'S & 2745'W of NE cr Sec 3, TSS, R31W, KRM. Bottomhole Loc. ~ As above, ~r. Donald Markle Saergy Project Manager State of Alaska Di~vis~on o£ Bnergy r~ Power Development 338 Den&li Street Anchorage, Alaska 9950~ Dear Mr. Markle ~ Enclosed is the approved application for permit to drill the above reference~l well. A l ithologic log is required from this well. Many rivers in Alaska and their drainage systems have been classified as important for the spawning or migration of anadromous fish. Operations in these areas are subject to AS 16.50.870 and the regulations promulga%ed thereunder (Title Alaska ~dministrative Code). Prior to commencing operations you may be contacted by the Habitat Coordinator's o£fice, Department of Fish and Ga~e. Pollution of any waters~of the State is prohibited by AS 46, Chapter 3, Article 7 and the regulations promulgated thereunder (Title 18, Alaska Administrative Code, Chapter 70) and by the F~eral Water Pollution Control Act, as amended. Prior to c~encing operations you may be contacted by a representative of the Department of Environmental Conservation. Pursuant to AS 38.40, Local Hire Under State Leases, the Alaska Department of Labor is being notified of the issuance of this permit to dril 1. /? Nr. Donald Narkle Pilgri~ Spring No. 2 -2- November 7, 1979 To aid us in scheduling field work, we would appreciate your notifying this office within 48 hours after the well is spudded. We would also like to be notified so that a repre- sentative of the oo~mtssion may be present to witness testing of blowout preventer equip~ent before surface =asing shoe is drilled. In the event of suspension or abandonment, please give this office adequate advance notification so that we may have a witness present. tru!y~ yours, . Lor~nie C. Smith Il&aka Oil & Gas Conservation Co~mlssion Department of Fish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o/encl. Department of Labor; Supervisor, Labor Law Cc~plian=e Division w/o enol. Department of Natural Resources, Division of Forest, Land and Water Management w/o encl. (Attn~ Brent Petrie, Chief of Water Management) Form 10-401 REV 9-1-78 reverse s~de) ALASKA OIL AND GAS CONSERVATION COMMISSION PERMIT TO DRIL~ DEE~mg. la. TYPE OF WORK DRILL [] DEEPEN BI b TYPE OF WELL OIL GAS SINGLE MULTIPLE WELL ~l ZONE WELL El milER Geotherml F-1 ZO~ F-] 2 N~EOFOPE~TOR State of Alaska, Division of Energy & Power Dev. Departmen,t of Commerce and Economic Dev. 3 ~DRESSOFOPE~TOR7th Floor MacKay Bldg.-338 Denali Street Anchorage; Alaska 99501 4 LOCATION OF WELLAt surface Approx. 120' S & 2,745' W of the N.E. corner Section 3, T5S, R 31 W KRM At proposed prod zone - '-rD,FSL ai;d """' ,"r-, e~.---- 36 T .r 13 DISTANCE IN MILE~ AND DIRECTION FROM NEAREST TOWN OR POST OFFICE* 50 miles north of None, Alaska 14 BOND INFORMATION 5 6 LEASE DESIGNATION AND SERIAL NO 7 IF INDIAN, ALLOTFEE OR TRIBE NAME 8 UNIT FARM OR LEASE NAME Pilgrim Spring 9 WELL NO 2 10 FIELD AND POOL, OR WILDCAT 11 SEC., T, R., M, (BOTTOM HOLE OBJECTIVE) Section 3, T5S, R 31 W~ 12 TYPE Surety and/or No. Amount KRM 15. DISTANCE FROM PROPOSED * LOCATION TO NEAREST PROPERTY OR LEASE LINE, FT (Also to neaxest dng, umt, ~f any) 640' EWL 18 DISTANCE FROM PROPOSED LOCATION TO NEAREST WELL DRILLING, COMPLETED, OR APPLIED FOR, FT 230' S.W. 21 ELEVATIONS (Show whether DF, RT, CR, etc) ~5 feet 16 No OF ACRES IN LEASE 320 PROPOSED DEPTH 150' 17. NO ACRES ASSIGNED TO THIS WELL 10 20 ROTARY OR CABLE TOOLS Rotary 22 APPROX DATE WORKWILL START 11-7-79 23 PROPOSED CASING AND CEMENTING PROGRAM SIZE OF HOLE SIZE OF CASING WEIGHT PER FOOT GRADE SETTING DEPTH Quantity of cement 7-7/8" 6-5/8" 1~ Sch40 30-50 ft as required 6" --- 120-150' open hole 1" plastic pip( (see i ttachment-unc(~mented) Initial hole will determine location of further shallow holes (100 to 150 ft) and will determine drilling and casing procedures. Initial hole will be drilled with 7-7/8" bit with 6-5/8" casing cememted at 30 to 50 ft depth. Casing will be flanged for 6" full opening gate valve, 3" blooey line with relief valve and Guiberson JU preventer rates at 960 PSI. Cement will be high early with pearlite and 20% silica flour per attached equipment list. Return fluid temperatures will be continously monitored and data logged. Initial casing hole will be drilled with 4-3/4" bit and reamed to 8" hole. IN ABOVE SPACE DESCRIBE PROPOSED PROGRAM If proposal is to deepen g~ve data on present productive zone and proposed new product,ye zone. If proposal ~s to drffi or deepen chrecaon~ly, g~ve pertinent data on subsurface locat~ons and measured and true vert~c~ depths. G~ve blowout preventer program 24. i hereby cer~£¥1 the Foregoing is Truea ' (T~s space for State office use) SAMPLES AND CORE CHIPS REQUIRED [] YES ~NO DIRECTIONAL SURVEY REQUIRED [] YES ~xNO CONDITIONS OF APPROVAL, IF ANY MUD LOG OTHER REQUIREMENTS [] YES ~NO A P I NUMERICAL CODE PERMIT NO. APPROVED BY '~~~ APPROVAL DATE Novembar 7: 1979 _ TITLE ' ioner DATE 11/7/79 *See Instruction On Reverse S~de ¢ X XPLORATION SUPPLY AND EQUIPMENT, INC. 67Z7 SEWARD HIGHWAY, ANCHORAGE, ALASKA 99502 PHONE 344-2589 0il & Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99501 Ref: Pilgrim Geothermal Test Holes Contractor: Exploration Supply & Equipment, Inc. For: State of Alaska, Division of Energy & Power Development. A: Equipment: 1: One Mayhew 1000 Drill Unit, equipped with 2000 rotary table, double drum drawworks 32 ft welded steel mast, 35,000 lb. pull. Gardner Denver 580 cfm compressor, Gardner Denver 5 X 6 duplex mud or grout pump. Drill Unit mounted on Foremost tracked vehicle. 0me tracked vehicle supply unit. 3: One 7.5 KW power generator. Two 150,000 BTU forced air heaters. One welder, cutting eqdipment etc. One portable mud pit and water tank. One air casing drive hammer. 8: 50 ft. ~ 5/8" O.D.casing. 9: ?00 ft. 6 5/8" O.D. casing. 10: 600 ft. 2 7/8" API drill rod. One float sub. 12: Two drill collars. Flanges for 6 5/8" and 8 5/8" casing. 8 5/8" casing manifold (two gate). 15: Two water transfer pumps 2". 16: Packers for 6 5/8" casing RECEIVED NOV - § 197g AJaa~ Oil & G-~s t,~:, uu~ .... .,~lon Anlmuraiie E~pe~6.able Be~tO~Lte' 50o lb.. .. ell. ~: ~00 x~' ,, -~d ~ 'J/~ personnel: (st~le shLftJ D: roceedureS: ~eS, LO0 to L~ depth, e~dL~ o~ o~erburde~ ~ i hu~ s: ft. deP_~ ~me~ted f~ to . c~Sf~ stabikl~ o o~G~m su~face' b 7/$" to bottOm' D~,Lll open hole as ~equL~ed' Drk~e 5" caSL~g /$,, O.D. _ _^ .^ 600 500 ~ . ~ole ju ~ ~,, caSLOg ~d~aocea._~ ~d ~-~l ope~-~[¢face" -oSSlU~e P ~ed ~ p , eOb~ ,. RECEIVED:,,?'- NOV Alaska Oil & G,-:s g,ms uum,nmsion X ORATION SUPPLY AND.EO MENT, INC. 1 6727 SEWARD HIGHWAY. ANCHORAGE, ALASKA 99502 O~ PHONE 344-25~.~ October 18 1979 :'~'~ State of Alaska Oil & Gas Conservation Committee 3001 Porcupine Anchorage~, Alask~ Gentlemen; · In reference to our permit applicati~ for drilling of Geothermal test hole at Pilgrim Springs, ~e ~i~h to add this -as a supplement of equipment and drilling proceedures: The initial hole will be drilled using 7 7/8" bit to approximately 50 feet for setting 6 5/8" surface pipe. Surface pzpe of 6" I.D. 6.625 O.D. sc~Ddule 40 will be cemented ~n using a mzxture of 1:1 ratio of Neat and Perlite cement with 20 percent Silica Flour added. After allowing the cement to set a Guiberson type JU Stripper rated at 960 psi will be Dttached to the casing. The casing will also contain a full opening gate valve and 3" Blooey line below the stripper. This line will be d~rected away from the rig to divert any pressurized flow from the hole. The hole will be extended open hole ~Oi%~approxamately 120 feet to 150 feet using 6" bits. '~drawing is attached which shows the surface sta~R~' configuration to be used. We hope this will f~ll the requiremem~s for approval of this permit. V~ry truly your, V.J. g~'a~ch, Presiden~t ExlSlo~t,fon Supply Alaska , { 'x RECEIVED 3. . . e 10. ii. 12. 13. 14. 15. 16. 17. 18. 19. Is a registered, survey plat attached ................................ Is mi1 located pr~ distance frcm property line . .. ~ Is well located proper distance from other wells ..iii.iii..iiiiiiiii~ Is sufficient underdicated acreage available in this pool ........... ~ Is well to be deviated .............................................. ~ Is operator the only affected party .......................... ~ Con permit be approved before ten-day uait ................... Does operator have a ~ond in force .................................. Is a conservation order needed ...................................... Is administrative approval needed ................................... Is conductor string provided ........................................ Is enough c~ment used to circulate on conductor ami surface ......... Will cement tie in surface and intermediate or production strings Will cement cover all known productive horizons ..................... Wi.Il surfac~ cas Sng pro.ct fresh ~tt~r ~:)nos ....................... Will all casing give adequate safety in collapse, t~_nsion and burst. Does ROPE have sufficient pressure rating - Test to psig . Approval Reccmmerded: Additional Requir~tnents: (s) me (2) Loc. (5) ROPE Engineering: rev: 06/21/7 Appendix D Pilgrim Hot Springs Well Head Repairs 1 Pilgrim Hot Springs Geothermal Exploration Project Pilgrim Hot Springs Wellhead Repair Prepared by: Dan Brotherton, Arctic Drilling, Inc. & Markus Mager, ACEP Fairbanks Alaska, September 2010 Alaska Center for Energy and Power University of Alaska PO Box 755910 Fairbanks, AK 99775‐5910 2 Pilgrim Hot Springs Wellhead Repair Prepared by: Dan Brotherton, Arctic Drilling, Inc. & Markus Mager, ACEP Overview This task was completed in two phases, including: 1) an initial site visit in July 2010 to assess the condition of the six existing wells and develop a work plan for replacing the wellhead assemblies as needed, and 2) a second trip to the site to complete the work outlined in the work plan. This trip took place September 13th‐18th. The goal was to stop the wells from leaking, and make them accessible for instrumentation as part of the DOE funded project ‘Innovative Geothermal Exploration of Pilgrim Hot Springs, Alaska’. This report details the work performed on the individual wellheads during the September trip, which included replacing the gate valves on 4 of the 6 wells, including PS‐1, PS‐3, PS‐4 and MI‐1. At this time, none of the wells are leaking to the surface although there are still weak points which need to be addressed in the future. Recommendations for future work are outlined in this report. The team performing the work included Dan Brotherton from Arctic Drilling, Richard Eggert, and Max Iyapana from Bering Straits Development Company (BSDC), and Markus Mager from ACEP. For each of the four wellheads that were repaired, the team removed the existing gate valves by pumping down the water level in order to access the well and installing new, stainless steel valves. A detailed work description for each well can be found on the following pages. The team did not alter the configuration of the wellheads except for installing an additional fitting on top of the blind flanges capping the gate valves that can accept a 3” stainless standpipe with a tee and a valve to allow future installation of monitoring and logging equipment. A 1” access port with a plug was also built into the top of the blind flange. We recommend installing chains and locks on all the new valves and that all valves should be tested for functionality (opened/closed) at least once a year. Winterization of all the wells is necessary in order to prevent freezing and cracking of the gate valves. A plan for winterization has been forwarded in a separate communication that is attached to this report. Mobilization All new valves (6), parts, tools and supplies, totaling 3,842lbs, were purchased or rented by ACEP and shipped to Nome via Northern Air Cargo (NAC). Additional heavy equipment such as 4 wheelers, trailers, a bobcat and an air compressor were rented in Nome from BSDC. All parts, tools and equipment were transported to the side on September 13th and 14th and staged at the central staging area (Figure 1). Repair work began on the 15th, and was completed on the 18th. 3 Figure 1. Central staging area for repairs. PS‐4 (Completed September 14‐15th) PS‐4 supplies the water for the hot tub from a 2in lower valve. The well was leaking from a ½ inch hole in the blind flange on top of the 10in well gate valve and from the corroded 2in valves on each side of the 10in casing underneath the 10in valve (Figure 2). The lower bolt flange of the 10in valve was covered with mineral buildup and corrosion scale. There was a small pond around the well at the level of the 2in side valves from the constant leaking and overflow from the tub. The team laid down timbers and planks to create a stable work platform and removed mineral build up and rust scale from the lower bolt flange (Figure 3). After various failed attempts to release the old 10in valve from the well flange, the bolts had to be cut off with a torch (Figure 4 & 5). 4 Figure 2. Arrows show areas of leaking on PS‐4. Figure 3. Removing buildup and scale and attempting unsuccessfully to cut the flange bolts with a Sawzall. 5 Figure 4. Cutting bolts to remove old gate valve. Figure 5. Removing gate valve with Bobcat – note artesian flow from well. 6 PS‐4 has an inner 8in and an outer 10in casing. The outer casing is corroded and thin. The 8in/10in annulus (space between the two casings) continued to produce water after the water level inside the 8in casing was drawn down. This indicates a likelihood that they are set to different depths and water is produced from a different production zone in the annular space than through the main hole. In order to weld on new 2in nipples, this water would need to be drawn down. We were able to partly draw this water down with a 1in suction tube, but it was ultimately decided to not risk changing the 2in nipples after it was determined they are corroded but still sound (probably just as sound as the casing). Dan was not confident that the casing could be welded given its state of deterioration, so rather than risk creating a difficult to stop leak, the original nipples were left in place and only the 2in valves were replaced with new stainless 2” valves (Figure 6). Figure 6. New valves. The flange on this well is partly eaten away but still appears to be sound. The well is artesian and produces clear water. We installed a new 10in stainless steel valve with reducer flange on top connected to a 3in threaded nipple with a stainless cap. The well has no visible leaks and has been re‐connected to the hot tub via one of the new 2in valves. Further repairs on this wellhead will be needed in the near future. The 10in casing and the 2in nipples are thin and will eventually start leaking with no way to control or stop the flow. Dan recommends that the 8‐10in annulus be cemented from the bottom up to the top via tremie pipe which would seal off the corroded outer casing from the well water and would extend the life of the well. We are also recommending locks on the 2in valves to guarantee flow to the hot tub, prevent accidently closure (or opening) and to prevent well freeze up since this well will presumably not be shut in through the winter. If this is the case, it is imperative that the 2in valve remains open to prevent the new gate valve from freezing. 7 PS‐3 (Completed September 15‐16th) Prior to repairs, this well was leaking through the standpipe at the top of the well and later, after we started to remove buildup and scale (Figure 8), from a hole in the side of the 10in valve (Figure 7). We were unable to plug this leak so we dug a sump hole to drain the fluid and temporarily pump it away from the well and surrounding work space. Figure 7. Image showing leaks and corroded standpipe. 8 Figure 8. Removing scale and buildup. There was significant corrosion to several of the bolts connecting the existing gate valve to the wellhead flange, which necessitated cutting them off with a torch. We were able to drive out some of the bolts once they were cut, but several posed additional challenges and had to be removed in chunks. The torch was damaged during this process. Eventually we were able to remove the old 10in valve and replace it with the new stainless valve and bolts. The lower flange of the wellhead is severely corroded and the new flange bolts are exposed. The flange thickness is about half of original thickness and there is barely enough material left to secure new flange bolts (Figure 9). The well was completed with a new capped gate valve and blind flange, with a 3in nipple and cap. There is a 2in valve below the flange which was left in place as it is not currently leaking. Dan was not confident the well casing is sound enough to permit replacement of this valve. Figure 9. Exposed bolts, new valves. 9 PS‐3 is hotter than PS‐4 and produces clear water. There is also a 6in inner casing in this well that comes to the top of the 10in casing. Once the old valve was replaced, there were no visible leaks. Figure 10 shows a comparison of the old PS‐4 valve flange and the old PS‐3 valve flange. Figure 10. Old 10in valves from PS‐3 and PS‐4. Note severe corrosion on lower PS‐3 flange. Further repairs will be needed to this wellhead soon. Dan recommends cementing the 6‐10” annulus from the bottom up with tremie pipe so that the side valve can be removed and the main well flange can be replaced. This will protect the well from a permanent leak if one develops from the corroded casing. MI‐1 (Completed September 16‐18th) This well is located on adjacent Mary’s Igloo Native Corporation land. The top of the 10in gate valve was split in half, probably due to a freeze break. We were able to open and close the old gate valve but could not completely stop the flow of the well. MI‐1 is colder than PS‐4, and the water temperature of this artesian well appears to fluctuate. When flowed for a short period of time it produced gray, silty fluids. The well has no visible inner well casing. Due to leaks in the wellhead, a small pond had formed around the well several inches deep. We cleaned out an existing trench leading away from the well and the pond drained away to ground level. We built a work platform around the well and removed mineral build up, rust and scale from the bolts. Dan cut the bolts and drove them out with the torch. We removed and replaced the 10in valve with new stainless steel valve and bolts (Figure 11). The new gate valve is capped with a blind flange with 3in welded nipple and cap. 10 Figure 11. Work commences on MI‐1. Note artesian flow prior to pumping. Prior to repairs, the well was also leaking from several holes corroded through the casing below the gate valve flange. These leaks continued after installing, capping and shutting the new gate valve. The casing is paper thin midway between the flange and the cement. Dan welded a sleeve around the casing from about 2in above the cement level up to the flange, totaling about 14in. In order to weld on the sleeve, he completely removed the side valve, nipple and weldolet from the 10in casing. The sleeve stopped the leaks temporarily but the casing below the sleeve is thin and remains a significant weakness (Figure 12). Dan recommends installing a 6in inner casing and cementing the annulus from the bottom to the top via tremie in order to prevent further leaking once the casing corrodes further. Figure 12. Casing conditions of MI‐1. 11 PS‐1 (Completed September 18th) PS‐1 is the hottest of the repaired wells. This well was buried past the valve handle and covered with several inches of mineral buildup. Before repairs, it leaked out of a corroded two inch elbow from the top of the wellhead, as well as the remains of a 2in valve and a 1in hole in the top of the well cap (Figure 13). These holes were plugged with sticks driven into the openings after some of the mineral build up was removed. We then excavated around the well to just below the lower valve flange covering an 8ft by 10ft area, dug a sump hole for the water pump and laid down blocking and timbers for a work platform. We removed the mineral build up and de‐scaled what remained of the bolts (Figure 14). Figure 13. PS‐1 after excavation but before repair work. 12 Figure 14. Removing scale and buildup prior to replacing gate valve. When the gate valve was removed, it was evident that the lower flange was almost completed corroded away with no bolt heads remaining and the bolt threads visible from the side of the flange. We used the torch to remove the bolts, removed the old gate valve, cleaned up the flange as much as possible, and installed the new 6in stainless valve topped with a stainless blind flange, 3in nipple and cap (Figure 15). Figure 15. New valve installed on PS‐1. Note collapsed suction hose due to high temperatures. This well has a 4in inner casing inside the 6in outer casing, and does not have any lower casing 2in valves. There is not much left of the well flange, just barely enough to bolt on the new valve. The well is sealed and does not 13 leak at this time. We backfilled around the well but not to the previous level so it is possible to access valve handle. We left the remaining dirt piled to the side of the excavated area. Dan recommends installing a short (18in) spool section underneath the new gate valve to raise the valve above ground level and permit the well to be backfilled to ground level. This would also eliminate the standing water around the well, which is now below grade. He also recommends cementing the 4in‐6in annulus and welding on a new casing flange in order to prevent future leaks. PS‐2 This well is buried but inaccessible with rubber tired backhoe. We did not attempt to dig up this well. The wellhead valve is not corroded or leaking. We will attempt to make it accessible for instrumentation in 2011. Figure 16. PS‐2 buried but not leaking. We will need to excavate and replace valve before this well can be accessed with instruments. PS‐5 This well is also not corroded or leaking so we did not replace the valve at this time. We will attempt to make it accessible for instrumentation in 2011. 14 Figure 17. PS‐5 still appears to be in good shape, but not accessible by instrumentation. Winterization Plan for Wellheads (Dick Benoit and Gwen Holdmann) The trick to keeping a wellhead from freezing and then breaking during sub freezing weather is to inject a liquid that is both less dense than water and has a very low freezing point into the wellhead. This fluid needs to be environmentally benign so that when (not if) it is spilled or leaks out of the wellhead it does no environmental damage. Typically a food grade vegetable oil has been used in the lower 48. A small pump is used to pump the oil into the highest opening in the wellhead but if the pressures are very low even a hand operated pump may be enough to do the job. We expect this to be the case for the Pilgrim wells. This pump obviously needs to be able to overcome the internal wellhead pressure and can pump at low rates. You will need to know how much oil has been pumped into the wellhead. Enough oil needs to be pumped into the wellhead to push or displace the water down the well to a point below the freezing level, which is probably not more than a few feet. Therefore, it is necessary to calculate the volume of the wellhead above ground and a few feet of wellbore below ground. We expect this might amount of a few tens of gallons per well. It is important to check the wellhead for leaks, no matter how slow, before injecting the vegetable oil. If the oil leaks out of the wellhead then the water will flow back up in the wellhead and freeze. We recommend doing this on the 4 wells with new gate valves prior to hard freeze‐up.
