GEOTHERMAL ENERGY IN NEVADA 2010

Transcription

1 GEOTHERMAL ENERGY IN NEVADA 2010 Nevada Water Resources Association February 3, 2011 Reno, Nevada Alan R. Coyner: Administrator Lowell Price: Program Manager, Oil, Gas, and Geothermal Nevada Division of Minerals 400 W. King Street #106 Carson City, NV minerals.state.nv.us 775/ /

2 MISSION The mission of the Division of Minerals is to conduct activities to further the responsible development and production of the State s mineral resources to benefit and promote the welfare of the people of Nevada.

3 WHO WE ARE State Agency and part of the Commission on Mineral Resources (CMR) CMR is 7 members appointed by the Governor from the minerals industry Offices in Carson City (8 employees) and Las Vegas (2 employees) Annual budget of $2,100,000 No general fund money in budget, all revenue from fees on mineral industry

4 WHAT WE DO Industry Relations and Government Affairs Abandoned Mines Program Minerals Education, including the Nevada Earth Science Teacher s Workshops Oil, Gas, and Geothermal Program Mines Registry (production and exploration data on mining, oil and gas, and geothermal) State Reclamation Bond Pool

5 FLY GEYSER, WASHOE COUNTY, NEVADA

6 GEOTHERMAL ACTIVITY IS INCREASING Favorable geology of the Great Basin Leading geothermal companies are located in Nevada Regulatory climate allows timely permitting of projects Renewable Portfolio Standard requires NV Energy to supply 20% of their sales from renewable energy by 2015 Great Basin Center for Geothermal Energy at UNR provides cutting edge geothermal research Department of Energy funding ($61 million in )

7 Total in 2009 was $5.8 billion (Au = $4.9 billion) Geothermal Gross Sales = $110 million

8 Nevada has 20 geothermal power plants in 11 locations Blue Mountain Empire Jersey Valley Beowawe Steamboat Brady Desert Peak Wabuska Soda Lake Stillwater Salt Wells Dixie Valley 2010

9 2010 GEOTHERMAL PRODUCTION Location Plant Name Operator Nameplate Capacity (MW) Beowawe Beowawe Terra-Gen 17 Blue Mountain Faulkner 1 Nevada Geothermal 49.5 Brady Brady Hot Springs Ormat Nevada, Inc 26.1 Desert Peak Desert Peak Ormat Nevada, Inc 23 Dixie Valley Dixie Valley Terra-Gen 64.7 Empire Empire US Geothermal Power 4.8 Jersey Valley Jersey Valley Ormat Nevada, Inc 23.5 Salt Wells Salt Wells Enel North America 23.6 Soda Lake (2) Soda Lake 1 Magma Energy Corp 5.1 Soda Lake 2 Magma Energy Corp 21 Steamboat SBIA Ormat Nevada, Inc 2.4 Complex (7) SBII Ormat Nevada, Inc 23.6 SBIII Ormat Nevada, Inc 23.6 Steamboat Hills Ormat Nevada, Inc 20.1 Galena 1 Ormat Nevada, Inc 30 Galena II Ormat Nevada, Inc 13.5 Galena III Ormat Nevada, Inc 30 Stillwater Stillwater II Enel North America 47.2 Wabuska (2) Wabuska I & ll Homestretch Geothermal 2.4 TOTALS * Nameplate capacity is a manufacturers specification and does not necessarily reflect the resource capability. 1MW powers ~300 homes.

10 NEVADA GEOTHERMAL ENERGY Price Production Production was 1.7 million MWH in 2009, second only to CA

11 2009: MWH 2010: MWH

12 Image Courtesy of Nevada Geothermal Power

13 Enel North America s Salt Wells Power Plant (23.6 MW) near Fallon in Churchill County

14 Nevada Geothermal Power Faulkner 1 Power Plant (49.5 MW) near Blue Mountain in Humboldt County

15 Ormat Galena 1 Power Plant (30 MW) at Steamboat near Reno in Washoe County

16 Magma Energy Corporation s Soda Lake 2 Power Plant (21MW) near Fallon in Churchill County

17 NDOM GEOTHERMAL PROGRAM Operate under the direction of Geothermal Commissioner John Snow and the Commission on Mineral Resources Review and approve all drilling programs for well permits on public and private lands Inspect at drill locations blow out preventers, well drilling operations, and site conditions Collect geothermal production information Approve sundry notices which are changes to drilling programs, maintenance issues, etc.

18 Number of Permits GEOTHERMAL PERMITS ISSUED (Drilling and Project Area Permits) Year

19 Ensign #506 drilling at the Peppermill Casino in Reno Wells permitted Wells drilled

20 GEOTHERMAL WELLS Geothermal Permit Type Permits/Drilled Permits/Drilled Permits/Drilled Permits/Drilled Industrial Production 21/10 36/18 28/19 28/17 Industrial Injection 14/7 21/7 11/4 7/4 Observation 12/7 27/12 21/8 19/13 Thermal Gradient 12/12 26/9 124/37 56/38 Project Area Commercial 0/1 2/0 2/3 0/0 Domestic 3/2 8/3 1/0 1/1 Miscellaneous* Totals 69/39 132/49 195/71 119/72 * Represents old wells brought into the NDOM system

21 NEVADA DIVISION OF MINERALS GUIDELINES FOR PERMITTING A GEOTHERMAL WELL Active lease: Federal, private, or combination Valid registration with Secretary of State Organizational Report identifying the corporate entity and contact information Drilling bond (BLM bond recognized if on Federal lease, $10,000/well or $50,000/statewide bond if on private lease) Approved drilling program

22 NEVADA DIVISION OF MINERALS GUIDELINES FOR PERMITTING A GEOTHERMAL WELL Land owner or Active lease: Federal, private, or combination Valid registration with Secretary of State Organizational Report describing individuals or corporate entity Drilling bond (BLM bond reconized if well/wellbore stays within Federal lease, $10K/well or $50K/statewide bond if on private lease) Permit Application includes: Well type to be drilled (Industrial Production or Injection, Observation, Temperature Gradient, Commercial, or Domestic Name and location of well Land status (Land owner or lessee private or Federal) Operator s name

23 Name and contact information of drilling contractor. Initial hole size; size, weight, and gauge of surface conductor. Estimated well head temperature (at completion of well). Size of Blowout Preventer (BOP) pressure rating. Planned use of geothermal fluids. Disposal of geothermal fluids usually in related drill sump. Type of bonding/bond holder. Source of the geothermal resource to be drilled. Proposed total depth of well in measured depth or measured depth/true vertical depth if drilled directionally. Estimated date drilling is expected to begin. Signature do not forget to sign application. Attach fee for permit fee is pre-paid. Include Drilling Program with Permit Application

24 Drilling Program includes the following: Brief description of geology to be encountered, if known. Anticipated depths to any and all fresh water aquifers, if known. Brief description of drilling rig and its capabilities. Detailed description as to how the well will be drilled, tested, completed, and plug and abandoned if necessary. Hole size and depths for the various legs of the well. Mud, casing, and cementing programs Mud type and maximum weight anticipated for each leg. Casing - include size, weight, length, API classification, and expected casing shoe depth for each leg. Cement include percentage of components in mix, and weight and volume to be used.

25 Wellbore schematic illustrating hole size, casing (including specs and shoe depth), cementing intervals, liner intervals (including hanging depth/total depth), and barefoot intervals. Blowout preventer type(s), sizes, specifications/rating(s), when testing is to occur, and testing parameters. Description of accumulator, choke manifold, and size/pressure rating of lines. Size and depth of sump to be used as catchment basin for drilling fluids, cuttings, and geothermal fluids (if well is tested). All approvals related to injection wells, including drilling, testing, maintenance, etc, are coordinated with Russ Land at UIC/NDEP Logging of well cuttings (two sets of cleaned and dried cuttings are to be provided to the Nevada Bureau of Mines and Geology, two copies of the mud or geological log are to be given to the Nevada Division of Minerals) and electrical logs (two copies of each log are to be provided to the Nevada Division of Minerals). Emergency contingency plans.

26 EXPLORATION Gradient Resources Patua Project Area between Hazen and Fernley in Lyon County

27 DHS #14 drilling rig in Jersey Valley, southwest of Battle Mountain Rigging up to drill Ormat Nevada s Jersey Valley well

28 Ensign #587 drilling the Blue Mountain injection well, Jackson Mountains in background.

29 BLM GEOTHERMAL LEASING 552 geothermal leases (1,173,382 million acres) Acreage nominated by individuals or industry BLM determines if acreage is eligible for bidding Recent nomination process ended 9/3/2010 Next competitive lease sale scheduled for 3/22/2011 Acreage not leased can be obtained after 3/22 thru non-competitive sale (minimum cost of $2.00/acre) Leases can be converted into a unit Questions? Call Sheila Mallory (775/ )

30 Thousands of Acres BLM GEOTHERMAL LEASES Acres # Leases Number of Leases Years 1,173,382 acres and 552 leases cumulative through 2010

31 Geothermal Power Plants, BLM Leases, and Primary Prospects

32 PERMITTING DELAYS ON BLM MANAGED PUBLIC LAND BLM permitting is the number one factor delaying new and existing geothermal projects (and mining projects as well) Many of the delays involve archeological (cultural) clearances and manpower BLM is establishing Renewable Energy Teams to improve permit process

33 NEW PROJECTS AND DEVELOPMENTS Gerlach Geothermal (US Geothermal): Gerlach/Boiling Springs Hot Pot Geothermal (Oski Energy): Hot Pot HSS II (Ormat Nevada): Hot Sulphur Springs Ormat Nevada: Jersey Valley, McGinness Hills, Carson Lake, Gabbs Valley, and Dead Horse Nevada Geothermal Power: Blue Mountain, Pumpernickel Valley, and Black Warrior Raser Technologies: Big Smoky and Devil s Canyon Ram Power: Alum, Silver Peak, and Reese River Standard Steam: Marys River Terra-Gen Dixie Valley: New York Canyon, Coyote Canyon, and Dixie Meadows Gradient Resources: Patua, Carson Lake, Fallon 1, and Colado

34 UNR GREAT BASIN CENTER FOR GEOTHERMAL ENERGY Information (GIS databases, interactive maps, compendiums, presentations) Research (exploration, modeling, sampling) External links to other geothermal websites Leasing information and current projects Careers (National Geothermal Academy, Graduate Geothermal Fellowship) Website: More Info? Call Wendy Calvin at 775/

35 NBMG OFR 09-10

36 DEPARTMENT OF ENERGY GRANTS FOR PROJECTS Entity DOE Grant Project Areas AltaRock Energy Inc $1,450,120 Dixie Valley Board of Regents/UNR $2,213,575 Great Basin/Nevada GeoGlobal Energy LLC $2,820,211 Gabbs Geothermal Tech Partners $1,609,275 McGee Mountain Magma Energy Corp $9,511,945 Soda Lake, McCoy Nevada Geothermal Power $1,597,847 Black Warrior Oski Energy LLC $4,214,086 Hot Pot

37 DEPARTMENT OF ENERGY GRANTS Entity DOE Grant Project Areas Presco Energy $2,277,081 Rye Patch Pyramid Lake Paiute Tribe $4,845,534 Pyramid Lake Sierra Geothermal Power $10,000,000 Alum, Silver Peak Terra-Gen Sierra Holdings $14,406,082 University of Kansas Center for Research FOR PROJECTS Beowawe, Dixie Valley, New York Canyon $2,299,237 Fish Lake Valley US Geothermal $3,772,560 San Emidio TOTAL GRANTS $61,017,553

38 Ten Top Reasons to Explore in Nevada 1. Great geology and geothermal potential 2. Many producing resources ranging from low to high temperature 3. Resources explored and developed by leading international companies

39 4. Good regulatory climate allows timely permitting of projects 5. Good infrastructure (roads, drillers, hotels, supplies, etc.) 6. Large areas of public land open to exploration 7. Dry climate and year round access Ensign #561 at Soda Lake

40 Jersey Valley, Pershing County Fly Ranch Geyser, Washoe County 8. Network of knowledgeable exploration geologists, organizations, and agencies (Geological Society of Nevada, Nevada Mining Association, Nevada Division of Minerals, Nevada Bureau of Mines & Geology, Great Basin Center for Geothermal Energy, and other units of the Mackay School of Earth Sciences and Engineering) 9. Recent discoveries and new geothermal production

41 Ten Top Reasons to Explore in Nevada (continued) 10. No malaria, black flies, moose, polar bears, desert death adders, or crocodiles; JUST HOT WATER! (AND ELEPHANTS!) wildlife-pictures-online.com

42 NEVADA = ELEPHANT COUNTRY Nevada is a really great place to explore for and mine gold, silver, and other mineral and energy commodities

43 Lowell Price Nevada Division of Minerals 400 W. King St. #106 Carson City, NV / minerals.state.nv.us Gold, Round Mountain Opal, Virgin Valley