WESTCARB Phase I Results Review

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WESTCARB Phase I Results Review Arizona Geologic Characterization Errol Montgomery Principal Errol L. Montgomery & Associates (520) 881-4912 emontgomery@elmontgomery.com November 9, 2005 Site Characterization of Salt River Project Power Plants Preliminary assessment of SRP power plant sites: Coronado Generating Station Navajo Generating Station Hydrogeologic characterization to assess feasibility of geologic sequestration Coronado Generating Station 2 Montgomery p.1

Colorado Plateau Geologic Province 140,000 square miles in Four Corners area Thick sequence of laterally extensive, nearly flat-lying sedimentary strata Some structural deformation Some areas of coal, oil, and gas accumulations 3 Coronado Generating Station Coconino Sandstone good target reservoir and contains very saline groundwater to northwest, but is only 1,500 feet deep, or less Supai Formation has several target zones, all less than 3,000 feet deep, and probably having naturally large CO 2 concentrations CGS does not appear feasible for supercritical phase CO 2 injection 4 Montgomery p.2

Navajo Generating Station Multiple target zones offer substantial potential for geologic storage Kaibab Limestone/Coconino Sandstone Cedar Mesa Sandstone Redwall Limestone Geology largely unexplored below 1 kilometer Target units outcrop in Grand Canyon to southwest Navajo Nation lands would be involved 5 Objectives of CGS Hydrogeologic Characterization Identify permeable geologic units for potential CO 2 injection overlain by impermeable strata Evaluate hydraulics of potential reservoir unit in terms of: hydraulic conductivity and porosity groundwater conditions water chemistry and other physical data geologic structure Analyze suitability of potential reservoir unit for CO 2 injection and storage Identify technical uncertainties/data limitations 6 Montgomery p.3

Regional Geologic Map for Coronado Generating Station 7 Geologic Cross-Section at CGS 8 Montgomery p.4

Supai Formation Thickness of salt deposits (in feet) 9 Regional Water Quality Of Coconino Aquifer 10 Montgomery p.5

Key Hydrogeological Findings Potentially suitable area for sequestration located 25 40 miles northwest of CGS, and in this area: Reservoir target is approximately 350-foot thick Coconino Sandstone Overlying 1,000+ feet Chinle Formation provides confining layer Groundwater is poor quality with high TDS content Limited land use/seismically stable area Limited number of deep wells in area Structural containment evidenced by commercial gas production 11 Key Hydrogeologic Findings (cont d) Shallow depth of burial and relatively low reservoir pressure would require vapor phase CO 2 storage Technical uncertainties/data limitations: Potential lateral migration of CO 2 to regions where sandstone outcrops or seal is absent Potential lateral migration of CO 2 to regions of good water quality Potential other reservoir gases present Practical considerations: Shallow depth will aid and limit cost of geologic characterization Shallow depth would limit cost of drilling, CO 2 injection, and CO 2 plume monitoring 12 Montgomery p.6