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Ref. No. 0811

April 25, 1985

4- ,fLG[0RGE R. A~O~~~V

KENT M. K H~ _ t ~ " , . • • Oft ~rc•.-.. ; " ;.: ~RRAY E. TOWIU

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TO: The Honorable Susumu OnoChairman, Department of Land and Natural Resources

FI@f: Kent M. Keith~,~

SUBJH:T: Applicability of State Geothermal Laws and Regulations to FederalGeothermal Activity in Hawaii.

The U.S. Navy is in the early planning stages of drilling a geothermalwell and developing a hybrid GEOTEC (Geothermal and OCean Thermal EnergyConversion [OTEC]) demonstration electric generating plant on Navy owned landin Lualualei on the Waianae Coast of Oahu. , The land is classifiedAgricultural.

Would you please advise which State permits, licenses and leases that theNavy would have to obtain before proceeding? A specific concern is theapplicability of Act 296, SUI 1983, regarding geothermal resource subzones,

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Department of Navy

Continental Scientific Drilling Program

7.0 Ob;ective

The interest of the Department of Navy in Continental Scientific Drilling

Activities is to define, develop, and implement scientific and technical

programs having a prime obiective to improve Navy capabilities and

mission requirements. This interest includes: (7) research in geology,

geophysics, geochemistry, hydrology, mineral resources, and seismic

activity, (2) the assessment of the geothermal potential on Navy and

Marine Corps controlled lands whereby the Navy can utilize these re­

sources as an alternate energy source.

2. 0 Background

It is necessary for the Department of the Navy {DON} to understand

the ph ys ical properties and structure of the earth 's crust for a number

of operationally important reasons. As a corollary, it is important. in

order to develop efficient, cost-effective techniques for evaluating

crustal properties from geophys ical data observed at the surface, that

methods be de veloped to infer the deep physical properties of the

crustal rocks from the characteristics of the surface-recorded geophys­

i cal data. To develop such techniques requires actual samples of the

deep crust in order to determine the lithology, porosity, fluid content.

and other physical properties of the deep crust. Such data, combined

with laboratory studies of the physical behavior and characteristics of

rocks at crustal pressures and temperatures, constitute the fundamental

building blocks upon which such a system for remotely sensing other­

-w i se unmeasureable 'crus tal properties can be de ve loped.

3. 0 Fundamental Invest igation

A broad range of fundamental physical properties of the earth's crust

either directly affect DON or have a potential impact. some of which

should be developed to become operationally useful. These include the

porosity, fluid content. stress concentration, strength, electromagnetic

and seismic propagation characteristics, and the distribution of surface

conductivity which affects very low frequency (VL F) propagation

signal patterns. Such information is applicable to an evaluation of:

the volume, temperature, and fluid content of geothermal reservoirs;

stress concentrations in seismically active areas (earthquake risk

evaluation); the strength of subsurface layers; the distribution of

surface conductivity patterns (which cause the refraction of electro­

magnetic navigation signals); and the possibility for electromagnetic

or seismic crustal communication through the earth.

4.0 Specific Applications

The Department of Navy Energy Office is responsible for planning and

monitoring the efficient use of energy throughout the Navy and for

implementing DOD priorities and policies. The DON energy resource

management priorities are:

o To ensure that adequate energy supplies are available to sustain

peacetime and combat operations

o To improve the energy efficiency of the shore establishment

operating forces

o To substitute energy sources for fossil fuels where cost

effective

As an integral part of this effort. the Geothermal Energy R&D Program

is established to verify geothermal resources on Navy and Marine Corps

lands and to evaluate the risks and benefits associated with its develop­

ment. Deep test drilling is the only way to confirm the presence of the

resource. All drilling programs will ensure the obtaining of information

about the size and value of the resource so as to reduce the risk and

estabish value to the Navy.

5.0 General Applications

The applications for DON for a knowledge of crustal properties are

numerous. In order to discharge its mission for the defense of the

nation, DON is obligated to develop facilities and techniques which can

ensure its continued ability to function in the case of attack by foreign

powers. The concept of invulnerable naval underground facilities pro-

tected from enemy action has a certain appeal for defense purposes.

However, an understanding of earth properties immediately becomes

essential for evaluating techniques of communication, power supply,

environmental control, strength to withstand bombing over pressures,

and vulnerability of surface access links (i . e., for personnel, power,

water, ventilation, communication, and waste disposal).

5. 7 Earthquake Risk Reduction at Naval Facilities

The need for deep drill holes for developing methods to evaluate stress

buildup in seismically active areas is of prime importance. The possible

destruction of DON bases by earthquakes is a matter of valid concern.

The Navy has a clear responsibility to protect its shore bases against

damage from any source, incuding natural hazards. The threat from

earthquake damage is especially critical for naval bases since they are

often located in coastal areas on unstable marine soils and filled land.

Buildings in such an area are subject to distortion or collapse, either of

which renders a building operationally useless. Because this can affect

hospitals, power stations, communication stations, command headquarters,

harbor ingress and egress, and the support of the Fleet by naval bases

in general, this knowledge is critical to the Navy and vital to the secur­

ity of the nation.

5.2 Military/Civil Projects

Many holes are being drilled in to crystalline basement at military instal ­

lations for logistical support, including water supply wells, waste dis­

posal wells, foundation in vestiqations , and other civil work projects.

6.0 Current Status of Navy Cooperative Efforts

Interagency Agreement between Navy Energy R&D Offices and Depart­

ment of Energy, Ocean Energy Technology Division (Hybrid Geothermal/

Ocean Thermal Energy Conversion System).

Cooperative Program Agreement between Navy Energy R&D Office and

Department of Energy, Geothermal and Hydropower Technologies Division

on Geothermal energy investigation.

Interagency Accord on Continental Scientific Drilling (Proposed).

7.0 References

Department of the Navy Energy R&D Program Plan for FY1984

Navy Shore Facilities Energy R&D Plan for FY1985

Navy Geothermal Plan NWC TP 6612

8.0 Recommendations

Currently, we are unable to determine deep physical properties of the

continental crust with any certainty by qeoscientitic observations at

the earth's surface, although DOD research organizations are currently

supporting in vestigations aimed toward achieving this goal. A conti­

nental scientific drilling program is needed to provide ground truth to

test the geological, geochemical, geophysical techniques being developed.

This is critically important to the achievement of this goal. Such an

obiective will ha ve direct scientific (academic, state and federal agencies,

and profess ional societies) and in d u s t r ial benefits in addition to its

criticalit y for achieving DON objecti ves .

For the reasons outl ined above, DON has a vital interest directly in vol ved

with national security to ensure the progress and i mp lemen ta t ion of a

continental sc ientific drilling program. We wish to emphas ize the impor­

tance of such a program and to lend the weight of our responsibilities

and needs to the argument that such a program should be funded in the

national interest.

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Supplement B

Continental Scientific Drilling of

l.uotuolei , Oabu , Hawaii

Objective:

To develop a drilling program with the capability to provide the required

information on the geothermal resource beneath the Island of Oahu and the

applicability of using geothermal fluids to provide power and cooling for the

Navy.

Approach:

I f the resource proves to be viable for production ~ the next objective will be

to develop the geothermal resource which is authorized under 10 USC 2689.

Also , 10 USC 2394 authorizes the Navy to contract with terms up to 30 years

appropriate for the amortization of costs if the development is done at con­

tractors expense.1

The contract (venture capital type) calls for the firm to

complete the evaluation of the resource, develop the geothermal field, con­

struct the power plant and operate the plant at no capital cost to the Navy.

The developer recovers the capital in vestment through sales of energy services

(steam, electricity).

Because the electrical load at Lualualei does not exceed 1MWe~ one scenario

would be to wheel the excess power by HECO to other military installations

on Oahu.

The results of the drilling program and the data compiled will provide the

collateral that venture capital requires for the investment portfolio. Such

'cottaterat includes geothermal resource temperature, qeotluid flow rate and

well drawdown , and geofluid rein jection temperature and injec ti v i t y .

Impact:

The Lualualei Drilling Program is designed to not only satisfy Navy require­

ments , but also support scientific interests of the State of Hawaii (Department

of Planning and Economic Development) and participating agencies under the

Interagency Accord on Continental Scientific Drilling.

1The Navy has two such geothermal contracts in existence at this time; theCoso Development at the Naval Weapons Center, China Lake, CA and FallonDevelopment at the Naval Air Warfare Training Center, Fallon, N V.

Site Description:

The Island of Oahu, third largest of the Hawaiian Chain has an area of 7,569

square kilometers. The island was formed from two, originally independent.

volcanic systems: Waianae volcanoe , the older of the two, in the central west­

ern part of the island, and Koolau volcano, which formed eastern Oahu. Part

of the Waianae volcano caldera is located in what is now Lualualei Valley.

The Naval Magazine Lualualei occupies about 8,782 acres plus a three mile access

road. The Naval Transmitter Facility occupies about 7,750 acres adjoining the

Naval Magazine, Figure 7. Legal and institutional land matters are satisfied by

the Navy.

Geoscientific Information:

Geologic mapping identifies several caldera and rift zone structures in the Valley

and provide a tentative outline of their boundaries. Clay mineralogy studies

indicate that minor geothermal alteration of near-surface rocks has occurred at

some period in the history of the area. Schlumberger resistivity soundings

indicate the presence of a low resistivity layer beneath the valley floor, which

has been tentatively attributed to warm water-saturated basalt. Soil and ground­

water chemistry studies outline several geochemical anomalies around the perimeter

and within the inferred caldera boundaries. The observed anomalies strongly

suggest a subsurface heat source.

Other research opportunities beyond that of the thermal regime could include:

{7} downhole seismic studies of the structure of the Waianae Caldera complex and

nearby submarine flanks; {2} geochemical analyses and modeling of low tempera­

ture fluid compositions from a moribund basaltic island hydrothermal system; {3}

geological, geophysical petrological, and geochemical analysis of cores and cuttings

of late stage subaerial caldera filling lavas intrusive formations and hydrothermal

and retrograde alteration mineral suites; and {4} modeling of thermal and mechanical

processes associated with an extinct basaltic island volcanic system.

Scientific Drilling 'Pr og r am:

The Navy Scientific Drilling Program will have three elements. 2

A. The first element comes before drilling and that is entitled problem

definition which will involve investigations of many types ranging

2Continental Scientific Drilling Program. National Academy of Sciences,Washington, D.C. 7979.

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from analysis of existing drill hole data to advanced geological/

geochemical /geophysical surveys, environmental assessment. and

Na vy mission operational requirements.

B. The second element is the commencement of drilling operations in

wh ich coring, sample collections, and downhole measurements will

be made. The Navy will in clude in their drill plans the mon itoring

of Geothermal Resources Operations Orders. 3

C. The third element is postdrilling investigations which include the

various studies of cores, analysis, interpretations, and the report­

ing of results of the program.

Drilling Program Management:

The Navy has defined roles and respons ibilities to accomodate a program of th is

magnitude, see Figure 2.

Outs ide assistance from the scientific community is encouraged by utiliz ing such

expertise from the Deep Observation and -Samp l in g of the Earth 's Continental

Crust (DOSECC ), Inc., Science Advisory Committee and the Board of Earth

Sciences through their Continental Scientific Drilling Committee.

The en visioned drilling program at Luatualei, Oahu, is be ing offered as a hote is )

of opportunity to the scien tific community for cooperative efforts. The Na vy

process will be to announce our plans in the DEW (Drilling £arly Warning)

Newsletter sponsored by the Continental Scientific Drilling Committee.

Request for Funds:

The en visioned Na vy Continental Scientific Drilling Program under the res pons!­

'b i l i t y 'O{the "U. S. Navy Energy R&D Program is to drill one 6, 000 foot explora-

tory hole. The cost of th is program without add-on opportunities wi ll be

approximately $3M.

Contacts:

Tom Brubaker

Tom Boothe

Carla Gerrard

3Geothermal Resources Operational Orders are issued under the GeothermalSteam Act of 7970 and administered by 001 (Bureau of Land Management). Eachoperational order sets forth provisions to conduct various geothermal operationsfrom exploration through field closures.

..

Department of the Navy

Drilling Projects Management Plan

Navy

Coordinating

Committee

Scientific

':- - - - Advisory

Committee

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Drilling

Operations

Committee

Safety / Security

Logistic Support

Environmental

Scheduling

Financial Planning

Technical Expertise

Coring / Cuttings

Downhole Logging

Geologic Properties

Geophysical Properties

Geochemical Properties

Seismic

Figure 2.

Contract

Mobilization/ Demobilization

Testing

Planning

Drilling Specifications

United Statesof America

ltongressional1R((ordPROCEEDI N GS AND DEBAT ES O F THE 99 th CONGRESS, FIRST SESSION

No. 51\"(1ASHINGTON. FRIDAY..:..._A_P_R_I_L_2_G...:...._1_98_5 ------Vol. 131

SenateFRIDAY, APRIL 26, 1985

fLcgi.slative day of Mondall. AprillS. 1!l85J

By Mr. PRESSLER:S . 1026. A bill to direct the coopera­

tion of certain Federal entities in theimplementation of the Contin entalScientific Drilling Program; to theCommittee on Energ~' and Natural Re­sources.

CONTlNENlAL SCIENTIFIC DRILLING ANDEXPLORATION ACT

Mr. PRESSLER. Mr. President. Ia.m extremely pleased today to intro­duce the Continental Scientific Drill­ing and Exploration Act of 1985. Thislegislation represents an early step ina scientific program which I believeparallels in importance our efforts inspace over the past three decad es-butat a tiny fraction of the cost. Its scien­tific va lu e and potential for resolvingheretofore unanswered questionsabout the development and manage­ment of the planet on which we live isinestimable.

By increasing our basic understand­ing of the Earth. an effective Conti­nental Scientific Drill ing ProgramICSDP] has practical day-to-day appll·cations In areas dealtng wlt h erie rgyand mineral development. natural haz­ards such as earthquakes and volcaniceruptions. d isposal of hazardous­wastes. water resource management.and a host of other areas.

Mr. President. this legislation callsfor the Implementation of the Conti·nent.a.l SCientific Drilling Programjoint resolution which I introducedlast ye a r , and was signed Into law bythe President on October 12. 1984. Thelegislation represents an effort todefine In greater detail some policygoals and objectives of the U .S. Contl­nent.a.l Scientific Drilling Program.and calls on the Interagency Coordi­nating Group to prepare and submitto the C on gress a study outl iningthose detailed goals and objectives.and recommend a plan of action.

The Interagency CoordinatingGroup consists of an outstandinggroup of scientists that were broughttog'et her as a result of an interagencyaccord on continental scientific drill­ing signed by the Department ofEnergy. the U.S. Geologica! Surveyand the National Science Foundat ion.

Much work has already been done inthis important area. Years of d edica­tion and work have alread y been in­vested In the program. \Ve are now onthe threshold of an exciting new sc ien­tific era In basic Earth sc iences re­search and app lication. but we n eed tot ak e the next step by beg inning s in ­cere co ngress ional inquiry Into thisarea and carefully assessing our n eedto make a commttment toward CSDP.I f irmly believe this Is one of the mostImportant scientific programs thisbody has considered in some time.

I hue been astounded by the Sclen­tlfic cornmunlty's tremendous interestin and support for this legislation. Forexampic. in an effort to make the res­Islation as substantive and technicallycorrect as possible. I circulated a draftblll to approximately 130 top scientistsfrom around the country. The reo

s pous e was tremendous. We receivedsubstantive, detailed comments fromnearly 50 percent of the scientists. Allwere generally supportive and enthusi­astic about the legislation. The corn­m ents and recommendations I receivedwere , to the extent possible. incorpo­rated in the bill I am introducingtoda y. I bel ieve It is a good piece oflegis la tion and encourage my col­. ·~ a gu es to join me as co sponsors.

It Is important to get this bill passedin a timely fashion. The program is al­ready go ing Iorward. Indeed. the Na­tional Science Foundation is sponsor­in g a meeting of a large group of dis­t ing-uished sci entists and engin eerswho will gather in Houston. TX. nextweek to lay groundwork for what Ihope we will develop into a truly ria­t io ria l, long-term Continental Scientif·ic Drill ing Program.

I might just pause here to take amoment to r ecogn ize the ded icaticnand cooperative spirit of the individ­uals and Government agencies In­volved in this program. It is nearten­Ir;g to witness people and agencies sotruly devoted to a worthy commongoal.

My interest and involvement in th isprogram is relat.ively recent. and stemsfrom the potential role that the SouthDakota School of M ines and Technolo­gy could and should play in CSDP.B ut the more I s tudy the program. itsgoals and what it could mean for theUnited States. the more enthusiastic Ib ecome and the more certain I amthat we must go forward on a nationalscale.

There is much yet to learn about theEarth. I am convinced that our under­s t anding of this fasclnating planet willbe the key to a liv eable. prosperousf u ture for generations to come. TheC ont inental Scientific Drilling Pro­grarn is an extremely important ele­rr.ent in g a ining a better fundam entalu n d ers tand ing of and Ins ight in t o ourE art h. S;Jace Is not the ~ina l front ier.~~ uch closer. just as m ysterious. andpro bab ly more benefic ial is the insideof our O"-Tl p lanet. A thorough e xplo­r a t ion of th is important front ier. I amcertain. wil! reap ~eat rewards . Ia r a in ask you to joi n me in support oft h is effort and support passage of thisIr.-." ona.nt lei: is lation. The t ext of theb ::1 Itself goes a long way t oward ex­p ! :1. : ~.i :1 g the t hrust of my leg islat ion. Icc rnm end It t o my cotleacues ' a t t e n­t :0 :1 arid ask unani m ous cons ent that aco ~y of the b ill be pr inted in t b eR ;:CORD at th is point.

T~.ere be in s no objection. the bill\\ ,' 05 ordered to be printed in theR [ CORD. as rollo~..s :

5 .1028Sr II rna,lt'd b y Ult' Srntit« end HO'.l..3r of

R ..:- "rJ( Tl l e l ll ~J of Ulr t 'T1llrd Sta te« ofA ·-. r~ ce In COTl ~ rrJJ a..!5t'''lb lrd.. That t rusA, I may be c it ed LS the " C orit mcnt at S c len­U : Il' D~l :llr.. and Explorat Ion Act".

r t'llrosl:S$ £c . :: . Thr nur pos.. of thIs Act is to-11J irnc terneru secuon 3::3 of the Joint res ­

oiuuon rntltlr'd "J olnI Resolution making

continuing appropriati ons for the fiscal year1985. and for ot her purposes", a ppro ved Oc­tober 12. 1984 (Public Law 98 -4i3 : 98 S ta t.1875 ) which supports and encou rag es t nedevelopment of a national Con t ine nt al Sci ­entific Dr illing Pr ogram:

(2) en han ce fundamental und ers tandingof the composit ion , structure. dynamics. andevolution of the continental crust, and h owsuch processes aff ect natural phe nomenasuch as earthq uakes. volcanic eru ptions,transfer of geoth ermal en ergy . distr ibutionof minerai deposits. the occurrence of fossilfue ls, and the nature and ex tent of ac-Quif ers ; . .

(3) ad vance bas ic earth scien ces resear chand technolog ical development:

( 4 ) obtain cr itlcal data r egar dirig theearth's crust. relating to isolat ion of hazard­ous was tes: and

(5 ) develop a long-range plan for irn ple­mentati on of the Con t inental ScientificDrill ing Program.

FINDINGS

SEC. 3. Congress finds that-0 ) because the earth prov ides energy.

minerals. and water. and is used as a storaeeme di um for municipal, ch emical, and nucle­ar was te , an und erstanding of th e process esand s tructures iT: the earth 's L;" ~:it is css cn­t lal to the well being of the United S ta les :

(2) th ere Is a need for develop ing lo n g- ..range plans for a Uni ted States Con ti nentalSclen tl fic Dr illing Program: and

( 3 ) the Con tinental Scien tific Dr illing Pro­gram would enhance-

(A) un ders tanding of the crustal evo lut ionof the earth and the mounta in buildingpr ocesses;

( B ) unders tan ding of the mechanisms ofearthquakes and volcanic eruptions and thedevelopment of im p rove d techniques forpred iction;

( C) understand ing of the developm ent andu t ilizat ion of geot hennal and other ene rgysources and the fonnat ion of and occur­rence of mineral deposits:

(D) understanding of the migration ofn u ids In the earth's crust for evaluation ofwaste contamInat ion and the developm entof more effective techniques for the safesubsu rface disposal of hazardous wastes:

( E) un derstanding and definition of thesize. source, and more effective use of ac­qu i f ers and other water resources: and

tF) evaluation and verifica tion of surfacegeophys ical techn iques needed for exp lor ingand mon itoring and earth's crust.

IM PLL'l !:.N7' ATl O N OT CONTINENTAL S C I E :-iTI YIC

r ' I :..LI NG P ROGRAM

SEC. 4. The Sec retary of the Depa rt mentof Energy . the Sec ret ary of the Depart m eritof th e In ter ior t.nrouc n the Un it ed S tatesGeological Survey. and the Director of theNational Science Fo unda tion sh all im p le­ment the pol icies of section 323 of the jomtr esolutton en titled "J oin t R esolut ionmak ing continumg appr opr ia ti ons for thefiscal vcar 1985. and for other pur pose s" .e;lpro, 'ed October 12. 1984 r Pu blic La...· 98 ­4 ~ 3 : 58 Stat. 1875 ) by-

( I l t ak ing such ac tion as necessar y toa ss ure an errect tve . cooperau ve el lor: inIurt he rance of the Con ti nen tal Sc .eru i f icDr ,lImi Program of the Urn t cd States:

( 2 ) tak ing a.1I reasonab le a d rm rn s t ra t iveand financial measures to ass ure that theIntere gency Accord on Con ti nental Serenu t­Ic Drill ing con ti nues to function el!ectl\ elyin support of such program:

( 3 l a..s.sur lng the con unutnz ef Iect ive one r­a tl on of the Inte ragency Coor c ma tmgG roup to further the objecttves of suc hp r0i:am:

(4) taking such act ion to assure that theInt erage ncy Coordinat ing Group recerv es

appropriate cooperation from UlY ~eral

al{ CrlCY that can contribute to the ob jectivesof auch provam, without arll'erscly a.!!eet­InK any pn>«nm or activity of such agency;and ..

IS> a.ctlng through the Intera~ell<:Y Co­"OrdinaUng G rou p , preparing an<1 submlrttngto the ConaTesa. within one hundred ande ighty d aya after the enactment of this Acta report deseriblnlr- .

lA) long and snort-term policy ob jectivesand (l:0R1.s of the United S ta tes ContinentalSclenWlc Drill ing Program:

l B I projected schedules of d es irable sMen­tlfic and engin ecrtng events that "..ould ad­vance UnJted States ob jecttves In the Conti­nental SClen1i!lc Drilling Program:

(C) to the extent and for the d urationUUl.t the lnl.eragency Coordinating Groupdeems practicable . maximu m. m in imum,and intermediate levels of resources andfunding that would be required b>' each pll,r-

. t tcipating Federal a gency to carry outevents pursuant to subpar ag r s nhs l A ) andlB ) M the var ious levels of e ffo r t :

10> t he sci enlt ftc. economtc, t ecn norost ca t.and social benefits expected to be re a lizedthrough the Implementat ion of s uch pro­gram a t C':lcl1 lc~cl d escribed In subpa ra­p-aphlC};

(E) • recommended co u rse for Inte ra ct lon...·It h the tnternattonal comrn unlty in a coop­erative dfort to achieve the goa ls and pur-poses of the Act: .

(F> the extent of partjclpatlun or In terestshown to date In the Continental SCientificDrill ing Program b>'-

(I >any other Il"Ovemmenlal a gency;(Ill UlY a.cBdemlc Institution:(lill lUly organizat ion in t h e private sector:

andnY I any governmental 01' other en Uty in the

Intematl.onaJ community;(G ) a plan to d evelop benerlca.l coopers­

trve rel1tlonships a.mo~ the entities men­tioned in robparagnph (F), to the extentthat the InteragencY Coordinating Groupd eems practicable: and

( H ) any ..other Information or recommen­d a t ions ttult the Interagency Co orrt i nat tngGroup deems appropriate.

N AVA L WEA PON S C E NTER

C H INA L..AKIE . CA 93!S!5!S

CARLA S. G ERRAROA CM I N ISTRA T IVE OFprIC~R

GI!:OTHERMAL.. UTILIZATION OI V ISION

~19( ; ..{) 93 9 - 3 4 11 ( E X , 43" >

Z~VON 4 37·3 411 (EX . 438)