DOE/ I D / 1 2 0 1 8 - 5

COLORADO GEOTHERMAL COMMERCIALIZATION PROGRAM

GEOTHERMAL ENERGY P O T E N T I A L IN CHAFFEE COUNTY, COLORADO

by

F r a n k C . H e a l y

April 1980

COLORADO GEOLOGICAL SURVEY DEPARTMENT OF NATURAL RESOURCES

Denver, Col orado

Prepared for the U.S. D e p a r t m e n t of E n e r g y

D i v i s i o n of G e o t h e r m a l E n e r g y U nde r C o n t r a c t No. DE - FCO 7- 79 I I) 1 20 1 8

DISCLAIMER

This report was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor any agency Thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof.

DISCLAIMER Portions of this document may be illegible in electronic image products. Images are produced from the best available original document.

ACKNOWLEDGEMENTS

The a u t h o r w i s h e s t o e x t e n d a p p r e c i a t i o n t o t h e many p e r s o n s who a s s i s t e d i n t h e p r e p a r a t i o n o f t h i s p u b l i c a t i o n , e s p e c i a l l y t o R i c d H . P e a r l , C h i e f , Ground Water I n v e s t i g a t i o n s S e c t i o n , Neal S h e r r y f o r d r a qg, S h i r l e y D e n z l e r f o r m a n u s c r i p t t y p i n g , and t h e r e s i d e n t s o f C h a f f e e County .

ii

TABLE OF CONTENTS

INTKOUUCTION .......................................................... 1 AREA DESCRIPTION ...................................................... 1

General Geology ..................................................... 1 Climate ............................................................. 3

Population .......................................................... G Economic Activity and Conditions .................................... 7

Land Use and Ownership .............................................. 3

Attitudes ........................................................... 13 Energy Deinand ...................................................... 17

REYUIREMENTS OF HYDROTHERMAL ENERGY DEVELOPMENT ...................... 22 Institutional Considerations ....................................... 22 Environmental Considerations ....................................... 25 Water Availability ................................................. 29 Technical Considerations ........................................... 3 0 Economic Considerations ............................................ 3 1

HYDROTHERMAL ENERGY DEVELOPMENT POTENTIAL ............................ 3 2

Historical Use ..................................................... 36 Development Activities ............................................. 36

Bibliography ....................................................... 46

Resource Description ............................................... 34

Development Upportunities .......................................... 37 Sumrnary ............................................................ 44 Oral Communications ................................................. 45

i i i

T A B L E S

1 . 2 . 3 . 4 . 5 . 6 . 7 . 3 . 9 . 10 . 11 . 1 2 . 13 . 1 4 . 1 5 . 1 6 . 1 7 . 18 . 19 . 20 . 2 1

2 2 .

Land Ownership ................................................... 4 P o p u l a t i o n ....................................................... 6 Mdjor Employers .................................................. Coun ty Bus inesses ................................................ 9 Employment a n d Wages ............................................. 14 Labor Force and Unemployment ..................................... 1 5 Spendable Income ................................................. 1 5 Business I n d i c a t o r s i n S e l e c t e d Coinrnunities ...................... 1 6 Debt. Budget a n d Taxes f o r S e l e c t e d Communities .................. 1 7 Communities Served by Natural Gas ................................ 18 N a t u r a l Gas Consumption .......................................... 1 9 I n d u s t r i a l N a t u r a l Gas Users ..................................... 1 9 Es t imated Thermal Energy Demand f o r S e l e c t e d Communities i n Chaffee Coun ty ( R e s i d e n t i a l and Commercial) ...................... 20 Manufac turers .................................................... 2 1 Colorado S t a t e Active Geothermal Leases .......................... 23 Federal Act ive Non-Competitive Geothermal Leases ................. 23 Federal Geotherreal Lease A p p l i c a t i o n s ............................ 2 4

Resource D e s c r i p t i o n ............................................. 34

Cornpari son of Energy Consumption a n d Avai 1 a b 1 e Hydrothermal Kesources ........................................... 33 P o s s i b l e schedule f o r drea hydrothermal development .............. 39

Federal Act i ve Cornpet i t i ve Geotherrnal Leases ..................... 2 4

Est imated Useable Hydrotherinal Energy ............................ 35

E l e c t r i c power gene rd t ion D i r e c t heat a p p l i c a t i o n s

FIGURES

1 . Chaffee County ................................................... 2

3 . Geothermal Resource Loca t ions ..................................... 33 2 . Land Ownership .................................................... 5

i v

I N T l l O U U C - T I O N

Chaf fee C o u n t y , l o c a t e d i n c e n t r a l C o l o r a d o , has immense p o t e n t i a l f o r yeothermdl development. This r e p o r t has been prepLired t o a s s i s t r e s i d e n t s a n d

deve lope r s i n a n d o u t s i d e t h e a rea t o develop t h e hydrothermdl r e s o u r c e s o f t h e county. D d t d has been c o l l e c t e d a n d i n t e r p r e t e l froin numerous sou rces i n o rder t o i n t r o d u c e a genera l d e s c r i p t i o n of t h e a r e a , e s t i m a t e energy requi re rnents , d e s c r i b e t h e r e s o u r c e s a n d p o s t u l a t e a development p l a n . This r e p o r t d e s c r i b e s e l e c t r i c power g e n e r a t i o n a n d d i r e c t hea t a p p l i c a t , o n p o t e n t i a l fo r t h e r eg ion d n d should be used i n con junc t ion with the indny e x c e l l e n t geothermal p u b l i c a t i o n s t h a t a r e r e a d i l y a v a i l a b l e .

A R E A D E S C R I P T I O N

Chaffee C o u n t y , l o c a t e d wi th in C o l o r a d o Planni n j a n d Management Region Number 13 , encompasses a n a r ea of approximate ly 102) squa re mi l e s . Located on t h e e a s t e r n s l o p e o f t h e Cont inentd l D iv ide , t h e colrnty i s n e a r l y i n t h e geogrdphic c e n t e r o f t h e s t a t e ( F i g . 1 ) .

E l e v a t i o n s wi th in t h e county v a r y between 6 , 9 0 0 a n d 1 4 , 4 1 4 f e e t above inean sea l e v e l . The ared i s dominated t o p o g r a p h i c a l l y by t h e Arkansas R i v e r , which b i s e c t s t h e county f lowing from n o r t h t o s o u t h . Major t r i b u t d r i e s of t h e Ar kdnsas R i ver i ncl ude t h e S o u t h Arkansas Ri ver , Col. tonwood Creek, C h a l k Creek, Clear Creek arid T r o u t Creek.

N e a r l y a l l o f the u r b a n development i s concentfdted a l o n g t h e A r k a n s a s River . There a r e t h r e e inco rpora t ed m u n i c i p a l i t i e s i n t h e county : S a l i d a , t h e county s e a t , Buena Vi s t a a n d Poncha Spr ings . Nuin2rous smal le r un incorpora t ed "hamle ts" a n d s u b d i v i s i o n s l o c a t e d t h r o u g h o u t t h e C o u n t y a r e a d r e mainly concen t r a t ed along t h e major highways a n d t h e Arkdnsas River ( F i g . I ) .

G E N E R A L G E O L O G Y

The U p p e r Arkansas Val ley Bas in , ( k n o w n l o c a l l y as t h e C o l l e g i a t e V a l l e y ) w i th in which Chaffee C o u n t y i s l o c a t e d , i s p a i t o f t h e no r the rn ex tens ion of L h o R i o GrdntJe r i f [ , zone , ex tending froin soritli(!rn New Mexico n o r l h w ~ i r t l 1.0

-1 -

, , .. , , . . . . , . , . ,

SCALE 1:250000

5 0 5 IO MILES --ii

5 0 5 10 KILOMETERS Y - i 1

DATUM IS MEAN SEA LEVEL

CHAFFE’E COUNTY

COLORADO

FIGURE 1

- 2 -

c e n t r a l C o l o r a d o . F a u l t i n g a s s o c i a t e d with 1.he R i o Grande r i f t zone has

g e n e r a l l y r e s u l t e d in loca l s u r f a c e m a n i f e s t a t ions of hydrothermal s p r i n g s i n Chaffee Coun ty .

The a rea i s bounded on t h e west by t h e Sawatch R a n g e , t h e Arkansas H i l l s on t h e e a s t a n d t h e Sangre de C r i s t o Range o n t h e s o u t h e a s t . The Sawatch r ange , which reaches as much as 7000 f e e t above the v a l l e y f l o o r , c o n s i s t s of predominant ly Precambrian age metamorphic a n d igueous rocks a n d T e r t i a r y i n t r u s i v e s . The Arkansas H i l l s , t h e southern l i m i t of t h e Mosquito Range (Romero a n d Fawcet t , 1 9 7 8 ) , consi s t o f Precainbri a n metamorphic a n d i gneous rocks capped i n p l aces by coinplexly fo lded a n d f d u l t e d Pdleozoic sed1in;hntdr.y rocks a n d T e r t i a r y aye vo lcan ic s . The Arkansas H i l l s a r e a small mountain a rea i n comparison t o t h e towering peaks of t he Sawatch Range t o t h e west . Sedimentary d e p o s i t s found a l o n g t h e i n t e r i o r p o r t i o n s of t h e county inc lude b o t h c o n s o l i d a t e d a n d unconsol i dd ted sediiiients of T e r t i a r y d n d Uudterr1dr.y dges.

C L I M A T E

Cliiiidtic c o n d i t i o n s i n t h e county v a r y with c l e v d t i o n a n d l o c a t i o n . The c l i m a t e i s m a i n l y i n f luenced by a i r inovement over t h e sur rounding mountain masses. P r e v a i l i n g winds a r e from t h e southwest near Poncha Spr ings a n d S a l i d d i n t h e southern p o r t i o n of t h e county a n d from t h e n o r t h , northwest i n t h e no r the rn p o r t i o n . P r e c i p i t a t i o n from t h e west i s mostly i n t e r c e p t e d by t h e h i g h

mountains. A n n u a l p r e c i p i t a t i o n in t h e county ranges from over 30 inches i n t h e western mountains t o under 10 inches o n t h e v a l l e y f l o o r . Typical c l i m a t i c c o n d i t i o n s f o r t h e v a l l e y f l o o r i nc lude l o w p r e c i p i t a t i o n , l o w humidi ty , a b u n d a n t sunsh ine , wide d a i l y t empera tu re r ange , a n d g e n e r a l l y 1 i g h t winds. The average t ime between f r e e z i n g t empera tu res d u r i n g t h e summer months i s dpproxiiiiately 107 days . Average m o n t h l y teinpl!rdtures rdnge from d l o w of dppoximdtely 2°F i n December t o a h i g h of dpproximately 35" F d u r i n g J u l y and

August. The a rea a r o u n d Buena Vi s t a in t h e no r the rn p a r t of t h e county expe r i ences s l i g h t l y c o o l e r t empera tu res t h r o u g h o u t t h e y e a r t h a n t h e S a l i d a a n d Poncha Spr ings a rea ( U A A C O G , 1 9 7 6 ) .

L A N D U S E A N D O W N E R S H I P -

Chaffee Coun ty i n c l u d e s approximately 657 ,150 a c r e s . county fo l low a p d t t e r n accord ing t o t h e d i f f e r i n g l a n d t y p e s .

L a n d use p a t t e r n s i n t h e

- 3 -

-4

.. .

-ii

5 0 5 10 MILES Y Y Y

5 0 5 10 KILOMETERS H c l -

OATUM IS ’MEAN SEA LEVEL

LAND OWNERSHIP

CHAFFEE COUNTY COLORADO

FIGURE 2

- 5 -

POPULATION

c r e a s e s h a v e ' o c c u r r e d s t e a d i d y i n C h a f f e e C o u n t y s i n c e 19'60. T'his i n c r e a s e h a s takyen p l a c e p r i m d r i l y i n t h e u n i n c o r p o r a t e d d r ' e a s o f t h e c o u n t y w i t h t h e i n c o r p o r a t e d c i t i e s i n c r l e a s i n g a l s o , b u t a t a s l o f l e r r a t e . The g r o w t h i n t h e r u r a l a r e a s i s m a i n l y a t t r i b u t e d t o s d i v i s i o n a c t i v i t y f roin t h e e a r l y 1960s t o the p r e s e n t . T a b l e 2 l i s t s the p o p u l a t i o n h i s t o r y d p r o j e c t i o n s f o r t h e a r e a .

.

T A B L E 2

C H A F F E E C O U N T Y POPULATION

19601

C H A F F E E C O U N T Y 8 ,298

B U E N A VISTA 1,806

P O N C H A SPRINGS 201

SALIDA 4,560

U N I NCOR - P O R A T E U 1 ,731

19701 13802 Es t . -I_

10,162 12,600

1,962 2,979

198 428

4,355 5,455

3,647 3,738

19902 2000 2020 -- Est. Est. Est

15,700 19,1063 28,3905

4,139 5,0374 7,4844

676 8234 1,2234

6,839 8,3234 12,3684

4,045 4,9234 7 ,3154

SOURCE: 1. U.S. Dep t . o f Commerce, Bureau o f t h e Census, 1960 and 1970

2 . P o p u l a t i o n E s t i m a t e s and P r o j e c t i o n s , C o l o r a d o D i v i s i o n o f P l a n n i n g , S e r i e s CP-25, Number 79 ( c ) - 1 , O c t o b e r 1979

3. C o l o r a d o P o p u l a t i o n T r e n d s , C o l o r a d o D i v i s i o n o f P l a n n i n g , Vo. 5 , ,\lumber 1 , W i n t e r 1976

4. C o l o r a d o G e o l o g i c a l S u r v e y Estimdtes 5. New Mexico E n e r g y I n s t i t u t e E s t i m a t e s

- 6 -

E C O N O M I C ACTIVITY A N D C O N D I T I O N S

H i s t o r i c a l l y , a g r i c u l t u r e , t h e r a i l r o a d i n d u s t r y a n d mining were t h e p r i n c i p a l enconoinic d c t i v i t i e s i n Chaf fee County. W i t h t h e d e c l i n e o f t h e ininiiig e rd a n d

t h e p d s s i n y of S a l i d a a s a major r a i l h e d d i n 1 9 1 5 , t h e c o u n t y ' s economy now i s predominant ly dependent o n tourism d n d dg r i cu l t u r e w i t h i n t h e coun ty , major mining p r o j e c t s o u t s i d e t h e county and t h e C%)lorado S t a t e Reformatory near Buena V i s t a .

Chaffee County ' s p re sen t economy can be cons ide red a s "heal t h y " . IMajor employers f o r persons r e s i d i n g i n t he county a r ? l i s t e d on I t should be noted t h a t some of the major employers aye l o c a t e d o u t s i d e t h e county boundar i e s , b u t w i th in commuting d i s t a n c e s . Examples o f t h i s i n c l u d e the A M A X Molybdenum mine a t C 1 imax, near Leadvil l e ai1d Homestdke Mining Company's f a c i l i t y near Sa rgen t s .

Table 3.

A l i s t i n g o f county bus inesses i s shown o n Table 4 . The a red i s well endowed w i t h a f u l l range o f r e t a i l and wholesa le s e r v i c e s . Between 1 9 7 3 and 1978, 256

new businesses were s t a r t e d i n Chaffee C o u n t y . Approximdtely 1 6 0 o f t h e s e bus inesses do not p r e d i c t expans ion , 9 3 plan t o expand, 3 3 t h a t a r e p lanning expansion d o not expec t t o i n c r e a s e t h e i r l abo r f o r c e a n d 6 3 p lan t o expdnd and d d d crnployees d s necessary (Economic Overview, Kegion 1 3 , 1 9 7 8 ) . These small bus inesses normally would not be cons idered a s impor tan t t o growth and human s e t t l e m e n t a s t h e l a r g e r employers. However, when r e l a t i n g t h e s e s t a t i s t i c s t o t h e p o p u l a t i o n o f t h e c o u n t y , t h e s e s m a l l e n t e r p r i s e s become a n impor tan t f d c t o r t o t h e a r e a ' s economic base.

According t o t h e Chaffee County Comprehensive Plan compiled i n 1976, t h e c o n s t r a i n t s a f f e c t i n g cont inued economic development a r e water a v a i l a b i l i t y , mountain f r e i g h t r a t e s , n a t u r a l r e source a v a i l a b i l i t y a n d energy f u e l s . I f yeotherinal e x p l o r a t i o n proves success fu l and p r o d u c t i v e , some of t h e s e c o n s t r a i n t s w i l l be diminished ( U A R C O G , 1976) .

- 7 -

TABL.E 3

M A J O R EMPLOYERS C H A F F E E C O U N T Y REGION

P u b l i c S e r v i c e Company R i o G r a n d e R a i l r o a d Safeway S t o r e s , I 'nc. F i r s t N a t i o n a l Bank U.S. P o s t O f f i c e - S a l i d a C i t y o f S a l i d a C h a f f e e Coun ty Schoo l D i s t r i c t R-32-J C i t y of Uuena V i s t d C a l c o , I n c . S a n g r e d e C r i s t o Gi bson ' s S a l i d a T r a n s f e r Moun ta in Bel 1 t - iascal l & H d i nes C h e v r o l e t B u t a l a C o n s t r u c t i o n Avery C o n s t r u c t i o n P i c k n e e C o n s t r u c t i o n S a l i d a H o s p i t a l Col urnbi ne Manor C h a f f e e Coun ty Udrlk C1 i max M i ne-AMAX Buena Vi s t a S c h o o l D i s t r i c t U.S. S o i l C o l o r a d o S t a t e R e f o r m a t o r y Cozi nco C F & I S tee l Monarch K e c r e a t i on Hoinestake Min ing

EMPLOYEES ---

Present P r o p o s e d 1978 -1983 1990

1 9 20 25 20 15 -20 1 5 - 2 0 42 80 110 32 37 42 35 35 4 0 - 4 5 3 3 38 50-60 - - - - 1 0 5

124 1 2 14 4 2 60 2 4 25 28 32 5

2 2 25 25 20 25 40 25

30-40 - - -- 6

101

- - - - - - - - - - - - - - - -

- - - - - - - - - - - -

40-45 50 50 I? 25 25

- - - - 7 7 1 1 1 2

40 8 5 100 1 9 6 25 35

100 45 I n c r e a s e t o 171 f o r

-- - - - - - - -- - - - - - - - - - -

1 i f e o f p r o j e c t ( e s t i m a t e d 40% C h a f f e e Coun ty r e s i d e n t s )

SOURCE: Economic O v e r v i e w , R e g i o n 13 , December 1978

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C H A F F E E C O U N T Y BUSINESS SUMMAKY

ACCOUNTANTS

/\brdii iczyk, J.D. Lindblooin & Co., I n c . i'Ylarshal1 , R o b e r t R . P r o v e n z a , S t a n 1 e y T o u b e r , Edward

AGRICULTURAL EQUIPiYENT & SUPPLY

F a i r p l a y Western S t o r e Hughes O i l and I m p l e m e n t J o h n s o n V i l l a g e Feed and Coal S a l i d d Feed and Farm S u p p l y V i s t a Feed and Coal

AUTOMOBILE DEALERS, SERVICE STATIONS, E T C .

A r y y ' s Motor Company Acme B r a k e Company Boesch M o t o r s , I n c . B o b ' s Conoco t j o b ' s S t a n d a r d B r a d b u r y Conoco Buena V i s t a Au to C l i n i c Buena V i s t a S t a n d a r d S t a t i o n B l a c k w e l l ' s Rocky M t n . O i l Co. Downtown Auto Body Shop Exxori O i l P r o d u c t s Foreman S a l e s and S e r v i c e G a t e l y Motor Company Gunsrnoke T r a d i n g P o s t H a s c a l l and Hai nes C h e v r o l e t H e r t z R e n t - a - C a r High C o u n t r y A u t o m o t i v e Hi-Way Auto & M o b i l e Home S a l e s Hughes O i l & Implemen t Co. Husky O i l J i m ' s Transini s s i on and G e a r K e l l e y Motor S e r v i c e Kol beck S e r v i c e Lewis P e t r o l e u m P r o d u c t s C O . Monarch M o t o r s , I n c

AUTOMOBILE DEALERS SERVICE STATIONS E T C C O N T __ L- -.A __--'

M o r r i s o n Repa i r P e t e ' s Au to R e p a i r P i t n e y and Son Auto S a l e s Pond M . Au to P a r t s Ri 1 e y ' s Au to S a k ' s A u t o , I n c . S a l e rn0 S e r v i c e S a l i d a A u t o m o t i v e P a r t s S a l i d a Auta S a l v a g e S a l i d a F o r d Sin 1 t t y ' s G a r a y e S p d S t a n i l d r d S e r v i c e S t a t i o n S t d l 1 swor-th Motor Co. T e d ' s Au to S a l e s T e x a c o P r o d u c t s V i s t a Au to S u p p l y Western Auto S t o r e

BUILDING MATERIALS, SUPPLIES. H A R D W A R E

C o a s t t o C o a s t Cody H a r d w a r e H a r t Rok Redi Mix C o n c r e t e , I n c . Hobbs Lirioleiiiii T i l e & C a r p e t Hyl t o n Lumber Co. JM F l o o r C o v e r i n g K n o t t y P i n e Lumber & H a r d w a r e N i c k ' s LLimber C O . M i d l a n d kome Center P a t t e r s o n H a r d w a r e Co. S a l i d a True V a l u e Hardware S a l i d a F1 o o r C o v e r i n y S. and M . S p e c i a l t i e s S c o t t ' s Lce Home Center

C AMP G R 0 U FIE B r o w n ' s Campground Uuena V i c t a K O A C r a z y h o r L e Cainpi n y R e s o r t F c s s l e r ' s T r d i l e r P a r k F o u r Sea:ons M o b i l e Hoine P d r k

- 9 -

T A B L E 4 CONTINUED - C A M P G R O U N D S , C O N T .

C;i nyer b r e d d Ranch K O A Campground

C H A M B E R S OF C O M M E R C E

Buena Vista Sal i da

C H U R C H E S

Assernbl y of God Buena Vi s t a Church of C h r i s t C h r i s t i a n Sc ience S O C . o f Sa l ida Church of t h e Ascension Church of Chr i s t Church of J e s u s C h r i s t of

Church o f t he Nazarene Congreg. U n i t e d Church of C h r i s t F i r s t B a p t i s t F i r s t C h r i s t i a n F i r s t Church o f C h r i s t S c i e n t i s t F i r s t Lutheran F i r s t P r e s b y t e r i a n Foursquare Gospel Grace Episcopal J ehovah ' s Witnesses Mountain Hei g h t s Bapti s t Mountai n View Church of Chr i s t Pentecos ta l Church of God Poncha Spr ings Church of C h r i s t S t . J o s e p h ' s Cathol i c S t . Rose o f Lima Temp1 e B a p t i s t Seventh Day Adventi s t United Methodist

L a t t e r Day S a i n t s

CLEANERS-LAUNDRIES

Band Box Cleaners Buena Vi s t a Cleaners & Laundry Easy Sel f S e r v i c e Hal ver son ' s Laundry ti Dry C 1 e d n i n y T u 1 1 e ' s Coi n-Op Ldrindry

C O N S T R U C T I O N - C O N T R A C T O R S

Acme El e c t r i c Antero E l e c t r i c Arkansds Vdlley Con t rdc to r s

CONSTRUCTION C O N T R A C T O R S , C O N T .

Avery S t r u c t u r e s , Inc. Betco Cons t ruc t ion Co. 13uena Vi s t a Heat ing & Sheet Ikletal i3uena Vi s t a Truss Co. Buta la Cons t ruc t ion Co. Chaffee Heat ing & S e r v i c e Co. C u i n m i n s Cons t ruc t ion C o n t i nentdl Honie t3ui 1 der s , I nc. Cooper P1 unibi n g Del uca Gas Co., Inc. Dey E l e c t r i c Farwest Houses Robert L . Kane Kay's Karpentry Lou ' s E l e c t r i c Lowry Crane S e r v i c e M dnd M Backhoe S e r v i c e Mill d n d C d b i n e t S h o p Mountain E n t e r p r i s e s Ouray Cons t ruc t ion P ick re l C o n s t r u c t i o n , Inc. Pridemore Cons t ruc t ion R u p p Plumbing & Heating S & M S p e c i d l t i e s George Sabin Sal i d a B u i l d e r s S c o t t El e c t r i c Sneddon P1 urnbi n g & Heat i n g Unique Concrete United Cons t ruc t ion of Colo. V i s t a E l e c t r i c Y & K Excavat ion

FINANCE , INSURANCE , R E A L T Y

Buena V i s t a Bank & T r u s t Co. B u e n d V i s t a Real ty Chaffee County Bank Chuck Lee Real ty C o l l e g i a t e Peaks Rea l ty Don Porco Farmers Insurance Group Fi r s t Nat ional B d n k Ildrold I < . Kostcr John Peep1 c s R e d l ty M & K Kedlty and Auction Co. Mountdi n Rea l ty NWP of S a l i d a IRealty One S d l i d,1 Ur o k c r d y e

- 10 -

T A B L E 4 CONTINUED

F I N A N C E , INSURANCE, R E A L T Y C O N T I N I J C D

S d l i d d b u i l d i n g Zr Loan S a l i d a I n d u s t r i a l Bank L d l i d d Land 8 I n v e s t m e n t S a l i da Red1 t y S o u t h I n s u r a n c e Agency S t a t e Farin I n s u r a n c e S t r o u t R e a l t y T a l l y R e a l t y W e s t e r n P a r t n e r s A o r l d S a v i n g s & Loan Assn.

FURNITURE, APPLIANCES

A-1 S e r v i c e Acme E l e c t r i c B r d i n b r i d y e F i i rn . d U p h o l s t e r y C O . Cdnon Fur t i . Wdr e h o u s e ti Appl 1 a n c e Church I s Appl i d n c e and

R e f r i y e r d t i on S e r v i c e E d ' s I J p h o l s t e r y 2 F u r n i t u r e G r e e n b e r g F u r n i t u r e H d r t i n a n ' S F u r n i t u r e L i n d R e p a i r S e r v i c e McDondl d ' s R e f r i g e r a t i on Montgomery Ward & Co. Rest B e t t e r Water Beds T e l l e r S t . Econo Shop T u r n a b o u t Shop V i s t a TV and F u r n i t u r e Your F u r n i t u r e S t o r e

G R O C E R S

Burrnac E n t e r pr i ses C i r c l e S u p e r G r o c e r y E - Z Way S t o r e : ; tiunsiiioke T r a d i n g P o s t H i g h V a l l e y Center L o a f / J u y S t o r e Mini t Marke t O x f o r d ' s Mdrkc t Seven E l e v e n Supe r Foods V i s t a S u p e r M a r k e t The Way S t a t i o n

Aspen Lelif C O t t d r J e S Buena V i s t a H o t e l C h a t e a u C h a p p a r a l Lodge C i r c l e R . Motel C o l o r a d o Lodge C o r o n d d o Motel Co t tonwood C r e e k Log Cabi ns Deer Val 1 e y Ranch Hi -Lande r Motel J a c k s o n H o t e l L a k e s i d e Motel L i t t l e K i v e r IYotel Log C a b i n C o u r t L o s t C r e e k R a n c h Mol i ne H o t e l Monarch No to r Lodge Monarch 5,ki Area Motel Mdr tha Motel Wes te r n e r M t . P r i n c e t o n Hot S p r i n g s M t . Shavono C a b i n s M o u n t a i n View Motel The P a l a c e H o t e l P a r k Motel P i tion C o u r t P o n d e r o s d Guest Ranch Rai nbow Motel Ranch House Lodge Red Log Motel Keclwood Lodge Rocky M o u n t a i n Lodge S h a v a n o Motel S i l v e r Yheel Motel S t a g e c o a c h Motel Sumac Lodge Thunder Lodyc Topaz Lodye T r s i l Head Ventures V i s t a C o u r t Wa!lon Whvel R a n c h West Wind Motel W e s t e r n Hol i d a y Motel Wood1 dnd Brook C a b i n s

- 11 -

TABLE 4 C O N T I N U E D

MEDICAL RESTAURANTS CONT.

C h a f f e e County Ambulance S e r v i c e C l i n e , D o n a l d W., M.D. F i r e s t o n e , S tephen W . , DDS Jones, Ron, DDS L e o n a r d i , Leo J . , M.D. Lons, B ruce , !IDS McCa l lon , T.D. , M.D. McGowan, R.A., M.D. Mehos, W i l l i a m G., M.D. Rowland, J a c k R. , DDS S a n d e l l , Thoinas G. , M.D. Smi th , R o b e r t B . , M . D . Spray, S.M., M.D. S t e i n a u e r , J .J i , DDS V e l t r i , V i c t o r , DDS Weber, Mark W., M.D.

R E S T A U R A N T S

Aspen Lea f Casa Del S o l C l u b R i o The C o r r a l C o r r a l S teak House C r a n b e r r y K i t c h e n Del aney ' s Depot D i n n e r B e l l Cafe D o o l e y ' s B a r F o u r K's Cafe Jackson H o t e l Lamp1 i y h t e r R e s t a u r a n t L a r i e t Ca fe and B a r L i t t l e R i v e r Cafe L u i g i ' s Ca'fe Main B a r and Stea'k House M o t h e r ' s K i t c h e n Monarch Ramada I n n N e i l ' s C a f e The O f f i c e The O t h e r P1 ace The P a l a c e Ca'fe P a t i o Pancake P1 acfe P i z z a Hu t Ponchma M a l t Sh0.p Poncha T r u c k Sho'p S d l i d d I n n S aiiia r a I n r i

The Spa S p o r t s m a n ' s C e n t e r and C a f e S t r a n d b e r g ' s a t Joe F u r p h y ' s The Sub S t o r e Super Bowl S w i s s v a l e Manor t h r e e T h i e v e s T i n k e r T a v e r n T i s i n g s Stage Coach Ca fe & Lounge U n c l e D i c k ' s V a l 1 ey C o u n t r y K i t c h e n

T R A N S P O R T A T I O N

Sa l i d a F l y i n g S e r v i c e Shavano A i r S e r v i c e T r a i 7 ways Bus System

MISCELLANEOUS Ant i que Shops A r c h i t e c t s B a r b e r s B e a u t y S a l o n s Book D e a l e r s D a i r i e s Depar tmen t & C 1 o t h i ng S t o r e s E n g i n e e r i n g C o n s u l t a n t s F1 o r i s t s Greenhouses G i f t Shops L i q u o r S t o r e s O f f i c e Suppl i es

S O U R C E : M o u n t a i n B e l l , March 1 9 7 9

- 1 2 -

Table 5 l i s t s employment a n d wdge s t a t i s t i c s for 1 9 7 6 , 1977 a n d 1978. A s t eady growth i n i i iust c , i t e g u r i e s i s showri 111 number u t u n i t s , persons cinploycd drid

wages. This g r o w t h i s ev iden t i n Table 6 where l a b o r f o r c e a n d unemployment i s 1 i s t e d . A comparison o f Chaf f e e C o u n t y unemployment a n d Col o r a d o unernpl oyment shows t h e county has s l i y h t l y higher unemployrn2nt t h a n t h e s t a t e averdye, b u t n o t by a s i g n i f i c a n t a m o u n t . Spendable i ncoine per household i s 1 i s t ed on T d b l e 7 .

Tables 8 a n d 9 show community bus iness i n d i c a t o r s , d e b t s , budgets a n d t a x e s fo r Buena Vi s t a a n d S a l i d a . As c a n be seen from Table 9 , t h e s a l e s t a x e s a r e c o n t r i b u t i n g l e s s t h d n t h e maximum a l lowab le t a x of 4 p e r c e n t . A d d i t i o n d l

revenue f o r development could be c o l l e c t e d from t h i s s o u r c e , i f necessa ry .

ATTITUDES

Res iden t s con tac t ed i n Chaffee C o u n t y a r e g e n e r a l l y i n suppor t of geothermal development i n t h e a rea . However, a l a r g e s c d l e p r o j e c t , i f d a m a g i n g t o t h e environment a n d s c e n i c beauty o f t h e county w o u l d be h i g h l y u n d e s i r a b l e . Large i n d u s t r y w i t h i n t h e county i s n o t a n t i c i p a t e d t o become a l a r y e c o n t r i b u t o r t o t h e a r e a ' s economic base. Res iden t s a n d l oca l o f f i c i a l s a r e f a v o r a b l e t o small c o iiiiile r c i a 1 , r e s i d en t, i a 1 a n d t 0 u r i s in- r e 1 a t et! d 'J v 1 (1 }'in(? n t s w h i c h d r (? c o 111 1) t i t j 1 c w I I. ti f, t i t i f f PO C o (1 r i ~y I s *, L o d tl y I rtc r eLr 5 c I r i ec o ri oiii I c (1 e v c' I o p i i e I i I. .

T h e Chdffee County Comprehensive Plan prepared I n 1 9 7 6 r ecogn izes t h e p o t e n t i a l f o r geothermal developnient i n t h e ared a n d r e su l t a n t g r o w t h a n d development ( U A A C O G , 1976) . Geothermal e x p l o r a t i o n a n d c o n s u l t i n g f i r m s w o r k i n g i n Chaf fee County, whi le emphasizing t h e i r p a r t i c u l a r i n t e r e s t s , a r e w i l l i n g t o work w i t h

loca l o f f i c i a l s a n d r e s i d e n t s i n order t o promote development compat ib le w i t h a rea i n t e r e s t s a n d p r i o r i t i e s .

- 13 -

T A B L E 5

2HAFFEE C O U N T Y E M P L O Y M E N T A N D WAGES

INDUSTRY 1976

A g r i c u l t u r e Mi n i ng C o n s t r u c t i o n M a n u f a c t u r i ny T r a n s p o r t a t i a n Whol e s a l e R e t a i 1 F i n . , I n s . , & R e a l Est. S e r v i c e s P u b l i c A d m i n i s t r a t i o n

1977

A g r i g u l t u r e Mini ng C o n s t r u c t i o n M a n u f a c t u r i n g T r a n s p o r t a t i o n Whol e s a l e K e t a i 1 F i n . , I n s . , & R e a l Est . S e r v i ces P ub l i c Adini n i s t r a t i on

1978

A g r i c u l t u r e Mi n i ng C o n s t r u c t i o n M a n u f a c t u r i n g T r a n s p o r t d t i on Whol e s a l e R e t a i 1 F i n . , I n s . , & R e a l Es t . S e r v i c e s Pub1 i c A d m i n i s t r d t i o n

UNITS E M P L O Y M E N T

4 C

30 10 1 7 1 7

144 23 80

5

4 C

39 10 16 19

149 24 82

6

7 C

46 1 2 1 7 19

144 26 98 1 2

15 C

1 7 1 110 198

86 82 7 105 554 267

20 C

261 1 1 7 155

84 850 113 5 50 263

41 C

283 135 150 105 7 99 120 830 413

C = C o n f i d e n t i a l

N O T E : F i g u r e s i n c l u d e o n l y e m p l o y e r s c o n t r i b u t i n g t o uneinployment i n s u r a n c e .

SOURCE: S t d t e o f C o l o r a d o , D i v i s i o n o f Employment R e s e a r c h a n d A n a l y s i s

WAGES

$ 8,173 C

13 ,023 8 ,601

11,927 7,696 4,813 7,936 5,525

15,760

8 , 5 6 9 C

10,045 9,040

13,774 7,396 5 , 1 3 5 8 ,343 6 ,149

16,480

8 ,420 C

1 4 , 7 1 1 8 ,924

14,909 7,410 5,790 8,752 7,269

13,741

- 14 -

T A B L E 6

C H A F F E E C O U N T Y L A B O R F O R C E A N D U N E M P L O Y M E N T

A V L K A G E MON'TI iLY f: L C U K L S

T O T A L T O T A L S T A T E W I D E L A B O R E M P L O Y E D P E R(:E N T P E R C E N T

Y E A R FORCE F O R C E UNEMPI .OYED I_ U N E M P L O Y E D

1970 3717 3570 4 3 . 5 1 9 7 4 5052 4840 4 . 2 3 . 5 1 9 7 9 6260 5980 4 . 5 3.2

--

S O U R C E : S t a t e o f C o l o r a d o , D i v i s i o n o f Employment, Research and Anal y s i s

T A B L E 7

C H A F F E E COIJNTY S P E N D A B L E I N C O M E - P E R C E N T O F H O U S E H O L D S

$ 0 - 7 , 9 9 9 $ 8 , 0 0 0 - 9 , 9 9 9 $ 1 0 , 0 0 0 - 1 4 , 9 9 9 $ 1 5 , 0 0 0 - 2 4 , 9 9 9 $ 2 5 , 0 0 0 p l u s

3 5 . 9 8 . 9

26 .4 2 5 . 0

3 .8

Median househo ld i ncome $11,074

S O U R C E : Sdlcs drid M a r k e t i n g Mdndgeiiient, - J u l y 1913 i r i C o l o r d d o C o m m u n i t y P r o f i 1 es : Buena V i s t , t dnd Sa l i d a

-15-

TABLE 8

CHAFf EE COUNTY B U S I N E S S I N D I G A T O R S IN SELECTED C O M M U N I T I E S

BUENA V I S T A

Major Community Sources o f Income: M i n i n g , S t a t e Government, Tou r i sm

1970 - 1978 % CHANGE

Gross Retail S a l e s (8000) 6,685,000 16,043,000 139.9

Non-Res ident i a1 Bu i 1 d i ny

Bank D e p o s i t s ( 8 ) 1,963,159 5,173,000 163.5 Assessed Val u a t i on of

Community ( $ ) 2,679,540 5,460,480 103.8

R e s i d e n t i a l B u i l d i n g P e r m i t s ( 8 ) N.A 857,000 - - P e r m i t s ( $ ) N.A. N.A. - -

SAL I D A

Major Community Sources o f Income: Trade, Tour i sin, M i n i n g

- 1970 1977 % CHANGE

Gross R e t a i l S a l e s ($000) 15,219,000 36,424,000 139.3

Non Resi d e n t i a1 B u i 1 d i ng 88,539 108,630 22.6 P e r m i t s ( $ )

Bank D e p o s i t s ( $ ) 7,095,722 28,553,000 302.3 Assessed V a l u a t i on

Community ( $ ) 6,045,970 12,816,940 111.9

R e s i d e n t i a l B u i l l d i n g P e r m i t s ( $ ) 0 1,080,610 - -

N.A. = N O T AVAILABLE

SOURCE: S a l e s and Marke t i ng Management , J u l y 1978, i n Col o r ado Communi t y P r o f i 1 es : S a l i da and Buena V i s t a

T A B L E 9

C H A F F E E C O U N T Y D E B T , B U D G E T A N D TAXES F O R SELECTED COMMUNITIES

B U E N A VISTA SAL I D A - COMMUNITY D E B T OUTSTANDING:

G e n e r a l O b l i g a t i o n Bonds ( 8 ) 370 ,000 0 Revenue Bond ( $ ) 7 1 2 , 0 0 0 O Sewer and S t r e e t 4 5 , 0 0 0 0

Improvement Bond ( $ ) U t i l i t y Bonds ( 8 ) - - - 31 5,908 T o t a l Deb t ( $ ) 1 , 1 2 7 , 0 0 0 31 5 , 9 0 8

A N N U A L COMMUNITY B U D G E T : T o t a l Revenues ( 8 ) T o t a l E x p e n d i t u r e s ( $ )

SALES T A X Communi t y Coun ty S t a t e

310,500 901,354 2 4 2 , 6 0 0 9 0 1 , 3 5 4

1% 0% 1% 3%

SOURCE: Col o r a d o Community P r o f i 1 e : S a l i d a <ind Buena Vi s t a , March 1 9 7 7 , C o l o r a d o D e p a r t m e n t o f L o c a l A f f a i r s

E N E R G Y D E M A N D

The p o t e n t i a l f o r e l e c t r i c power g e n e r a t i o n u s i n y h y d r o t h e r r n a l e n e r y y i s

c u r r e n t l y b e i n g i n v e s t i g a t e d by e x p l o r a t i o n f i r m s i n t h e a r e a . T h e i r i n t e r e s t s and p r e s e n t a c t i v i t i e s w i l l be d i s c u s s e d i n a l a t e r s e c t i o n e n t i t l e d ,

"Hydro the rma l E n e r g y . Deve lopmen t , Development A c t i v i t i e s " .

I n a d d i t i o n t o t h e p o t e n t i a l f o r e l e c t r i c a l power g e n e r d t i o n , i t i s a n t i c i p a t e d

t h a t much o f t h e h y d r o t h e r m a l r e s o u r c e f o u n d i n C h a f f e e C o u n t y w i l l b e d e v e l o p e d f o r d i r e c t t h e r m a l use. W a s t e w a t e r f r o m e l e c t r i c power p l a n t s c o u l d be u t i l i z e d i n a d i r e c t t h e r m a l c a p a c i t y . A c o m p a r i s o n i s t h e r e f o r e i n o r d e r f o r n a t u r a l g a s c o n s u m p t i o n i n t h e c o u n t y , wh ich i s mos t l i k e l y t h e e n e r g y f u e l t o be r e p l a c e d by a d i r e c t t h e r m a l use d e v e l o p m e n t p r o j e c t .

-17-

As shown on T a b l e 10, f i v e c o m m u n i t i e s a r e s e r v e d by n a t u r a l gas i n Chaffee

County. A l s o , some r e s i d e n c e s and b u s i n e s s e s i n c l o s e p r o x i m i t y t o t h e s e commun i t i es have n a t u r a l gas s e r v i c e , w i t h t h e r e m a i n d e r o f t h e c o u n t y u s i n g

propane o r e l e c t r i c i t y f o r t h e i r e n e r g y r e q u i r e m e n t s . N a t u r a l gas consumpt ion

i s l i s t e d on T a b l e 11, dnd i n d u s t r i a l u s e r s a r e l i s t e d on T a b l e 12. I t i s

a n t i c i p a t e d t h a t d i r e c t h e a t p r o j e c t s w i l l b e c o n s t r u c t e d i n t h e s e more d e n s e l y

p o p u l a t e d a reas of t h e c o u n t y . The e s t i m a t e d c u r r e n t and p r o j e c t e d t h e r m a l

energy demand f o r r e s i d e n t i a l and commerc ia l c u s t o m e r s i s shown on T a b l e 13.

It i s e s t i m a t e d t h a t t h e r e s i d e n t i a l and commerc ia l c o n s u m p t i o n w i l l i n c r e d s e a p p r o x i m a t e l y 3.4% per y e a r be tween 1980 and 2020.

A s can be seen on T a b l e 12 , d l l b u t one i n d u s t r i a l use r ( C o z i n c o , I n c . ) ,

p r i m a r i l y consumes n a t u r a l gas f o r space h e a t i n g and h o t wa te r consumpt ion .

Coz inco i s a z i n c r e f i n i n g o p e r d t i o n w i t h 1978 employment o f 25 p e r s o n s w i t h no a n t i c i p a t e d change t h r o u g h 1990 ( C o l o r a d o Depar tmen t o f L o c a l A f f a i r s / F o u r

C o r n e r s R e g i o n a l Commission, 1978). A m a j o r p o r t i o n o f i n d u s t r i a l use i n t h e c o u n t y i s t h e C o l o r a d o S t a t e R e f o r m a t o r y near Buena V i s t a . N a t u r a l gas uses a t

t h i s facility i n c l u d e : space h e a t i n g , domestic uses, l a u n d r y , and v o c a t i o n a l

t r a i n i n g shops. The r e f o r m a t o r y employs a p p r o x i m a t e l y 180 p e r s o n s and has

a p p r o x i m a t e l y 520 i n m a t e s .

TABLE 10

CHAFFEE COUNTY C O M M U N I T I E S S E R V E D

BY NATURAL GAS 1978

Buena V i s t a Johnson 's V i 11 age

N a t h r o p Poncha S p r i n g s

Sal i da

SOURCE: C o l o r a d o P u b l i c U t i l i t i e s Commission

-18

T A B L E 11

C H A F F E E C O U N T Y N A T U R A L GAS CONSUMPTION - 1 9 7 8

R e s i d e n t i a1 Commerci a1 I n d u s t r i a1

T O T A L

CONSUMPTION* 2 6 4 , 1 6 8 1 9 9 , 0 8 0

9 5 , 2 1 8

5 5 8 , 4 6 6

* MCF a t 1 4 . 7 3 p s i a

SOURCE: C o l o r d d o P u b l i c U t i l i t i e s Commission

T A B L E 1 2

C H A F F E E C O U N T Y INDUSTRIAL N A T U R A L G A S USERS - 1 9 7 9

USER CONSUMPTION* BTU's x 1010

C o l o r a d o S t a t e R e f o r m a t o r y 7 7 , 8 5 2 .o Coz i n c o , I nc. 5 , 7 0 1 . 9 C h a f f e e Coun ty C o u r t House 2 , 8 1 8 . 9 S a l i d a H o s p i t a l I ) , 7 1 3 . 6 S d l i d a High S c h o o l I 7 , 0 6 1 . 1

6.6174 0 . 5 3 2 6 0 . 2 6 3 3 0 . 9 0 7 3 0 . 6 5 9 5

T O T A L 1 0 2 , 1 4 7 . 5 8.92301

*MCF a t 1 4 . 7 3 p s i a

SOURCES: G r e e l e y Gas Company C o l o r a d o P u b l i c U t i l i t i e s Commission

M a n u f a c t u r e r s i n C h a f f e e C o u n t y a r e l i s t e d on T a b l e 1 4 . E n e r g y c o n s u m p t i o n

f i g u r e s a r e b a s e d upon a v e r a g e n a t i o n a l c o n s u m p t i o n r a t e s f o r i n d u s t r y c a t e g o r i e s . I t s h o u l d be n o t e d t h a t C h a f f e e C o u n t y i n d u s t r i e s may be s m a l l e r and consume l e s s e n e r g y t h a n t h e n a t i o n w i d e a v e r a g e . T h i s i s most l i k e l y a r e f l e c t i o n o f t h e r u r a l , l o w - i n d u s t r i a l c h a r a c t e r o f t h e a r e a . R e q u i r e d t e m p e r a t u r e s f o r t hese i n d u s t r i e s i n d i c a t e t h a t t h e r e s o u r c e s p r e s e n t i n C h a f f e e C o u n t y c o u l d s a t i s f y much o f t h e a r e a ' s m a n f a c t u r i n g e n e r g y r e q u i r e m e n t s .

- 1 9 -

I I

TABLE 13

ESTI'MATED THERMAL ENERGY DEMAND FOR

SELECTED COMMUNITIES I.N CHAFFEE COUNTY (RESIDENTIAL AND COMMERCIAL)

Es t . R e s i d e n t i a l E s t . R e s i d e n t i a l Y e a r l y Energy E s t . D w e l l i n g and Commerci a1 f o r e c a s t f o r e c a s t and Commercial Consumpti on

P o p u l a t i o n D w e ' l l i n g Thermal Energy I n c r e a s e P o p u l a t i on U n i t s Thermal Energy Communi t y 19801 19802 Demand 19803 20204 ~ U n i t s Demand 2020 (BTU's x 1010)

N Buena V i s t a 2979 1064 0 Poncha S p r i n g s 428 153

Sal i d a - 5455 1948

TOTAL 8862 3165

7484 1223

12368

33.9 21075

NOTE: Commercial demand assumed t o be 0.75 o f r e s i d e n t i a l demand.

SOURCES: 1. 2.

3.

4.

Co lo rado D i v i s i o n o f P l a n n i n g Occupancy r a t e o f 2.8 p e r s o n s / r e s i d e n c e (Co lo rado D i v i s i o n o f P1 ann i ng ) Based on 1978 r e s i d e n t i a l and commercial consumpt ion p e r r e s i d e n t i a l cus tomer E s t i m a t e d by C.G.S. ( f rom f o r e c a s t s by Co lo rado D i v i s i o n o f P l a n n i n g )

2673 437

4417

7527

- 80.6 1.1675 (3.4%)

Future i n d u s t r i a l energy demands i n Chaffee County a r e d i f f i c u l t t o e s t i m a t e . T h e present major gas cus tomer , Colorado S t a t e Reformatory, does not p lan any l a r g e a d d i t i o n s t o t h e f a c i l i t y which would i n c r e a s e energy consumption. Cozinco, Inc . , a n o t h e r consumer, does not p lan any l a r g e g r o w t h . T h e S a l i d a h o s p i t a l does not make long-term p r o j e c t i o n s . However, i f low c o s t energy were made a v a i l a b l e i n t h e a r e a , i n d u s t r i e s may be d t t r a c t e d f o r a g r i c u l t u r e , a g r i c u l t u r i a1 p rocess i n y and small - s c a l e manufac tur i n y o p e r a t i o n s , among o t h e r i n d u s t r i a1 i n c r e a s e a t I n d u s t r i a1 1010 BTUs. t h e f u t u r e .

p rocesses . I t i s p o s t u l a t e d t h a t i n d u s t r i a1 energy demand w i 1 1 a r a t e s i m i l a r t o t h a t of t h e r e s i d e n t i a l and commercial s e c t o r .

eneryy consumption f o r t h e y e a r 2020 i s e s t i m a t e d a t 21.3509 x

However, t h i s e s t i m a t e may vary wide ly from a c t u a l c o n d i t i o n s i n Based upon t h e i n d u s t r i a l a c t i v i t y p r e s e n t i n t h e a r e a now and any

new i n d u s t r y moving i n t o t h e a r e a i n t h e f u t u r e , t h i s e s t i m a t e may be t o o low. However, i f i n c e n t i v e s a r e not adequate and a d e c l i n e i n i n d u s t r i a l a c t i v i t y occur s i n t h e f u t u r e , t h e e s t i m a t e w i l l be t o o h i g h .

T A B L E 14

C H A F F E E C O U N T Y M A N U F A C T U R E R S - 1979

NO EST.ENERGY OF CONSUMPTION2 TEMP.

INDUSTRY 1 SIC C O D E FACILITIES ( 1 0 1 O B T U / Y r ) REQ'D("C)

Meat Packing I c e Cream F l u i d M i l k Prepared Feeds B o t t l e d

S o f t Dr inks Logging Camps Sawmi 1 1 s M i 1 1 work Newspapers Commerci a1 P r i n t i ng I n d u s t r i a1

Phospha t i c

P l a s t i c P roduc t s Ready Mi xed Concrete

Ino rgan ic Chemicals

Fe r t i 1 i ze rs

201 1 2024 2026 2048

2086 241 1 2421 2431 2711 2752

2819

2874 3079 3273

1 0.5 1

0.5

1 1 1 1 2

0.5

1

0.5 1 1

3.030 0.502 0.830 1.481

0.969

1.000 0.280 0.185 0.183

120.000

120.000 0.770 0.007

--

177 7 7 7 7

2 7 4

77

93 93

149 149

149

371 218

66

- -

SOURCES: 1 U n i v e r s i t y of Col o rado , Busi ness Research Di vi s i on , 1979 2 S o l a r Energy Research I n s t i t u t e ( S E R I ) , 1980

- 21 -

i t i o n s must be cons ide red with most p o t e n t i a l geothermal q g r ams. These requi r t s i n c l y d e i n s t i t u t i a n a l c o n s i d e r a t i o q s ,

enviroqmeqtql c o n s i d e r a t i o n s , water a v q i J a b i l i t y , t n i ca l and economic c o n s i d e r a t j o n s . Any s p e c v l a t i o n fo r development must i n c l u d e t h e s e parameters .

INSTITUTIONAL C O N S I P E R A T I O N S

I n s t i t u t j o n a l c ~ n s a c q u i s j t i o n f o r r e s o u r c e development r c e t r a n s p a r t , p o s s i b l e i t i v e l e a s i n g i n K Geothermal Areas ( K G S A ' S ) , f e d e r a l , aq4 l o c a l g e o t mal r egul a t i o n s ,

d r i , l l i n g laws, f i n a n c i n q , z o n i n g a

A pote,ntial , g e o t e lope r w i l l a t tempt t o l e a s e a r e a s a d j a c e n t t o t h e r e soqrce . I n Chaf fee County, whqr? a kerboaid s t y l e o,f l a n d o q e r s h i p

qmjnates , 1eaSes o n fedey91, s p r i v a t e lands w i l l be r e q u i r e d . Lasd qwqeyship p a t t e r u s were d i s c y s 9 4 e a r l i e r i q a p rev ious s e c t i o n . Leasing a c t i v i t y f q r geot gal r e sour$%% i~ Coaffee County has be,en q u i t e ex t 4s can be seen on l e 1 5 , 32,125,73 of s t a t e lands a r e p r e s e p t l y f o r geothermal purposes i n t h e cou . Table 16 summarizes t h e s t a t u s of

e t i t i v e l e d s e s , qhi ncludcs 63Q9.13 d c r e s . There d r e indny l i c a t i o n s awdi t ing approvdl by t b e U.S. F o r e s t S e r v i c e a n d yuredu o f ge\qent (Pe t ro leum Inforrqat ion, p . , 1980). These l e a s e a p p l i c a t i s n s (1 oq Table 1 7 . I t should b,c: e of t h e s e appl i cd t i o,ns

a w a i t i n g approval o r d i sapprova l were f i 4 . I n a d d i t i o n , numerous, _ , p r i v a t e l e a s e s a r e i n e f f e c t a long the, i n t e r i o r p o r t i o n s of t h e couqt_y, wheFe p r i v d t e l y owned l a n d pyedomipates.

Couqty a l s o has f e d e r a l qe erirlql ' lease I n t h e s e a r e a s t h e leas ing , e Aceqs ( K G R A ) .

and l eng thy . The 1,eases a r e more must b e p a i d a n d t h e l e a s i , q 1s c o q p e t i t i y e r a t h e r t h a n , ve. The one K G R A l o c a t e d i n Chaffee Cqunty i s i n t h e Pon.cha Spr iqqs ayea 4 9 4 i s l i s t e d on Table 18.

- 22 -

TABLE 1 5

COLORADO STATE A C T I V E GEOTHERMAL LEASES

I N CHAFFEE COUNTY MARCH, 1980

LESSEE

AMAX E x p l o r a t i o n , I n c .

O c c i d e n t a l Geothermal , I n c . P e t r o - L e w i s Corp.

TOTAL

ACRES TOWNSHIP & RANGE

2644.85 14s 78W 4332.31 15s 78W

360.00 49N 8E 3506.61 50N 8E

640.00 49N 7 E 640.00 49N 9E

12123.77

SOURCE: C o l o r a d o S t a t e Board o f Land Commiss ioners , 1980

TABLE 16

FEDERAL A C T I V E N O N - C O M P E T I T I V E GEOTHERMAL LEASES

I N CHAFFEE C O U N T Y

MARCH, 1980

LESSEE ACRES TOWNSHIP & RANGE

80.00 49N 8E O c c i d e n t a l Pe t ro leum, I n c .

9E 49N 8E

P e t r o - L e w i s , Corp. - 50% O c c i d e n t a l Pe t ro leum, I n c . - 50% 1549.66 49N

1280.00 2113.30 49N 7 &8E 1286.17 5 1 N 8E

TOTAL 6309.13

S O U R C E : Bureau o f Land Management, 1980

- 23 -

-

PI__ TABLE 17

FEDERAL GEOTHERMAL CEASE APPLICATIONS

I N CMAFFEE COUNTY MARCH, 1980

TOWNSHIP AND APPLICIATiON ACRES RAN,GE , ~ ,,, DATE AP P t I Cp'N T -

AMAX E x p l o r a t i o n , I n c . 2320,OO 14s ,79W 1974 1 7 1 9.20 15S,78W 1974 1754.78 i5s,7aw 1974 1478.62 51N, 7 E 1974

2456.70 SIN, 7 E 1974 15S,79W

0. L. P u r c e l l

2300,OO 15s ,79W 15S,78W

2180.00 15S, 7 9W 2202.20 14s ,79W

1 5 S ,, 7 9 W 2300.00 14S,79W

800.00 '14S,79W 1280.00 15S,79W 1039 34 14s 79w 1920.00 15S,79W

1974

a974 1'974

1974 1974 1974 1974 1974

O c c i d e n t a l Geothermal , I n c . 640.00 S I N , 8E 1979 2400.00 49N, 9E 1979 2518,OO 5O'N, 8E 1979 2 5 2-82 0 0 50N, 9E 1979

3 1836.88

SOURCE: P e t r o l e u m I n f o r m a t i o n Corp., Denver, Co lo rado , 1980

TABLE. 1 8

FEDERAL ACTIVE C O M P E T I T I V E GEOTHERMAL

LEASES I N CHAFFEE COUNTY

(KRGA' S) MARCH, 1980

L€.S S E,€ ACRES 11__

Occ'iden"ta'1 Geothermal , Inc'. - 50% 915.84 Pe t ro -Lew is , Corp. - 50%

Sburce': Buveau O f .Land Management, 1980

TOWNSHIP AND RANGE

49N, 8E

- 24 -

.I_

Based upon t h e d i f f e r e n t t y p e s o f l e a s e s r e q u i r e d i n an a r e a f o r g e o t h e r m a l deve lopmen t , t h e t i m e and e f f o r t r e q u i r e d f o r l e a s e a c q u i s i t i o n v a r i e s . Leases

on s t d t e l a n d s r e q u i r e a p p r o x i m a t e l y s i x months t o a c q u i r e , w h i l e f e d e r a l l e a s e s may r e q u i r e f r o m a minimum o f t h r e e months t o a maximum o f an unknown

p e r i o d o f t i m e . Leases on p r i v a t e l a n d s may be a c q u i r e d e a s i l y i n a s h o r t

p e r i o d of t i m e , w h i l e o t h e r s may be v i r t u a l l y u n o b t a i n a b l e .

If l a n d a c q u i s i t i o n i s n e c e s s a r y f o r e n e r g y d i s t r i b u t i o n , r i g h t s - o f - w a y f o r

p i p e l i n e s or t r a n s m i s s i o n f a c i l i t i e s must be a c q u i r e d . E x p l o r a t i o n p e r m i t s

must be a c q u i r e d if e x p l o r a t o r y d r i l l i n g i s p roposed. A C o l o r a d o O i l and Gas

Commission p e r m i t i s r e q u i r e d p r i o r t o t h e d r i l l i n g o f any g e o t h e r m a l w e l l

w i t h i n t h e s t a t e . I f w a t e r r i g h t s a r e i n v o l v e d i n t h e p r o p o s e d deve lopmen t ,

t h e Col o r ado D i v i s i on o f Water Resources must a n a l y z e t h e h y d r o 1 o g i c c o n d i t i o n s i n t h e a r e a b e f o r e a p e r m i t can be i s s u e d .

Zon i ng r e s t r i c t i o n s can sometimes pr e c l ude o r d e l ay p r o p o s e d g e o t h e r m a l

deve lopmen t i f z o n i n g r e g u l a t i o n s r e q u i r e a d a p t a t i o n t o c o n f o r m w i t h p o t e n t i a l

deve lopmen t . C h a f f e e C o u n t y ' s e x i s t i n g z o n i n g r e g u l a t i o n s were a d o p t e d i n

December, 1974. I n a d d i t i o n , t h e f i n a n c i n g o f g e o t h e r m a l f a c i l i t i e s may be d i f f i c u l t i n a r e a s where t h e energy s o u r c e i s u n f a m i l i a r t o t h e l e n d i n g

i n s t i t u t i o n s . L o c a l p e o p l e have posed t h e q u e s t i o n o f r e s e r v o i r d e p e n d a b i l i t y

and l i f e t i m e . However, based upon h i s t o r i c a l use o f a l t e r n a t i v e e n e r g y s o u r c e s

i n C h a f f e e Coun ty , l o c a l l e n d e r s , g i v e n s u f f i c i e n t f u n d s , w o u l d p r o b a b l y be l i k e l y t o f i n a n c e geo the rma l v e n t u r e s . As w i t h any b u s i n e s s v e n t u r e ,

a d d i t i o n a l d e l a y s may be p r e s e n t t h r o u g h c o n t r a c t r e q u i r e m e n t s and ob1 i g a t i o n s .

For a more i n t e n s i v e d i s c u s s i o n o f i n s t i t u t i o n a l c o n s i d e r a t i o n s , t h e r e a d e r i s

r e f e r r e d t o t h e p u b l i c a t i o n , " R e g u l a t i o n o f Geothermal E n e r g y Deve lopment i n

C o l o r a d o , " Coe and Forman ( 1 9 8 0 ) .

ENVIRONMENTAL C O N S I D E R A T I O N S

E n v i r o n m e n t a l e f f e c t s must a l s o be a n a l y z e d w i t h a g e o t h e r m a l deve lopmen t

p r o j e c t . I n a d d i t i o n t o E n v i r o n m e n t a l I m p a c t S t a t e m e n t s ( E I S ) t h a t may be

n e c e s s a r y , o t h e r l o c a l , s t d t e and f e d e r a l r e g u l a t i o n s must be s a t i s f i e d b e f o r e

- 2 5 -

1

I

I

p r o j e c t i s approved. If s e r i o u s e n v i r o n m e n t a l damage c o u l d r e s u l t f r o m geothermal deve lopment , a p r o j e c t may be d e n i e d o r de layed . P o s s i b l e env i ronmen t c o n s i d e r a t i o n s t h a t may be i n v o l v e d i n geothermal deve lopment a r e

a i r , l a n d , wa te r , f l o r a and fauna, e c o l o g i c a l i n t e r r e l a t i o n s h i p s and human

v a l u e s (Bureau o f Land Management, 1975) .

A i r

A i r p rob lems may be a f a c t o r i n geo the rma l deve lopment , b o t h f r o m t h e p o l l u t i o n

aspec t and a l s o due t o i n c r e a s e d n o i s e l e v e l s d u r i n g c o n s t r u c t i o n and o p e r a t i o n . Dus t p rob lems can r e s u l t t o a m i n o r e x t e n t d u r i n g e x p l o r a t i o n , t e s t i n g , deve lopment and c o n s t r u c t i o n . A l t h o u g h some h y d r o t h e r m a l r e s o u r c e s

c o n t a i n c e r t a i n nancondensab le gases, t h i s may n o t be a p r o b l e m i n t h e C h a f f e e

County r e g i o n , due t o t h e i n s i g n i f i c a n t amounts of t h e s e gases p r e s e n t and t h e

l i k e l i h o o d t h a t the development wou ld p r o b a b l y be a c l o s e d sys tem where a l l

geo the rma l gases and f l u i d s a r e c o n t a i n e d . D u r i n g d r i l l i n g and c o m p l e t i o n o f geothermal wel ls , s m a l l amounts o f t h e s e gases, if p r e s e n t , would be vented

i n t o t h e atmosphere. The p o t e n t i a l f o r a i r p o l l u t i o n must be e v a l u a t e d and, i f

p r e s e n t , s t e p s must be t a k e n t o p r e v e n t t h e e m i s s i o n o f i n t o l e r a b l e amounts o f

t o x i c m a t e r i a l i n t o t h e a i r ( A i r P o l l u t i o n C o n t r o l Commission, 1977) .

I n a d d i t i o n , i n c r e a s e d l e v e l s af n o i s e may o c c u r f r o m d r i l l i n g and c o n s t r u c t i o n

a c t i ui5t i es. wever , t h e s e n o i s e sou rces w i l l d i m i n i s h a f t e r c o m p l e t i o n o f

w e l l s , hea t exchanger systems, d i s t r i b u t i o n l i n e s and o t h e r necessa ry

components.

Land

s i d e r a t i o n s as ,menta l e f f e c t s t o

t h e 1'aln,d! must a l so , be asal iyzed f o h f r o m wPt.hdraua1 ojf t h e r m a l f l l u i d s . The amount o f subs idence, i f

any, i s dependent upon v ,ar ious f a c t o r s , i n c l u d i n g r a t e oa f f l u i d w i t h d r a w a l and

wheth,e.s formalt i o,ns pres, i d a t e d o r we17 da ted . The U s,o,liiidtahed sed ime Reail: t h e i l n t e r i o f t h e c o u n t y may he

e t o subs,i,de o t h e r a reas ence p o t e n t i a l '

b:lre.. Geoctherrnarli f1,aiird: r e i n j,e mmolnly used! t o

ojvtel;gomea an8 po,s,s i b,liel s e prob,l ems. H i l s t o r i x a l w,ilthld'rawal' o f g round wates 60s i s r i g a t i o n purposes has n o t posed any subs,idence probl'erns i in C h a f f e e

County; t o dalte. - 26 -

P o t e n t i a l e a r t h q u a k e a c t i v i t y i n t h e a r e a i s c o n s i d e r e d t o be m o d e r a t e

(K i r kham, o r a l comm., 1 9 8 0 ) . The a r e a i s p a r t o f t h e R i o Grande r i f t zone,

where f a u l t s a s s o c i a t e d w i t h t h i s zone may be p o t e n t i a l e a r t h q u a k e c e n t e r s .

Any deve lopmen t i n t h e a r e a s h o u l d i n c l u d e a s i t e e v a l u a t i o n w i t h t h e s e

p o t e n t i a l h a z a r d s i n c o n s i d e r a t i o n .

S u r f a c e d i s t u r b a n c e s d u r i n g c o n s t r u c t i o n o f a p r o j e c t may i n c l u d e such p r o b l e m s

as s o i l e r o s i o n f r o m i n c r e a s e d v e h i c u l a r t r a f f i c and c o n s t r u c t i o n and w i n d b l o w n

d u s t . Permanent d i s t u r b a n c e s i n c l u d e a r e a s d i f f i c u l t t o r e c l a i m , w e l l h e a d i n s t a l l a t i o n s and pumping f a c i l i t i e s , among o t h e r s . S l o p e i n s t a b i l i t y and

f l o o d h a z a r d a r e a l s o p r e s e n t i n c e r t a i n a r e a s o f t h e c o u n t y . These f a c t o r s

s h o u l d be i n c l u d e d i n a s t u d y o f any p o t e n t i a l deve lopmen t .

Water

The p o t e n t i a l f o r p o l l u t i o n o f s u r f a c e and g round w a t e r s s h o u l d b e a n a l y z e d .

A f t e r g e o t h e r m a l f l u i d s a r e used t h e y must be d i s p o s e d o f p r o p e r l y w i t h o u t a d v e r s e p o l l u t i o n t o w a t e r s o f t h e s t a t e . The C o l o r a d o Water Q u a l i t y C o n t r o l

Commission has c o n t r o l o v e r t h e p r e v e n t i o n and abatement o f w a t e r p o l l u t i o n .

I n c l u d e d i n t h e i r r e g u l a t i o n s a r e measures f o r c o n t r o l 1 i n g b o t h s u r f a c e and

s u b s u r f a c e wa te r p o l l u t i o n .

Based upon c h e m i c a l a n a l y s e s c o n d u c t e d on t h e r m a l s p r i n g s and w e l l s i n C h a f f e e

Coun ty , t h e h i g h e s t t o t a l d i s s o l v e d c o n t e n t i s a p p r o x i m a t e l y 700 m g / l ( B a r r e t t

and Pear, l , 1 9 7 6 ) . D i s p o s a l o f t h e g e o t h e r m a l f l u i d , e i t h e r by s u r f a c e o r s u b s u r f a c e means, s h o u l d n o t d e g r a d e w a t e r q u a l i t y i n t h e a r e a due t o t h e

r e l a t i v e l y good q u a l i t y of t h e t h e r m a l w a t e r s . A recommended measure t o

m i n i m i z e w a t e r p o l l u t i o n p o t e n t i a l i s t o r e i n j e c t t h e f l u i d s i n t o a q u i f e r s

s i m i l a r t o t h o s e f r o m w h i c h t h e y were p r o d u c e d ( C o u r y and Assoc., 1978) . I n

a d d i t i o n , t h e r m a l p o l l u t i o n o f s t r e a m s and a q u i f e r s may be a p o t e n t i a l p r o b l e m

w h i c h s h o u l d be a n a l y z e d on a s i t e - s p e c i f i c b a s i s .

F l o r a and Fauna

A d v e r s e e f f e c t s t o e x i s t i n g v e g e t a t i o n f r o m g e o t h e r m a l deve lopmen t w o u l d depend

upon l o c a t i o n and v e g e t a t i v e t y p e . P o s s i b l e d i s r u p t i v e a c t i v i t i e s i n c l u d e

c o n s t r u c t i o n o f r o a d s , d r i 11 i ng s i t e s , p i p e l i n e s , and a c c e s s o r y b u i 1 d i n g .

- 27 -

On t h e r e l a t i v e l y f l a t v a l l e y f l o o r where g r a s s e s and low shrubs predominate, v e g e t a t i v e d i s t u r b a n c e s would be minor a n d r ec l ama t ion wi l l be r e l a t i v e l y simple. However, on t h e s t e e p l y s loped or wooded a r e a s , r ec l ama t ion i s more d i f f i c u l t a n d expens ive t o conduct a n d v i sua l impacts a r e more evidei t t o passers -by . (Bureau of Land Management, 1 9 7 5 ) .

Impacts on w i l d l i f e would depend on development l o c a t i o n a n d w i l d l i f e h a b t a t s and p a t t e r n s in t h a t a r ea . I f t h e environment of a n a rea changes , s p e c i e s t h a t cannot a d j u s t w i l l be fo rced t o mig ra t e t o a r e a s where o ther land can s u p p o r t them. A l o s s of w i l d l i f e i n Chaffee County wi l l d e t r a c t from i t s a t t r a c t i v e n e s s ( U A A C O G , 1 9 7 6 ) . Developments i n t h e s e h a b i t a t a r e a s should be designed t o reduce n e g a t i v e impacts. Analys is should be conducted i n development a r e a s t o s tudy p o s s i b l e e f f e c t s t o a n t e l o p e , e l k , d e e r , p r a i r i e d o g s , e a g l e s , hawks a n d l i v e s t o c k . I n a d d i t i o n , thermal p o l l u t i o n from thermal f l u i d s in t roduced i n t o cold water stredms may be d e t r i m e n t a l t o t r o u t r e s o u r c e s i n t h e s e a r e a s .

Ecological I n t e r r e l a t i o n s h i p s

Land use p a t t e r n s may be expected t o change i n Chaffec County w i t h t h e development of hydrothermal r e s o u r c e s . This change, however , i s expec ted t o be s l i g h t , based upon c u r r e n t l a n d use c h a r a c t e r i s t i c s a n d r e s o u r c e a r e a s .

W i t h t h e advent of development , sma l l a r e a s indy b e e c o l o g i c a l l y d i s t u r b e d . I f geothermal well p roduct ion occur s c l o s e t o a h o t s p r i n g s a r e a , f low r a t e s may d e c r e a s e a t t h e s p r i n g . This could r e s u l t in a r e d u c t i o n of f l o r a and fauna a c t i v i t y i n t h e immediate ecosystem because of t h i s r e d u c t i o n of wdrin water in t roduced t o t h e a rea .

H u m a n Values

Human Val ues re1 dted t o geothermal devel opinent may i ncl ude v i sua1 a n d n o i s e impacts, popula t ion i n c r e a s e s a n d g e n e r a t i o n of new j o b s i n t h e a rea . One o f

Chaffee County ' s g r e a t e s t a t t r a c t i o n s i s i t s s c e n i c beauty. Any development must be planned t o minimize encroachment on t h e p r e s e n t open space va lues a n d s c e n i c v i s t a s of t h e a rea . The g r e a t e s t p o s s i b l e v isua l impacts w i l l be i n a r e a s c l o s e t o ma jo r highways a n d on t h e s loped a r e a s where d i s t u r b a n c e s a r e

- 28 -

v i s i b l e f o r many mi l e s . Dust a n d no i se c r e a t e d d u r i n g c o n s t r u c t i o n pe r iods must be cons ide red i n t h e development plan.

The c r e a t i o n of new jobs a n d r e s u l t a n t popu la t ion i n c r e a s e s , i f conducted p r o p e r l y , w o u l d be b e n e f i t i n g t o t he a rea . Any p r o j e c t w i t h a c o n t r o l l e d growth p a t t e r n c o n t r i b u t i n g t o t h e economy of t h e a r e a would be welcomed i n Chaffee County . A sp rawl ing , h a p h a z a r d development would n o t be d e s i r a b l e o r benef i c i a1 t o t h e a r e a ' s development concep t s .

WATER A V A I L A B I L I T Y

The most impor tan t f a c t o r i n f l u e n c i n g development i n Chaffee Coun ty i s water r e s o u r c e s and t h e i r manangement ( U A A C O G , 1 9 7 6 ) . A t t h e p r e s e n t t i m e , t h e a r e a ' s water supply appears t o be adequate f o r mun ic ipa l , a g r i c u l t u r a l and domesti'c u s e s , u s i n g b o t h s u r f a c e and g r o u n d water . However, t h e Arkansas River a n d i t s t r i b u t a r i e s a r e a1 ready over -appropr i a t e d a n d any f u t u r e development wi l l r e q u i r e a d d i t i o n a l water . Geothermal development may r e q u i r e adequate water s u p p l i e s f o r geothermal product ion w e l l s and a l s o f o r s p e c i f i c u s e r s . A p o t e n t i a l deve lope r r e q u i r i n g water f o r h i s s p e c i f i c commercial , i n d u s t r i a l o r domestic needs may be r e l u c t a n t t o make a l a r g e inves tment i f t h e r e q u i r e d long-term water supply i s n o t a s s u r e d .

The Colorado Div i s ion of Water Resources , O f f i c e of t h e S t a t e Engineer i s r e s p o n s i b l e f o r a d m i n i s t r a t i o n of water i n t h e s t a t e . A t t h e p r e s e n t t ime i n Chaffee County, ground water well permi ts a r e only being i s s u e d f o r rep lacement w e l l s , household use (max imum 1 5 g a l l o n s per m i n u t e w i t h d r a w a l ) a n d domes t i c

use (15 gpm) ( L o o , o ra l comm. , 1980) . I f a p roduc t ion well system does n o t use a r e i n j e c t i o n w e l l , t h e a q u i f e r must be ana lyzed t o de te rmine i f any e x i s t i n g water r i g h t s w i l l be i n j u r e d i f t h e well i s approved. I f the geothermal f l u i d s a r e t o be r e i n j e c t e d a f t e r use, t h e well permit c a n be g ran ted wi thout a water r i g h t , s i n c e no e x i s t i n g water r i g h t s would be i n j u r e d . Most, i f n o t a l l , of t he g r o u n d water con ta ined w i t h i n t h e geo log ic fo rma t ions of t h e county i s cons idered t r i b u t a r y t o s u r f a c e wa te r s . B o t h t r i b u t a r y ground .wa te r and s u r f a c e water a r e s u b j e c t t o p r i o r a p p r o p r i a t i o n . Any planned s u r f a c e water d i v e r s i o n wi l l probably never be u t i l i z e d because t h e water r i g h t w i l l be t o o j u n i o r - i n - t i m e . The o l d e r (more s e n i o r ) t h e water r i g h t , t h e more s e c u r e t h e gua ran tee t o r e c e i v e t h e water . The Arkansas River h a s l i t t l e d i f f i c u l t y

- 29 -

del i ve r i ng enough water t o Kansas, however, t h e r e i s a probl em del i ve r i ng enough water downstream t o u s e r s between Pueblo , Colorado and t h e Kansas-Colorado s t a t e 1 i ne (Loo, o r a l comm. , 1980) .

There i s enough water i n Chaffee County f o r i t s growth i n popu la t ion a s p r o j e c t e d , b u t a g r i c u l t u r a l i n t e r e s t s may have t o be reduced ( U A A C O G , 1976) . Developers may buy u p water h i s t o r i c a l l y used f o r a g r i c u l t u r e and change i t s use t o mun ic ipa l , i n d u s t r i a l or commercial. Changes i n water use w i l l mean changes i n the a r e a ' s appearance and i n i t s r u r a l - a g r i c u l t u r a l c h a r a c t e r i f

development p r e s s u r e s f o r c e t h i s change o f water use from a g r i c u l t u r a l t o urban. The owners of t h e c o u n t y ' s water r i g h t s w i l l g r e a t l y i n f l u e n c e f u t u r e growth by t h e i r d e c i s i o n s i n t e rms of water use ( U A A C O G , 1976) .

TECHNICAL CONSIDERATIONS

Technical problems a s s o c i a t e d w i t h r e s o u r c e c h a r a c t e r i s t i c s , d e s i g n

r equ i r emen t s , c o r r o s i o n problems and d i s p o s a l of geothermal f l u i d s a f t e r use must be a n t i c i p a t e d and ana lyzed . I f e l e c t r i c power g e n e r a t i o n i s a n t i c i p a t e d , t e c h n i c a l r equ i r emen t s must be cons ide red du r ing the fo l lowing phases of development; e x p l o r a t i o n , t e s t well d r i l l i n g , p roduc t ion t e s t i n g , f i e l d

development , power p l a n t d n d power1 i n e c o n s t r u c t i o n and f u l l s c a l e o p e r a t i o n (Bureau o f Land M d n d y e l i l e n t , 1 9 7 5 ) .

Resource c h a r a c t e r i s t i c s must be fo rmula t ed i n c l udiny parameters i n v o l v i n g r e source d e p t h , e x t e n t , t e m p e r a t u r e , and a n t i c i p a t e d f low r a t e s . E x p l o r a t i o n f i r m s such a s AMAX and Occidenta l have conducted or a r e p lanning e x p l o r a t i o n a c t i v i t i e s i n Chaf fee County t o de te rmine t h e r e s o u r c e c h a r a c t e r i s t i c s . The r e s u l t s of these a c t i v i t i e s w i l l de te rmine how and w h e n the r e s o u r c e i s u t i 1 i zed. O f c o u r s e , t h i s i nvol veinent i s dependent upon proper 1 e a s e arrangements d i scussed e a r l i e r i n the i n s t i t u t i o n a l p o r t i o n of t h i s s e c t i o n .

P o t e n t i a l c o r r o s i o n and s c a l i n g problems of hardware i n s t a l l a t i o n s w i l l probably not be a problem with present r e s o u r c e s i n Chaffee County. Poor q u a l i l t y wa te r , high i n t o t a l d i s s o l v e d s o l i d s , t h a t i s p r e s e n t i n some a r e a s should not pose a t e c h n i c a l c o n s t r a i n t i n Chaffee County. As d i scussed e a r l i e r , chemical q u a l i t y of thermal w a t e r s i n Chaffee County i s compara t ive ly good, p rec lud ing t h e n e c e s s i t y of u s i n g s p e c i a l i n s t a l l a t i o n s des igned f o r use w i t h f l u i d s h i g h i n c o r r o s i v e p o t e n t i a l .

- 30 -

Adequate and p r o p e r d i s p o s a l o f geo the rma l f l u i d s a f t e r use must be c o n s i d e r e d .

P o s s i b i l i t i e s i n c l u d e s u r f a c e d i s p o s a l and s u b s u r f a c e i n j e c t i o n . I n s t i t u t i o n a l r e q u i r e m e n t s f o r b o t h d i s p o s a l methods must be s a t i s f i e d . R e i n j e c t i o n o f t h e

f l u i d w i l l add t o d r i l l i n g and p r o j e c t c o s t s , however , i f f l u i d i s r e i n j e c t e d

t o t h e same a q u i f e r , t h e geo the rma l r e s e r v o i r w i l l be recharged .

E C O N O M I C C O N S I D E R A T I O N S

Economic a n a l y s e s o f t h e use o f geo the rma l r e s o u r c e s i n C h a f f e e County w i t h t h e New M e x i c o Energy I n s t i t u t e (NMEI) i n d i c a t e geo the rma l d i r e c t h e a t a p p l i c a t i o n

p r o j e c t s c o u l d compete f a v o r a b l y w i t h c u r r e n t n a t u r a l gas i n s t a l l a t i o n s .

H e a t i n g d i s t r i c t s f o r Poncha S p r i n g s , S a l i d a and Buena V i s t a were c o n s i d e r e d

u s i n g t h e r e s o u r c e s i n t h e a r e a (Cot tonwood H o t S p r i n g s , Mount P r i n c e t o n H o t

S p r i n g s , and Poncha H o t S p r i n g s ) . Energy c o s t s r a n g e d f r o m $2.43 t o $3.89 p e r m i l l i o n BTU ( B r i t i s h Thermal U n i t ) f o r r e s i d e n t i a l and i n d u s t r i a l u s e r s based

on b o t h p r i v a t e and m u n i c i p a l deve lopmen ts (NMEI, 1979) . C u r r e n t n a t u r a l gas

p r i c e s i n t h e c o u n t y a r e a p p r o x i m a t e l y $2.80 p e r m i l l i o n BTU ( G r e e l e y Gas Co.,

o u t s i d e t h e c o u n t r y was e c o n o m i c a l l y

f u e l p r i c e s .

1 9 8 0 ) . T r a n s p o r t i n g t h e r m a l f l u i d s

u n r e a l i s t i c when compared t o c u r r e n t

I t s h o u l d be emphasized t h a t n a t u r a

s o u r c e s , i n c l u d i n g propane and e l e c t r

i n c r e a s e i n f o s s i l f u e l p r i c e s i n

gas i s l e s s e x p e n s i v e t h a n o t h e r f u e l

c i t y . I n a d d i t i o n , c o n s i d e r i n g t h e l a r g e

r e c e n t y e a r s and p r o j e c t e d i n c r e a s e s ,

geo the rma l ene rgy c o s t s become i n c r e a s i n g l y f d v o r a b l e . P o s s i b l e n a t u r a l gas hookup m o r a t o r i u m s and i n t e r r u p t a b l e s e r v i c e f o r i n d u s t r i a l u s e r s s h o u l d a l s o

b e c o n s i d e r e d i n any economic assessment .

A l t h o u g h an energy r e s o u r c e i s known t o be e c o n o m i c a l l y f e a s i b l e and p o s s i b l y

even revenue p r o d u c i n g , f i n a n c i n g may be d i f f i c u l t t o a c q u i r e . P r i v a t e

d e v e l o p e r s and m u n i c i p a l o f f i c a l s i n t h e a r e a have n o t e d t h a t p r i v a t e and

p u b l i c f u n d s a r e sca rce . Communi t ies and d e v e l o p e r s t h a t a r e n o t f a m i l i a r w i t h

t h e use and d e p e n d a b i l i t y o f geo the rma l ene rgy may b e r e l u c t a n t t o i n c u r d e b t

f o r a p r o j e c t w h i c h appears t o be a r i s k y v e n t u r e (Coe, 1 9 8 0 ) , (Touber , 1980) .

C o s t a n a l y s i s s t u d i e s were conduc ted f o r a p o t e n t i a l s m a l l i n d u s t r i a l -

commerc ia l p a r k between Poncha S p r i n g s and S a l i d a u t i l i z i n g t h e Poncha S p r i n g s

- 3 1 -

r e s o u r c e . V a r i o u s p a r a m e t e r s , i n c l u d i n g bond r a t e , d i s t a n c e f r o m r e s o u r c e and i n d u s t r i a l h e a t demand w e r e v a r i e d d u r i n g the a n a l y s i s . The p r i c e p e r m i l l i o n BTU w h i c h the d e v e l o p e r wou ld h a v e t o c h a r g e wou ld be between $2 .26 and $9 .62 (NEMI, 1 9 8 0 ) . The l e a s t e x p e n s i v e p r i c e ( $ 2 . 2 6 p e r m i l l i o n B T U ) u t i l i z e d t h e a v a i l a b l e r e s o u r c e more f u l l y , and t h i s was r e f l e c t e d i n t h e r e s o u r c e b e i n g c o s t - c o m p e t i t i v e w i t h n a t u r a l g a s i n t h e a r e a . The h i g h e r p r i c e d r e s o u r c e was n o t a n t i c i p a t e d t o be c o s t c o m p e t i t i v e u n t i l t h e mid 1 9 9 0 s . The p a r a m e t e r s f o r t h i s a n a l y s i s w e r e 1 ess f a v o r ab1 e , i ncl u d i ng h i g h e r bond r a t e s , 1 o n g e r t r a n s m i s s i o n d i s t a n c e s and l o w e r i n d u s t r i a l e n e r g y r e q u i r e m e n t s .

A d d i t i o n a l c o s t e s t i m a t e s w e r e a n a l y z e d f o r a p o t e n t i a l new c o n s t r u c t i o n s u b d i v i s i o n n e a r Buena V i s t a , u t i l i z i n g a p o r t i o n o f t h e r e s o u r c e f r o m t h e C h a l k C r e e k a r e a f o r d i r e c t h e a t a p p l i c a t i o n s . A n a l y s i s showed t h a t 1 9 8 4 i s t h e f i r s t y e a r h y d r o t h e r m a l e n e r g y a t t h i s d e v e l o p m e n t wou ld be c o s t c o m p e t i t i v e w i t h n a t u r a l g a s (NMEI, 1 9 8 0 ) . The m a j o r p r o h i b i t i v e c o s t f a c t o r i n t h i s a n a l y s i s was t h e t r a n s m i s s i o n c o s t s b r i n g i n g t h e r e s o u r c e seven miles t o t h e s u b d i v i s i o n , I f t h e d e v e l o p m e n t w e r e t o b e b u i l t c l o s e r t o t h e r e s o u r c e , e n e r g y c o s t s d r o p s u b s t a n t i a l l y .

H Y D R O T H E R M A L E N E R G Y D E V E L O P M E N T POTENTIAL RESOURCE DESCRIPTION

Four h y d r o t h e r m a l r e s o u r c e a r e a s h a v e b e e n d e f i n e d i n C h a f f e e C o u n t y . They i n c l u d e t h e C o t t o n w o o d C r e e k A r e a , C h a l k C r e e k A r e a , B r o w n ' s Canyon A r e a and Poncha Hot S p r i n g s ( F i g u r e 3 ) . C h a r a c t e r i s t i c s o f t h e s p r i n g s and w e l l s f o u n d i n these a r e a s a r e l i s t e d on T a b l e 1 9 . These s p r i n g s a r e among t h e h o t t e s t i n t h e s t a t e , w i t h t e m p e r a t u r e s r a n g i n g f r o m 23°C t o 82°C (73OF-18O"F). H o r t e n s e Hot S p r i n g s and Well , i n C h a l k Creek V a l l e y , a r e t h e h o t t e s t t h e r m a l w a t e r s i n

the s t a t e and a r e b o t h 82°C. S u b s u r f a c e t e m p e r a t u r e s a t the r e s o u r c e s a r e e s t i m a t e d t o r a n g e b e t w e e n 50°C and 200°C. ( B a r r e t t & P e a r l , 1 9 7 8 ) . Based upon

t h e p a r a m e t e r s l i s t e d i n T a b l e 1 9 , b e t w e e n 1.8183 x 1 0 1 5 a n d 6 .1952 x 1015 B T U ' s ( 6 . 1 9 5 2 q u a d s ) o f h e a t a r e e s t i m a t e d t o be present i n t h e t h e r m a l r e s e r v o i r s o f t h e c o u n t y ( P e a r l , 1 9 7 9 ) . These f i g u r e s a r e o n l y e s t i m a t e s b a s e d upon r e c o n n a i s s a n c e e x p l o r a t i o n c o n d u c t e d i n t h e a r e a and s h o u l d b e v i ewed w i t h c a u t i o n u n t i l r e f u t e d o r s u b s t a n t i a t e d w i t h a d e q u a t e e x p l o r a t i o n d a t a . However , i t i s a n t i c i p a t e d t h a t these e s t i m a t e s may be c o n s e r v a t i v e and more e n e r g y may b e a v a i l a b l e f r o m t h e g e o t h e r m a l r e s o u r c e s .

- 32 -

d - N -

GEOTH E RM AL RESOURCE LOCAT IONS

CHAFFEE COUNTY COLORADO

FIGURE 3

- 33 -

RESOURCE

w P

TABLE 19

RESOURCE D E S C R I P T I O N - C H A F F E E COUNTY

EST. RESER!OIR T H I C K N E S S TEMP. E S T - D I S C H A R G E E X T E N T (mi ) ( f t ) ( " C ) TEMP ( " C ) (gpm)

T O T A L D I S S O L V E D E S T I M A T E D T O T A L S O L I D S ENERGY CONTENT

( B T U ' S x 1015) ( m u 1 1

COTTONWOOD CREEK

COTTONWOOD HOT ARER

I S 2 R I N G JUMP-STEADY

HOT S P R I N G

d A T E R WELL M E R R I F I E L D HOT

I C H A L K CREEK AREA

MOUNT P R I N C E T O N K I T S P R I N G S

HOi lTENSE HOT

HORTENSE HOT J A T E R WELL

YOJNG L I F E HOT d A T E R WELL

WOilLMINGTON HOT NATER WELL

U R I G H T HOT WATER Y E L L ( E a s t )

WRIGHT HOT WATER Y E L L (West )

S P R I N G

BROYNS CANYON AREA BR'JUN'S CANYON

dARM S P R I N G

SPR I NG

YARM WATER WELL

BROWN'S GROT0 WARM

CHiMMNEY H I L L

1.38-4.14 1,000 46 - 58

3.14-1 0 .O

1.5-3.23

PONCHA HOT S P R I N G S 0.6-5.07 AREA S P R I N G A - SPRING B S P R I N G C S J R I N G D S P R I N G E

SOSRCE: P e a r l , 1979

1,000

1,000

1,000

44-56

82

82

39

67

72

25

23

27

50-71 66 62 56 60

105-182

10

50

0.3894-1.1672

370

368

- 301

1.0623-2.6314 150-200

175 ( c o m b i n e d )

18 340

318

259

143

234

313

-

50-100

115-145

1

5

200 30

4 2 2

0.2256-0.4856 - 494

0.1410-1.9110

697 655 685

1 .8183-6.1952 T O T A L

Useab le e n e r g y i s t h a t amount o f ene rgy w h i c h can be e x t r a c t e d f r o m t h e

r e s e r v o i r and p u t t o use. T h e r e f o r e , u s e a b l e ene rgy i s n o t t h e same as energy ( h e a t ) c o n t a i n e d i n t h e s u b s u r f a c e geo the rma l r e s e r v o i r . An e s t i m a t e o f t h e

amount o f u s e a b l e e n e r g y a v a i l a b l e may be o b t a i n e d b y m u l t i p l y i n g t h e r e s o u r c e

e s t i m a t e b y 0 . 0 6 ( w h i c h i n c l u d e s f a c t o r s o f 0 .24 t o d e t e r m i n e e x t r a c t a b l e

e n e r g y and 0 . 2 5 t o d e t e r m i n e e x t r a c t e d e n e r g y t h a t i s a c t u a l l y u s e d ) . These

c a l c u l a t i o n s r e s u l t i n a p o t e n t i a l f o r 0 . 1 0 9 1 x l O I 5 BTU's t o 0 . 3 7 1 7 x 1 0 1 5

BTU's ( 0 . 1 0 9 1 - 0 . 3 7 1 7 quads) o f u s e a b l e h e a t a v a i l a b l e f r o m t h e r e s o u r c e a r e a s

i n t h e c o u n t y ( T a b l e 2 0 ) .

TABLE 20

E S T I M A T E D USEABLE HYDROTHERMAL ENERGY CHAFFEE COUNTY

Resource Area E s t i m a t e d U s e a b l e Energy ( B T U ' S x 1 0 1 5 )

Cot tonwood Creek 0 . 0 2 3 4 - 0 . 0 7 0 0 C h a l k Creek 0.0637 - 0 . 1 5 7 9 Browns Canyon 0 . 0 1 3 5 - 0 . 0 2 9 1 Poncha H o t S p r i n g s 0.0085 - 0 . 1 1 4 7

TOTAL 0 . 1 0 9 1 - 0 . 3 7 1 7

S O U R C E : P e a r l , 1 9 7 9

To i n s u r e t h a t t h e e n e r g y "mined" f r o m t h e geo the rma l r e s o u r c e w i l l l a s t an

adequa te l e n g t h o f t i m e , a w i t h d r a w a l r a t e i s c a l c u l a t e d f o r a 30 y e a r p e r i o d . I f t h e e n e r g y was used a t t h i s r a t e o f 1 / 3 0 p e r y e a r , t h e n 0 . 0 0 3 6 t o 0.0124

quads o f h e a t wou ld b e a v a i l a b l e p e r y e a r . These f i g u r e s do n o t t a k e i n t o

a c c o u n t r e c h a r g e t o t h e geo the rma l r e s o u r c e a r e a . S i n c e t h e s e r e c h a r g e r a t e s

c a n n o t be d e t e r m i n e d w i t h o u t e x t e n s i v e e x p l o r a t i o n d a t a , an e s t i m a t e o f

r e c h a r g e r a t e s c a n n o t be made. However, i t i s e x p e c t e d t h a t any deve lopmen t

wou ld be d e s i g n e d t o w i t h d r a w f l u i d s a t r a t e s r e l a t i v e l y e q u a l t o t h e

d e t e r m i n e d r e c h a r g e r a t e s . These methods w o u l d c o n c e i v a b l y e n a b l e a r e s o u r c e

t o l a s t an i n d e t e r m i n a t e l e n g t h o f t i m e . I n a d d i t i o n , a r t i f i c a l methods o f

r e c h a r g e such as t h e use o f i n j e c t i o n w e l l s w i l l p e r m i t enhanced r e c h a r g e t o

t h e r e s o u r c e .

- 35 -

HISTORICAL USE

Some o f t h e t h e r m a l w a t e r s o f t h e c o u n t y have been used f o r many y e a r s f o r

swimming p o o l s, space h e a t i n g and greenhouses f o r b o t h r e s i d e n t i a l and

5ommerc ia l pu rposes . A1 t h o u g h t h e s e uses have been r e 1 a t i v e l y m i n o r i n

c o m p a r i s o n t o t h e o v e r a l l e n e r g y c o n s u m p t i o n f o r t h e c o u n t y , r e s i d e n t s i n t h e

a r e a a r e aware of t h e e x i s t e n c e o f t h e r e s o u r c e and some o f i t s p o t e n t i a l .

The s p r i n g s and w e l l s i n t h e Cottonwoo.d Creek a r e a a r e p r e s e n t l y used t o h e a t a

r e s i d e n c e , swimming p o o l , and commerc ia l greenhouse. I n a d d i t i o n , a r e s o r t uses

a t h e r m a l s p r i n g f o r space h e a t i n g and d o m e s t i c pu rposes .

I n t h e Cha lk Creek V a l l e y v a r i o u s uses o f t h e r m a l w a t e r s i n c l u d e r e s o r t and

d o m e s t i c uses a t swimming p o o l s , c a b i n and r e s i d e n t i a l h e a t i n g , and d o m e s t i c

and r e c r e a t i o n a l uses a t a camp. The t h e r m a l w a t e r s i n t h e B r o w n ' s Canyon a r e a a r e p r e s e n t l y unused.

Waters f r o m t h e h o t s p r i n g s a t Poncha H o t S p r i n g s a r e m a i n l y p i p e d t o h e a t

S a l i d a ' s m u n i c i p a l swimming p o o l f i v e m i l e s away. D u r i n g t h e summer, a s m a l l

amount o f t h e w a t e r s a r e used i n a p o o l a t t h e s p r i n g s . I n a d d i t i o n , a

c a r e t a k e r ' s r e s i d e n c e a t t h e s p r i n g s u t i l i z e s t h e w a t e r f o r space h e a t i n g

pu rposes ( P e a r l , 1979) .

DEVELOPMENT A C T I V I T I E S

C u r r e n t geo the rma l c o n s t r u c t i o n a c t i v i t y i s m i n o r a t t h e p r e s e n t t i m e i n

C h a f f e e County. M a i n t e n a n c e and r e f u r b i s h i n g o f p r e s e n t i n s t a l l a t i o n s i s

c o n d u c t e d as necessa ry .

However, e x p l o r a t i o n f i r m s , d i s c u s s e d p r e v i o u s l y i n t h e i n s t i t u t i o n a l s e c t i o n ,

a r e c u r r e n t l y a c t i v e i n t h e area. These f i r m s , O c c i d e n t a l O i l , AMAX and

P e t r o - L e w i s , a r e p r i m a r i l y i n t e r e s t e d i n e l e c t r i c power g e n e r a t i o n and a r e o r i e n t i n g t h e i r e x p l o r a t i o n t o t h i s p r o c e s s . E x p l o r a t i o n a c t i v i t i e s b y t h e s e f i r m s up t o t h e p r e s e n t t i m e has i n c l u d e d g e o l o g i c mapping, l i t e r a t u r e

sea rches , g e o p h y s i c a l s t u d i e s , and deep and s h a l l o w t e m p e r a t u r e g r a d i e n t h o l e

d r i l l i n g and measurement. These f i r m s a r e s t i l l showing i n t e r e s t i n t h e

p o t e n t i a l f o r e l e c t r i c power g e n e r a t i o n , a l t h o u g h e x p l o r a t i o n has s lowed

- 36 -

r e c e n t l y due t o t h e d i f f i c u l t y i n o b t a i n i n g geothermal l e a s e s o n N a t i o n a l Fo res t Lands. These l e a s e a p p l i c a t i o n s were a p p l i e d f o r i n 1974 a n d have n o t y e t been approved. C u r r e n t l y , t h e U.S. F o r e s t S e r v i c e i s p r e p a r i n g a n Environmental Assessment Report ( E A R ) f o r t h e a r e a , w i t h complet ion expec ted i n J u l y , 1980.

Proposed e x p l o r a t i o n ac t i v i t i e s by t h e s e f i rms wi 1 1 be dependent u p o n 1 e a s e a p p r o v a l s a n d r e s u l t s o f t empera tu re g r a d i e n t a n a l y s i s i n t h e a r e a s i n v e s t i g a t e d . The next s t e p s may i n c l u d e deep ho le d r i l l i n g f o r t empera tu re g r a d i e n t s a n d / o r p roduct ion t e s t w e l l s . I f a geothermal f a c i l i t y i s c o n s t r u c t e d i n t h e a r e a , r e i n j e c t i o n procedures f o r geothermal waste would be m o s t d e s i r a b l e , i f f e a s i b l e . However, t h e p o s s i b i l i t y i s a l s o p r e s e n t fo r us ing f l u i d s a f t e r power g e n e r a t i o n f o r d i r e c t heat uses for r e s i d e n t i a l , commercial a n d i n d u s t r i a l a p p l i c a t i o n s b e f o r e r e i n j e c t i o n .

A geothermal c o n s u l t i n g f i rm, Chaffee Geothermal, l o c a t e d i n Denver, Colorado, i s c u r r e n t l y i n v e s t i g a t i n g a n d p r o m o t i n g d i r e c t heat a p p l i c a t i o n s using a p o r t i o n of t he Poncha Hot Sp r ings r e s o u r c e . The f i r m r e c e n t l y acqu i r ed S a l i d a ' s geothermal l e a s e s a t Poncha H o t Sp r ings a n d a n t i c i p a t e s t o conduct e x p l o r a t i o n and p roduc t ion development d u r i n g t h e summer of 1980. Five sinall i n d u s t r i e s , both new a n d e x i s t i n g , west of S a l i d a have expressed i n t e r e s t i n us ing t h e r e s o u r c e . ( J . Dick, pers . comm., 1 9 8 0 ) . A commercial greenhouse and a mine ra l s p rocess ing f i r m a r e among t h e i n t e r e s t e d p a r t i e s . F l o w r a t e s des i red f o r t h e di s t r i b u t i on system a r e approximate ly 800 gal 1 ons per m i nu t e u t i l i z i n g a s i x i n c h p i p e l i n e ( J . D i c k , p e r s . comm., 1980) Explo ra t ion a n d

engi neer i ng s t u d i e s planned w i 1 1 determi ne f i nal des i g n c o n s t r a i n t s a n d s p e c i f i c a t i o n s . The p r o j e c t s c o n s t r a i n t p r e s e n t l y i s i nadequa te f u n d i n g c a p i t a l . The i n t e r e s t a n d r e s o u r c e a r e a v a i l a b l e a n d w i t h t h e a n t i c i p a t e d c a p i t a l acqui red i n t h e next few m o n t h s , i t i s hoped t h a t e x p l o r a t i o n , development a n d c o n s t r u c t i o n wi 11 soon be under taken .

D E V E L O P M E N T O P P O R T U N I T I E S

A comparison of c u r r e n t a n d p r o j e c t e d energy demand a n d u sab le energy from t h e hydrothermal r e source i s shown on Table 21 . I t can be seen t h a t t h e r e s o u r c e a v a i l a b l e i s more t h a n adequate t o s e r v e t h e energy needs of t h e a r e a a t p r e s e n t and in t h e f u t u r e .

- 37 -

T A B L E 21

COMPARISON OF E N E R G Y CONSUMPTION A N D AVAILABLE H Y D R O T H E R M A L RESOURCES

CONSUMPTION ( P E R Y E A R ) C U R P L N T (EST. ) 202O16EST.) (10 B T U ) (10 B T U )

R e s i d e n t i a l & Commercial 33.9 80.6 I n d u s t r i a l 9.0 21.4

TOTAL 42.9 102.0

USEABLE R E S O U R C E - 10910.0 - 37170.0 x BTU TOTAL ( i f u t i l i z e d over a 30 yea r p e r i o d , then 363.7 - 1239.0 x 10 f ' i gu re does not i n c l u d e r echa rge t o the r e s o u r c e r e s e r v o i r ) .

BTU a v a i l a b l e per yea r - t h i s

SOURCE: Colo. Geol. Survey Es t ima tes

A development s c e n a r i o was p o s t u l a t e d f o r t h e a r e a and i s l i s t e d on Tab le 22. Due t o the p r e s e n t u n c e r t a i n t y of e l e c t r i c power g e n e r a t i o n i n the a r e a , d i r e c t h e a t a p p l i c a t i o n s and e l e c t r i c power g e n e r a t i o n a r e t r e a t e d s e p a r a t e l y . However, t h i s should not imply t h a t these developments cannot occur t o g e t h e r . Mastewater from power g e n e r a t i o n i s c e r t a i n l y a sou rce of energy f o r d i r e c t h e a t uses. I t i s a n t i c i p a t e d t h a t any development of t h i s t y p e should i n c l u d e the "cascading" of thermal f l u i d s from one a p p l i c a t i o n t o ano the r .

I t should be noted t h a t t h i s s c e n a r i o i s merely a hypo thes i s . Actual development may occur e i t h e r ahead of t h i s s chedu le or no t a t a l l . I t i s a n t i c i p a t e d t h a t the most c o s t e f f e c t i v e developments w i l l be c o n s t r u c t e d f i r s t , w i t h o t h e r uses b e i n g a p p l i e d l a t e r a s t h e i r c o s t e f f ec t iveness becomes more f a v o r a b l e .

-38-

T A B L E 2 2

POSSIBLE S C H E D U L E FOR A R E A H Y D R O T H E R M A L D E V E L O P M E N T E L E C T R I C P O W E R G E N E R A T I O N

D A T E

Pre 1977-12/80

Pre 1 9 7 7

1/80-12/80

Pre 1977 and A n t i c i p a t e d 1980

Pre 1977

1 /81-6 /81

5/81 -9181

9/81-2/82

9/81-3182

3/82-3/83

3/83-8/84

E N T I T Y

Devel oper

Developer

Developer

BLM/USFS

S t d t e Gover nment

Developer

Devel oper / Ut i 1 i t y / Producer

U t i l i t y

U t i l i t y

S t a t e / Feder a1

Producer

Ut i 1 i t y

A C T IV I TY

P re l imina ry e x p l o r a t i o n a n d t empera tu re g r a d i e n t h o l e s fo r C h a l k Cr eek-Mount P r i nceton E l e c t r i c Power Genera t ion

A p p l y f o r s t a t e & f e d e r a l 1 e a s e s

O b t a i n p r i va te 1 e a s e s

I s s u e f e d e r a l l e a s e s

I s s u e s t a t e l e a s e s

D r i l l & Test Exp lo ra t ion Well ( s )

Negoti a t i ons - Feasi b i 1 i t y S t u d i e s

O b t a i n water r i g h t s , i f necessary

Environmental Impact S ta tement

Power pl a n t o p e r a t i o n s , d i sposal f i e l d devel opment permi ts i s sued

D r i l l & complete p roduc t ion ( a n d i n j e c t i o n ) we1 1 s

Power p l a n t f a c i l i t y and u t i l i t y l i n e s c o n s t r u c t e d : 50-MWe P O W E R O N L I N E

- 39 -

D A T E - 11186-11/89

Pre 1977-1181

Pre 1977 & 1979

Pre 1977

1 /80 -12 /80

Pre 1977 and An t i c ipa t ed 1980

Pre i 9 7 7

1/81 -6181

6 18 1 =6 / 82

5/82-8182

6/82-6183

6183-12/84

1185-12185

1 / 8 6k.12 / 88

1189- 1 2 7 9 l

~~

T A B L E 22 C O N T I N U E D

ENTITY

Ut i 1 i t y and Producer

Devel oper

Developer

Developer

Devel oper

BLMIUSF S

S t a t e

Developer

Devel oper 1 U t i 1 i t y l Producer

Uti 1 i t y

Uti 1 i t y

S t a t e / Feder a1

Producer

' U t i l i t y

Uti1 i t y

A C T I V I TY

Second power p l a n t & well f i e l d c o n s t r u c t e d : 100 MWe P O W E R ON L I N E

P re l imina ry e x p l o r a t i o n a n d t empera tu re g r a d i e n t h o l e s f o r Poncha Spr ings E l e c t r i c Power Genera t ion

Apply f o r f e d e r a l l e a s e s

Apply fo r s t a t e l e a s e s

Obtain p r i v a t e 1 e a s e s

I s s u e f e d e r a l l e a s e s

I s s u e s t a t e l e a s e s

D r i l l & t e s t e x p l o r a t i o n well ( s )

Negotiations-feasibility s t u d i e s

O b t a i n water r i g h t s , i f necessa ry

Environmental Impact S t a t ement

'Power pl a n t , oper a t i on d i s p o s a l , f i e l d development, e t c . , permi ts i s s u e d .

D r i l l & complete product ion ( a n d i n j e c t i o n ) we1 1 s

Power p l a n t & u t i l i t y l i n e s c o n s t r u c t e d : 50 MWe POWER O N L I N E

Second Dower Dlant and u t i 1 i t v l i n e s construkted:100 MWe POWER O N L I N E

"

- 40 -

I

T A B L E 2 2 C O N T I N U E D

D I R E C T H E A T A P P L I C A T I O N S

A C T I V I TY E N T I T Y D A T E

Uevel oper 1 Users

Nego t i a t e ayreements w i t h i n d u s t r i a l u s e r s a n d o b t a i n f i nanci n g f o r i ndustr i a1 p a r k near S a l i d a using Poncha S p r i n g s r e s o u r c e .

-- 10/80

1/80-12/80

1 /80-2 /80

12/80-1/81

Prel i m i n a r y expl o r a t i on

O b t a i n geothermal l e a s e s

I s s u e expl o r a t i on we1 1 permi ts

Developer

Oevel oper

S t a t e a n d Local Agencies

Oevel oper 2/81-4/81

5/81-8181

D r i l l & t e s t e x p l o r a t i o n we1 1

S t a t e a n d L O C d l Agenc i es

Devel oper

I s s u e , p roduct ion w e l l , devel o pme tit d n d cons t r uc t i o r l perini t s

D r i l l & complete product ion & r e i n j e c t i o n well ( s ) . c o n s t r u c t d i s t r i b u t i o n system

9181-9/83

9/82-9183

10/83-12/83

Users C o n s t r u c t p l a n t s , g reenhouses , e t c .

Devel oper / Users

System i n o p e r a t i o n , E N E R G Y O N L I N E , 6 x 1010 B T U ' ~ .

Feasi b i 1 i t y a n d pr el imi n a r y engi neer i ng a n d yeol o g i ca l s t u d i e s f o r p o r t i o n s of S a l i d a h e a t i n g d i s t r i c t .

1181-12/81 Devel oper

Developer O b t a i n f i n a n c i n g f o r d i s t r i c t h e a t i ng system.

12/81-6/82

12/81-6/82 Resi den t i a1 / Commerci a1 Users

O b t a i n f i n a n c i n g f o r r e t r o f i t i n s t a l l a t i o n s .

6/82-9/82 O b t a i n f e d e r a l , s t a t e a n d p r i v a t e geothermal l e a s e s a n d e x p l o r a t i o n permi ts

Developer

- 41 -

T A B L E - 2 2 C O N T I N U E D

DATE

9/82-10/82

10182-1/83

2/83;5/83

6 j 8 2 -6 1 84

7 /8&:9/S-bt

1/85--1/88

'6 1 8'3 --9

0 1-83

10 183 - 1 1 84

ENTITY.

Devei oper

Devel oper

S t a t e and Local Agenci es

Devel oper

Developer s / Users / Government Agencies

Devel oper

Devel oper

ResidSriti-a1 1 Commerci a1 U s & s

Devel oper

DeVel op'er

-Dev'el oper

A C T I V I T Y

O b t a i n water r i g h t s and r i g h t s of way

D r i l l a n d t e s t e x p l o r a t i o n w e l l ( s )

Issue product ion w e l l , development and c o n s t r u c t i o n pe rmi t s

D r i l l & complete p roduc t ion I? r e i n j e c t i o n w e l l ( s ) , c o n s t r u t t d i s t r i b u t i o n system, r e t r o f i t e x i s t i n g r e s i d e n c e s and b u s i n e s s e s and s e r v e new con'str u c t i on.

System i n o p e r a t i o n E N E R G Y ON CINE 12.4 x 1010 B T U ' s

.Siini 1 a r p rocess t o r e t r o f i t -remainder of Sal i d a a r e a . ,€NFRGY ON 'LtI NE -13-.18 x l O l u B T U ' S

F'easi bi 1 Yty and p re l imimary engi neer i ng & geol ogi c a l

h e a t i ng d i s t r i c t es f o r . po r t ions o'f Buena

Obt'ai'n f i nanci n g f o r di s t r i c t h e a t i n g system

Obtain - f inanc ing f o r r e t r o f i t 'i n s t a l l a t i ons

L4btai n feder2al., s t f i vake geothermal l e a s e s and p l -o ra t ion p e r m i t s

water r i g h t s .and

' r i 11 & t ' e s t expl wkaLtti on e l l ( s )

TAt3LE 2 2 C O N T I N U E D

D A T E - 2184-5/83

ACT I V I TY E N T I T Y

I ssue p r o d u c t i o n wel l , development a n d cons t ruc t ion perinits '

S t a t e a n d Local Ayenc i es

6/83-6185 Devel oper D r i l l a n d complete production a n d r e i n j e c t i o n well ( s ) , c o n s t r u c t d i s t r i b u t i o n system, r e t r o f i t e x i s t i n g residences a n d businesses a n d se rve new cons t ruc t ion

7 185-9 185

1 /86-1189

System i n o p e r a t i o n , E N E R G Y ON L I N E 7.78 X 101O BTU's

Devel oper s / Users/ G ov er nmen t Agencies

S i m i l a r process t o r e t r o f i t remainder o f Buena Vista a rea E N E R G Y O N L I N E 8.64 x l O l u BTU's

Developer F e a s i b i l i t y a n d preliminary engi neer i n g a n d geol o g i cal s t u d i e s for a new cons t ruc t ion subdivis ion near Buena Vista

1183-12/83

12/83-6184 Devel oper O b t a i n f inanc ing for d i s t r i c t heat ing system, p l a t subdivis ion

3/84 - 9/84 Developer O b t a i n f e d e r a l , s t a t e a n d p r i vate 1 eases a n d expl o r a t i on permits

9 /84 -3185

3/85-9185

9185-12185

Devel oper D r i l l a n d t e s t explora t ion we1 1

Developer O b t a i n water r i g h t s a n d r i g h t s of way

S t a t e and Local Agenci es

I ssue subdivis ion a p p r o v a l , production well a n d a n d development permits

Developer Dri 1 1 a n d complete production wel l , c o n s t r u c t d i s t r i b u t i o n system.

1/86-1187

- 43 -

1186-1/87

2 /87-4187

TABLE 22 C O N T I N U E D

Users R e s i d e n t i a1 c o n s t r u c t i o n

R e s i d e n t i a l c o n s t r u c t i o n sys tem i n o p e r a t i o n , ENERGY ON LINE 1.53 x 1O1O BTU's

6183-10183 Deve loper I n i t i a t e agreement S a l i d a t o u t i l i z e

11183-3 /84 Deve loper

1 1 / 8 3 - 3 / 8 4 Users

4 /84-9184 Deve l oper

9184-12184 S t a t e and L o c a l

1185-1 186 Deve loper / U s e r s

2 /86-4186

w i t h esou c e

f o r Town o f Poncha Spr i ngs h e a t i n y d i s t r i c t

O b t a i n f i n a n c i n g f o r d i s t r i c t sys tem and a d d i t i o n a l p r o d u c t i o n w e l l ( s )

Obtai n f i n a n c i n g f o r r e t r o f i t i n s t d l 1 a t i ons

O b t a i n p e r m i t s and d r i l l and c o m p l e t e a d d i t i o n p r o d u c t i o n w e l l ( s )

I s s u e p e r m i t s f o r sys tem c o n s t r u c t i o n and o p e r a t i o n

Sys tem c o n s t r u c t i o n and r e s i d e n t i a l and commerc ia l r e t r o f i t t i n g

System i n o p e r a t i o n , ENERGY ON LINE: 2.5 x 1010 B T U ' S

SUMMAK Y

Geothevmael develo.pment p o t e n t i a l seems t o be cons ide rab1 ,e i n t h e a r e a s t u d i e d .

Recen t a c t i v i t i j e s d e s c r i b e d i n t h e t e x t i n d i c a t e t h a t r e s i d e n t s and d e v e l oper s

a r e l o o k i n g f a v o r a b l y , b o t h e c o n o m i c a l l y and t e c h n o l o g i c a l l y , a t t h e C h a f f e e t h e i r e n e r g y pe i r e m e n t s . T h i s , r e p o r t has a t t e m p t e d t o

a:sXi:s't t h e s e p a r ' t i es i n d e v e l o p i ng t h e h y d r o t h e r m a l Geothermal d e v e l opment

.poten:t- i*al seems t o be c o n s i d e r a b l e i.n t h e a r e a r e s o u r c e . Geothermal ene rgy a s e r v e much o f " the a re la ' s ene r e q u i r e m e n t s i in t h e f u t u r e , w i t h t h e

a d d i ' t i o n a l e n e r g y on l i n e i n j u s t a few .months w i t h l a r g e r

p r o j e c t s comp&et-ed i n a few y e a r s .

- 44 -

. I.

ORAL C O M M U N I C A T I O N S

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Crocombe, T., CoinFurT Gas Co., Buena V i s t a , C O

D a v i s , D. , G r e e l e y Gas Company, S a l i d a , C O

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Loo, F . , D i v i s i o n o f Water Resources , Denver , CO Mossman, M., O c c i d e n t a l O i l Corp. , B a k e r s f i e l d , CA

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P e a r l , R. , Col o r a d o Geol o g i c a l Su rvey , Denver , C O

Simpson, E., C o l o r a d o S t a t e R e f o r m a t o r y , Buena V i s t a , CO S t o t l e r , R., P l a n n i n g D i r e c t o r , C h a f f e e County , S a l i d a , CO

Tan, R., C o l o r a d o P u b l i c U t i l i t i e s Commission, Denver , CO

Touber , E., Mayor, S a l i d a , C O

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Governments, Canon C i t y , C O

3

BIBLIOGRAPHY - -

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J