1IIeStRIul - scholarspace.manoa.hawaii.edu - ASHIDA #1...Rig down blowoutpreventer. Cut offwell head and cap 9 5/8" casing 9 feet below the top ofthe cellar with W'steel plate. Fill

1IIeStRIulSurety

February 9, 1996

Mr. Manabu TagomoriState of HawaiiDept of land &Natural ResourcesP.O. Box 621Honolulu, HI 96809

Re: Barnwell Geothermal CorporationPlugging and Abandonment of Ashida No. 1TMK: 1-3-01:24Seaboard Bond No. 872109

Seaboard Surety Company745 Fort St. Ste. 307Honolulu. HI 96813Telephone 808.538.3874Facsimile 808.523.8580

C":'r:

,- , ,

r-·',,::;.~ CP

C:" e'Nr-· ~1 r:-

~.,~. ~ ~ ,r"

:Dr-"· J>- ~(;.::.c..:: --' -l"f"l c::> IT1

3::- ;0rn f;lO v'; 0Z-\ en

Dear Mr. Tagomori:

We recently received a copy of Michael D. Wilson's July 18, 1995 letter toBarnwell Geothermal Corporation approving the plugging and abandonment ofthe captioned well.

On January 16, 1980 Seaboard Surety Company issued a Geothermal Resourceswell indemnity Bond in favor of the State of Hawaii for $50,000 - SeaboardBond No. 872109. Based on Mr. Wilson's January 18, 1995 letter we considerour liability under this bond to be terminated effective January 18, 1995unless we hear from you to the contrary within the next 30 days.

Best regards,

TF/cm

Seaboard SuretyCompanySt. Paul Fire and MarineInsurance CompanySt. Paul MercuryInsurance CompanySt. Paul GuardianInsurance Company

la. 17. 1996 j2:1/1P1! MARSH &MCLENNAN 808-521-0761

.0 · ""'rl t)r. ,

.IiNJA"'" J CAYETANOIID1111'i1a Cl' ~WAll

REP:WL:LK

STATE OF HAWAIIDEPARTMENT OF LAND AND NATURAL RESOURCES

P. a.IOX'lIlI"IOI~OUJLU. i'tA,WAlI eoeot

n. &8 nl5

MICHAEL D. Wll.SO/II, t>WII"I!PI80NIDoII!ll OF I,MO AND JMl\IllAl. FIiSOUllCn

OEPiJTY

~ILBIiRT COLOMAoABAI',AN

ACUACULT111l11:l1111LOHoWHT I'RClIIIlAIIAQUATIC MIOUACIS_TIND AND lDANII_naNCCNlIIlVAn:lN jHI) INVIlONIelTAL

oWMlIOONIIlIIVATION N!fJ IIE1ClUIlOIS

IIlII'OIIC..-rCGNYl!\'MlCDFClMITIIY NiID WlLllUFi"lstaIIla ",..IIf\VA_lJIjD l.tANACl...".SrATIPAMIWAlUI AND LAM' tIl!'lnt_1!I\IT

Mr. Martin L. Jolcl, PresidentBarnwell Geothermal Corporation1100 AlIkea Street, Suite 2900Honolulu. Hawaii 96813

Dear Mr. Jokh

Plugging and Abandonment of Asbida No. 1

Your repOlt on the plugging and abandonment of Geothermal Well Ashida No.1, datedJune 29, 1995, is approved.

Should you have any questions regarding this matter, please contaCt Mr. Manabu Tagomoriof the Divsion of Water and Land Development at 587-0230.

Aloha,

~A..~~DMiCHAEL D. WILSON U

RECEIVEDJAN 17 1996UAMHI ....NNAN

HDNDLUW. HoWIAIt


..

BENJAMIN J. CAYETANOGlWEAIlOR OF HAWAII

REF:WL:LK

•

P. O. BOX 621

HONOlULU. HAWAII 96609

.JJL 18 '995

• MICHAEL D. WILSON. CHAIRPERSONIIClARll OF LAND AND NATURAl RESOURCES

DEPUTYGILBERT COLOMA·AGARAN

AQUACUlTURE DEVELOPMENT PROGRAMAQUATIC RESOUACElIllClATING AND OCEAN RECREATIONCONSERVATION AND ENVIRONMEHTAL

AFFAIRSCONSERVATION AND RESOURCES

ENFORCEMENTCONVEYANCESFORES1lIY AND W1LDUFEH1S1ORlC PRESERVATIONLAND MANAGEMENTSTAlE PARKSWAlER AND LAND DEVELOPMENT

Mr. Martin L. Jold, PresidentBarnwell Geothennal Corporation1100 Alakea Street, Suite 2900Honolulu, Hawaii 96813

Dear Mr. Jold:

Plugging and Abandonment of Ashida No. 1

Your report on the plugging and abandonment of Geothermal Well Ashida No. ~, datedJune 29, 1995, is approved.

Should you have any questions regarding this matter, please contact Mr. Manabu Tagomoriof the Divsion of Water and Land Development at 587-0230.

Aloha,

~A-~~DMICHAEL D. WILSON U .

•

.. • •BARNWELL GEOTHERMAL CORPORATION

1100 Alakea Street, Suite 2900Honolulu, Hawaii 96813

(808) 531-8400 Telephone(808) 531-5171 Facsimile

June 29, 1995

Mr. Manabu TagomoriManager & Chief EngineerState of HawaiiDepartment of Land and Natural ResourcesDivision of Water and Land DevelopmentP. O. Box 373Honolulu, HI 96809

Dear Mr. Tagomori:

Re: Plugging and abandonment ofAshida 1 geothermal test well

This purpose of this letter is to notify the Department of Land and Natural Resources of the plugging andabandonment of the Ashida 1 geothermal test. The Ashida I geothermal test well was spudded on June 10,1980, at 12:00, and was drilled to a total depth of 8,300 feet. The maximum recorded temperature of550°F was measured at total depth. No significant permeability was found and no geothermal zonescapable of fluid production were encountered. The well was suspended at midnight on October 29, 1980.The well was plugged on October 1 and 2, 1992. A chronology detailing the plugging and abandonment ofthe well is set forth below.

.-,-

o

April 1992

September 8, 1992

September 18, 1992

September 23, 1992

September 28, 1992

October I, 1992

October 2, 1992

12:00

06:00

Repair work on road leading to well site.

Begin mobilization of drilling rig to the well site.

Nipple up blowout preventer.

Begin running 2 7/8" tubing into the hole.

Finish running 27/8 inch tubing. Depth of tubing 4090 feet (GL).

Pump 5.6 bb1150+ vis mud plug. Displace with 21 bbl water.Pull tubing out ofhole to 4030 feet.Pumped 34.6 bbl cement with 40% SSA-l, .65% CFR-3, displacedwith 18.5 bbl 45 vis mud.

Tag cement plug at 3502 feet (GL).Displace hole to 1250 feet with 170 bbl45 vis mud.Pull tubing out ofhole to 1260 feet.

I

,?O;l..'

I

22" Conductor Pipe

26" Hole

17 1/2" Hole

1~14-+------ 13 3/8" Casin~

69 I __-'-'-""-"--"'''- /1-_1

1,'200' ----~

Heat 1ResistantGt'?ut .-------...

::1,--,.1------ 12 V 4" Ho 1e

,

I

JI

I

, IfO 30 --+ "'-"---<'-"'1

'Ie)7/)'-----.- LI_-=:::::Jr--___ 15 () ~ v,'., 1-1. vJI

I

$50J.

3,928 ' ~_--'-~

8,300' --I• I Iho e

Opihikao (Ashida) As Built

Manabu TagomoriPage 2June 29, 1995

October 5, 1992

October 6, 1992

October 7, 1992

•

14:00

17:00

19:00

o

Pumped 8.6 bbl cement with 40% SSA-I, .65% CFR-3, 3% CaCI,displaced with 5 bbl water.Pulled tubing out of hole to 900 feet.Tagged cement plug at 1150 feet.Displace hole to 850 feet with 23 bbl 45 vis mud.Pulled tubing out of hole to 856 feet.Pumped 8.6 bbl cement with 40% SSA-I, .65% CFR-3, 3% CaCl,displaced with 3 bbl of water.Pulled tubing out of hole to 585 feet.Tagged cement plug at 764 feet. Displaced hole to surface with 58bbl 45 vis mud.Pulled tubing out of hole to 160 feet. .Pumped 13 bbls of cement with 40% SSA-I, .65% CFR-3 tosurface.Rig down Haliburton, secure rig.

Rig down blowout preventer. Cut offwell head and cap 9 5/8"casing 9 feet below the top of the cellar with W' steel plate.

Fill cellar with 45 cubic yards of cinders as permitted byabandonment permit and letter from land owner.

Finish moving equipment off site and clean site.

The as built diagram of the abandoned well is shown on the following page. Copies of the drilling logsduring the time of the abandonment are included with this letter. I trust this provides the necessaryinformation regarding the plugging of the well. Please do not hesitate to contact me if you require anyadditional information.

Very truly yours,

BARNWELL GEOTHERMAL CORPORAnON

Martin L. JoklPresident

Enclosures

• •BARNWELL GEOTHERMAL CORPORATION

1100 Alakea Street, Suite 2900Honolulu, Hawaii 96813

(808) 531-8400 Telephone(808) 531-5171 Facsimile

June 29, 1995

Mr. Manabu TagomoriManager & Chief EngineerState of HawaiiDepartment ofLand and Natural ResourcesDivision of Water and Land DevelopmentP. O. Box 373Honolulu, HI 96809

Dear Mr. Tagomori:

Re: Plugging and abandonment of Ashida 1 geothermal test well

(.r'c.Pe.c::::::-.;::..,~

..

f~~'C;,\'\-.:,...:-rr"c:J

This purpose of this letter is to notify the Department of Land and Natural Resources of the plugging andabandonment of the Ashida 1 geothermal test. The Ashida 1 geothermal test well was spudded on June 10,1980, at 12:00, and was drilled to a total depth of 8,300 feet. The maximum recorded temperature of550°F was measured at total depth. No significant permeability was found and no geothermal zonescapable of fluid production were encountered. The well was suspended at midnight on October 29,1980.The well was plugged on October 1 and 2, 1992. A chronology detailing the plugging and abandonment ofthe well is set forth below.

April 1992

September 8, 1992

September 18, 1992

September 23, 1992

September 28, 1992

October 1, 1992

October 2, 1992

12:00

06:00

Repair work on road leading to well site.

Begin mobilization of drilling rig to the well site.

Nipple up blowout preventer.

Begin running 2 7/8" tubing into the hole.

Finish running 2718 inch tubing. Depth of tubing 4090 feet (GL).

Pump 5.6 bb1150+ vis mud plug. Displace with 21 bbl water.Pull tubing out ofhole to 4030 feet.Pumped 34.6 bbl cement with 40% SSA-l, .65% CFR-3, displacedwith 18.5 bbl45 vis mud.

Tag cement plug at 3502 feet (GL).Displace hole to 1250 feet with 170 bbl45 vis mud.Pull tubing out of hole to 1260 feet.

Manabu TagomoriPage 2June 29, 1995

October 5, 1992

October 6, 1992

October 7, 1992

n(

14:00

17:00

19:00

n(

Pumped 8.6 bbl cement with 40% SSA-I, .65% CFR-3, 3% CaCI,displaced with 5 bbl water.Pulled tubing out of hole to 900 feet.Tagged cement plug at 1150 feet.Displace hole to 850 feet with 23 bbl 45 vis mud.Pulled tubing out of hole to 856 feet.Pumped 8.6 bbl cement with 40% SSA-l, .65% CFR-3, 3% CaCI,displaced with 3 bblofwater.Pulled tubing out of hole to 585 feet.Tagged cement plug at 764 feet. Displaced hole to surface with 58bbl45 vis mud.Pulled tubing out of hole to 160 feet.Pumped 13 bbls of cement with 40% SSA-l, .65% CFR-3 tosurface.Rig down Haliburton, secure rig.

Rig down blowout preventer. Cut off well head and cap 9 5/8"casing 9 feet below the top of the cellar with W' steel plate.

Fill cellar with 45 cubic yards of cinders as permitted byabandonment permit and letter from land owner.

Finish moving equipment off site and clean site.

The as built diagram of the abandoned well is shown on the following page. Copies of the drilling logsduring the time of the abandonment are included with this letter. I trust this provides the necessaryinformation regarding the plugging of the well. Please do not hesitate to contact me if you require anyadditional information.

Very truly yours,

BARNWELL GEOTHERMAL CORPORATION


Enclosures

• •

22" Conductor Pipe

17 1/2" Hole

26" Hole

1-4~----~13 3/8" Casing

I.Al_I-'--.L-~;j-lJ\l ..--- /6,0

1.200'----~

Heat 1ResistantGrout .------...-J"".<+-o;

-I-,1-..1-- 12 1/4" Hole

S 5a 2. I _---:~-h--:_r_~!::t

3.928 I __-L~

fa 30' ---+- _I&-.J--....

'If)'t/ LI_-=:::Jr--___ /50 +- V,"., 1'-/ vJI

f

8.300 I ---J., I1-10 e.


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t-------jr--;--t-...-1I.!!-~--.!!!I_---.!"!:Imrs IIJZ'IfFI'. jn2

BENJAMIN J. CAYETANOGOVERNOR OF HAWAII

e,


DIVISION OF WATER AND LAND DEVELOPMENT

P. O. BOX 373

HONOLULU. HAWAII 96809

January 10, 1995

MICHAEL D. WILSON, CHAIRPERSONBOARD OF LANll AND NATURAL RESOURCES

DEPUTYGILBERT COLOMA-AGARAN

AQUACUlT\JRE DEVelOPMENT PROGRAMAOUATIC RE90UFICESBOATING ANa OCEAN RECREATIONCONSERVATION AND ENVIRONMENTAl

AFFAIRSCONSERVATION AND RESOURCES

ENFORCEMENTCONVEYANCESFORESTRY AND WllOUFEHISTORIC PRESERVATIONlAND MANAGEMENTSTATE PARKSWATER AND lAND DEVelOPMENT

Ms. Renise BayneBarnwell Geothermal Corporation1100 Alakea Street, Suite 2900Honolulu, Hawaii 96813

Dear Ms. Bayne:

ABANDONMENT OF GEOTIlERMAL WELL ASHIDA 1

In response to your telephone request of January 5, 1995, an abandonment report must besubmitted for our review and approval before any bond can be released for the subject well.The abandonment report is to include an as-abandoned schematic of the well and a wellhistory that shall describe in detail the chronological order, on a daily basis, all significantabandonment operations carried out and equipment used.

Should you have any questions regarding this matter, please contact Mr. Hiram Young ofmy staff at 587-0259.

-------".....

JF:ek

JOHN WAIHEEGOVERN( II OF HAWAII


OIVISION OF WATER ANO LANO OEVELOPMENT

P. O. BOX 373


August 25, 1992

Mr. Martin L. Jokl, PresidentBarnwell Geothennal Corporation2828 Paa Street, Suite 2085Honolwu, HaVVAlI96819

Dear Mr. Jokl:

WILLIAM W. PATY. CHAIRPERSON

BOAAD OF LAND AND NATURAL RESOURCES

DEPUTIES

JOHN P. KEPPELER, IIDONA L. HANAIKE

AQUACULTURE DEVELOPMENTPROGRAM

AQUATIC RESOURCESCONSERVATION AND

ENVIRONMENTAL AFFAIRSCONSERVATION AND

RESOURCES ENFORCEMENTCONVEYANCESFORESTRY ANO WILDLIFEHISTORIC PRESERVATION

PROGRAM

LAND MANAGEMENTSTATE PARKSWATER AND LAND DEVelOPMENT

Thank you for your May 8, 1992 letter which was faxed to us on July 8, 1992,infonning us of your additional steps to assure the location of the bottom-most plug. VVehave no objections to your plans to use a wire line logging unit to set a bridge plug at4,053 feet, place a few feet of sand and gravel on top of the bridge plug, then use tubingto place the 250-foot cement plug just above the sand and gravel.

Please be advised, however, that Barnwell Geothennal Corporation will still need toverify the location and depth of the cement plug.

Please notify us of the proposed start and end date of abandonment activities andat least 48 hours prior to actual start of the abandonment activities.

Showd you have any questions on this matter, please feel free to contact GordonAkita at 587-0227.

cerelY~~

A, \ £4'~-=-U TAGOMPRI

er-Chief Engineer

BARNWELL GEOTHERMAL CORPORATIONHay 8, 1992

" 01108/82 12:03- 0808 833 U11 BARNWELL IND BNL

-eIlJ 002/002

Mr. Kanabu Xagomor!Hanaq8r • cni.! Enq1n.ers'ta1:e or !lawaiiDep~ent ot Land & Natural ResourcesDivision or watar & Land Dev.lopmen~P.O. BOX 373Honolulu, Hawaii 06809

Dear Hr. Taqomori:

Barnwell Geothermal corpora.tion ("BGe") has been workino tofinalize the Q.~ails for the abandonment ot the ASh1da #1 well.After consultation with saveral vendors, we teel it would beprudent to ta.ke additional steps to assure the location or thebottom most ceJIlent plug. In particular, we would llka to add thetollowinq seep eo ~e plugging plan:

~. Usa a vira ~ine ~oqqing unit to cot a bridge plu9 at adepth ot 4,053 tee1:. Thi. i. the depth of ~e bottomof ~•••••••t. CI..e,,~ plWJ a•••i: t'aS"'th 1ft 'the oZ'igiftalplan. A fow feat: o'f gravel and. sand will be plaoed ont.op of ~he plug, and then aboui: two feet of ceJllent: willbe ple.oed oni:o the aahd. This will produce II firm 1J1~u5efor the 250' cement plug, guaranteeing- the location otthe pluq_

2. Lower tUbing to a dep'th just above the pluq a.nd PUl1\Pthe 250 toot cement plug through the tUbing :furtherassuring the accurata pl.ac:emlilnt or the plug.

w. cQntemplate no other ohiLnCJea in 'tho plan. '1'he abovemodifications will provide a more reliable placement ot thehot.t.c:Il plu9.

We hope to be prepared 1:.0 COlm.nee plU9li1inq operationstowards the end ot may, and I look forward to you cOllUl\ents onthese c1'1c.nlifls.

sincerely,

1hi;:. 2)~(Hartin L. JoklPr..fdent.

MLJ/rz

. \I

you/) 00101 iJiJII

. --e

BARNWB..1.INDl5TRIES, INC.

TELECOPIER COYEBLITIjB

TO: lWWV TApgn

COMPANY: Depart_at of Lc' & Natunl "',ouTce,/DiviaioD. of Water and... 108110 lJeve.a.Opal8llt;

TBLECOPIBRNUMBER: .51\'7-0219

PROM; Ka:tiu L. J'okl I b1:I.M 1.. ZU'bek

DAT!.: 7#H.:t., ,/NUMBER OF PAGES TO POllOWnm COVER. SHBBT=

Dear Hr. 'l'agomorl:

E'O1lowIn;, ~or your convenience. r i.e a copy of Hr. Jokl'lIletter to you dated llay 8, UUJ2.

If8.I1J of these pages are not properly received, pleue c:omact our CJf6ce at (808) 836-0136 immediately.Our teJocopier is a QumOD sso. Telecopier number (808) 833-5577.

_ Paa ........._. NotloI&Iu, M-a tate. T....... (8IIIJ ....0111I.T....., (IDa) -.1177.T'" '12!111172. WRU HR

~. ;

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• State of Hawaii ..DEPAIIIFv1ENT OF LAND AND NATURAL R~RCES

DMSION OF WATER RESOURCE MANAGEMENTP. O. Box 373

Honolulu, Hawaii 96809

DAILY REPORT

Contractor

DESCRIPTION OF ACTIVITIES

Weather _-=::.:=.:..::::::..- ~---------

Submitted by l2:.~

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• State of Hawaii •DEPAR~NT OF LAND AND NATURAL RE RCES

DMSION OF WATER RESOURCE MANAGEMENTP. O. Box 373

Honolulu, Hawaii 96809

DAILY REPORT

Well No. ,Ir,,()~ , I Contractor WAf"IU- t&r~

DESCRIPTION OF ACTMTlES, I

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• State of Hawaii .-lDEPAR1~TOF LAND AND NATURAL RESaESDMSION OF WATER RESOURCE MANAGEMENT

P. O. Box 373Honolulu, Hawaii 96809

DAILY REPORT

~ I ,19 7J-

Well No. lls/holJ: !1 Contractor hI»nt.rL~

DESCRIPTION OF ACTIVITIES"

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OIWAItTMENT OF LAND AND NATUltAL ItESOURCESDIVeN OF WATER RESOURCE MANA.NT

P. O. Box 373Honolulu, Hawa" 96809

DAILY REPORT

WeD No. A'/s1,44 It----- Contnctor fdIh?ttk~

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IJEI'AIlTMENT OF LAND AND NATUltAL ItESOURCESDIVeN OF WATER RESOURCE MANA. 'T


DAILY RHPORT

Contractor ~~

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IJEPAllTMENT UF I..ANO ANI) NATUIlAL ImSOUIlCI~S

DWN OP WATER RRSOURCE MANAeENTP. O. Box 373

Honolulu, Hllwlllf 96809

DAILY REPORT

Wen No. _d..l(,j'J~IIz",,-,=o...k__~.,t-t _ Contnctor

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OEPAHTMENT OF I..AND AND NATUHAL RESOURCESD+ OF WATER RESOURCE MANA~


DAILY REPORT

t~~ /0 • 19 t;>-

wen No. ~JIIUJ4. Contractor

Weather CulJP

. Submitted by e~

DEPARTMENT OF LAND AND NATURAL RESOURCESDIVeN OP WATER RESOURCE MANA.ENT


DAILY REPORT

WeD No. Contractor

DESCRlP110N OF ACJ1VmES

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SubmJtted by ~~~

•JOHN WAIHEE

GOVERNOR OF HAWAIIWILLIAM W. PATY. CHAIRPERSON

BOARD Of LAND AND NATURAL RESOURCES

DEPUTIES


P. O. BOX 621


NOV 29 1991

Mr. Martin L. Jokl, PresidentBarnwell Geothermal Corporation2828 Paa Street, Suite 2085Honolulu, Hawaii 96819

Dear Mr. Jokl:

KEITH W. AHUEMANABU TAGOMORI

DAN T.KOCHI

AOUACULTURE DEVELOPMENTPROGRAM

AOUATIC RESOURCESCONSERVATION AND


RESOURCES ENFORCEMENTCONVEYANCESFORESTRY AND WILDLIFEHISTORIC PRESERVATION

PROGRAMLAND MANAGEMENTSTATE PARKSWATER RESOURCE MANAGEMENT

Thank you for your recent letter advising us of Mr. Harold Ashida's consent to yourproposed plugging and abandonment of geothermal well Ashida No.1. Given theevidence of the landowner's approval, the Department has no objections to your plan tobackfill the concrete cellar with cinder after the well has been properly abandoned.

Please be advised that all work shall be perfo~ed in compliance with ourDepartment's regulations and the conditions set forth in the Geothermal WellAbandonment Permit issued on February 13, 1991. In addition, please notify our Divisionof Water Resource Management in writing of the date of the start of work.

Should you have any questions, please feel free to contact me at 587-0214.

DN:ko

lVUU~U T~--------:~Director

State of HawaiiDE!j[fMENT OF LAND AND NATURALjiSOURCES~ION OF WATER RESOURCE ~EMENT


DAILY REPORT

Contractor

DESCRIPTION OF ACTIVITIES

Weather __~..:..;o-:..:tn:J:.::- _

Submitted by~ v~,.

October 23, 1991

• •BARNWELL GEOTHERMAL CORPORAf'~/V€'D

9/ Or: r,5 A/I:21

,

Mr. Manabu TagomoriDeputy DirectorDivision of Water Resources ManagementP. O. Box 373Honolulu, HI 96809

Dear Mr. Tagomori:

Enclosed please find a copy of the executed letter ofpermission from Harold Ashida with regards to the Ashidageothermal test 110le in which permission is given to abandonthe ~ell and leave the cellar in place, as per the Plu~ging

und Abandonment Plan approved by your office.

We will move forward with all possible speed with theabandonment.

Sincerely,

tfd-t/ffMartin L. JoklPresident

Ellclosure

MIJjrh

2828 PAA STREET, SUITE 2085 • HONOLULU, HAWAll 96819 • TELEPHONE (808) 839-7720· TELEX 7238672 • TELECOPIER (808) 833-5577


September 24, 1991

Mr. Harold Ashida194 WiwooleHilo, Hawaii 96720

Dear Mr. Ashida:

This letter will serve to confirm our phoneconversation of Friday, September 20, 1991, during which youstated that the· owners of the land on which the Ashidageothermal test well was drilled had decided that they haveno objection to the plugging plan proposed by BarnwellGeothermal Corporation ("BGC").

The plugging and abandonment plan required BGC toobtain the permission of the landowner for the final step inthe abandonment process, namely filling the cement cellarwith cinders. It is my understanding that you have noobjection to this part of the plan.

BGC looks forward to plugging the well and abandoningthe site as soon as possible.

If the foregoing accurately sets forth ourconversation, please sign and return a copy of this letter

Sincerely,

It/vi '<~Martin L. JoklPresident

MLJ/rz

I acknowledge that the statements made in this letter arerepresentative of our phone conversation. I have beenauthorized to act for the owners of this property.

x!d ~ ,~\. n------Harold Ashida

2828 PAA STREET. SUITE 2085· HONOLL'LU. HAWAIl 96819· TELEPHOKE (808) 839-mo· TELEX 7238672· TELECOPIER (808) 833-5577

OEPARTMENT OF LANO AND NATURAL RESOURCES

COMMISSION ON WATER RESOURCE MANAGEMENT

NAIHEE

,HOR OF HAWAII

re--STATE OF HAWAII

P. O. BOX 621


JAN 3 1 1992

Mr. Martin L. Jokl, PresidentBarnwell Geothermal Corporation2828 Paa Street, Suite 2085Honolulu, Hawaii 96819

Dear Mr. Jokl:

C\· ., ." \

I

~WILLIAM W. PATY

CHAIRP( R50N

JOHN C. LEWIN. M.D.MICHAel J. CHUN. Ph.D.

ROBERT S. NAKATARICHARD H. COX

GUY K. FUJIMURA

MANABU TAGOMORI

DEPUTY

Our letter to you dated January 22, 1992 contained an error. Theletter should have read "...your pennit extension is hereby amended to be ineffect through February 12, 1993."

I hope this error did not cause you any inconvenience.

truly yours,~ ... ----_.-.- .--.

_-__-ft~

JS:ky

..... ~'

JOHN WAIHEE

GOVERNOR OF HAWAII


P. O. BOX 621


GEOTHERMAL WELL ABANDONMENT PERMIT

Ashida No.1Puna, Hawaii

WILLIAM W. PATY, CHAIRPERSON

BOARD or LA.ND AND NATUR .... l ~ESnllqCfS

OEPIHlfS

KEITH W. AHUEMANABU TAGOMORI

RUSSELL N. FUKUMOTO

. AOlJACULTURE DfVELOPMENTPROGRAM



RESOURCES ENFORCEMENTCONVEYANCESFORESTRY AND WILDLIFEHISTORIC PRESERVA TlON

PROGRAMLAND MANAGEMENTSTATE PARKSWATER RESOURCE MANAGEMENT

TO: Barnwell Geothermal Corporation2828 Paa Street, Suite 2085Honolulu, Hawaii 96819

Your application dated January 23, 1991, for a permit to abandon Geothermal WellAshida No. 1 is approved:

Well Designation: Ashida No.1Location: TMK 1-3-01:24, Puna, HawaiiLandowner: Harold AshidaOperator: Barnwell Geothermal CorporationGround Elevation: 800 ft. :t

Total Depth: 8,300 feet

Under this permit, you may abandon Geothermal Well Ashida No.1 by installingpermanent cement plugs within the well casing. Abandonment of the well shall be inaccordance with the approved abandonment plans and the following conditions:

1) Except for the surface cement plug, all cement used for the plugging operationsshall contain a high temperature resistant admix as set forth in Section 13-183-83(a), HAR. In addition, good quality, heavy drilling fluid shall be used to fill allportions of the well not plugged with cement.

2) DLNR regulations provide that 6ubsequent to plugging and abandonmentoperations, the casing shall be cut off at least six feet below the surface of theground and all concrete cellars and other structures (e.g. fencing) removed.

Unless evidence of the landowner's approval of your proposal to backfill the cellarwith cinder is received by the Department, the cellar shall be removed and the siterestored as near as practicable to its original condition. If the landowner'spermission is received, the use of cinders to backfill the existing concrete cellar willbe permissible.

· .~

3) After each cement plug (other than the surface plug) has been set at the prescribeddepth within the casing, a sinker bar shall be run into the casing to the top of thecement to verify the location and depth of the plug.

(4) The permittee shall obtain the Chairperson's approval prior to any changes to theabandonment program.

(5) All work shall be performed in compliance with the Department's AdministrativeRules (Chapters 13-183 and 13-184) and all other applicable Federal, State, andCounty laws, ordinances, and regulations.

(6) A history of the well and an as-abandoned drawing of the well shall be filed withinsixty days of the abandonment.

(7) The permittee, his successors, and assigns shall indemnify and hold the State ofHawaii hannless from and against any loss, liability, claim or demand for propertydamage, personal injury and death arising out of any act or omission of thepermittee, assigns, officers, employees, contractors and agents under this permit orrelating to or connected with the granting of this permit.

(8) The permittee shall notify the Division of Water Resource Management, in writing,of the date of the start of work.

(9) The bond covering the well shall remain in full force and effect until the well isproperly abandoned and the site properly restored.

(10) This permit shall expire 365 days from the date of issuance.

WILLIAM W. PAlY, C'Board of Land and

FEB 13 1991

Date of Issuance

cc: Land Board MembersHawaii County Planning Dept.DBEDDepartment of HealthOEQC

-" '-.... o

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.:,..

January 23, 1991

BARNWELL GEOTHERMAL CORPOR~~~,r..:>(J"l

Mr. Manabu TagomoriDeputy Directorstate of HawaiiDept. of Land & Natural ResourcesP.O. Box 373Honolulu, Hawaii 96809

Dear Mr. Tagomori:

Enclosed with this letter please find the Abandonment Planfor the Ashida geothermal test well together with the filing feeof $100.00.

I trust the plan meets all the requirements of theDepartment.

sincerely,

!r~L.~kPresident

MIJ/rz

Enclosures

2828 PAA STREET, SUITE 2085 • HONOLULU, HAWAII 96819 • TELEPHONE (808) 839-7720· TELEX 7238672 • TELECOPIER (808) 833-5577

ASHIDA PLUGGING AND ABANDONMENT

PLUGGING:

A 250 lineal foot, high temperature cement plug will bepumped past the bottom of the casing so that the cement willextend approximately 125 feet into the open hole. A one hundredlineal foot cement plug will be set between 1150' and 1250' feetstraddling the bottom of the 13,3/8" casing, and a surface plugextending from the surface to a depth of 150' feet will be placedat the top of the hole. Drilling mud will fill the volumebetween the cement plugs. The accompanying diagram illustratesthe configuration of all elements related to the plugging.

Procedures:

1. After checking the well head pressure, the well headwill be removed, and the cement pump will be attachedto the well.

2. Water will be pumped into the hole raising the waterlevel within the well to the surface.

3. Haliburton Services will be employed to cement thebottom plug. Haliburton will mix 120 sacks of class Gcement, 40% Si02, and .65% CFR-3, providingapproximately twice the needed 102.5 cubic feet of hightemperature cement. The cement will be pumped down thehole in a continuous fashion and displaced withapproximately 1600 cubic feet of drilling mud,positioning the top of the cement plug at a depth of3803 feet.

4. After setting the bottom plug, a sinker bar shall berun into the casing to the top of the cement to verifythe location and depth of the plug.

5. A 100 lineal foot cement plug will be set between 1150and 1250 feet. 50 cubic feet of cement will be pumpedthrough tUbing that is set at 1250 feet. The well iscool at this depth, but the cement used in this plugwill have the same composition as the cement used forthe bottom plug. It is anticipated that plastic tUbingmay be used for this operation, and that the tUbing maynot be recovered after the cementing.

6. After setting the 100 foot plug at 1150 feet, a sinkerbar shall be run into the casing to the top of thecement to verify the location and depth of the plug.

1

7. A cement plug will be set from the surface to a depthof 150 feet by pumping 75 cubic feet of cement throughtUbing set at a depth of 150 feet. Plastic tUbing maybe used and the tUbing may not be recovered followingthe cementing.

ABANDONMENT:

If written approval from the land owner can be obtained, thecasing will be cut off near the bottom of the cellar, the cellarwill be filled with cinders making it flush with the surface andthe fence surrounding the cellar will be removed.

If such approval can not be obtained, the casing will be cutoff near the bottom of the cellar. The cellar and fence shall beremoved, and the area filled with soil similar to that in thearea.

In either case, the casing shall be cut off at least sixfeet below ground level.

DOCUMENTATION:

Following completion of the plugging and abandonment, an asabandoned drawing of the well will be filed with the Departmentof Land and Natural Resources.

2

Cinders

26" Hole

22" Conductor Pipe

17 1/2" Hole

~1-I------133/8" Casing

t""""Iol- 12 1/4" Hole

'\.....l,.-E~r------Cement

l-.~~.J...,;~t==f.----1250'

__--J~~~~-------Heat Resistant Grout11oEi16'''------ 8 1/2" Open Hole

I

4,053'

W-+--------9 5/8" Casing3 ,.803' ---ch-:~no~,..t:j

3 , 928 • ----l::kClQS(XX?Q,4

l/l--l-~~~~-I:lo~_ 150'1------'*"'1-1

M-+~~.,...,.--II-t~---1150'

Cement --k'\..l'

1,200' ----~'t-f,.

Ce,nent

Drilling Mud!

Drill ing Mud

HeatResistantGrout \--------s.rt--1

8,300'----

Opihikao (A~hida) Abandonment

COMPUTERCHECK NO.

PRE-PRINTEDSTUB NO.

WATER RESOURCES INTERNATIONAL, INC. 5155 005155YOUR INVOICE NO. INVOICE DATE AMOUNT DISCOUNT NET AMOUNT CHECK TOTAL

Filing Fee f r Application totransfer Geo hermal Well ~shi da No. l. $100.00

$100.00

COMPUTERCHECK NO.

WATERRESOURCESINTERNATYOUR INVOICE NO. INVOICE DATE

AL, INC.AMOUNT DISCOUNT

5155NET AMOUNT

PRE·PRINTEDSTUB NO.

005CHECK TOTAL

Filing Fee f r App1icatio totransfer Geo herma1 Well shida No.1.

WATER RESOURCES INTERNATIONAL, INC.2828 PAA STREET, SUITE 2085HONOLULU, HAWAII 96819TELEPHONE (808) 839-7727

$100.00

FIRST HAWAIIAN BANKHONOLULU, HAWAII

59-101/1213 .CHECK NO.

$100.00

5155

PAY

ONE HUNDRED AND NO/100 DOLLARSTO tHE ORDER OF

Department of Land and Natural ResourcesCommission on Water Resource ManagementP. O. Box 621Honolulu, Hawaii 96809

DATE 1/23/91

~

OVER $1000 REQUIRES TWO SIGNATURES

qa".o ... 3q 3"'"1

~fmt'·"""·"'·"','~""'··

JOHN WAIHEE

GOVERNOR Of HAWAII



P. O. BOX 621


JAN 22 1992

REF:WRM-KY

Mr. Martin L. Jol<.1, PresidentBarnwell Geothermal Corporation2828 Paa Street, Suite 2085Honolulu, Hawaii 96819

Dear Mr. Jokl:

WIllIAM W. PATY

JOHN C. LEWIN. M 0

MICHAEl J. CHUN. Ph D.

RORE R , S NllkA TA

RICIIARD H. CO

GUY 1\. f UJIMURA

MANAElU I AGOMORI

Responding to your letter of January 3, 1992, this Department has no objection togranting you a one-year extension to your permit of February 13, 1991, to plug andabandon the Ashida Geothermal test well.

Accordingly, your permit to plug and abandon the Ashida Geothermal test well ishereby amended to be in effect through February 12, 19~

Very trul (""'yours,

.I

·.''P

Mr. Marty L. JoklPresidentBarnwell Geothermal Corporation2828 Paa Street, Suite 2085Honolulu, Hawaii 96819

" .,AWAII

REF:WRM-LN

STATE OF HAWAII

DEPARTMENT OF LAND AND NATURAL RESOURCES

P. O. BOX 621


I

NOV 5 1991


BOARD OF LAND AND NATURAL RESOURCES

DEPUTIES

KEITH w. liHUEMANABU TAGOMORI

DAN T. Koelli

AQUACULtURE DEVELOPMENtPROGRjI,M

jl,OUA"C ArSOURr.ESCONSE AVA "ON AND

ENVIRONMENtAL AFFAIRS

CONSF.RVA"ON ANDRESOURCES ENFORCEMENI

CONVEYANCESFORESIRY AND WILDLIFE't1StORIC PAESERVA"ON

PROGRAMLANO MANAGEMENTStATE PARKSWAtER RESOURCE MANAGEMENt

Dear Mr. Jokl:

The Department of Land and Natural Resources acknowledges the receipt of yourrequest for extension of Geothermal Resource Mining Leases (GRML) R-3.

Mining lease GRML R-3, Section 3(B), provides that if at the expiration of the primaryterm geothermal resources in commercial quantitites are not being produced from the leasedlands, but the Lessee is actively engaged in drilling operations designed to drill below thedepth of 1,000 feet, or, to a production zone at a lesser depth in a diligent manner, thatLease shall be continued for so long thereafter as such operations are continued with nocessation of more than 180 days, but not to exceed a period of five (5) years, and if suchdrilling operations are successful, as long thereafter as geothermal resources are beingproduced or utilized in commercial quantities except for the 65-year limit of the lease.

The Department has reviewed your earlier exploration activity conducted under mininglease R-3 and your current plans for exploration/development proposed between Barnwell andMorgan Oil Ltd. of Kentucky. We have no objections to your proposal to conduct furtherexploration activity within the mining lease area, or to your plans to apply for all applicablepermits necessary to undertake tills effort.

Accordingly, a five-year extension of lease R-3 beyond the primary 10-year term ishereby granted subject to all applicable terms and conditions of the lease. The newexpiration date of mining lease GRML R-3 shall be August 10, 1996. Should you have anyquestions, please contact Manabu Tagomori, Deputy Director, at 548-7533.

Sincerely,

WILLIAM W. PAlY

cc: Division of Land Management


January 3, 1992

Mr. William W. PatyChairpersonBoard of Land and Natural Resourcesstate of HawaiiDepartment of Land and Natural ResourcesP. O. BOX 621Honolulu, HI 96809

Co ,~:')

~.....)c.-

~." ......" ,rn

f"l"\C) .

RE: PLUGGING AND ABANDONMENT OF ASHIDA TEST WELL NO. 1

Dear Mr. Paty:

On February 13, 1991 the Department of Land and NaturalResources iSsued a permit on Well No. 1 toBarnwell Geothermal Company to plug and abandon the AshidaGeothermal test well.

Barnwell has recently received a letter from thelandowner granting us permission to abandon the site asproposed in the abandonment plan. That letter has beensubmitted to your Department.

We are moving to finalizing our plugging andabandonment schedule, but are concerned that we will beunable to mobilize before the plugging and abandonmentpermit expires and therefore are requesting a one yearextension to that permit.

Please do not hesitate to contact me if you require anyfurther information.

Sincerely,


MLJ/rh

cc: Manabu Tagomori

2828 PAA STREET, SUITE 2085· HONOLULU, HA~AIl 96819· TELEPHONE (808) 839-7720· TELEX 7238672· TELECOPIER (808) 833-5577

JOHN WAiHEE

GOVERNOR OF HAWAII


P. O. BOX 621


OCT 30 1990

Mr. Martin L. JoklPresidentBarnwell Geothermal Corporation2828 Paa Street, Suite 2085Honolulu, Hawaii 96819

Dear Mr. Jokl:


BOARD OF LAND AND NATURAL RESOURCES

DEPUTIES

KElTHW. NIUEMANABU TAGOMORI

RUSSELL N. FUKUMOTO

AQUACULTURE DEVELOPMENTPROGRAM



RESOURCES ENFORCEMENTCONVEYANCESFORESTRY AND WILDLIFELAND MANAGEMENTSTATE PARKSWATER AND LAND DEVELOPMENT

The Department of Land and Natural Resources (DLNR) has reviewed yourdraft plugging and abandonment plans for Geothermal Well Ashida No.1 and hasno objections to your plans for abandonment. However, we would like to bringyour attention to the following items requiring compliance with our Department'sabandonment procedures:

1) Except for the surface cement plug, all cement used for the pluggingoperations shall contain a high temperature resistant admix as set forth insection 13-183-83 (a).

2) DLNR regulations provide that subsequent to plugging and abandonmentoperations, casing shall be cut off at least six feet below the surface of theground and all concrete cellars and other structures (e.g. fencing) removed.

Unless evidence of the landowner's concurrence with your proposal tobackfill the cellar with cinder is received by the Department, the surfacelocation shall be restored as near as practicable to original conditions. Ifthe current landowner approves of your abandonment plans, we have nomajor objections to the use of cinders to backfill the existing concretecellar.

3) Mer each cement plug (other than the surface plug) has been set at theprescribed depth within the casing, a sinker bar shall be run into thecasing to the top of the cement to verify the location and depth of theplug.

,.

Mr. Martin L. Jok!Page 2

OCT 30 iY'!O

4) A history of the well and an as-abandoned drawing of the well shall befiled within sixty days after completion of the abandonment. In addition,any bond covering the well shall remain in full force and effect until thewell abandonment and surface restoration has been approved by theChairperson of the Department.

Please make the necessary revisions to your proposed plans forabandonment and resubmit them to the Department for our review and approval.Each application to abandon a well shall be accompanied by a non-refundablefiling fee of $100. Should you have any questions, please contact me at 5487533.

DN:bm

BARNWELL GEOTHERMAL Cor~,*~ON

october 14 ,9q»~J ~5 A 8: 09

ow. OF WATER &l AND DEVELOPMENT


Dear Mr. Tagomori:

Enclosed with this letter please find a revised draftAbandonment Plan for the Ashida geothermal test well. We havemodified the plan in order to address certain issues raised by afurther examination of the plugging requirements~

I hope that the update provides a sound basis for anabandonment plan and I look forward to your comments.

Sincerely,

~//oifMartin L. JoklPresident

enclosures

MLJ/rz

2828 PAA STREET, SUITE 2085 • HONOLULU, HAWAll %819 • TELEPHONE (808) 839-7720· TELEX 7238672 • TELECOPIER (808) 833-5577

.....


PLUGGING:

A 250 lineal foot, high temperature cement plug will bepumped past the bottom of the casing so that. the cement willextend approximately 125 feet into the open hole. A one hundredlineal foot cement plug will be set between 1150' and 1250' feetstraddling the bottom of the 13 3/8" casing, and a surface plugextending from the surface to a depth of 150' feet will be placedat the top of the hole. Drilling mud will fill the volumebetween the cement plugs. The accompanying diagram illustratesthe configuration of all elements related to the plugging.

Procedures:



3. Haliburton Services will be employed to cement thebottom plug. Haliburton will mix 120 sacks of class Gcement, 40% Si02, and .65% CFR-3, providingapproximately twice the needed 102.5 cubic feet of hightemperature cement. The cement will be pumped down thehole in a continuous fashion and displaced withapproximately 1600 cubic feet of drilling mUd,positioning .the top of the cement plug at a depth of3803 feet.

4. A 100 lineal foot cement plug will be set between 1150and 1250 feet. 50 cubic feet of cement will be pumpedthrough tubing that is set at 1250 feet. The well iscool at this depth, and no special cement is required.It is anticipated that plastic tubing may be used forthis operation, and that the tUbing may not berecovered after the cementing.

5. A cement plug will be set from the surface to a depthof 150 feet by pumping 75 cubic feet ofcement throughtUbing set at a depth of 150 feet. As in the plug setat 1150 feet, no special cement is required, plastictubing may be used and the tUbing may not be recoveredfollowing the cementing.

ABANDONMENT:

The casing will be cut off at the bottom of the cellar, thecellar will be filled with cinders making it flush with thesurface and the fence surrounding the cellar will be removed.

Cinders

22" Conductor Pipe

26H Hole

17 1/2" Hole

•

~4-I------ 13 3/8" Casing

1'101------- 12 1/4H Hole

\.~:-E~i------Cement

14-+--------9 5/8" Casing3, 803' ---Em"'\7"1r7'O'~...t::J

1,200'----~~

Cement ---k'\Jro

Cement

tvl-+~~~"""'r""il-t~---1150'

Drilling MudI

Drilling Mud

HeatResistantGrout \------~'i-1lII

•... .'. .

4,053' ____--J~~~~--------- Heat Resistant GroutIkilI6ft...---- 8 1/2" Open Hole

~~

8.300 I --'

Opihikao (Ashida) Abandonment

·eBARNWELL GEOTHERMAL CORPORP~TION

September 24, 1991

Mr. Harold Ashida194 WiwooleHilo, Hawaii 96720

Dear Mr. Ashida:

This letter will serve to confirm our phoneconversation of Friday, September 20, 1991, during which youstated that the owners of the land on which the Ashidageothermal test well was drilled had decided that they haveno objection to the plugging plan proposed by BarnwellGeothermal Corporation ("BGC").

The plugging and abandonment plan required BGC toobtain the permission of the landowner for the final step inthe abandonment process, namely filling the cement cellarwith cinders. It is my understanding that you have noobjection to this part of the plan.

BGC looks forward to plugging the well and abandoningthe site as soon as possible.

If the foregoing accurately sets forth ourconversation, please sign and return a copy of this letter

Sincerely,

11 J ::7 1// // I /Vvtu.. 't ~)V(Martin L. JoklPresident

MLJ/rz

I acknowledge that the statements made in this letter arerepresentative of our phone conversation. I have beenauthorized to act for the owners of this property.

\ ,

X C~)-~-......., 0'..'\ () --------..-Harold Ashida

28:!F PAA STREET. StJlTE 2085 • HO~OLL·LU. HAWAII 96819· TELEPHO!'E (808) 839-mo· TELEX 7238672' TELECOPIER (808) 833-5577


PLUGGING:

A 250 lineal foot, high temperature cement plug will bepumped past the bottom of the casing so that the cement willextend approximately 125 feet into the open hole. A one hundredlineal foot cement plug will be set between 1150' and 1250' feetstraddling the bottom of the 13 3/8" casing, and a surface plugextending from the surface to a depth of 150' feet will be placedat the top of the hole. Drilling mud will fill the volumebetween the cement plugs. The accompanying diagram illustratesthe configuration of all elements related to the plugging.

Procedures:



3. Haliburton Services will be employed to cement thebottom plug. Haliburton will mix 120 sacks of class Gcement, 40% Si02, and .65% CFR-3, providingapproximately twice the needed 102.5 cubic feet of hightemperature cement. The cement will be pumped down thehole in a continuous fashion and displaced withapproximately 1600 cubic feet of drilling mud,positioning the top of the cement plug at a depth of3803 feet.

4. After setting the bottom plug, Cl sinker bar shall berun into the casing to the top of the cement to verifythe location and depth of the plug.

5. A 100 lineal foot cement plug will be set between 1150and 1250 feet. 50 cubic feet of cement will be pumpedthrough tUbing that is set at 1250 feet. The well iscool at this deptq, but the cement used in this plugwill have the same composition as the cement used forthe bottom plug. It is anticipated that plastic tUbingmay be used for this operation, and that the tubing maynot be recovered after the cementing.

6. After setting the 100 foot plug at 1150 feet, a sinkerbar shall be run into the casing to the top of thecement to verify the location and depth of the plug.

1

7. A cement plug will be set from the surface to a depthof 150 feet by pumping 75 cubic feet of cement throughtUbing set at a depth of 150 feet. Plastic tUbing maybe used and the tUbing may not be recovered followingthe cementing.

ABANDONMENT:

If written approval from the land owner can be obtained, thecasing will be cut off near the bottom of the cellar, the cellarwill be filled with cinders making it flush with the surface andthe fence surrounding the cellar will be removed.

If such approval can not be obtained, the casing will be cutoff near the bottom of the cellar. The cellar and fence shall beremoved, and the area filled with soil similar to that in thearea.

In either case, the casing shall be cut off at least sixfeet below ground level.

DOCUMENTATION:

Following completion of the plugging and abandonment, an asabandoned drawing of the well will be filed with the Departmentof Land and Natural Resources.

2

Cinders

22" Conductor Pipe

26" Hole

17 1/2" Hole

1'141------- 12 1/4" Hole

l----lif-l------ 13 3/8" Cas i ng

\.~-E~r-------Cement1V.-+T"'r-.r-~~I-f:liw4----1150'

11-+--------9 5/8" Casing3. 803' --1=t"2~~~i=1

3 •928 ' ---L..o-4'tltX.A/'V}('~

1,200' ----~I-\.

Drilling Mud.

Cement ----'1.''-.,.

Drilling Mud' --.:..,A.l--lf--

Cement

HeatResistantGrout \-------"""A-.t

I

4,053'__~~~~~----Heat Resistant Grout

I1oEl1E1~------- 8 1/2" Open Hole

~~

8,300'----'

Opihikao (A$hida) Abandonment

COMPurERCHECK NO.

PRE·PRINTEDSTUB NO.

WATER RESOURCES INTERNA•

YOUR INVOICE NO. INVOICE DATE

tAL, INC.AMOUNT DISCOUNT

5155NET AMOUNT

005CHECK TOTAL

Filing Fee f r Applicatio totransfer Geo hermal Well shida No.1. $100.00

$100.00

WATER RESOURCES INTERNATIONAL, INC.2828 PAA STREET, SUITE 2085HONOLULU, HAWAII 96819TELEPHONE (808) 839-7727

FIRST HAWAIIAN BANKHONOLULU, HAWAII

59-101/1213CHECK NO. 5155

PAY

ONE HUNDRED AND NO/100 DOLLARS

DATE 1/23/91

~TO THE ORDER OF

Department of Land and Natural ResourcesCommission on Water Resource ManagementP. O. Box 621Honolulu, Hawaii 96809

OVER $1000 REQUIRES TWO SIGNATURES

qS.lla ... 3q 3"'"1

COMPUTERYOUR INVOICE NO. INC. CHECK NO. PRE-PR'NTED

INVOICE DATE STUB NO

Fi1 ing Fee fAMOUNT

DISCOUNT5155 005155r AppHcati NET AMOUNT

transfer Geo Oh to CHECK TOTALhermal Well ~shida No. l.

. $100.00

t1nn nn

lJ WATERRESOURCESINTERNAnONAL,

•

Planning Dep_at_~i_ili_·eit_"_tV_E_O _25 Aapani Street, Rm. 109 • Hllo, Hawaii 96720 • (808) 961-8288

90 SEP'?l p 3:4;8

OP/.OF WAIER&lAND DEVELOPMSHr

Septe~ber 24, 1990

'lFIBD hAIL

i.. C. (.radc.icknwell Geothermal Corp.

28 Paa street, Ste. 2085onolulu, HI 96619

~r ~r. Crad~ick:Special Permit No. 364 (77-265), ~~K:l-3-0l:Por 24, 25,Special Permit No. 460 (80-347), ~MK:1-4-2:l0,SpeciGl Permit No. 471, ~MK: l-3-8:Por. ~, l~, 23-34 and anc 'l'}-!K: l-3-9:Por. 7

'lhis is in regard to the status of tl.e teff:rE:'flCed SpecialPermits. The Planning Co~mi6sion, at a pUblic }lebring onNovember 22, 1983, "oteo to approve a tin:e extE.r.sion ane;consolidation of conditions of tte tl:ree Special Permits. Theconoi tions of approval redO, in part, as fcllo~'=:

,..I

W15. when wells are completed or abaroconeci, ell delluG€d areas onand around the drilling site shall be re"egetated in amanner meeting with the approval of thE Planning Depart~ent.

w19. This special per~it shall be effective untilDecember 31, 1~67, or upon the successful completion of 3~exploratory wells, whichever occurs sooner. Successful,for the purposes of this condition, is defined as h6v!ng afield tested capacity of 3 megawatts Each. :

-20. All other applicable rules, regulations and fequireaents,. inclUding those of tile StatE: Department of Health and theState Depart~ent of Lan6 and Natural Resources shall becOJ:'1pliEG ",,1 th. •

,~r. E. c. CraddlckSeptember 24, 1990paqe 2

In r~vie~i~9 cur fil~~, W~ found an applie~tlon, ~at~oPebruary 25, 1986, for a~veral amend~r.t£ to the above-reference~Sp&cial Ferr,it&, including & request for ti~ extEnsion. Accertance

• of the ~rf]icatioL w~s ~cterred ty the Plannin9 Director pending aCorporation Coun~el opinion or- tte ler:al status.of the per~its atthat th.(>. !tE:lt has b~en r,o furtt(;[ llctlon on the l'Jr.enof1('Jjtrecuest. A ch~ck ireM ~nrn~~ll Incur-trie~, Inc.,e~t~dfe~Iuery 25, 19€~, lVI $lOL £ub~itte6 as e filih9 f.e 1£ terebyreturned to Y()Li.

~e r.BV~ I~c£ntly a8k~o t~e Office of Cc[~or~tion Coun~~l for er.opinion ct tJ';t" £t~tUf, 01 the 19bf., 8JanCd!':f:r:t rcC;UE:Bt. 'l't;ei f opinionccn1ifr.s L.ecet",}:.t.:r 31, 1967, 8£ tl:e expiretion tatt' cf thf' pE"rr.-:it£.

~leas~notify ~& in ~riting ~i tl€ £tat~E of cccpliBnce wittContiition He. 1 S Cif tl.€ ,£.pt.>cie 1 h:nd t. f'c,r rNa i r.f<lcrnf.ticn,alanC;Ofltlf:lil of a ~cct.t;erT."c.l Of i 11ir;g [.1 te is Cl't jcct to r("~ulall(1nscontbineo ir. U;~.ptE'r 113 <.. f tH: Depc:rt,:::cr:t cf LanCo ll.f'e N~turl'l ... 10

~~SDurC~E Ad~i~iFtletive l'ul~F, ·~cl~s on Lcacin9 6nd Drilling ofG~otL~rmcl }~€f.~O\;r(:N:.·

t>hculc: you (;aVE. f'T:y qllet·ticli!.., fl4i:c).t.c· fttl frN' to ccrtactC(,;;nr.1{; Kiriu or J.nr.£ brilL ct tt,i~ Ciffic£.

Lflc. (check j70S~) '.•

cc: ~. ~£n_~£uka~akiP16nning Cor.~i~slcnCorpor£tio~ Coun~~l

......t1LtiR~I>ivh;ion.01 r:ete-r F:.t:'l'ocrceo. hel"agf~l!'cnt

I

BARNWELL GEOTHERMA!RIitt!~ATION


Dear Mr. Tagomori:

Enclosed with this letter is a draft Plugging andAbandonment Plan for the Ashida test well. In the plan, wespecify a 250 foot high temperature cement plug across the bottomof the hole but plan to mix and pump cement sufficient for a plugof approximately 500 feet.

I have not enclosed a draft plan for the Lani Puna I well atthis time. The two wells have very similar characteristics (bothare hot with very little permeability), and I will submit a planfor Lani Puna I after addressing your comments on the enclosedplan.

I am leaving on september 10th for approximately three weeksand will study your comments upon my return.

;::t1

7;111Martin L. JoklPresident

enclosures

MLJ/rz

2828 PAA STREET, SUITE 2085 • HONOLULU, HAWAII %819· TELEPHONE (808) 839-7720· TELEX 7238672· TELECOPIER (808) 833-5577

·...


OVERVIEW:

The Ashida Geothermal Test hole was drilled to a depth of8,300 feet and is cased with a string of 9 5/8" J-55 (40 lb/foot)casing to a depth of 3,928 feet. The bottom 4,372 feet of thehole has an 8 1/2" diameter.

While hot at the bottom of the hole, no significantpermeability was found and no geothermal zones capable of fluidproduction were encountered.

PLUGGING:

A 250 lineal foot cement plug will be pumped past the bottomof the casing so that the cement will extend approximately 125feet into the open hole. Cinders will be used to fill the holefrom the top of the cement plug (depth - 3,803 feet) to a depthof about 100 feet. The top 100 feet of the hole will be pluggedwith cement. Finally, the cellar will be filled with cinders.The location of all elements of the plugging are indicated in theattached diagram.

Procedures:


2 • Water will be pumped into the hole raising the waterlevel within the well to the surface.

3. Haliburton Services will be employed to cement thebottom plug.' Haliburton will mix 120 sacks of class Gcement, 40% si02, and .65% CFR-3, providingapproximately twice the needed 102.5 cubic feet of hightemperature cement. The cement will be pumped down thehole in a continuous fashion. Approximately 1,600cubic feet of water will be pumped following thecement, which will push the cement plug into the properposition.

4. The cement will be allowed to set for 24 hours, afterWhich, approximately 1,576 cubic feet of cinders willbe poured slowly into the hole, filling it to withinabout 100 feet of the surface.

5. 42.5 cubic feet of conventional cement will be pouredinto the well from the surface, filling the last 100feet of the hole.

6. The cellar will be filled with cinders, and the fencesurrounding the well will be removed.

, ..

802.9' Elev.

Cinders

CJl!------- 12 1/4" Hole

.~~----------------Heat Resistant Grout

r'Y'~-i=-~.f_:t-------- 9 5/8" Cas i ng

~-----------8 1/2" Open Hole

~~

3,803'3 ,928' __----I~

1,200' -..L.::I~

Cement· 26" Hole

22" Conductor Pipe69'

100'HeatResistant 17 1/2" HoleGrout

133/8" Casing

CementCellar

8,300'----

Opihikao (Ashida) - Abandonment

" •802.9' Elev.

22" Conductor Pipe

26" Hole

te------ 8 1/2" Open Hole

;::::-"H~----- 12 1/4" Ho I e

I-iof.+----- 13 3/8" Casing

,,17!'---~

~<j7'i I ---'1I-..j---;.~~=--:~1H---------9 5/8" Casing

3,928 ' __--L~~

8,300'-----'

1 ,200' ----...£.->0'1-1.-""1

--':iiiI--:7~:!------a:J\o1&rfw-; h14h -!emf. ~dml)G

cemii'ti"tCellar~.,/';'.

Opihikao (Ashida) As Buil t

".


OVERVIEW:

The Ashida Geothermal Test hole was drilled to a depth of8,300 feet and is cased with a string of 9 5/8" J-55 (40 lb/foot)casing to a depth of 3,928 feet. The bottom 4,372 feet of thehole has an 8 1/2" diameter.

While hot at the bottom of the hole, no significantpermeability was found and no geothermal zones capable of fluidproduction were encountered.

PLUGGING:

A 250 lineal foot cement plug will be pumped past the bottomof the casing so that the cement will extend approximately 125feet into the open hole. Cinders will be used to fill the holefrom the top of the cement plug (depth - 3,803 feet) to a depthof about 100 feet. The top 100 feet of the hole will be pluggedwith cement. Finally, the cellar will be filled with cinders.The location of all elements of the plugging are indicated in theattached diagram.

Procedures:



3. Haliburton services will be employed to cement thebottom plug.' Haliburton will mix 120 sacks of class Gcement, 40% Si02, and .65% CFR-3, providingapproximately twice the needed 102.5 cubic feet of hightemperature cement. The cement will be pumped down thehole in a continuous fashion. Approximately 1,600cubic feet of water will be pumped following thecement, which will push the cement plug into the properposition.

4. The cement will be allowed to set for 24 hours, afterwhich, approximately 1,576 cubic feet of cinders willbe po~red slowly into the hole, filling it to withinabout 100 feet of the surface.

5. 42.5 cubic feet of conventional cement will be pouredinto the well from the surface, filling the last 100feet of the hole.

6. The cellar will be filled with cinders, and the fencesurrounding the well will be removed.

.lev.

Cinders

Cinders

Heat Resistant Grout

01------ 12 1/4" Hole

K:>'------ 8 1/2" Open Hole

~~

_--.-"'" .r""'T":~;:............"...rIt,::i--------9 5/8" Ca sing

\

4,053 1

3,803 1

u;p/3 , 928 ' --~L-.4o(

1 , 200' - ..L.:llJ,-t

(

CementCellar

Cement- 26" Hole

22" Conductor Pipe

69'

100'

Heat lResistant 17 1/2" HoleGrout .

13 3/8" Casing

8,300'----

Opihikao (Ashida) - Abandonment

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e, Report Np. _

State of Hawa11DEPAR1l1ENT OF LAND AND NATURAL RESOURCES


DAII,Y CONSTRUCTION REPORT

~A::::.u~gu::.::s:.::t:....::.,;13~_t 19~

JOB NO. __As_h_i_d_l!l_1F_l CONTRACTOR: _

DESCRIPTION OF CONSTRUCTION ACTIVITIES

The contractor pumped out the well cella:r. Pictures to follow.

Materials Equipment (Hours)

Item Rec'd i Used " Hours Used Type :(~J~ ->

- ---Remarks: _

-i

~Weather:_G:w;o~o~d:._. _

Payroll fo.. Week Ending _ Payroll Amount _

No. of Men:

Submitted by:

.ft'~,:, '

':,It.:,~ . ,,'

:t" '

, t:,.'~...

"j

t·:~.,.

, .'

~'~t.:: :;:~'...,;\\~,,: ,

~~rr~,:· .'. ,~~.. ..~:\:;.'1C;

"'-~:~:'~'~ .

,


August 21, 1990


(.j.;:)

c:>,- » ........'.::)Ia;;::1 c= .,A.!;;z:.-"

c::? rt"lo:c:. •~~ ;. "" ("')....~l • ,.....,t=::£ f11

)::> -r-x- <.:0 .... -.t-,r;m rni'iX) .-.zo- CJ"'i 0... CiO

~

Dear Mr. Tagomori:

Your letter of August 14, 1990 notes certain deficiencies inthe maintenance of the Lani-Puna I and Ashida well sites. sincethe receipt of your letter, all such deficiencies have. beencured. In particular, a fence has been installed around theLani-Puna I cellar, and the water in the Ashida cellar has beenremoved and the valves on that well head have been checked toassure that they move freely.

Both. the geothermal resource mining lease performance bondand the liability insurance have been obtained. The bond andcertificate of insurance are enclosed with this letter.

As we had discussed earlier, the Hawaii Volcano Observatoryhad expressed interest in using both the Lani-Puna I and Ashidawells for seismic monitoring. We have, however, concluded thatthis use of the wells would make it difficult for us to assureour compliance with all governmental regulation, and have decidedthat these wells should be plugged and abandoned. We will beforwarding to you our plan for the proposed abandonment as soonas possible.

The Lani-Puna VI well is significantly different from eitherthe Lani-Puna I or the Ashida well in that we believe that LaniPuna VI has significant commercial value as an injection wellthat could be utilized in the future production of geothermalresources. We note that at least one area under the stateGeothermal Lease has significant potential to produce geothermalresources and we still hope to develop that area. Furthermore,even if exploration in that area does not prove up a geothermalresource within our leasehold, development by others in adjoiningareas may well make the Lani-Puna VI well valuable.

2828 PAA STREET, SUITE 2085 • HONOLULU, HAWAU 96819 • TELEPHONE (808) 839-mo • TELEX 7238672 • TELECOPIER (808) 833-5577

,


Mr. Manabu TaqomoriAugust 21, 1990Page Two

I trust that the remedial actions taken and the plan setforth above meet your requirements. Please feel free to contact

·me if you have any questions or comments.

Sincerely,

f~//RMartin L. JoklPresident

enclosures

MIJ/rz

2828 PAA STREET, SUITE 2085 • HONOLULU, HAWAII 96819 • TELEPHONE (808) 839-mo •TELEX 7238672 • TELECOPIER (808) 833-5577

or; .-i

V JOHN WAIHEEGOVEIlNOR O~ HAWAll

STATE OF HAWAIIDEPARTMENT OF LAND AND NATURAL RESO~ES

DtVlSlON OF .WATER AND LAND DEVELOPMENT •

P. O. BOll .373

HONOlULU. HAWAII 11109

fU3 I 5 19~U

:.. Mr. ~artin L."Jokl, PresidentBarnwell Geothermal Corp.oratioI} .2828 Paa :Street,- SUite 2085Honolulu, Hawtdi ·'96819

Dear ·Mr. Jokl: -

WILLIAM W. PATV. CHAIRPERSONIIONID ~ LAND AND NATURAL IIl!lIOURCES

DEPUTIES

t<ElTHW.NIUEMANA8U TAGOMORI

RUSSELL N. FUKUMOTO

AQUACULTURE DEVfLOPM£NTPROGRAM

IlQUATIC RElIOUfIC£SCOMSEAVATION AND

ENVIRONMENTAL AFFAIRSCOMSEAVATlON AND

RESOURCES ENFORCEMENTCONVETANCESFORESTRY ANO WILDLIFELAND MANAGEM[NTSTATE PARIISWATER AND LAND DEVfLOPMENT

In our letters of May 31, 1989 and October 19, 1989, the Department of Land, andNatural Resources ad~ Barnwell Geothermal. Corporation (Barnwell) that fieldinspections of GeothenD.8I WeDs Lanip~ No. 1 ~nd Ashida No. 1 showed that both wellsites were overgrown ·with vegetation and pOorly maintained. .

In both instances, Barnwell was notified that unless the situation was remedied,steps would be taken by the Department to authorize the proper abandonment of theweDs, at the expense of the lessee (Barnwell) and the surety.

On January 25, 1990, your company informed Us that the Hawaiian VolcanoObsexvatory had expressed interest in.using Lanipuna No. 1 and Ashida No. 1 formonitoring purposes and that discussions were underway seeking an agreement for suchuse. To date, we have not received any further information as to the status of suchnegotiations and what future plans, if any, are being proposed for these weDs.

Recent inspection of the well sites has shown that some remedial work has beenundertaken at the site of Lanipuna No. 1. The area has been cleared but is still withoutproper fencing around the well collar. The Ashida No.1 concrete. well collar is filled withwater and the site overgrown with vegetation.

In your phone· conversation with our staff on August 6, 1990, you indicated that acontractor had been hired to install the required fencing at LanipunaNo. 1, and that thework ~ould be completed by the week of August 20, 1990.

...

Mr. Martin L.JoklPage 2 JU3 15 1990

In addition, you stated that the Ashida No. 1 conar would be pumped dry as soonas possl"le, ·and that·steps would be taken to prevent water from filling the collar again.In that regard, please be advised that after pumping of the well collar, aD well headappUrtenances sh8n be mspected and verified to be in good working ord~.

In view of the above, the Department will req~ that you provide a status. report,as soon aspos51,,1e, concemingthe future plans of the subject wens (including Lanipuna

, NC!."6),· and any rationale why these we~ should not be properly plugged and a~ndoIied.

, Please note, that all of the above remedial work shall be completed'.within. 30 daysfrom the date' of this letter. Fanure to comply With this notice and remedy the defects~thin the specified period shall cause the Department to undertake the work ~~ properly

, ab~don the wells at the expense of the operator :and/or surety.

, Additi~ilally, the Department 'still awaits the receipt of a geothennal resourcemining lease" performance bond'anit eertificate of liability insurance, _as required by our

, administrative rUles, Chapter 13-183, HAR. ~Please ·sUbmit the required'documents, or'certified copies thereof, without further delay.' "

Your attention and prompt response to the above will be greatly appreciated.Should you have any questions,' please contact me at 548-7533. '.

DN:bm

~"."o. "" .)r(ff6;F-----···~U TAGOMORIDirector

• Report No. _

State of HawaiiDEPAR1l1ENT OF LAND AND NATURAL RESOURCES


DAILY CONSTRUCTION REPORT

~A:.:;:u;Q:gu~Sil.l;t:-=-2 __' 19-2L

JOB NO. Ashida #1

-----~:~~~;--------<..J'

CONTRACTOR: -------------


The cellar bas not been pumped out 8S yet r

-_.- -------Materials Equipment (Hours) i

Item Recid ! Used " Hours Used Tyoe',

I

- ---

Weather:__G;;;,;;o".o...d _

Payroll for Week Ending --------- Payroll Amount ___

No. of Men:

Submitted by:

~. '

'.r·r_.'., " i~.~_' ~ •.

""

. f:·...., .:~'

":.

.,'.".

,'i~" ;.' .. ,:. ';.·-,~;'~r/.·: '.t:".

JOB NO. Ashida #1

I

I',,-;\;

Report No. _

State of HawaiiDEPAR1l1ENT OF LAND AND NATURAL RESOURCES



~Ju_l;;.oLy~27~__ t 19-2!L

CONTRACTOR: _


There were no changes from the last inspection on July 17, 1990.

Materials Equ; pment (Hours >1Item Rec'd ~ Used !I Hours Used Tyoe

-----Remarks: _

-

Weather:_....Go......od _

Payroll for Week Ending ___ Payroll Amount ___

No. of Men:

Submitted by:

"I

" '~.• 4"

.::~t '

". \'

~ • f

. II,:.'

','

"'.".

>tii.(' ., " '.,~"," .. ",.- ·-···,~¢f· ')

Report No. _

RJ;f@§I:.\1~gn State of Hawaf1.. .. ..... ~AR1)1ENT OF LAND AND NATURAL RESOURCES


9lb.dq~J~3At ~ ~_ 0 DAILY CONSTRUCTION REPORT

JOB NO. .-.lA..~~()J.-:·.:·.::.:::.'.:....•• .ll..;h._.••·......._.~_•.••• _.:._.•.='.•~T_. CON-TR...:.~:.:::.~T~l:~R=..l:7~~==_'_'_9_90 _


Visited Wellsite and found well cellar location. The wellhead was fenced'in and the cellar

was filled with water. Could not see the condition of the wellhead. Pictures to

follow.

MateYj1a15I

Equipment (Hours)

Item C') Rec*d ! Used II Hours Used TVDe

:.oor

--Remarks;. _

--------...,(,/, ........---------------------~-----IfWeather: Good

Payroll for Week Ending _ Payroll Amount ~-------

No. of Men:

Submitted by:

'.'. -Ii;.,'..

..i'.. ~'• 4"

0::

,., I

'l

".nt.,

::1~,:: ... .':')'·:;;I'~'·:,'· .

. .....'1•..,. "..,,".


Report No. _

RECEIVED State of HawaiiDEPAR1l1ENT OF LAND AND NATURAL RESOURCES

DIVISION OF WATER AND LAND DEVELOPMENT90 JUtZ3.S: ..

A;<O ..

JOB NO. --c.;A~JJtI:.,.:;tIV=..•. ;·=-r.::.;~=-'r_/_._•. _,,_.. _. CON"'::T::';::':'<~~"-O.;;,;:l::...: ~~~~'_1_9_9_0 _

DESCRIPTION OF CONSTRUCTION ACTIVITIESI

Could not. locate ent~ance road to drill ~ite.

Materials Equipment (Hours)

Item Recid ! Used II Hours Used Type

:, ....

--Remarks; _

---------~/' ....~-----------------------------1)-Weather: Little rain.

Payroll for Week Ending ___ Payroll Amount ..... _

No. of Men:

Submitted by:

0'f

, f,: ...I'

...., ,

nt.,

, <g~'.::.: :, ~'~if~

·.tt~: ..;!,

'"~/

.. ·;t.~..>.·.·.',.. ·· .. ··.·· ~------,---.:.-..:..-;...:.....;...;,"",-' ·t·l';;;,;' _,,~:t ' --~ .' ,':~t';)~;>

•BARNWELL GEOTHERMAL CORPORATION :-~

June 14, 1990

- ~t

0. •Mr. MjCnabu Taqomor1Deputy Directorstate of Hawaii ,Dept. of Land & Natural ResourcesP.O. Box 621Honolulu, Hawaii 96809

Dear Mr. Taqomori:

Enclosed please find. two copies of as built diaqrams forboth Opihikao (Ashida) and Lani Puna -6. Please do not hesitateto call if you need additional copies.

Sincerely,

,~ //11Martin L. JoklPresident

enclosures

MLJ/rz

2828 PAA STREET, SUITE 2085 • HONOLULU. HAWAD 96819 • TELEPHONE (808) 839-7720 • TELEX 7238672 • TELECOPIER (808) 833-5577

'.• •802.9' Elev.

CementCellar

26" Hole

22" Conductor Pipe69'

Heat ]Resistant 17 1/2" HoleGrout ,

13 3/8" Casing

1,200 I ----~'f_I

~I------- 12 1/4" Hole

1f-+--------9 5/8" Casing

3,928 ' __--.J~

II1oE1"~------__ 8 1/2" Open Hole

~~

8,300'----


I(\ . t

\ tSTATE OF HAWAII }CITY & 88.:

COUNTY OF HONOLULU

On this J§.1:h. day J.~J:l~.~~y 19J~Q , before me personally came

M. G. Chil1ingworth................................................_ __ ············· ·· u······.·.·· __ _ _ __..__ _ __ __ .

to me known to be an Attorney-in-Fact of SEABOARD SURETY COMPANY, the corporation describedin the within instrument, and he acknowledged that he executed the within instrument as the act ofthe said SEABOARD SURETY COMPANY in accor ce with autOCo'tyy conferred upon him bysaid Company. .

tary ublic, State of Hawaii............................................................··················s·····················-············· .

y Commission Expires /I"'/i-!~Notary Public.

,." '\~

I .... 7ti-9 •BOND NO. 872109

GEOTHERMAL RESOURCES WELL INDEMNITY BOND($50,000 Individual Well Bond)

KNOW ALL MEN BY THESE PRESENTS:

That we GEOTHERMAL EXPLORATION & DEVELOPMENT CORP.

as principal; and SEABOARD SURETY COMPANY, a New York Corporation

organized and existing under and by virtue of the laws of the STATE OF HAWAII and authorized

to transact surety business in the STATE OF HAWAII, as surety, are held and firmly bound unto

the State of Hawaii in the full and just sum of FIFTY THOUSAND AND NOIlOO DOLLARS ($50,000.00)

lawful money of the United States of America, to be paid to the said State of Hawaii, for which pay

ment, well and truly to be made, we do hereby bind ourselves, our heirs , executors, administra

tors, successors and assigns, jointly and severally, firmly by these presents.

JanuarySigned, sealed, delivered and dated this 16th day of -------City and County of Honolulu, State of Hawaii.19~, at Honolulu,

THE CONDITION OF THE ABOVE OBLIGATION IS SUCH THAT,

WHEREAS, said principal is about to acquire, drill, redrill, deepen, operate, maintain or

abandon a geothermal resources well designated as Well No.1, TMK: 1-3-01: 24-----Latitude , Longitude , Island of Hawaii and is-------- -------- -------required to file this bond in connection therewith in accordance with Rule 9.4 of Regulation 8

of the Department of Land and Natural Resources, State of Hawaii.

NOW, THEREFORE, if said GEOTHERMAL EXPLORATION & DEVELOPMENT CORP.the above bounden principal, shall well and truly comply with all the provisions of saidRegulation 8 and shall obey all lawful orders of the Chairman of the Board of Land and NaturalResources, or his representative, if not appealed to the Board of Land and Natural Resources, orupon affirmance thereof by the Board of Land and Natural Resources, if appealed thereto, andshall pay all charges, costs, and expenses incurred by the Chairman or his representative, inrespect of such well or the property or properties of said principal, or assessed against suchwell or the property or properties of such principal, in pursuance of the provisions of saidRegulation 8, then this obligation shall be void; otherwise, it shall remain in full force andeffect .

Countersigned by:

SEABOARD SURETY COMPAlIY

By:----J!:.=--~~~~=:::::;f__-

Its: --1------------+----

Surety

By:~.~b -=Its: Attorney-in-fact

Deputy At1rney General

Dated: Q.1-=/~~_f_O _(;(

Martin L. JoklHawaii Residen Agent

Approved as to form:

•

J

•.• •

••

P.nd By: -------------Its:

• o

STATE OF HAWAIICity & County of Honolulu ss

day of _---"__J_a_nu_a_r....;y~__, 19 80 , before me appearedOn this 16th

E. C. Craddick and-_........_------------- -----------------

,

to me personally known, who, being by me duly sworn, did say that they are the

President and -----------------respectively, of Geothermal Exploration & Development Corp.

and that the seal affixed to the foregoing instrument is the corporate seal of said

corporation, and that the foregoing instrument was signed and sealed in behalf of

said corporation by authority of its Board of Directors, and said --------E. C. Craddick and -----_........_-----------

acknowledged the foregoing instrument to be the free act and deed of said corpora-

tion.

Notary ublic, _State of Hawaii

My commission expires: 11/16/80

STATE OF HAWAII )) ss

--------------,)On this day of ' 19_, before me appeared

and----------------- -----------------to me personally known, who, being by me duly sworn, did say that they are the

and----------------- -----------------respectively, of ----------------------------and that the seal affixed to the foregoing instrument is the corporate seal of said


said corporation by authority of its Board of Directors, and said ---------and--------------- -------------------


tion.

Notary Public,· Judicial Circuit,------State of Hawaii

My commission expires:

No. ..lJS84

.S.JOAHD Sl:UETY· C()~Il.Y

NEW YOUK, NEW YOltK

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS: That SEABOARD SURETY COMPANY, a corporation of the Stateof New York, has made, constituted and appuinted and by these presents does make, constitute and appoint---------------M. G. Chillingworth or II. W. Chillingworth or Ronald Poepoe or June Kukino or William B. Stevenor M. J. Singlehurst----------------------------------------------------------------------------of Honolulu, Hawaiiits true and lawful Attorney-in-Fact, to make, execute and deliver on its behalf insurance policies, surety bonds, undertakings and other instruments of similar nature as follows: i'li thout Limitations.

--~-

Such insurance policies, surety bonds, undertakings and instruments for said purposes, when duly executed by the aforesaidAttorney-in-Fact, shall be binding upon the said Company as fully and to the same extent as if signed by the duly authorized officersof the Company and sealed with its corporate seal; and all the acts of said. Attorney-inFact, pursuant to the authority herebygiven, are hereby ratified and confirmed.

This appointment is made pursuant to the following By-Laws which were duly adopted by the Board of Directors of the said Company on December 8th, 1927, with Amendments to and including April 6, 1978 and are still in full force and effect:

ARTICLE VII, SECTION 1:"Policies, bonds, recognizances, stipulations, consents of surety, underwriting undertakings and instruments relating thereto.

Insurance policies, bonds, recognizances, stipulations, consents of surety and underwriting undertakings of the Company. and releases, agreements andother writings relating in any way thereto or to any claim or loss thereunder, shall be signed in the name and on behalf of the Company

Ca) by the Chairman of the Board. the President, a Vice President or a Resident Vice President and by the Secretary, an Assistant Secretary,a Resident Secretary or a Resident Assistant Secretary; or (b) by an Attorney-in-Fact for the Company appointed and authorized by the Chairman of the Board. the President or a Vice President to make such signature; or (c) by such other officers or representatives as the Board mayfrom time to time determine.

The seal of the Company shall if appropriate be affixed thereto by any such officer, Attorney-in-Fact or representative."

SEABOARD SURETY COMPANY,

By Thomas P. GorkeMargaret Scofield............................................................................(Seal)

IN WITNESS WHEREOF. SEABOARD SURETY COMPANY has caused these presents to be signed by one of its Vice-Presidents, and its corporate seal to be hereunto affixed and duly attested. by one of its Assistant Secretaries, this ~l§.t: .day of ~.~~.~~ , 19.!~ .

Attest:

Assistant Secretary Vice-President

STATE OF NEW YORK 1COUNTY OF NEW YORK Sss.:

On this ..~.~~.~ daJt of '!.~~~~.7.r. , 19..?~ , before me personally appeared......................r.h9.I,1}~.~..J?~ 9.2; ~ a Vice-President of SEABOARD SURETY COMPAXY,with whom I am personally acquainted, \\"ho, being by me duly sworn, said that he resides in the State of J.~~~ ~~.~~.~.Y ;that he is a Vice-President of SEABOARD SURETY COMPANY,' the corporation described in and which executed the foregoing instrument; that he knows the corporate seal of the said Company; that the seal affixed to said instrument is such corporateseal; that it was so affixed by order of the Board of Directors of said Company; and that he signed his name thereto as VicePresident of said Company by like authority.

(Seal)

State of New YorkNo. 41-7493475 Qualified in Queens CountyCert. filed in New York CountyCommission Expires March 30, 1980 Anita J. Leonard

Notary Public

CERTIFICATE

I, the undersigned Assistant Secretar)' of SEABOARD SCRETY CO).[PAXY do hereby certify that the original Power of Attorney of whichthe foregoing is a full. true and correct copy. is in full force and effect on the date of this Certificate and I do further certify that the Vice Pr~ ..idcntwho executed the said Power of Attorney was one of the Officers authorized by the Board of Directors to appoint an attorne)'-in-fact as provided inArticle VII, Section I, of the By-Laws of SEABOARD SCRETY CO).[PAXY.

This Certificate may be signed and scaled by facsimile under and by authorit)· of the following resolution of the Board of Directors of SEABOARD SURETY CO).IPANY at a meeting duly called and held on the 28th day of June 1978.

"RESOLVED: (2) That the use of a printed facsimile of the corporate seal of the company and of the signature of an Assistant Secretaryon an)' certification of the correctness of a copy of an instrument executed hy the President or a Vice-President pursuant to Article \'11, ~ectionI, of the By-Laws appointing and authorizing an attorney-in-fact to sign in the name and on behalf of the company surety bonds. underwritin~undertakings or other instruments described in said Article VII, Section I, with like effect as if such seal and such signature had been manuallyaffixed and made, hereby is authorized and approved." .

•

}'orm 957 (Ro ...78)

IN WITNESS WHEREOF. I have hen'unto set my hand and affixed the corporate seal of the Company to these presents this

.........................t~~ :. day of J.~;!lJJlP.IlQ , 19 8n .

..J21~~.~~.S;;;;;;;;:4'URE~~I ~(;)"""""'""a:'ll'.' '. ~

(~I '* \"0:{ 1927 l~i\~\ "11' /-:<'. ":>..... ..'~~."\~l'iii'~~~ i ......

STATE OF HAWAII


DESIGNATION OF AGENT

In compliance with section 13-183-64 of the Department of Land

and Natural Resources, notice is hereby given and I hereby certify

that I ___....::MA.==R~T~IN~L;u........l:'.J,X;OK~L (Name) ,

representing BARNWELL GEOTHERMAL CORPORATION (OWNER-OPERATOR) of

Honolulu, State of Hawaii, have appointed, authorized and empowered

MARTIN L. JOKL , whose address is 2828 Paa Street, suite

2085, Honolulu, Hawaii 96819, State of Hawaii, as our agent in the

State of Hawaii* , who shall be the repository for

all well records for each geothermal well drilled by us, and upon whom

all orders, notices and processes under the provisions of said Chapter

13-183-64 may be served.

This notice supersedes all previous designations made for the

above-described purposes.

this 7TH day of MA--..;Y , 1990.

IN WITNESS WHEREOF 1 _

Witness:£~

MARTIN L. JOKL I

(I/we) have signed this certificate

Name and Title

Name and Title

NOTE: An owner or operator may appoint himself as agent.

*Should the owner or operator filing this form choose to appoint morethan one agent, the phrase, "State of Hawaii" should be deleted andthe exact area for which the agent is to be appointed should beinserted. A separate form must be filed for each agent.

section 13-~83-64 Designation of Agent. Any person who hasdrilled, is drilling, or proposes to drill any geothermalwell shall designate on forms provided by the Department anagent who shall be a resident of the State of Hawaii andupon whom may be served all orders, notices, and processesof the Department or any court of law. Every person soappointing an agent shall, within five days after thetermination of any such agency, notify the Chairman inwriting of such termination, and unless operations arediscontinued, shall appoint a new agent. All changes in theaddress of an agent must be recorded with the Chairmanwithin five days of the change of the address.

THIS WORK WAS PPl'AltEO MY lilaOR UND~K MY SUHRVtSlO-.

~!' .t.A(?!. 1.' n.... '"'7-

v

JO••••

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~o

A

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aa. SI!>O( C!01urc:.

J.

Au,-,,-

A

....~....)

.....

'..t .....,.

Ac.Rf;.~

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(b-rorof etonJn:;;')4-t.rcr:~~ti...'5~~e

-

~'an ~ Murray" 'Smith e.. Aol5!aOC., L.td.'P. O. P!>o~ M~ ~ilo, Hawaii

All of Lo+ 10/ Grant' 50S't +0 e,. Von Da.mmand Portion of L.o~ ~. Grant ?OSl lo H. J. l:ym.n

Opih',kao, Puna, Hawai'l

--; ~ OC"I pahoehoe./~

o~.~

_.~

./

• •Report No. _

State of HawaiiDEPARD1ENT OF LAND AND NATURAL RESOURCES



.:.F.:;;,eb~.:..,;;::6 t 19..1Q...

JOB NO. LANlPUNA 1/1, 1$, &clighU :Vir CONTRACTOR: Barnwell! Water Resources

DESCRIPTION OF CONSTRUCTION ACTIVITIES\• Called Mr. Bill Cradock to make arrangeme~ts to inspect the above well sites. Lanipuna 1~

would not be a problem for the signs posted are for the farmer who uses the back area

of the well site area. Lanipuna #1 would be a problem due to over-grown vegitation and

no fencing of the well. He also stated that the Lanipuna #1 well does not have a wellhead

on due to non availability of geothermal resource and the well is sealed off with a

metal cover welded on the casing. Ashida #1 does not have access rights from Bishop

Estate for inspection of the We11site at this time.

Materials Equipment {Hours}

Item Rec"d ! Used " Hours Used TVDe

--Remarks:, _

Weather: Little Rain

Payroll for Week Ending _ Payroll Amount ~------------

No. of Men: _

Submitted by:

'!o~;,...'~'". '

:. ..""I'~:",,. .;~. ·1. r"'·-·

... C',.!. ".' a ail

·-BARNWELL GEOTHERMAL CORPORATIbN~:\"CO

January 25, 1990

Mr. Manabu TagomoriDeputy Directorstate of HawaiiDepartment of Land and Natural ResourcesCommission on Water Resource ManagementP. o. Box 621Honolulu, Hawaii 96809

Reference: Your Letter of January 12, 1990

Dear Mr. Tagomori:

We suggest that the simplest way of turning over the LanipunaNo. 1 and Ashida No. 1 is by way of transfer of ownership andoperation.

Barnwell Geothermal Corporation ("BGC") will submitapplication to the DLNR, prior to any activity or execution ofagreement with Hawaiian Volcano Observatory ("HVO"). Afterapproval, BGC will finalize a transfer agreement with HVO.

Meanwhile, BGC will submit as-built drawings, and take actionto plan and schedule remedial work and submit this also to DLNR

. before proceeding with the work.

Although your request for drawing is for Lanipuna No. 6 andAshida No.1, please note that the transfer is related to LanipunaNo. 1 and Ashida No. 1 only.

Very truly yours,



MLJ/ECC/sm

cc: E. C. CraddickAlexander C. KinzlerReginald Okamura, HVO

2828 PAA STREET, SUITE 2085· HONOLULU, HAWAII 96819· TELEPHONE (808) 839-7720. TELEX 7238672. TELECOPIER (808) 833-5577

.~

,

JOHN WAIHEE__ OF HAWAII



P. O. BOX 621


January 12, 1990

Mr. E.C. Craddick, PresidentBarnwell Geothermal Corporation2828 Paa Street, Suite 2085Honolulu, Hawaii 96819

Dear Mr. Craddick:

WILLIAM W. PATYCHAI_

JOHN C. LEWIN. M.D.MICHAEL J. CHUN. Ph.D.

ROBERT S. NAKATARICHARD H. COXGUY K. FUJIMURA

MANABU TAGOMORIDEPUTY

As a follow-up to our recent correspondence concerning the status ofgeothermal wells Lanipuna Nos. 1 and 6 and Ashida No.1, and yourproposal to transfer the responsibility and operation of these wells to theHawaiian Volcano Observatory (HVO),our Department of Land and NaturalResources (DLNR) offers the following:

1) The proposed transfer of the referenced wells may require theassignment/sublease of the geothermal resource mining lease (GRMLR-3) covering wells Lanipuna Nos. 1 and 6.

Pursuant to our Department's Administrative Rules Chapter 13-183,the transfer of responsibility and operation of these wells fromBarnwell Geothennal Corporation (transferor), to the HawaiianVolcano Observatory (transferee) would be subject to the approval ofthe Board of Land and Natural Resources. An application for atransfer requires a fee of $100.

2) A mining lease may be transferred in whole or in part. Thetransferee (HVO) shall be bound by the terms of the lease, includingthe bonding requirements. In addition, the transferor (Barnwell) and itssurety shall continue to be responsible for the performance of allobligations under the lease. Should the Board release the transferorfrom any liabilities or duties under the mining lease those unsatisfiedliabilities or unperformed duties which arose prior to the transfer shallremain the responsibility of the transferor.

3) If the transfer does not convey a separate interest in title, thetransferee may become a joint principal on the indemnity bond withthe transferor. The consent of the surety under such conditions isrequired.

•

4) The transferee must also secure and maintain in force acomprehensive general public liability and propeny damage insurancein which the State of Hawan, the Board, and the" Department arenamed insu~s, for the minimum amounts of coverage specified inthe lease and our regulations.

.5) Under mining lease GRML R-3, the transfer of authority to operatewells Lanipuna Nos. 1 and 6 may also be possible through thedesignation" of HVO as the operator, without the need for anassignment or transfer of the mining lease. Such designation of anew operator must be approved by the Department's Chairperson.

The new operator must continue to comply with all applicablerequirements relating to the use of the premises or the conduct ofoperations, including the requirement of securing and maintaining ageothermal well indemnity bond for the amount of $50,000. Suchbond must remain in force for the life of the well and may not bereleased until the well is properly abandoned, as determined by theChairperson.

6) In tIi~ case of geothermal well Ashida No. I, which is not coveredunder an existing geothermal resource mining lease and which cannotbe transferred via an assignment of a lease, its operation by a partyother than the original permittee may be possible by transferringownership and operation of the well from Geothermal Exploration &Development Corporation (GEDCO) to HVO, and by designatingHVO as the new operator of the well.

Any designation of a new operator under an amendedownership/operating agreement should be submitted to the Chairpersonfor approval prior to the commencement of any activity or use of thewell. The party who acquires the ownership or operation of any wellshall, within five days after acquisition, file with the Chairperson anew geothermal well indemnity bond or a consent by the surety to thechange in principal under the existing bond.

In summary, any proposed changes concerning the responsibility andoperation of the above geothermal wells, regardless of which method oftransfer is selected, must be submitted in writing for review and approval bythe Chairperson. Such request for approval must include a detaileddiscussion of each party's obligations and acknowledgement of the regulatoryrequirements and applicable lease conditions.

Please be advised that notwithstanding the outcome" of any future

..

discussions between Barnwell and HVO concerning the above transfer, thelessee and/or operator shall still be responsible for maintaining the wells andpremises, providing access to the sites or properly abandoning any well.Additionally, no well shall be plugged until the manner and method ofplugging has been approved or prescribed by the Chairperson.

With regard to Lanipuna No.1, the Department will require theimmediate restoration of the access road, the removal of the overgrownvegetation, and the installation of proper fencing around the well-head. Aplan and schedule outlining this required remedial work shall be submitted tothe Department prior to the start of work. Unless immediate remedial effortsare undertaken, the Department will authorize well abandonment action, atthe expense of the lessee (Barnwell) and the surety.

Lastly, the Department awaits the submittal of as-built diagramsshowing existing well conditions for both Lanipuna No.6 and Ashida No.1,requested in our letter of October 19, 1989.

Your prompt attention to the above, and a response concerning yourdiscussions with the Hawaiian Volcano Observatory, will be greatlyappreciated. Should you have any questions, please call me 548-7533.

DN:bmcc: Reginald Okamura, HVO

It •United States Department ofl-tll(tlbt:eaoJ'

October 30, 1989

GEOLOGICAL SURVEY

Hawaiian Volcano ObleiV.t(jr.l)r j 31 !::. 9: 04P.o. BoxS1

Hawaii National Park, Hawaii 96718U:V. L, /; ATERIiAx: (808)967-8890

l" >.i.- .';, l~[NTTelephone: (808) 967-7328

Mr. Ed Craddick, PresidentWater Resources International2828 Paa StreetHonolulu, HI 96819

Dear Mr. Craddick:

. Thank you for the infonnation concerning the availability of two 7,ooo.B;OOO-ft deep verticaldrill holes in the lower east rift zone of Kilauea called Lanipuna #1 and Opihikao. The US GeologicalSurvey's Hawaiian Volcano Observatory is very interested in obtaining the rights to these holes toconduct heretofore contemplated geophysical experiments.

Our main objective in acquiring these holes is to use data ~llected from them to refine seismicvelocity structure and temporal changes in stress of the east rift zone of Kilauea. This can beaccomplished by installing a tri-axial broad-band seismograph with sensors in the accessible verticaldeep holes and ground-surface and GEOS or compatible magnetic tape recording system to monitor theactivity. We are initially interested in doing feasibility studies detailing short-tenn (6 months)operation for collection of spectral-velocity data from local earthquakes, teleseisms, quarry blasts,volcanic tremor, ocean microseisms, and earth-ocean tidal fluctuations, with long-term (>5 years)continuance of deep hole and surface sensors for comparative spectral and velocity changes as a functionof time. The ultimate goal of this project is to detect stress changes possibly applicable to earthquakeand volcanic eruption-prediction models. Along with the long-term aspects of the project, conversionfrom on-site data collection to linkage with existing HVO telemetry should be accomplished.Allowances for other geophysical experiments involving strain meters and gravity measurementsshould be included as part of the use process.

There will be no adverse environmental impact while HVO conducts its experiments, other thana protective fence and shed within the fence. We also have questions as to ownership and access to theaffected properties.

Concerns voiced by the staff are (1) whether there is any information or logging notes on theholes; (2) whether there are any rock cuttings available for us to analyze; and (3) whether the drillholes are suitable for simple vertical lowering and raising of cable-linked instruments.

Initial project coordinators will be Reginald Okamura, Thomas Wright, Robert Koyanagi, andArnold Okamura from USGS-HVO and''Bernard Olouet, useS-Menlo Park, CA. Again, thank you forconsidering the Hawaiian Volcano Observatory as the benefactor for these holes. If there are anyquestions, please call us. Our number is (808)967-7328.

Sincerely,

m~~.c,.~_~Reginald Okamura

Chief of Operations

cc: Manabu Tagomori, Department of Land and Natural Resources

Water ResourcAternational

'~~' S ~~' CT26 A10: : 2October 24, 1989

Mr. Manabu TagomoriDeputy DirectorState of HawaiiDepartment of land and Natural ResourcesCommission on Water Resource ManagementP. O. Box 621Honolulu, Hawaii 96809

Reference: Your letter of October 19, 1989

Dear Mr. Tagomori:

We have been in communication with the Hawaii Volcanic Observatoryconcerning their interest in using lanipuna No. 1 and the Ashida No. 1for moni tori ng purposes. ///-"... _<••••• ,

They will be making a decision~hortly and we will advise you atthat time. \ .....

'-:::..:-.>"

Should geothermal plants be constructed near these areas, seismicwarnings of impending volcanic activity would be extremely valuable.

Very truly yours,

WATER RESOURCES INTERNATIONAL, INC.

ECC/sm

cc: W. R. Craddick - Hilo Office

2828 Paa Street. Suite 2085. Honolulu. Hawaii 96819. Telephone (808) 839-7727. Telecopier(808) 833-5577. Telex 7238672 WRII HR

..,... ..

~,jay 31, 1989

f\Jr. E. C. Craddick, PresidentBarnwell Geothermal Corporation2828 Paa Street, Suite 2085Honolulu, Hawaii 96819

Dear Mr. Craddick:

Transmitted is a copy of the Department of Land and NaturalResources' letter dated October 9, 1987, concerning site inspections ofgeothermal wells--Lanipuna No.1, I,anipuna No.6, and Ashida No.1.

In our earlier letter t we indicated that all three welts appear to bedeserted and improperly maintained. In addition t the Departmentrequested a response as to why these wells should not be sealed andabandoned in accordance with our Department's Administrative Rules.To date, no acknowledgement or reply to thiG inquiry has been received.

Please be aovised that pursuant to our rules (Chapter 13-183), theoperator of a lease shall promptly plug and abandon any well that isdeserted or not used or deemed not useful by the Board of Land andNatural Resources. Failure of the lessee to comply with this requirementshall authorize the Chairperson to cause the work to be performed at theexpense of the lessee and the surety.

In regards to the above, the Department requires that you providea report t as soon as possible, concerning the status of the subject wellsand any rationale as to why they should not be properly plugged andabandoned. Should you have any questions, please contact Dan Lum at548-7643.

..---_ ....";!:

DN:koAttll.ch.

.'

October 9, 1987

Mr. B. C. Craddick, PresidentBarnwell Geothermal Corporation2828 Paa Street, Suite 2085Honolulu, Hawaii 96816

Dear Mr. Craddick:

In accordance with Section 13-183-6 of the Department of Land andNatural Resources' Administrative Rules on the LeAsing and Drilling ofGeothermal Resources, our Department recently conducted siteinspections of the following geothermal wells drilled by your firm:

Lani2una No.1

It was noted that the original access road is overgrown withvegetation and macadamia nut trees. Our personnel were unable to·reach the well and concrete cellar due to the thick overgrowth ;.. Whetheror not the well and concrete .cellar .are properly fenced or otlterwtseprotected could not be determined.

The entrance. to the alternate access road was found posted with"No Trespass" signs and guarded by two dogs. A house or temporaryshelter was noted back among the trees.

Lanipuna No.6

The gate to the access road was found open and the site vacant atthe time of inspection. The well site is apparently being used forstorage of well drllUng equipment. The well and concrete cellar areenclosed by 8 fence. However. the area is overgrown with vegetation.

Ashida No.1

The access road gate W8S locked and "No Entry" and "No Trespass"signs were posted at the entrance. We were unable to inspect the wellsite due to tnaccessibiUty.

According to your letter dated March 2, 198'1, these three wellswere being considered for possible use as geothermal injection wells ..However, according to Section 13-183-80 of the Department'sAdministrative Rules, the wells must be properly maintsined andprovisions made for access and inspection by our Department.

J

Mr. B C. Craddick -2-•

October 9, 1987

Also. under Section 13-183-82 of the Administrativ(~ Rulcs, theoperator of any well shall promptly plug and abandon any well that isdeserted f not in use, or is deemed not to be potentially useful. Sinceall three wells appear to be deserted, not in usc, and potentially notuseful in the foreseeable future, we request you advise us why the ~'YellfJshould not be se81ed and abandoned, in accordance with theDepartment's Administrative Rules.

Sincerely,

\\ 1MA~ADU TAGOMPRIManager-Chief BJ?,gineer

~ ~(

DN:JJL:dh

.;..... ,

-II •BARNWllL GEOTHERMAL CORPO_RATION

11\ 8: .~ :~

March ,2" 1987 .,, ., -. '"

7

Mr. Albert lono lyman, DirectorPlanning DepartmentCounty of Hawaii25 Aupuni StreetHila, Hawa;; 96720 " _ /P"'O"--I{ f-/~, I

Special Permits 80-347 (lUC 460),77-265 ( C 364), and 471

Biannual Statu e orts Due Januar ,

Dear Mr. lyman:\

!-41.-1 '''(,.1''''''.. W/E.:w.. ~This is to advise that there has been no change in the status

of our plans s·ince the last report, and that none.are contemplatedfor the next six (6) months. . '

Very truly yours,

BARNWEll GEOTHERMAL CORPORATION

ECC/sm

cc: ~. Manabu Tagomori, DlNR

2828 PAA STREET, SUITE 2085· H0;\10LULU, HAWAII 96819· TELEPHONE (808) 839-mo· TELEX 7238672· TELECOPIER (808) 833-5577

•• •BARNWELL GEOTHERMAL CORPORATION

c::>'.::1")

j .~~: .."... - -- >- ..-,-

c':'::: -< .'C,_' l'~ (')r '"7n ((.I.)

~~. .. ....-r' ....:.

:P.-:;.- ...",C---I

'._~..-:rrn 'CXJ iTTl::.~ • .~ ~

tUJ--.( cD'1

May 20, 1986

Mr. Albert Lono Lyman, DirectorPlanning DepartmentCounty of Hawaii25 Aupuni StreetHilo, Hawaii 96720

. Special Permits 80-347 (LUC 460),77-265(lf;lC~364)"~ and 471

Biannual Status Reports Due July, 1986

Dear Mr. Lyman:

This is to advise that there has been no change in the statusof our plans since the last report, and that none are contemplatedfor the next six (6) months.

Very truly yours,


ECC:sm

cc: ~r. Manabu Tagomori, DLNR

2828 PAA STREET. SUITE 2085· HONOLULU, HAWAn 96819· TELEPHONE (808) 839-7720· TELEX 7238672 • TELECOPIER (808) 833·5577

• .. "t~~1

GEOTHERMAL EXPL~'t(§iQ & DEVELOPMENT COR~3.3 JUN ~O A 8: 28 PACIFIC OPERATIONS

June 21, 1983

Mr. Sidney Fuke, DirectorPlanning Department25 Aupuni StreetHilo, Hawaii 96720

Reference: Special Permit No. 364Opihikao/Ashida Prospect - Status Report

Dear Mr. Fuke:

,- '1"11:C:)HriO

<Ata

';,:,

Enclosed,is our status report, covering the Opihikao/Ashida

Prospect, which is due July 1, 1983.

Very truly yours,

GEOTHE~mL EXPLORATION &DEVELOPMENT CORP.

IsmEncl.

cc: ~ Susumu Ono, DLNR ~ W/encl.

CONSULTING • PLANNING • GEOPHYSICAL STUDIES • EXPLORATORY & PRODUCTION DRILLING

2828 PAA STREET, SUITE 2085 I HONOLULU, HAWAII 96819 I TELEPHONE 839-7720 I TELEX 7238672

t·, ~i . t"' .~. . t •

.. "t", ." • •STATUS'REPORT'~'OPIHIKAO/ASHIDA 'PROSPECT

Due July I t 1983

Reference: Special Permit No. 364Geothermal Exploration &Development Corp.TMK: 1-3-01:Portion of 24 and 25Approved - July 14, 1977Extended - March 4, 1982Expires - July 14, 1984Second Well to Begin by March 4, 1984

Ashida Well No. 1 was drilled in 1980, but work was suspended wheninitial evaluation indicated additional work would be necessary.Timing for such work has been delayed until further knowledge isacquired in the Kapoho area which mayor may not indicate a commonreservoir with Opihikao. Present plans call at least one slanthole drilled at Ashida Well No.1 and at least one (1) additionalwell to be drilled between 1984 and 1987 •

•

-.•

/

.. """

November 28, 1983

Ms.. June KukinoAttorney-at-LawMarsh &: McLennan, Inc.P.O. Box 38Honolulu, Hawaii 96819

Dear Ms. Kukino:~.

Geothermal Exploration &: Development Corp.BanaNo. 872109, Qe~kao No. I, TMK: 1-3-01:24

This is in response to your inquiry of November 16, 1983regar4ina BoDd No. 872109 .... A geotherlDa1 iud. atty boD4 r_jD8in force for the life "f toe well and may not be relea••d untilthe ..11 i. properly abandtned as determined.by the Cbairaau ofthe 10.ard of Lan.d and Na~a1 Resoure.s. We have had no correspondence from Geothenaa1Jz.p1orati011 and Developmellt Corp.1D.dicatina their intention", to abandon the Asllida (formerlyOpihikao) well. ''0

ROBEB.'I T. CHUCK_.. Manager-Chief Engineer

NI:ko

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l1arsh&M~Lennan ---------_.-----Marsh & Mclennan, IncorporatedP.O. Box 38, Honolulu, Hawaii 96810Telephone (808) 531-4211

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November 16, 1983

Mr. Robert T. ChuckState of HawaiiDept. of Land & Natural ResourcesDivision of Water and Land DevelopmentP. O. Box 373Honolulu, Hawaii 96809

Gentlemen:

Re: Geothermal Exploration &Development Corp.Bond No. 872109, Opihikao No.1, TMK: 1-3-01:24

We appreciate your assistance in determining the status of thecaptioned bond which was issued by us. Is this project completedand if so, what is the date?

Thank you for your cooperation.

Very truly yours,

SEABOARD SURETY COMPANY

LL.ene Kukino

ttomey-in-fact

MAUl KAUAI HAWAII

P.O. Box 577Kahului, Hawaii 96732Telephone 877-6541

P.O. Box 1764lihue, Hawaii 96766Telephone 245-3911

345 Kekuanaoa StreetHilo, Hawaii 96720Telephone 961-3771

GEORGE R. ARIYOSHI

GOVERNOR

• • ,.' '{- . i, ~ ~..

TANY S. HONG

ATTORNEY GENERAL

Q '~\-1p. u . MI~HAEL A. LILLY

/STATE OF HAWAII

DEPARTMENT OF THE ATTORNEY GENERAL

LANDrTRANSPORTATION DIVISION

ROOM 214-B. OLD FEDERAL BLDG.

335 MERCHANT STREET


November 1, 1983

ATTORNEY-CLIENT COMMUNICATIONNOT FOR DISTRIBUTION

MEMORANDUM

ASSISTAHT ATTORNEY GENERAL

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TO:

ATTN:

Susumu Ono, ChairmanBoard of Land and Natural Resources

Robert T. Chuck, Manager-Chief Engineer, DOWALD

Manabu Tagamori, Branch Chief,Water Resources and Flood Control Branch, DOWALD

James J. Detor, Land Management Administrator

FROM: William M. Tam, Deputy Attorney General

SUBJECT: Geothermal Leases and Drilling Permits on PrivateLands.

In reviewing ·the geothermal drilling permits issuedby the Department to date, it came to my attention that twopermits were issued for private lands without express mineralreservation clauses and without geothermal mining leases. Thetwo permits were both to Geothermal Exploration and DevelopmentCorporation, a joint partnership involving BarnwellCorporation:

Ashida No. 1

Daiichi No. 1

1/10/80

3/2/81

suspended

not drilled

expired

expired

DLNR's regulations in Title 13, Chapter 183, addressState and reserved lands. The definition of reserved landsincludes those lands where the "State or its predecessors ininterest has reserved to itself, expressly or by implicationthe minerals or right to mine minerals, or both" (HRS

Susumu OnoPage 2November 1, 1983

182-1(3». But the effect of granting a drilling permit onprivate land without reserving the ownership question orissuing a lease impliedly creates a third category of"unreserved" lands. As a consequence, the State may jeopardizeits legal claim to mineral resources by implied reservation.

As you will recall, at the time of the Mahele astatute was in place reserving all mineral rights to thesovereign. For reasons that have never been clear, the statute(1845-1859) was deleted during the codification of the civilcode in 1859. Nonetheless, the land patent form used duringthat period was retained without modification so that themineral reservation clause was in fact retained in ,land patentsissued by the government until 1900. with the transfer of allgovernment and Crown lands to the U.S. in 1898 and thesubsequent formation of the Territory in 1900, the landdocument forms were revised. In the process, the mineralreservation clause was eliminated from the form. In 1955, theTerritory again inserted mineral reservation clauses in theland patents, but not consistently. In 1963, after bauxite wasdiscovered, the State enacted a statute reinserting the mineralreservation clause in land patents and leases. Finally, in1974, Hawaii's Legislature adopted a statute defining mineralsto include geothermal.

Since the question of implied reservation of mineralrights to the State has not been judicially resolved, theState's conduct toward private lands without express mineralreservations deserves some attention.

A savings clause could be inserted in drillingpermits on private lands which lack mineral reservation clausesso that neither party is prejudiced on the ownership question.By such a provision, the State's claim of ownership by impliedreservation will be preserved without prejudice.

Ms. Helen Kane, a title abstractor with LandManagement, is presently reviewing land patents in lower Punato determine which lack mineral reservation clauses and,therefore, deserve special scrutiny.

RECOMMENDATION

Drilling permits should contain a savings clause thatprovides that the State reserves the ownership question and thepermit is made without prejudice to the~r'.gh.ts of- ny party to

, seek resolution of the ownershiJ? question.' VI-

W~~/',"-~.William M. TamDeputy Attorney General

WMT:dsk

1 - -

January 18, 1983

Ms. June KukinoAttorney-tn-FactMarsh " McLennan, Inc.P.O. Box 38Honolulu, Hawaii 96810

Dear Ms. Kukino:

Geothermal Exploration " DeVelopment Corp.Bond No. 872109, Opihikao No.1, TMK.: 1-3-01:24

This is in response to your inquiry of December 29, 1982, regardingBond No. 872109. A geothermal indemnity bond remains in force for thelife of the well and may not be released untU the well is properlyabandoned as determined by the Chairman of the Board of Land and NaturalResources. We have had no correspondence from Geothermal Explorationand Development Corp. indicating their intention to abandon the Ashida(formerly Opihikao) well.

Very, trQ.1y yours,'':.',: ,,<-~-t·

ROBERT T. CHUCKManager-Chief Engineer

ES:dh

.~h& II __Mg:~~..n;';;fj~'an~~---~ ________--ooסס1 '----------Marsh & McLennan, IncorporatedP. O. Box 38. Honolulu, Hawaii 9"6810Telephone (808) 531·4211

December 29, 1982

Mr. Robert T. ChuckState of HawaiiDept. of Land & Natural ResourcesDivision of Water and Land DevelopmentP. O.Box 373Honolulu; Hawaii 96809

Gentlemen:

f~EC£IVED

83 JAN 3 A 9: Of

Re: Geothermal Exploration &Development Corp.Bond No. 872109., Opihikao No.1, TMK: 1-3-01:24


Thank you for your cooperatio~.

Very truly yours,

SEABOARD SURETY COMPANY

f:::n~Attorney-in-fact

MAUl • KAUAI • HAWAII

33 Lono AvenueSuite 450Kahului, Hawaii 96732Telaphone 877-6541

P. O. Box 1764Lihue, Hawaii 9!)766Telephone 245·3911

120 Pauahi StreetSuite 206Hilo, Hawaii 96720Telephone 961-3771

;.. __ S13-183-65

Subchapter 8. Drilling; Wells Generally. .....

§13-183-64 Desiqnation of agent. Any person whohas drilled, is drilling, or proposes to drill anygeothermal well shall designate on fo~s provided by thedepartment an agent who shall be a resident of the Stateand upon whom may be served all orders, notices, andprocesses of the department or any court 9f law. Everyperson appointing an agent shall, within five days afterthe termination of any agency, notify the chairperson inwriting of the termination, and unless operations arediscontinued, shall appoL'1t a ne'N agent. All changes inthe address of an agent shall be recorded with thechairperson within five days of the change of theaddress. [Eff. JUN 221981] (Auth: HRS §182-14)(Imp: HRS S182-14)

S13-183-65 Aoplications for oermit to drill,modify, mcdizy use, or abandon wells; permits. Prior todrilling, modifying, modifying use, or a~anconi~g of anywell, the operator of the well shall file with thechairperson an appropriate a?plication for a perillit toar.y work and shall obtain approval thereof. Eachapplication for a permit shall be mace on forms providedby the department and shall contain the following:

(1) Name, signature and address of the applicant, the owner of the mining rights andthe land owner if the applicant is notthe land owner.

(2) The number or other designation by whichthe well shall be known. The number ordesignation shall be subject to thechairperson's approval.

(3) A plot plan showing the tax map key, siteelevation, and well location reference toestablished property corners. A survey bya Hawaii licensed surveyor may be requiredby the depa~tme.nt, if deemed necessa~y.

(4) A statement by applicant of the purpose andextent of the proposed work and an estimateof the depths between which discovery, production, injection, or plugging wili beattempted.

(5) A description of the proposed drilling andcasing program; and a plan or drawing showing the proposed work and vertical sectionof the well.

(6) A statement by applicant agreeing to filea bond meeting the requi~ements ofS13-l83-68 with the chairperson within tencalendar days after notification that theapplication-has been approved.

183-35

I

~II

- §13-183-65

O. -(7) A statement by applicant to perform thework and thereafter to operate and maintainthe well in accordance with these rulesand all other federal, state and countyrequirements.

(b) Applications for a permit shall be reviewedand acted upon by the chairperson within sixty calendardays after receipt.

(c) Permits shall be valid for a period of 365calendar days from date of issuance, but may be renewedfor an add~tional period of 180 calendar days at thediscretion of the chairperson.

(d) A permit may be suspended or revoked by thechairperson. If it appears that any drilling or wellwork for which a permit has been issued is not beingdone in accordance with conditions of the permit orthese rules, the chairperson shall notify the permitteeto appear before him at a tL~e and place designated inthe notice to show cause why the pe~it should not besuspended or revoked and the well be plugged and abandoned or out in orocer condition bv the oe~ittee. T~enotice sh~ll state the grounds for· suspension or revocation. After the hearing, the chairperson shall givean order of revocation, suspension or continuation ofthe permit. The order shall be subject to appeal ascrovided in 513-183-5. [Eft. JUN 22.1981 J "-( Auth : HRS §1 a2 -14 ) (Imp: HRS § § 1 7 8 - 5, 18 2 -14 )

§13-183-66 Sup~lementaiy acp1ications. A supplementary application shall be filed with the chairpersonif there is any contemplated change in the originalapproved application. Written approval of the changeshall be received from the chairperson before the changeof work is started. In an emergency or when deemednecessary by the chairperson, the chairperson may giveverbal approval to the operator to carry out the intentand purpose of these rules. [Eff. JUN.2 2 1981 1(Auth: HRS §182-14) (Imp: HRS §§178-5, 182-14)

§13-183-67 Filing fees. Each application for ape~it to drill, modify, modify use or abandon a wellsnaIL be accompanied by a non-refundable filing" fee inthe amount of S100. [Eff. JUN 22 1981 J(Auth: HRS §182-14) (Imp: HRS §§132-4, 182-5)

§13-183-68. Bonds. (a) Any person who engages inthe drilling, redrilling, deepening, maintaining, operating, or abandoning of any well shall file with thechairperson prior to the activity, a:lindemnity bond inthe amount set by the board to protect the interests ofthe State, but in no case shall the amount be less thanS50,000 for each well or a blanket bond of S250,000 forany n~~ber of wells. The amount of bond set by theboard shall include the cost of ?lusging and abandoning

183-36

- e §13-183-69

the well or wells in accordanc~ with subchapter 11should it be necessary. The bond shall be executed bythe person, as principal, and by a surety company qualified to do business in the state, as surety, conditioned that the principal named in the bonds shallfai~~fully comply with these rules. The bonds shallinure to and indemnify the state and surface ownersagainst all losses, charges, expenses and claiills fordamages or injuries caused or resulting from the drilling and operation of ~~e wells.

(b) Sonds shallr~1n in force for the life ofthe wEall or wells and ma~{l1Q'itbe released until the wellp~~~~l$ a.;,e.properlyaban9-oned as detterndned by -theqaa":i;person or another val.i,d bond is substituted there....fdr~ Any person who acquires the ownership or operationof any well or wells shall within five days after acquisitionfile with the chairperson a new indemnity bond ora consent by the surety to ~~e change in principal underthe existing bond. [Eff. JUN 2 2 1981 ](Auth: ERS §182-14) (Imp: !iRS §182-3)

§13-183-69 Set-back ar..d 'Nell snacing. (a) A~ywell drilled for the discovery or production of geo- .thermal resources or for injection of geothermal resources shall be located more than one hundred feet fromthe outer boundary of the parcel of land on which thewell is situated, or more than one h~ldred feet from apublic road, street, or highway dedicated prior to thecommencement of drilling unless modified by the chairperson upon request. Where several contiguous parcelsof land under one or more ownerships are operated as asingle geothermal resources operating unit, the term"outer boundary line" means the outer boundary line ofthe lands included in a unit.

(b) The chairperson shall approve proposed wellspacing programs or prescribe the modifications to theprograms deemed necessary for the proper development andconserJation of geothermal resources, considering suchfactors as:

(1) Topographic characteristics of the area,hydrologic, geologic, and reservoircharacteristics of the area;

(2) The number of wells that can be economically drilled to provide the necessary volume of geothermal resources forthe intended use;

(3) Minimization of well interference;(4) Unreasonable interference with multiple

use of lands; and(5) P~otection of the environment.

[Eff. ~.~~~ Z 2 1981] (Auth: HRS §l82-14)(Imp: HRS §182-l4)

183-37

/

March 17, 1982

Geothermal Bxploration andDevelopBHtDt Corporatlon

3828 Paa Street, Suite 2085Honolulu, Bawd 9681t

Gentlemen:

This is to notify you that permit8 to drill and teat geothermal weUs,Aahi~ No.1.and DaUebi No.1, issued by the Department of Land andNatural B.esouree8 in early 1.80 and 1981 haVe e:z:pired 88 of January 1,1981 and Much 2, 1982, respectively. If you pJan to do any work on thesewells, .pplications for new permits are required. fI'OQl the· Department.

,

The review of our mea indicates that weD COIIlPlet1on reports have notbeen fUed. to date. We would appredate receiving any Information availableas requiJ'ed. by the Department's Administrative BuIes on "Leas1ng andDrmtng of Geothermal B.esouree8If.

If you have any queaUona regarding the above matter, please contactRobert T. Chuok at 548-'11".

Very truly yours.

IS/SUSUMUoro

SUSUMU ONOCllairman of the Board

STATE OF HAWAIIOEPAJItTMIENT O,r LAND AND NATURAL. RESOURCES

DIVISION 0.. LAND MANAGEMENTP. O. BOX 121

HONOI.lJLU. HAWAII ....

GEOIIIGa R. .RI'I'OSMI_OP_"" • • DIVISIONS:

CClN....YION AIIIOMIOUIlCaI "'I'OM:IMD'T

CQlIIWIY.ucaPI.............'OMITIl'\'I.AIlO MMlAGIMUITST." _ ..WAlIA ....0 l.AIilO O&VILONUIT

December 31, 1981

Ms. June KukinoAttorney-in-FactMarsh & McLennan, IncorporatedP. O. Box 38Honolulu, HI 96810

Dear Ms. Kukino:

Subject: Barnwell Geothermal Corporation, BondNo. 877399 (Lanipuna No.1) and GeothermalExploration and Development Corporation BondNo. 872109 (Opihikao No.1)

In response to your inquires of December 9, 1981, respectingthe subject bonds please be advised that the bonds are continuousand are required to remain in effect until the wells are abandoned.No estimate of an abandonment date has been made.

~S J. DETOR

~=~9:§k==-«nagement Administrator

cc: Hawaii Board MemberHawaii District Land Office

Marsh & McLennan. IncorporatedP. O. Box 38. Honolulu. Hawaii 96810Telephone (808) 531·4211

·~-----.-------Ct,....~r"-L.•-L '?-12~ Ig J

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December 9, 1981

State of HawaiiDepartment of Land and Natural ResourcesP. O. Box 621Honolulu, Hawaii 96809

Gentlemen:

Re: Geothermal Exploration & Development Corp.Bond No. 872109, Opihikao No. I, TMK: 1-3-01:24


Thank you for your cooperation.

Very truly yours,

une Kukinottorney-in-fact

MAUl KAUAI • HAWAII

33 Lono AvenueSuite 450Kahului. Hawaii 96732

P. O. Box 1764Lihue. Hawaii 95766Telephone 245-3911

120 Pauahi StreetSuite 206Hilo. Hawaii 96720

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GEOTHERMAL EXPLORAT ON & DEVELOPMENT CORR~ \ f t \\ ~~ Po PACIFIC OPERATIONS

February 23, 1981

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Mr. Susumo OnoChairman of the BoardState of HawaiiDepartment of Land and Natural ResourcesP. O. Box 621Hono1u1u, Hawai i,.. ~_68Q9

..-" " ' ..

Reference:('Ashida Well No.'-'-¥ourletter of February 11, 1981

Dear Mr. Ono:

The drilling logs indicate as follows:

Novembet3,1980 - Pipe laid down.

November 4, 1980 to January 23, 1981 - Prepare rig for move, overhauland repair engines, (evaluations of results were being conducted inthe well as the rig remained on site pending decision to suspendoperations, and demobilize and move to Lanipuna Well No.1 site).

January 26-30, 1981 - Demobilize and move to Lanipuna Well No.1.

A copy of November 3, 1980 and January 26-30, 1981 logs are enclosed.

Copy of the logs for standby period November 4, 1980 to January 23, 1981would be very bulky for mailing, but are available for your review onrequest.

Very truly yours,

GEOTHERMMAL EXPLORATION &DEVELOPMENT CORP.

ECClsmEncl.


2828 PAA STREET, SUITE 2085 I HONOLULU, HAWAII 96819 I TELEPHONE 839·7720 I TELEX 7238672

'ebruaryIl, 1981

Mr. B.C. Craddick, PresidentGeotheraal Exploration • Dev. Corp.2828 Paa S1:reet, Suite J085Honolulu, Hawaii 96819

Dear Mr. Craddick:

Ashia. Well No.1

Thank you for i.foraing us that 1:he drlliini operationsof the Ashlda No. 1 leoth.naal "ell, Opihikao, Pu1)a, Hawaii,have b.en suspe.ded. Pl•••• verify 1n writt., with a copy ofpertinent pa,•• of the driller's 1o" the date of suspendeddri11inl operations.

In addition to lule 9.11, pleas. be avar. of the require·.ents of Rule 12, ·~W.ll AbandoDJl8Jlt" and Rule 13, "Well Recordsand Reports", of DLNR lo,ulation 8.

If you have any questions, please contact Dan tum, 548-7643.

Very truly yours,

SUSUMU ONOChairman of the Board

RTC:DL:ey

o ocCEIVED

GEOTHERMAL EXPLORATION & DEVELOPMENT CORRPACIFIC OPERATIONS

JfPi Of·' ;q,U"f' rIA""" , LitH I

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~, · I~KkLKt~OURCESSTATE OF HAWAII

Mr. Susumu OnoChairman of the BoardDepartment of Land and Natural ResourcesP. O. Box 621Honolulu, Hawaii 96809

Reference: Ashida Well No. 1

Dear Mr. Ono:

January 28, 1981

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The above project has been suspended pending further evaluation andplanning regarding possible additional work which may be required onthis well.

It is our intention to comply with Section 9.11 of the Rules and Regulations No.8, however, we are uncertain concerning the requirement ofany well report at this stage.

Demobilization from Ashida Well No.1 to Lanipuna Well No.1 began thisweek.

Meanwhile, well head valve will be closed on Ashida Well No.1, and worksuspended until further work plans have been formulated.

Very truly yours,

GEOTHERMAL EXPLORATION &DEVELOPMENT CORP.

ECC/sm

cc: Mr. M. Kinzler - New YorkMr. J. S. Barnwell, Jr. - ChattanoogaMr. S. Eisenstat - New YorkMr. M. Gardner - CaliforniaMr. B. Craddick - Hilo



--- -

GEORGE R. "RIVOSHIGOVllltNOft 0" HAWAII

•STATE OF HAWAII

DEPARTMENT OF l.AND AND NATURAl. RESOURCES

1'. O. BOX 1S21

HONOLULU. HAWAII 91S809

GEOTHERMAL WELL DRILLING PERMIT

Opihikao No.1

DIVISIONS:COHvc.YAHca.

" ••H ..NO G....E

"OIlE.Tln'

L"NO .... N..GE ..ENT

STATE ""I"C:.

WATElIt AND LAND DEYELO ...... &NT

TO: Mr. E.C. CraddickGeothermal Exploration Ii Development Corp.2828 Paa StreetHonolulu, Hawaii 96819

Your application for a permit to drill a geothermal well within Tax MapKey 1-3-01: 24 in Opihikao, Puna District, Hawaii, has been approved in accordancewith the Department's Regulation 8, subject to the following conditions:

In accordance with Regulation 8, you are hereby granted a permit to drilla geothermal well at the site shown in your application.

1. This permit shall become valid only upon receipt of:

a. A Well Indemnity Bond in the amount of $50,000.

b. A fully and properly executed Designation of Agent form.

2. The proposed drilling program submitted as a part of your applicationshall be modified to include:

a. After drilling the 171" hole to 850 feet, bail or otherwise cleanthe hole and determine the true static water level of the groundwater body penetrated and obtain a one-gallon representativesample of the ground water for analysis by the Department, bothin the presence of the Chairman or his representative.

b. After completing the 171" hole to 1200 feet and prior to theinstallation of the 13-3/8" casing, conduct electric well loggingof the open hole. Well logs to be obtained shall include at leastresistivity-spontaneous potential, fluid resistivity, temperature,and caliper.

r,. •Geothermal Well Drilling PermitOpihikao No. 1

•Page 2

c. During drilling and/or after completing the 12i" hole to 4000 feetand prior to installation of the 9- 5/ 8" casing, conduct electric welllogging of the open hole as described in item "b" above.

3. The applicant shall file a Supplementary Application with the, Chairmanif there is any contemplated change in the proposed work and shallnot commence any such change of work until the Chairman's approvalis obtained in accordance with R13gulation 8.

4. The applicant shall test, operate, maintain, modify, modify use of,and/or abandon the well in accordance with the provisions ofRegulation 8 and all other applicable Federal, State and Countylaws, ordinances, rules and regulations.

5. This well drilling permit is for drilling and testing only and shallexpire 365 days from the date of this permit.

SUSUMUONO, ChairmanBoard of Land and Natural Resources

January 10, 1980

Date of Permit

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GEOTHERMAL EXPLORATION & DEVELOPMENT CORR

..

coc::::>e..c::Z

7 , o

Mr. Daniel Lum, ChiefGeology-Hydrology SectionState of HawaiiDepartment of Land and Natural ResourcesDivision of Water and Land Development1151 Punchbowl StreetHonolulu, Hawaii 96813

Dear Mr. Lum:

o

PACIFIC OPERATIONS

May 30, 1980"-';',"

....'.,•..

<rnCJ

You are corclially invited to a d the official ground breaking cere-mony of the-Asht9a Well .No:--, 1, located in Opi hi kao, _Hawai i, schedu1 ed tobegin at 10:~O A.M., 10 June~980, and a luncheon following.

Welcome address - Ed Craddick, GEDCO.

Speakers - Mr. Hideto Kono representing Governor George R. Ariyoshi.- Honorable Herbert Matayoshi, Mayor of County of Hawaii.

Site Blessing - Rev. Abraham Akaka.

Directionsto'getto siteFrom Hila to Pahoa, thence to Kalapana Road, approximately 1 mile onKalapana Road to steel gateway on left, where a sign is posted. Followwinding unimproved road approximately 1 mile to site.

Parking - attendant will direct parking at drill site near the waterreservoir area.

Lunch and refreshments - will be at the Hutu Terrace of the NaniloaHotel. Those desiring to be present are asked to R.S.V.P. to ourHonolulu Office on or before the 6th of June 1980, by phoning 839-7727,Sa ndy Meyer.

Transportation- a chartered bus will meet H.A.L. Flt. #102, and beleaving Hilo airport approximately 9:00 A.M. to arrive at site approximately 9:45 A.M., and will leave site approximately 11:00 A.M. to arriveat the Naniloa Hotel at 11:30 A.M. for lunch. The bus will make tripsto Hi10 Airport from the Naniloa Hotel both prior to/and after lunch.

If you need assistance in obtaining confirmed reservations with HawaiianAir on the following flights, please contact Sandy Meyer.

Flight 6102 -ETD 8:00A.M. Honolulu to HilaFlight #241 - ETD 1:05 P.M. Hi10 to HonoluluFlight #301 - ETD 4:05 P.M. Hilo to Honolulu



oMr. Daniel Lum, ChiefGeology-Hydrology SectionDLNR, DOWALD

Q

May 30, 1980Page 2

Please confirm if you will need bus transportation from the airport asstated above by calling Sandy Meyer before June 6th.

Weather - a tent covering will be erected at the site just in case ofrain showers.

Very truly yours,


ECC/sm

• • •BACKGROUND INFORMATION

Water Resources International, Inc. (IIWRII") and GeothermalExploration &Development Corp•. ("GEDCO"), two locally owned companiesprominent in water and geothermal development in Hawaii, have concludeda working agreement with Barnwell Industries, Inc. ("BARNWELL") ofChattanooga, Tennessee.

BARNWELL, whose stock is traded on the American and TorontoExchanges, is active in oil, gas and coal, and has an extensive background in offshore and onshore drill ing.

WRII and GEDCO, operated by the Craddick Brothers, haveperformed all the deep geothermal exploratory programs thus far inHawai i including the HGP-AUniversity of Hawai i well sponsored byDepartment of Energy, and presently regarded as the hottest geothermalwell in the world.

Ed C. Craddick, president of.WRII and GEDCO, sees the resulting merger of interests with Barnwell, as creating a well rounded capability in the finance~ construction. and marketing of the geothermal andwater development potential in the State of Hawaii.

Morton H. Kinzler, president of BARNWELL, is prepared to applytheir operational and financing expertise toa carefully planned programof geothermal exploration and development in Hawaii. The first of aseries of geothermal wells will be "spudded in" immediately followingthe ground breaking ceremony and blessing on June 10, 1980.

The general plan calls for· extensive dri 11 ing on all propertiesnow under lease and ,on other properties on which leases are being sought,in an effort to develop a better understanding of the nature and extentof the geothermal potential in the Puna area.

Full cooperation will be extended to the University of Hawaii,State and County in support of their research and development programs.Special attention will be given to the socio-economics factors andenvironmental considerations.

A meaningful .determination of the geothermal 'resource dependsupon the drilling and testing of several wells in different locations.Aclear understanding of the potential is necessary before the marketfor this promising alternate energy source can be developed to itspotential both domestically and industrially.

This will be the first privately funded geothermal program inHawaii. It is expected that the success of this program could contributesignificantly to the future welfare of the people of Hawaii as our Statemoves towards the goal of energy independence.

ECC/sm-5/30/80

,~---------

A

.../

:: .'.

'..: .....,.

....: :......

All of Lo+ 10/ Grant 50?'t to ~. Von Damm:\nd Porhon of Lo~ ~.Grant 50S1 'to H.J. L-ym;an

Opi h', kao, Pun-a, Hawa ii

~l4ln ~ Murray;. 'Smith e.. ~'S~oc., L.t.~.P. o. ~o~ !G.~ ". 0" ' ..hlo, HaW;'Ul

ti~p c..on--.pll~ from ..v;a,il.blc.. d-:a.t.._T..~ K~p' \,\e1:. , •• - Ol : ~~ e. 'l~De..c.ember 't,. t?~<:' rtevi~ed' Sep\cnber'l,~

J.

~o~/

_aa. s~o<. C.lo'5ur~

....:.'.

ACRtS_o ..,~;,_,0\\)

.;(o

v

..

.-.-..:.-; .~ ...

THIS WORl':. WAS PRJi"...l'ARBO BY MSOR UND~K MY SUP£RVlSIOK..

/

EDGAR C; CRADDICKPRESIDENT

GEOTHERMAL EXPLORATION & DEVELOPMENT CORIl-eNEWS RELEASE

....

~?>: 1.,.:: C 1= \'. \ 4

:.~~.I~. ~ ~ \.~. ,"'"

The first posi~\v~~s'teP will shortly be taken 2828PaaSt.. Suite 2085 • Honolulu,Hawaii96819· Ph. 839-7720

for the commircia1iZc!'hf~ of geotherma1 power -l.VlJt:\J:)\::u'-n'-l.-m:-prv--,---~,ductio~ ~fl~~:~c~rlR~~.v,,\\in'the State of Hawai i. .

<:, 1 1\' ~ ,

Geothermal' Exploration &Development Corp. (GEDCO). a Hawaii corporationowned and operated prinCipally by the Craddick Brothers, has signed anagreement with Barnwell Industries, Inc., a mainland based energy company,1is ted in New York on the American Stock Exchange, and the Toronto Stock ,Exchange in Canada, to proceed with the development of this importantalternate energy source. The principals of GEOCO have for the pastseven years been very active in the promotion and exploration of geothermal energy in the islands, and have performed and participated in allthe drilling and some of the funding for all past geothermal exploratoryefforts including the Kapoho HGP-A well which is recognized as thehottest well in the U.S.A.

,":- ,- - l(- \

Barnwell Industries,in acquiring a working interest with GEOCO and itsaffiliate, Water Resources International, Inc. (WRII) will providefunding and expertise in the energy business where they are alreadyproducing and marketing oil, ga~ and coal, and have extensive pastexperience in deep offshore and onshore drilling operations.

The first drilling prospect will be undertaken at Opihikao in the Puna. area of Hawaii, where special use and drilling permits have been obtained

with actual drilling scheduled to begin within the next 60 to 90 days.Depending upon the success at Opihikao, additional wells will be drilledin the Puna area in an agressive effort to quickly determine the natureand extent of the geothermal potential, and define economic factorsrelating to development and marketing.

GEOCO will continue its policy of close cooperation with the state,county and University of Hawaii, where a useful ,"know-how" is rapidlydeveloping in the understanding of the many unique aspects of Hawaii'sgeothermal resource. GEDCO wishes to pay tribute to the encouragementand assistance which has been received over the past years from all theforegoing offices and departments.

Because the geothermal energy alternative is already a proven technologyand has been successfully used for 70 years in Italy and 20 years inAmerica, its energy contribution to Hawaii could have an early andsignificant impact towards energy self-sufficiency.

GEOCO intends to actively pursue prospects throughout all Hawaii, bygeophysical exploration and well programs in areas of interest wheresatisfactory geothermal leases can be negotiated.

The immediate goal would be to provide energy for domestic use as analternate to fossil fuel energy. The longer range goal would be totransmit energy between the islands by means of an inter-island cable

, \ .

-eNews ReleasedPage Two

'oJ

net work, now regarded as being economically and technically feasible inthe near future. Another long range application would be to providepower to energy intensive industries, the nature of which would becompatible with the socio-economic and environment~l needs of Hawaii.

Given the cost and unpredictability of oil and the apparent-potential ofHawaii for total energy independence through development of its owngeothermal source, a unique opportunity presents itseJf.

. . ..

Approximately $200 million dollars per year is now flowing out of theislands for the purchase of oil for producing electric energy. Anindigenous source such as geothermal would therefore have obvious economic advantages.

The economic impact of successful development of geothermal power inHawaii, and its ultimate full scale application in producing electricalpower is thought provoking, considerin? the potential for domestic use,industrial power, conversion of brackish water to fresh water, manufacture of hydrogen, reduction of manganese nodules, by-products for agriculture, and pulp products, etc.

ECC/sm-2/0l/80

"'; .

. .;

. ...

i '.;. ;_~....

• •: :, ..

Distributioh List for News Release:Governor George AriyoshiSenator Spark M. Matsunaga - U.S. SenateSenator Daniel K. Inouye - U. S. SenateSenator Russell Long - U.S. SenateSenator J. Bennett Johnston- U.S. SenateRep. Cec HeftelSenator T. C. Yim - HonoluluMr. John Keppler Hawaii County~r. Hideto Kono D.P.E.D., Honolulu

vMr. Susumo Ono - D.l.N.R., Honolulu .. -Dr. John Shupe - University of Hawaii, HonoluluMr. John Woods - Bank of Montreal, San Francisco, Ca.Mr. Henry Rice· - Bank of Hawaii, Honolulu·: .,Mr. Walter Laskey - Merrill, Lynch, Pierce, Fenner &Smith, Inc. -

Honolulu . . .I D.O. E. - San Francisco, Ca. (Geothermal Loan" Guaranty Program) .

Mr. Nick Enns - Kona Village Resort Hotel, HawaiiMr. Ed Boobyer - Kaiser Aluminum &Chemical Corp., Oakland, Ca.Mr. Ed Ki.nney - Puna Hui Ohana, Hilo, HawaiiMr. Harold Ashida - Hilo, HawaiiMr. Vern Yamanaka ~ Hilo, Hawaiif·lr. Richard Lyman - Kapoho Land and Development Co., Hila, Ha\vaiiMr. George Pai - HonoluluMr. Myron Thompson - Bishop Estate Trustees, Honoluluf4r. Ed Nakamura - Bishop Estate Trustees, HonoluluMr. John Marks - Peat, r-1arwick & Mitchell, Inc., HonoluluDr. George Keller - Golden, ColoradoMr. F. Newell Bohnett - Kaneohe, HawaiiMr. Ed Dangler - Ocean Minerals Co.Frankie Stapleton - Hilo Tribune, HawaiiThe Honolulu AdvertiserRay Maneki - The Honolulu Star-Bulletin

_Approval--.JfignatureL Information

---------

___ Bill KoyanagiRichard Jinnai--___ Yoshi Shibuya

For

Jane SakaiElsie· Yonamine

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

George Matsumoto~---'\ Nobu Kaneshiro-..- ---- Tom Nakama-- Paul Matsuo-- Edwin Sakoda--__ Mitchel OhyeL Milton Yamasaki

. Doris Hamada ~

Route SlipWATER RESOURCES 6 FLOOD CONTROL B

From: 2= Date: '51<.t./~i)File in: """"""-F-=:...-:--::..----r-

TW ~ Pleose

- Manabu Tagomori See m'Call

-- Albert Ching Take action by._---Daniel Lum Review & comment-- __ Draft reply by _

Type draftType finalXerox __ copiesMail

Robert Chuck .___ Takeo Fujii

James YoshiImto

---------

·.

February 4, 1980

Mr. Ed C. Craddidc, PresidentGeothermal Exploration .

&Development Corporation2828 Paa StreetHonolulu, Hawaii 96819

Dear Mr. Cradd1ck:

lhis is to acknowledge receipt of the following documents:

1) Geothermal Resources Well Indemnity Bond No. 872109 in theamount of $50,000.00 - 2 copies.

2) The fully .. properly executed Designation of Agent fOnD - 2copies.

Very truly yours,

'I'.....ONOSUSUMU OHO

Cha1man of the Board

RTC:ES:pl

1 CJ ol--" .,p.:'" r, _~

GEOTHERMAL EXPLbFtA1~ DEVELOPMENT CORR

.)

...

January 24, 1980

1]] JAN 28 Ail: Ia PACIFIC OPERATIONS

/~/,~. OF WA 7

L,ifU UEV£LOh1E~r

State of HawaiiDepartment of Land and Natural ResourcesP. O. Box 621Honolulu, Hawaii 96809

Attention: Mr. Susumo Ono, Chairman

Gentlemen:

Re - Geothermal Well Drilling PermitOpihikao No.1, Puna District, Hawaii

In compliance with Regulation 8 of the Department of Land and NaturalResources, we are submitting the following documents:

1. Geothermal Resources Well Indemnity Bond No. 872109in the amount of $50,000.00 - 2 copies.

2. The fully and properly executed Designation of Agentform - 2 copies.

Very truly yours,


ECC/smEnclosures



78-9, •

State of HawaiiDEPARTMENT OF LAND AND NATURAL RESOURCES


In compliance with Rule 8.2 of Regulation 8 of the Department of Land and

Natural Resources, notice is hereby given and I hereby certify that I(l, we) -(-t=-,-w-e~)

E. C. CraddickName (s) .

GEOTHERMAL EXPLORATION &DEVELOPMENT CORP. (owner-operator)(firm or corporation)

, State of Hawaii, have appointed, authorized and--------

representing--:-:::-------~~-------------'------.;.-_......_--

of Honolulu(City)

empowered GEOTHERMAL EXPLORATION &DEVELOPMENT CORP.(name of designee)

whose address is 2828 Paa Street, Suite 2085, Honolulu, Hi 96819 , State of Hawaii,

as our agent in the State of Hawaii*(my, our) ------------------

who shall be the repository for all well records for each geothermal well drilled by

us , and upon whom all orders, notices and processes under the provisions of(me, us)

said Regulation 8 may be served.

This notice supersedes all previous designations made for the above-described

purposes.

IN WITNESS WHEREOF I have signed t is certificate this 14th(I, we)

Wl::~:::rf4J19~day of

Name and Title

Agent's acceptance:

~-ilie~~rC. Craddick-~-----


*Should the owner or operator filing this form choose to appoint more than one agent, thephrase, "State of Hawaii" should be deleted and the exact area for which the agent is tobe appointed should be inserted. A separate form must be filed for each agent.

Rule 8.2. Designation of Agent. Any person who has drilled, isdrilling, or proposes to drill any geothermal well shall designate onforms provided by the Department an agent who shall be a residentof the State of Hawaii and upon whom may be served all orders, notices,and processes of the Department or any court of law. Every person soappointing an agent shall, within five days after the termination of anysuch agency, notify the Chairman in writing of such termination, andunless operations are discontinued, shall appoint a new agent. Allchanges in the address of an agent must be recorded with the Chairmanwithin five days of the change of the address.

STATE OF HAWAII }CITY & 88.:

COUNTY OF HONOLULU

On this.. J§..~h day_.._ __._.J.~~~.~y.._ _ 19J~Q_._., before me personally came

M. G. Chillingworth....__ _.............•...............•.......•.•- - - __ _ - _ _- _ _ __ -..__ -- _ - - _ -.

to me known to be an Attorney-in-Fact of SEABOARD SURETY COMPANY, the corporation describedin the within instrument, and he acknowledged that he executed the within instrument as the act ofthe said SEABOARD SURETY COMPANY in acco ce with aurcth.tyy conferred upon him bysaid Company. .

!.:lry ublic, St..te of H..waij

~'Orm UI ...... y·c~~;;,i;~·i;~· ..E~~·i~~~""iF..i{;.j~·N~ta;;:yPub·iiC~ ..··· ..

•78-9

BOND NO. 872109



GEOTHERMAL EXPLORATION & DEVELOPMENT CORP.That we--~--..--.._----------------------------

as principal; and SEABOARD SURETY COMPANY, a New York Corporation



the State of Hawaii in the full and just sum of FIFTY THOUSAND AND NO/IOO DOLLARS ($50,000.00)


ment, well and truly to be made, we do hereby bind ourselves, our heirs, executors, administra


Signed, sealed, delivered and dated this ,16th day of __J_a_nua__r_y__City and County of Honolulu, State of Hawaii.

19~, at Honolulu,


WHEREAS, said principal is about to acquire, drill, redrill , deepen, operate, maintain or

abandon a geothermal resources well designated as Well No. 1 , TMK: 1-3-01: 24

Latitude , Longitude , Island of Hawaii and is

required to file this bond in connection therewith in accordance with Rule 9.4 of Regulation 8


NOW THEREFORE if said GEOTHERMAL EXPLORATION & DEVELOPMENT CORP.the~ovebounden'Prtnctpa~I-,-s~h-al~l~w-e~ll-a-n-d~tt-u~i-y-c-o-m~p~l-y-w-i~t~h-a~l~l~t~h-e-p-ro-v~i-s~io-n-s-o~f-s·~~·d~~Regulation 8 and shall obey all lawful orders of the Chairman of the Board of Land and NaturalResources, or his representative, if not appealed to the Board of Land and Natural Resources, orupon affirmance thereof by the Board of Land and Natural Resources, if appealed thereto, andshall pay all charges, costs, and expenses incurred by the Chairman or his representative, inrespect of such well or the property or properties of said principal, or assessed against suchwell or the property or properties of such principal, in pursuance of the provisions of saidRegulation 8, then this obligation shall be void; otherwise, it shall remain in full force andeffect.

Approved as to form:

By:

Its:--f--~--"_------~--

SEABOARD SURETY COMPAIIY

Deputy Attorney General

Dated: ---------

Surety

By:-7.~ ::sIts: Attorney-in-fact

P.nd By: ----_._-----Its:

STATE OF HAWAIICity &County of Honolulu

)) ss

--------------,)

•

, On this 16th

E. C. Craddick

,

STATE OF HAWAII

day of J_a_In.1_a...;ry , 19 80 , before me appeared

and---------------- ----------------to me personally known, who, being by me duly sworn, did say that they are the

President and ----------------respectively, of Geothermal Exploration & Development Corp.



said corporation by authority of its Board of Directors, and said --------E. C. Craddick and ------------------


tion.

Notary ublic, _State of Hawaii


)) ss

-------------)On this day of , 19_, before me appeared

and---------------- ----------------to me personally known, who, being by me duly sworn, did say that they are the

and---------------- ----------------respectively, of _



said corporation by authority of its Board of Directors, and said --------and-------------- ------------------


tion.

Notary Public,· Judicial Circuit,State of Hawaii ----

My, commission expires:

Ccrt~ficd Copy

No. ·~584

SJ _oAnn St·HETY. CO:\IP.'NEW YOnJ<, N..:w YonK

POWER OF ATTORNEY

Vice·President


By Thomas P. Gorke

KNOW ALL MEN BY THESE PR.ESENTS: That SEABOARD SURETY CO~lPANY, a corporation of the Stateof New York, has made, constituted and appoint('d and lJy these presents docs make, constitute and appoint----------------M. G. Chillingworth or 11. W. Chillingworth or Ronald Poepoe or June Kukino or William B. Stevenor M. J. Singlehurst----------------------------------------------------------------------------of Honolulu, 1Iawaiiits true and lawful l\ttorney-in-Fact. to make, execute and deliver on its behalf insurance policies, surety bonds, undertakings and other instruments of similar nature as follows: l'1ithout Limitations.

-_....

. -""Such insurance policies, surety bonds, undertakings and instruments for said purposes, when duly executed by the aforesaidAttorney·in-Fact, shall be binding upon the said Company as fully and to the same extent as if signed by the duly authorized officersof the Company and sealed with its corporate seal; and all the acts of said. Attorney-inFact, pursuant to the authority herebygiven, are hereby ratified and confirmed.


ARTICLE VII, SECTION 1:"Policies, bonds. recognizances, stipulations. consents of surety, underwriting undertakings and instruments relating thereto.

Insurance policies, bonds. recognizances, stipulations, consents of surety and underwriting undertakings of the Company, and releases, agreements andother writings relating in any way thereto or to any claim or loss thereunder. shaH be signed in the name and on behalf of the Company

(:a) by the Chairman of the Board, the President, a Vice President or a Resident Vice President and by the Secretary, an Assistant Secrdar)',a Resident Secretary or a Resident Assistant Secretary; or (b) by an Attorney-in-Fact for the Company appointed and authorized by the Chairman of the Board. the President or a Vice President to make such signature; or (c) by such other officers or representatives as the Board mayfrom time to time determine.

The seal of the Company shall if appropriate be affixed thereto by any such officer, Attorney·ill·Fact or representative."

IN WITNESS WHEREOF, SEABOARD SURETY COl\IPANY has caused these presents to be signed by one of its Vice-Presidents, and its corporate seal to be hereunto affixed and duly attested. by one of its Assistant Secretaries. this ~.J..~t .day of ~.~~.~~X , 19?~ ..

Attest:

Margaret Scofield(Seat) ..Assistant Secretary

STATE OF NEW YORK 1COUNTY OF NEW YORK Sss.:

On this ..~.~~.~..................... dav of .'!.~~~~.7.Y. 19..?? before me personally appeared......................'f.h!?1,1}~.~ ~.~ Q~!'.~~ a Vice-President of SEABOARD SURETY COMPAXY,with whom I am personally acquainted, who. being by me duly sworn, said that he resides in the State of J:~~W ~~.~~.lll.Y ;that he is a Vice-President of SEABOARD SURETY CO~iPANY,'the corporation described in and which executed the foregoing instrument; that he knows the corporate sea) of the said Company; that the sea) affixed to said instrument is such corporatesea); that it was so affixed by order of the Board of Directors of said Company; and that he signed his name thereto as VicePresident of said Company by like authority.

(Seat)

State of New YorkNo. 41-7493475 Qualified in Queens CountyCert. filed in New York CountyCommission Expires March 30, 1980

CERTIFICATE

Anita J. LeonardNotar)' Public

I, the under~ill"ned A~sistant Secretar)' of SEABOARD Sl:RETY CO),IPAXY do hereby certify that the original Power of Attorne)' of whichthe foregoinlt is a full. true and correct copy. is in full force and effect on the date of this Certificate and I do iurther certify that the Vice PTl·.id~l1twho executed the said Power of Attorney wa~ one of tht' Officers authorized by the Board of Dirtctors to appoint an attorne)'-in-fact as pro\"ir:ed inArticle VII, Section I, of the By-Laws of SEABOARD Sl:RETY CO),IPAXY.

This Certificate may be siltncd and scaled by facsimile under and by 'iUthorit)· of the following resolution of the Board of Directors of SEA·BOARD SURETY CO),lPA!\Y at a meeting duly called and held on the 28th day of June 1978.

"RESOLVED: (2) That the use of a printed facsimile of the corporate seal of the company and of the signature of an Assistant Secretaryon an)' certification of the correctness of a copy of an instrument executed h)' the President or a Vice-President pursuant to Article VII. ~!:ctioll1. of the By-Laws appointing and authorizinlt an attorney-in-fact to sign in the naml' and on hehalf of the company suretr bonds. under\',"ritins::undl'rtakinlts or other instruments described in said Article VII, Section I, with like effect as if such seal and such signature had b~en ma;;uallraffixed and made, hereby is authorized and approved."

IN WITNESS WHEREOF. I have hen'unto set In)' hand and affixed the corporate seal of the Company to these presents this

........................1§.~9. :. day of J.,;RJIP.'.~y 19 8D. ..

(~ ··l![~·"""·/lf......~s;;;;;;;;:. 1927 l~

\II?\. 'II' /";(~ ~"" .•.•.~~" oft ....._.. ~~

",0, Nl'" l"Olm '1S7 (kc\. 1>.7$)".....

78-9 •State of Hawaii



In compliance with Rule 8.2 of Regulation 8 of the Department of Land and

Natural Resources, notice is hereby given and I hereby certify that I(I, we) -(...t ....., -w-e.....)

E. C. CraddickName (s)

representing GEOTHERMAL EXPLORATION. DEVELOPMENT CORP. (owner-operator)(firm or corporation) .

of Honolulu , State of HawaH , have appointed, authorized and(City)

empowered GEOTHERMAL EXPLORATION • DEVELOPMENT CORP.(name of designee)

, whose address is 2828 Pia Street, Suite 2085, Honolulu, Hi 96819 , State of Hawaii,

as our agent in the State of Hawaii*(my, our) ------------------

who shall be the repository for all well records for each geothermal welldrllled by

us , and upon whom all orders, notices and processes under the provisions of(me, us)

said Regulation 8 may be served.

This notice supersedes all previous designations made for the above-described

purposes.

day of

Name

Name and Title

I have signed this certificate this 14th(I, we)

IN WITNESS WHEREOF

January , 19~.

Witness: kJJ~~

Agent~nce:

E. C. eraddick


*Should the owner or operator filing this form choose to appoint more than one agent, thephrase, IIState of Hawaii ll should be deleted and the exact area for which the agent is tobe appointed should be inserted. A separate form must be filed for each agent.

Rule 8.2. Designation of Agent. Any person who has drilled, isdrilling, or proposes to drill any geothermal well shall designate onforms provided by the Department an agent who shall be a residentof the State of Hawaii and upon whom may be served all orders, notices,and processes of the Department or any court of law. Every person soappointing an agent shall, within five days after the termination of anysuch agency, notify the Chairman in writing of such termination, andunless operations are discontinued, shall appoint a new agent. Allchanges in the address of an agent must be recorded with the Chairmanwithin five days of the change of the address.

. ' .78-9 •

BONDNO.~U~/~21~Q~9 _



That we _-.:.G.:::.E~.:..'::.;.:::.·'·:..."::.;1A:...·.:.L_£j.:..·'.:::.~..::W:....:..::lUt:_T.....IO_N_;::.~_1>i_··_"i.V_EL_Jj_,_~_flNT__·_C(_JR2__• _

as principal; and SitAOOARD SUJUn'Y COHP.i\NY, n New York. Corporation



the State of Hawaii in the full and just sum of FIFTY THOUSAND AND NOIlOO DOLLARS ($50,000.00)


ment, well and truly to be made, we do hereby bind ourselves, our heirs, executors, administra


Ja.......rySigned, sealed, delivered and dated this 16th day of -------City and County of Honolulu, State of Hawaii.


19 80 , at Honolulu,

l..'

WHEREAS, said principal is about to acquire, drill, redrill, deepen, operate, maintain or

abandon a geothermal resources well designated as Well No.1, TMK: 1-)-01: 24------Latitude , Longitude , Island of Hawaii and is---'------- --------- --------required to file this bond in connection therewith in accordance with Rule 9.4 of Regulation 8


NOW, THEREFORE, if said G&O'nlEIMAL lOtPWllATum l~ 'Jr.-v~rI COLO?the above bounden principal, shall well and truly comply with all the provisions of saidRegulation 8 and shall obey all lawful orders of the Chairman of the Board of Land and NaturalResources, or his representative, if not appealed to the Board of Land and Natural Resources, orupon affirmance thereof by the Board of Land and Natural Resources, if appealed thereto, andshall pay all charges, costs, and expenses incurred by the Chairman or his representative, inrespect of such well or the property or properties of said principal, or assessed against suchwell or the property or properties of such principal, in pursuance of the provisions of saidRegulation 8, then this obligation shall be void; otherwise, it shall remain in full force andeffect.

STATE OF BMlUI }CD"r" 88.:COUNTY OF Jl)JI)UJLlJ

On this 16J1a day Jaaaa1:J. , 19..10 , before me personally came

...._................................................... II. Q. CIIll~tII...............................................................................- .

~ me kn?~ ~ be an Attorney-in-Fact of SEABOARD SURETY dOMPiNY;·th~·~~;p~;~ti~~..d~~~;ib~dIn the. WithIn Instrument, and he acknowled~ed that he executed the within instrument as the act ofth? said SEABOARD SURETY COMPANY In acco ee with autho ty y conferred u on h' bBald Company. . p 1m y

Form 10

..

STATE OF HAWAII

Clq • Couat7 .f lIo_lulu ss

day of __--IJ V"-__, 19., before me appearedOn this 16th

I. C. CndcI1ck and--=:=-.=-.....;;:;.::===-------- ----------------to me personally known, who, being by me duly sworn, did say that they are the

--.......r:a:-~.t.M.M.......--------- and _

respectively, of geotlluMl "lent!.•• DrlelGp.... Cog.and that the seal affixed to the foregoing instrument is the corporate seal of said


said corporation by authority of its Board of Directors, and said --------__I ........:=C=•....;~~:.;z.w=l=ck=:;.. and _

acknowledged the foregoing instrument to be the free act and deed of said corpora

tion.


STATE OF HAWAIIss

On this day of , 19_, before me appeared

and---------------- ------------------to me personally known, who, being by me duly sworn, did say that they are the

and---------------- ----------------respectively, of ---------------------------and that the seal affixed to the foregoing instrument is the corporate seal of said


said corporation by authority of its Board of Directors, and said ---------and--------------- ------------------


tion.

Notary Public,' Judicial Circuit,-----State of Hawaii

My commission expires:

, ~. ,.:erhfied Copy

~0.B5B4

~

SI·eJOAUn Sl'UETY· C()l\IP....·NEW YORK, NEW YORK

POWER OF ATTORNEY

KNOW ALL MEN BY THESE P·R.ESENTS: That SEABOARD SURETY COMPANY, a corporation of the State'of New York, has made, constituted and appointed and by these presents does make, constitute and appoint ... ----------'M. G. Chillingworth or H. W. Chillingworth or Ronald Poepoe or June Kukino or William B. Stevenor M. J. Singlehurst-----------------------------------------------------------------------------.of Honolulu, Hawaiiits true and lawful Attorney-in-Fact, to make, execute and deliver on its behalf insurance policies, surety bonds, undertakings and other instruments of similar nature as follows: l'1ithout Limitations.

--- -

.- .....----'

Such insurance policies, surety bonds, undertakings and instruments for said purposes, when duly executed by the aforesaidAttorney-in-Fact, shall be binding upon the said Company as fully and to the same extent as if signed by the duly authorized officersof the Company and sealed with its corporate seal; and all the acts of said. Attorney-inFact, pursuant to the authority herebygiven, are hereby ratified and confirmed.


ARTICLE VII, SECTION 1:"Policies, bonds, recognizances, stipulations. consents of surety, underwriting undertakings and instruments relating thereto.

Insurance policies, bonds, recognizances, stipulations, consents of surety and underwriting undertakings of the Company, and releases, agreements andother writings relating in any way thereto or to any claim or loss thereunder, shall be signed in the name and on behalf of the Company

(a). by the Chairman of the Board, the President, a Vice President or a Resident Vice President and by the Secretary, an Assistant Secretary.a Resident Secretary or a Resident Assistant Secretary; or (b) by an Attorney-in-Fact for the Company appointed and authorized by the Chairman of the Board, the President or a Vice President to make such signature; or (c) by such other officers or representatives as the Board mayfrom time to time determine.

The seal of the Company shall if appropriate be affixed thereto by any such officer, Attorney-in-Fact or representative."

Vice-President


By Thomas P. GorkeMargaret Scofield............................................................................(Seal)

IN WITNESS WHEREOF, SEABOARD SURETY COMPANY has caused these presents to be signed by one of its Vice-Presidents, and its corporate seal to be hereunto affixed and duly attested. by one of its Assistant Secretaries, this lJ.§t. .day of ~.~~.~?:Y. , 19.?~ .

Attest:

Assistant Secretary

STATE OF NEW YORK }COUNTY OF NEW YORK ss.:

On this ..~~~.~ da~ of '!.~~~.7.r. , 19..?? before me personally appeared......................T.h9~~..J?~ g~?;" ~ a Vice-President of SEABOARD SURETY COMPAXY,with whom I am personally acquainted, who, being by me duly sworn, said that he resides in the State of ...J:~~W...~~.~~.ljl'y .•.......... ;that he is a Vice-President of SEABOARD SURETY COMPANY, ·the corporation described in and which executed the foregoing instrument; that he knows the corporate seal of the said Company; that the seal affixed to said instrument is such corporateseal; that it was so affixed by order of the Board of Directors of said Company; and that he signed his name thereto as VicePresident of said Company by like authority.

(Seal)

State of New YorkNo. 41-7493475 Qualified in Queens CountyCert. filed in New York CountyCommission Expires March 30, 19BO Anita J. Leonard

Notary Public

CERTIFICATE

• I, the undersigned Assistant Secretary of SEABOARD Sl:RETY COMPANY do hereby certify that the original Power of Attorney of whichthe foregoing is a fun. true and correct copy, is in full force and effect on the date of this Certificate and I do further certify that the Vice Presidentwho executed the said Power of Attorney was one of the Officers authorized by the Board of Directors to appoint an attorney-in-fact as provided inArticle VII, Section I, of the By-Laws of SEABOARD Sl:RETY COMPANY.

This Certificate may be signed and sealed by facsimile under and by authority of the following resolution of the Board of Directors of SEABOARD SURETY COMPANY at a meeting duly called and held on the 28th day of June 1978.

"RESOLVED: (2) That the use of a printed facsimile of the corporate seal of the company and of the signature of an Assistant Secretaryon any certification of the correctness of a copy of an instrument executed by the President or a Vice-President pursuant to Article VII, SectionI, of the By-Laws- appointing and authorizing an attorney-in-fact to sign in the name and on behalf of the company surety bonds, underwritin~undertakings or other instruments described in said Article VII, Section 1, with like effect as if such seal and such signature had been manuallyaffixed and made, hereby is authorized and approved."

IN WITNESS WHEREOF. I have hereunto set my hand and affixed the corporate seal of the Company to these presents this

.........................l§~ day of L AIttI:'J , 19 ..

~ .. Y!J~.~ .. !?!~"""; .log: ~';. ~.o\ /'/"'l /.l..~ sSlStant Secretar:c{ 1927 \~I..... J-<\~~. 'lit ."~~"" "'~" '41. ~"!..Ol Mt'li J'orm 957 (Re\' ....16)

J8Dury n. 18.0

Mr. E. C. CnddlckQeoth8l'llUl1 bpJandoft aIld

ne. COrp.112 ....Boaolulu.. 1I••aU 11118

DeD' Mr. Cnddlc:lt:

GeotherJDal weU Dr11.I1q PermitI Pd'Ik!! No. 1

Wlthr..uct to theattacbed GeotbU'lDal Well Dr1lUD1 PeNlt _aed toyou oa JanuaU.• I0 • 1.11••e"" four ..,1. of -Geothermal Beaovceawen Drl1UI&.......'ty BoDd- 04 -Dealpatloa of A,8Ilt" fo:naa. TIl._ formaare to be properly executed Uld nturDed to .. wlt1da II days.

w....... 'OIl t1lat the We1lDriUtB. Permlt luaed to you does DOtbecome vaUd 1JDtl1 w. rec.... properly 8UOIIt8d copt. of th. abOVe-lIleatlODedforma •

Very truly yours,

I SJ SUSUMU DNO

SUSUMOONOCbalraaa of the Board

BTC:DL:dbAttach.

Q

GBOTHBRMAL WBLL DRILLING PERMIT

Opihikao No.1

TO: Mr. B.C. Craddick·Geothermal Bxploration aDevelopment Corp.2828 Paa StreetHonolulu. Hawaii 96819

Your application for a permit to drill a geothermal well within Tax MapKey 1-3-01: 24 in Op1hikao, Puna District, Hawaii, has been approved in accordancewith the Department's Regulation 8, subject to the following conditions:





/

2. The proposed drUling program submitted as apart of your applicationshall be modified to include:

a. After drilling the 171" bole to 850 feet, ball or otherwise cleanthe hole and determine the true static water level of the groundwater body penetrated and obtain a one-gallon representativesample of the ground water for analysis by the Department, bothin the presence of the Chairman or his representative.

b. After completing the 17i" hole to 1200 feet and prior to theinstallation of the 13-3/8" casing, conduct electric well loggingof the open hole. Well logs to be obtained shall include at leastresistivity-spontaneous potential, fluid resistivity. temperature.and caliper.

Geothermal Well Drilling PermitOpihikao No. 1

Q

Page 2

,

c. During drilling and/or after completing the 121" hole to 4000 feetand prior to installation .of the 9-5/8" casing. conduct electric welllogging of the open hole as described in item "b" above.

3. The applicant shall file a Supplementary Application with the Chairmanif there is any contemplated change in the proposed work and shallnot commence any such change of work until the Chairman's approvalis obtained in accordance with Regulation 8.

4. The applicant shall test. operate. maintain. modify. modify use of.and/or abandon the well In accordance with the provisions ofRegulation 8 and all other applicable Federal. State and Countylaws. ordinances. rules and regulations.


,I/SUSUMUONCI

SUSUMU ONO. ChairmanBoard of Land and Natural Resources

January 10, 1980Date of Permit

.~---------,---

,

January n i98ni~~::"

MEMORANDUM

TOt DLNR Board Membera

PROM: Suaumu ODO

SUBJECT: I8sumoe of Geothermal wen DrllllDi PenD1t to GeothermalB!J!l!ratlon .4:lfv.et Q.o!p. I~J)OO)

'or JOUr .DforD)at1oD. I hive 18••4 a GeotherlllatW.u Dl'111la,'P-:mit(oopJ .......) to Geothermal BxpJoraUon andD8veklpment Oorp. of JUI?aaStreet•• 8oao1u1l1. for the dJ'1J.11DI .. teattal oaly·of an ..loratory wau atOplbtkao. h.D. Dlatr1ct. BawaU. lJl acaordeace WIth the Departmer&t'a BeIWa-t10D ' ••JlepldoD on IAtllDI of o.othermal "our__d DrU1inI for GeothermalRe8O'lU'CMJe la ."all". The ••_AI desorlptlon of the well is as follow.:

WeUDeelpat10D ... OpUdkao No. 1Location - Tax Map Key 1-"'1: ••OWDer of wen Site - Barold "hida. ct0 H1rolllu YamanakaOrotmd Blevatton - 'OI)9feetProposed oaaln.... JOft dla. to • feet

13-I/S· cit•• to 1110 feet1-11." cUa. to 881 t.

Proposed total depth - 1..0 feet (8i" cDa. open bole below ••0 feet)

I SiiSUSUMUONO

SUlwmONOCbairmlft of the Board

aTO:DL:dhhe.: Well Permit

Location Map

eC; 1- ••4 ittch-Af""",.1

-- ------

STATE OF HAWAII

DE,.ARTMENT OFL.AND AND NATURAL. RESOURCES

~. O. BOX .21

HONOLULU. HAWAII •••09

.' -"

GEORGE R. ARIYOSHIGOVIE"NO" 0" H"W""

• •DIVISIONS:

CONVIEV.. NCIES

"ISH ..NO G.... IE

"O"IEST"V

LAND "AHAG&MIENT

STATE PARKa

W ..TIE" "NO L"NO DEVELO""ENT

GEOTHERMAL WELL DRILLING PERMIT

Opihikao No.1

TO: Mr. E.C. CraddickGeothermal Exploration & Development Corp.2828 Paa StreetHonolulu, Hawaii 96819

Your application for a permit to drill a geothermal well within Tax MapKey 1-3-01: 24 in Opihikao, Puna District, Hawaii, has been approved in accordancewith the Department1s Regulation 8, subject to the following conditions:





2. The proposed drilling program submitted as a part of your applicationshall be modified to include:

a. After drilling the 17i1l hole to 850 feet, bail or otherwise cleanthe hole and determine the true static water level of the groundwater body penetrated and obtain a one-gallon representativesample of the ground water for analysis by the Department. bothin the presence of the Chairman or his representative.

b. After completing the 17t1l hole to 1200 feet and prior to theinstallation of the 13-3/811 casing, conduct electric well loggingof the open hole. Well logs to be obtained shall include at leastresistiVity-spontaneous potential, fluid resistivity, temperature,and caliper.

•Geothermal Well Drilling PermitOpihikao No. 1

•Page 2

c. During drilling and/or after completing the 12t" hole to 4000 feetand prior to installation of the 9- 5/ 8" casing, conduct electric welllogging of the open hole as described in item "b" above.

3. The applicant shall file a Supplementary Application with the Chairmanif there is any contemplated change in the proposed work and shallnot commence any such change of work until the Chairman's approvalis obtained in accordance with Regulation 8.

4. The applicant shall test, operate, maintain, modify, modify use of,and/or abandon the well in accordance with the provisions ofRegulation 8 and all other applicable Federal , State and Countylaws, ordinances, rules and regulations.


SUSUMtfaNa, ChairmanBoard of Land and Natural Resources

January 10, 1980Date of Permit

•GEOTHERMALEXP~~ DEVELOPMENT COR~

tXN6nEJaaControl

79 NOV' A·' : ,.

State of HawaiiOffice of Environmental550 Halekauwila StreetHonolulu, Hawaii 96813

Attention: Ms. Helene Takemoto

Gentlemen:

PACIFIC OPERATIONS

November 7, 1979

Naw 1'lMet~.~ ~6.1

Re - OpihikaoExploratory.Geothermal Well

Further to our conversation on November 5th, we wish to .inquire as towhether HRS Sec. 343 is applicable to. our proposed project insofar asrequiring on.EIS or negative declaration at this time and for thepurpose outlined:

1. GEDCO plans to drill an exploratory well approximately 6500 ft.deep on private land belonging to H. Ashida,TMK 1-3-01 (24) and(25), Opihikao district, Hawaii, early 1980.

2. Funding will be from private sources.

3. The site is 'zoned agricu1tura1,'and'no re;'c1assification is' necessary.'Wehave been .issued a. Special , Land Use Permit by the Land Use

Commission under; order SP 77;'265.

4.' Prior to dri.1ling we will apply for.·a drilling permit as requiredunder Regulation 8 oLthe State Geothermal. Rules and Regulations.

,5. In the event that this exploratory effort1ndicates a positiveresult, we would'cap the well and apply for another. Special UsePermit and any other required permits according to the state lawprior to proceeding into the deve1opment.and production stage.

Very 'truly yours,

GEOTHERMAL EXPLORATION &ELOPMENT CORP.

• C. Craddick, President

ECC/~m/

cc: ~r. Dan Lum - DLNR

CON SU L TI NG'. PLAN N I NG • G EOPHYS ICAl STU DI-ES • EXPLORATORY & PRODU eTI ON DR 1III NG

2828 PAA STREET, SUITE 2085 I HONOLULU, HAWAII 96819 I TELEPHONE 839-7720 I TELEX 723672

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Documents

1IIeStRIul - scholarspace.manoa.hawaii.edu - ASHIDA #1...Rig down blowoutpreventer. Cut offwell head and cap 9 5/8" casing 9 feet below the top ofthe cellar with W'steel plate. Fill