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GEOTHERMAL ENERGY IN NEVADA
2010
Nevada Water Resources Association
February 3, 2011
Reno, Nevada
Alan R. Coyner: Administrator
Lowell Price: Program Manager, Oil, Gas, and Geothermal
Nevada Division of Minerals
400 W. King Street #106
Carson City, NV 89703
minerals.state.nv.us
775/684-7040
775/684-7045
MISSION
The mission of the Division of
Minerals is to conduct activities to
further the responsible development
and production of the State’s mineral
resources to benefit and promote the
welfare of the people of Nevada.
WHO WE ARE
State Agency and part of the Commission on
Mineral Resources (CMR)
CMR is 7 members appointed by the Governor
from the minerals industry
Offices in Carson City (8 employees) and Las
Vegas (2 employees)
Annual budget of $2,100,000
No general fund money in budget, all revenue
from fees on mineral industry
WHAT WE DO
Industry Relations and Government Affairs
Abandoned Mines Program
Minerals Education, including the Nevada
Earth Science Teacher’s Workshops
Oil, Gas, and Geothermal Program
Mines Registry (production and exploration
data on mining, oil and gas, and geothermal)
State Reclamation Bond Pool
FLY GEYSER, WASHOE COUNTY, NEVADA
GEOTHERMAL ACTIVITY IS INCREASING
Favorable geology of the Great Basin
Leading geothermal companies are located in Nevada
Regulatory climate allows timely permitting of projects
Renewable Portfolio Standard requires NV Energy to supply
20% of their sales from renewable energy by 2015
Great Basin Center for Geothermal Energy at UNR provides
cutting edge geothermal research
Department of Energy funding ($61 million in 2009-2010)
Total in 2009 was $5.8 billion (Au = $4.9 billion)
Geothermal Gross Sales = $110 million
Salt Wells
Stillwater
Soda Lake
Desert Peak Brady
Empire
Wabuska
Blue Mountain
Beowawe
Dixie Valley
Steamboat
2010
Nevada has 20 geothermal
power plants in 11 locations
Jersey
Valley
Location Plant Name Operator Nameplate Capacity (MW) Beowawe Beowawe Terra-Gen 17
Blue Mountain Faulkner 1 Nevada Geothermal 49.5
Brady Brady Hot Springs Ormat Nevada, Inc 26.1
Desert Peak Desert Peak Ormat Nevada, Inc 23
Dixie Valley Dixie Valley Terra-Gen 64.7
Empire Empire US Geothermal Power 4.8
Jersey Valley Jersey Valley Ormat Nevada, Inc 23.5
Salt Wells Salt Wells Enel North America 23.6
Soda Lake (2) Soda Lake 1 Magma Energy Corp 5.1
Soda Lake 2 Magma Energy Corp 21
Steamboat SBIA Ormat Nevada, Inc 2.4
Complex (7) SBII Ormat Nevada, Inc 23.6
SBIII Ormat Nevada, Inc 23.6
Steamboat Hills Ormat Nevada, Inc 20.1
Galena 1 Ormat Nevada, Inc 30
Galena II Ormat Nevada, Inc 13.5
Galena III Ormat Nevada, Inc 30
Stillwater Stillwater II Enel North America 47.2
Wabuska (2) Wabuska I & ll Homestretch
Geothermal 2.4
TOTALS 11 20 451.1 * Nameplate capacity is a manufacturers specification and does not necessarily reflect the resource
capability. 1MW powers ~300 homes.
2010 GEOTHERMAL PRODUCTION
NEVADA GEOTHERMAL ENERGY
Price
Production
Production was 1.7 million MWH
in 2009, second only to CA
2010: 451.1 MWH 2009: 424.5 MWH
Image Courtesy of Nevada
Geothermal Power
Enel North America’s Salt Wells Power Plant (23.6 MW)
near Fallon in Churchill County
Nevada Geothermal Power
Faulkner 1 Power Plant (49.5 MW)
near Blue Mountain in Humboldt County
Ormat Galena 1 Power Plant (30 MW)
at Steamboat near Reno in Washoe County
Magma Energy Corporation’s Soda Lake 2 Power Plant
(21MW) near Fallon in Churchill County
NDOM GEOTHERMAL PROGRAM
Operate under the direction of Geothermal
Commissioner John Snow and the Commission
on Mineral Resources
Review and approve all drilling programs for
well permits on public and private lands
Inspect at drill locations blow out preventers ,
well drilling operations, and site conditions
Collect geothermal production information
Approve sundry notices which are changes to
drilling programs, maintenance issues, etc.
GEOTHERMAL PERMITS ISSUED (Drilling and Project Area Permits)
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mb
er o
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erm
its
Year
2007 2008 2009 2010
Wells permitted 59 116 195 119
Wells drilled 36 47 71 72
Ensign #506 drilling at the
Peppermill Casino in Reno.
2007 2008 2009 2010
Geothermal Permit Type Permits/Drilled Permits/Drilled Permits/Drilled Permits/Drilled
Industrial Production 21/10 36/18 28/19 28/17
Industrial Injection 14/7 21/7 11/4 7/4
Observation 12/7 27/12 21/8 19/13
Thermal Gradient 12/12 26/9 124/37 56/38
Project Area 5 6 2 6
Commercial 0/1 2/0 2/3 0/0
Domestic 3/2 8/3 1/0 1/1
Miscellaneous* 2 6 6 2
Totals 69/39 132/49 195/71 119/72
* Represents old wells brought into the NDOM system
GEOTHERMAL WELLS 2007 - 2010
NEVADA DIVISION OF MINERALS
GUIDELINES FOR PERMITTING A
GEOTHERMAL WELL
Active lease: Federal, private, or combination
Valid registration with Secretary of State
Organizational Report identifying the
corporate entity and contact information
Drilling bond (BLM bond recognized if on
Federal lease, $10,000/well or $50,000/statewide
bond if on private lease)
Approved drilling program
NEVADA DIVISION OF MINERALS GUIDELINES
FOR PERMITTING A GEOTHERMAL WELL
Land owner or Active lease: Federal, private, or combination
Valid registration with Secretary of State
Organizational Report describing individuals or corporate entity
Drilling bond (BLM bond reconized if well/wellbore stays within
Federal lease, $10K/well or $50K/statewide bond if on private
lease)
Permit Application includes:
Well type to be drilled (Industrial Production or Injection,
Observation, Temperature Gradient, Commercial, or Domestic
Name and location of well
Land status (Land owner or lessee – private or Federal)
Operator’s name
Name and contact information of drilling contractor.
Initial hole size; size, weight, and gauge of surface conductor.
Estimated well head temperature (at completion of well).
Size of Blowout Preventer (BOP) – pressure rating.
Planned use of geothermal fluids.
Disposal of geothermal fluids – usually in related drill sump.
Type of bonding/bond holder.
Source of the geothermal resource to be drilled.
Proposed total depth of well in measured depth or measured
depth/true vertical depth if drilled directionally.
Estimated date drilling is expected to begin.
Signature – do not forget to sign application.
Attach fee for permit – fee is pre-paid.
Include Drilling Program with Permit Application
Drilling Program includes the following:
Brief description of geology to be encountered, if known.
Anticipated depths to any and all fresh water aquifers, if known.
Brief description of drilling rig and its capabilities.
Detailed description as to how the well will be drilled, tested,
completed, and plug and abandoned if necessary.
Hole size and depths for the various legs of the well.
Mud, casing, and cementing programs
Mud – type and maximum weight anticipated for each
leg.
Casing - include size, weight, length, API classification,
and expected casing shoe depth for each leg.
Cement – include percentage of components in mix, and
weight and volume to be used.
Wellbore schematic illustrating hole size, casing (including specs
and shoe depth), cementing intervals, liner intervals (including
hanging depth/total depth), and barefoot intervals.
Blowout preventer type(s), sizes, specifications/rating(s), when
testing is to occur, and testing parameters.
Description of accumulator, choke manifold, and size/pressure
rating of lines.
Size and depth of sump to be used as catchment basin for
drilling fluids, cuttings, and geothermal fluids (if well is tested).
All approvals related to injection wells, including drilling,
testing, maintenance, etc, are coordinated with Russ Land at
UIC/NDEP
Logging of well – cuttings (two sets of cleaned and dried cuttings
are to be provided to the Nevada Bureau of Mines and Geology,
two copies of the mud or geological log are to be given to the
Nevada Division of Minerals) and electrical logs (two copies of
each log are to be provided to the Nevada Division of Minerals).
Emergency contingency plans.
EXPLORATION
Gradient Resources Patua Project Area
between Hazen and Fernley in Lyon County
DHS #14 drilling rig in Jersey Valley, southwest of Battle Mountain
Rigging up to drill Ormat Nevada’s Jersey Valley 14-27 well
Ensign #587 drilling the Blue Mountain 61-22 injection
well, Jackson Mountains in background .
BLM GEOTHERMAL LEASING
552 geothermal leases (1,173,382 million acres)
Acreage nominated by individuals or industry
BLM determines if acreage is eligible for bidding
Recent nomination process ended 9/3/2010
Next competitive lease sale scheduled for 3/22/2011
Acreage not leased can be obtained after 3/22 thru
non-competitive sale (minimum cost of $2.00/acre)
Leases can be converted into a unit
Questions? Call Sheila Mallory (775/861-6568)
BLM GEOTHERMAL LEASES
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Nu
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er of L
eases T
hou
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of
Acr
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Years
Acres # Leases
1,173,382 acres and 552 leases cumulative through 2010
Geothermal Power Plants, BLM
Leases, and Primary Prospects
PERMITTING DELAYS ON
BLM MANAGED PUBLIC LAND
BLM permitting is the number one factor
delaying new and existing geothermal
projects (and mining projects as well)
Many of the delays involve archeological
(cultural) clearances and manpower
BLM is establishing Renewable Energy
Teams to improve permit process
NEW PROJECTS AND DEVELOPMENTS
Gerlach Geothermal (US Geothermal): Gerlach/Boiling Springs
Hot Pot Geothermal (Oski Energy): Hot Pot
HSS II (Ormat Nevada): Hot Sulphur Springs
Ormat Nevada: Jersey Valley, McGinness Hills, Carson Lake,
Gabbs Valley, and Dead Horse
Nevada Geothermal Power: Blue Mountain, Pumpernickel Valley,
and Black Warrior
Raser Technologies: Big Smoky and Devil’s Canyon
Ram Power: Alum, Silver Peak, and Reese River
Standard Steam: Marys River
Terra-Gen Dixie Valley: New York Canyon, Coyote Canyon, and
Dixie Meadows
Gradient Resources: Patua, Carson Lake, Fallon 1, and Colado
UNR GREAT BASIN CENTER FOR
GEOTHERMAL ENERGY
Information (GIS databases, interactive maps,
compendiums, presentations)
Research (exploration, modeling, sampling)
External links to other geothermal websites
Leasing information and current projects
Careers (National Geothermal Academy,
Graduate Geothermal Fellowship)
Website: www.unr.edu/geothermal
More Info? Call Wendy Calvin at 775/784-1785
NBMG
OFR 09-10
Entity DOE Grant Project Areas
AltaRock Energy Inc $1,450,120 Dixie Valley
Board of Regents/UNR $2,213,575 Great Basin/Nevada
GeoGlobal Energy LLC $2,820,211 Gabbs
Geothermal Tech Partners $1,609,275 McGee Mountain
Magma Energy Corp $9,511,945 Soda Lake, McCoy
Nevada Geothermal Power $1,597,847 Black Warrior
Oski Energy LLC $4,214,086 Hot Pot
DEPARTMENT OF ENERGY GRANTS
FOR PROJECTS 2009-2010
Entity DOE Grant Project Areas
Presco Energy $2,277,081 Rye Patch
Pyramid Lake Paiute
Tribe $4,845,534 Pyramid Lake
Sierra Geothermal Power $10,000,000 Alum, Silver Peak
Terra-Gen Sierra Holdings $14,406,082 Beowawe, Dixie Valley,
New York Canyon
University of Kansas
Center for Research $2,299,237 Fish Lake Valley
US Geothermal $3,772,560 San Emidio
TOTAL GRANTS $61,017,553
DEPARTMENT OF ENERGY GRANTS
FOR PROJECTS 2009-2010
Ten Top Reasons to
Explore in Nevada
1. Great geology and
geothermal potential
2. Many producing
resources ranging from
low to high temperature
3. Resources explored and
developed by leading
international companies
4. Good regulatory
climate allows timely
permitting of projects
5. Good infrastructure
(roads, drillers, hotels,
supplies, etc.)
6. Large areas of public
land open to exploration
7. Dry climate and year
round access
Ensign #561 at Soda Lake
8. Network of knowledgeable exploration geologists,
organizations, and agencies (Geological Society of Nevada,
Nevada Mining Association, Nevada Division of Minerals,
Nevada Bureau of Mines & Geology, Great Basin Center for
Geothermal Energy, and other units of the Mackay School of
Earth Sciences and Engineering)
9. Recent discoveries and new geothermal production
Jersey Valley, Pershing County Fly Ranch Geyser, Washoe County
10. No malaria, black flies,
moose, polar bears, desert
death adders, or crocodiles;
JUST HOT WATER!
(AND ELEPHANTS!)
wildlife-pictures-online.com
Ten Top Reasons to Explore in Nevada
(continued)
Nevada is a really great place to explore for and mine gold,
silver, and other mineral and energy commodities
NEVADA = ELEPHANT COUNTRY
Lowell Price
Nevada Division of Minerals
400 W. King St. #106
Carson City, NV 89703
775/684-7045
minerals.state.nv.us
Gold, Round Mountain Opal, Virgin Valley
