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What are the Exploration Cost? • Seismic surveys, well logging and data, geologic analysis and flow tests, chemical analysis of geothermal fluids, etc. • What are the drilling costs (drill rig, well fracturing, personnel, casing, etc.)? • Is it possible to recomplete an existing well? • What is the cost to recomplete a well? • What is the estimated lifespan of a well? • Production well (new): drilling costs, casing costs, emplacement of the wellhead, preparing the site for power plant installation. • Production well (existing): work-over costs of well, perforation of casing, formation fracturing. • Where will the injection well be located, designed and drilled to necessary depth, casing, injection pump, etc.? • What are the development costs for infrastructure on and off site? What are the Legal Costs? • Legal costs associated with zoning, siting, drilling permits and mineral right procurement. • Legal costs associated with rules and regulations of how to properly case and prepare a well for production use. • What are the permitting costs and procedures? In Texas see Oil & Gas Permits from the Rail Road Commission http://www.rrc.state.tx.us/licenses/og/index.php What are the Development Costs? • Purchase (or design and manufacturing) of the power plant, shipping, and installment costs. • Connection of pipes to other necessary infrastructure to the plant (separator, injection well, rock muffler, etc.). • What are the installation costs related to equipment, transmission wires and cables, cost of machinery, and personnel to install and test run the plant. • If connection to gas pipeline, will the gas need to be cleaned or pressurized to meet pipeline requirements. • What are the production costs? • Taxes and interconnection tariffs? • What are the operation and maintenance costs associated with running the plant (cost of day-to- day plant operation, obtaining personnel etc.? • Costs of routine yearly maintenance and monitoring, chemicals for injection to prevent scaling and corrosion? • What is the total budget for fully developing the resource, completing project, and running it for a specific time frame? Cost Analysis -6-PDF Image | Texas Geothermal Assessment for the I35 Corridor East
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