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<br />. <br /> <br />. <br /> <br />. <br /> <br />M ~? 97 <br />\j 1...-'" <br /> <br />GLENWOOD-DOTSERO SPRINGS UNIT <br /> <br />Background <br /> <br />The Glenwood-Dotsero Springs Unit area, located along the Colorado River in <br />west-central Colorado constitutes the second largest point source of salinity to the <br />Colorado River. The combined discharges annually contribute approximately 22,000 <br />acre-feet of water containing about 429,000 tons of salt. The Bureau of Reclamation <br />(Reclamation) has conducted studies aimed at determining a feasible plan to reduce this <br />salt contribution to the Colorado River. In February 1986, two alternative plans were <br />presented in a planning report concluding the study. One of the plans included <br />collecting saline water from both the Glenwood and Dotsero area springs while the <br />other involved collection of spring water at Glenwood Springs only. The waters were to <br />be conveyed by pipeline approximately 120 miles to near the Colorado-Utah state line <br />for storage and evaporation in ponds. These plans would have removed approximately <br />287,000 and 176,000 tons of salt at costs of $110 and $107, respectively, per ton of salt <br />removed (1983 price level). No effective non-structural plan was identified. The study <br />was concluded because the cost effectiveness of the two alternatives was higher than <br />other salinity control options within the Colorado River Basin, and because the <br />acquisition of water rights was questionable since evaporation of the waters is not a <br />beneficial use under Colorado water law. <br /> <br />In 1987, Reclamation was approached by private parties interested in constructing a ,_ <br />cogeneration facility with waste heat being used to desalinate the saline spring waters. <br />As an alternative to a federally developed project, Reclamation placed an ad in the <br />Commerce Business Daily in December 1988 requesting proposals for the investigation <br />and potential construction of a cogeneration plant with an integral desalination facility <br />near Glenwood Springs. Reclamation evaluated and ranked the proposals according to <br />the following criteria: cost to Reclamation for salinity reduction, environmental <br />acceptability, the company's experience with similar projects, local support and existing <br />contracts/permits. Based on these evaluations, the partnership of Energy Ingenuity <br />Company of littleton, Colorado, and Mission Energy Company of Irvine, California, was <br />selected as the top-rated offeror. In October 1989, Reclamation entered into a <br />cooperative agreement with this partnership. The proposed project is officially known as <br />the Glenwood Springs Salt Company (Company). <br /> <br />The partnership agreed to fully investigate the proposal and if feasible and <br />environmentally acceptable, to finance, construct, and operate the <br />desalination/cogeneration facility. About 30 megawatts of electrical power would be <br />generated by a natural gas fueled combustion turbine. The Company has a market for <br />generated electrical power, and would use waste exhaust heat to desalinate naturally <br />occurring saline water in the vicinity of Glenwood Springs. The project would prevent <br />approximately 70,000 tons of salt from entering the Colorado River each year. In <br />addition, beneficial uses of fresh water and salt from the desalination process could be <br />developed as an economic venture. Reclamation participation, which is contingent on <br />compliance with the National Environmental Policy Act (NEPA) and authorization by <br /> <br />4 <br />