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~ ~ .1'- ~ a c' . . CRBSCF 2/7/90 GLENWOOD SPRINGS DESALINATION PROJECT The project, to be located at Glenwood springs, Colorado, will combine the generation of electrical energy with desalination of naturally saline, warmwater springs which now discharge to the Colorado River. The project developers, Energy Ingenuity Company and Mission Energy company, have entered into a cooperative agreement with the Bureau of Reclamation which provides that the companies will be paid for each ton of salt removed from the natural springs (approximately $5 million per year, with a declining price per ton over time). However, all costs of developing and constructing the project will be borne solely by the companies. Payments under the cooperative agreement are contingent upon the passage of authorizing legislation. A gas turbine utilizing natural gas piped to the project site via an existing natural gas pipeline will generate approximately 32 megawatts of electrical power. 25 megawatts will be sold under a 30-year contract with the Public service Company of Colorado. An additional average 4 megawatts will be sold to the City of Glenwood springs under lO-year contracts. The remaining electrical energy will be consumed in the plant. The exhaust heat from the gas turbine will be directed into a waste heat recovery boiler, which will generate pressurized, saturated steam. The steam will flow to an evaporative processing facility, which will evaporate water taken from the saline springs. This process will generate approximately 200 tons per day of dry salt and approximately 2 million gallons per day of pure, distilled hot water. The salt produced from the desalinization process will be compressed into 50-pound blocks, palletized, and sold for use as cattle salt licks. The project developers and Reclamation have completed a draft Environmental Assessment (EA) on the project. The EA is currently being reviewed by various government agencies for approval and subsequent public review. Upon completion of the review process, it is expected that a Finding of No significant Impact (FONSI) will be issued. The timing of the development of the project is dictated by the terms of the power purchase contract with PUblic Service company, which requires that power be delivered by June 1, 1992. To meet this deadline, construction must begin not later than the end of 1990 and the companies must make large committments of capital prior to october, 1990. This is why the Salinity Control Form seeks authorizing legislation during 1990 in the form of amendments to the Colorado River Basin Salinity Control Act.