(GP/GT) for Additional Water Supply in the Lower Rio Grande

The choice of sites can have a significant impact on the total installed
and operating cost of a facility. Soil characteristics, climate, freshwater
availability, waste disposal requirements, market accessibility, availability
of goods and services, utility requirements and regional sales prices for gas
and electricity are but a few of the considerations that affect the selection
of a specific site.
Generalized costs have been developed for workover of geopressured wells,
a desalination facility, and an agriculture/aquaculture installation, the
combination of which appears to possess the greatest potential for near term
utilization. Throughout the analyses, conservative values are assigned to all
cost and revenue items. Obviously, anyone cost assumption cannot address all
of the factors appropriate to a site specific location. It is critical that
these generalized costs are not given "gospel" status and are presented as
conservative analyses for an assumed installation.
The costs associated with the development of anyone facility are affected
by previous experiences and the interpretation, interpolation, and
extrapolation of data for planned installations. Because of the numerous
market and resource variables and because an exact duplicate of an existing
facility is likely not available, both capital and operating costs are going
to be hard to derive by a mere examination of past data. Any responsible
application of technologies that exploit the available energy in a
geopressured resource will have to be matched by the economic skills of market
analysis and product development.
ECONOMIC METHODOLOGY AND ASSUMPTIONS
The Present Value (PV) methodology is used to calculate the discounted
payback and Net Present Value (NPV) of selling a selected array of products
from a geopressured-geothermal resource. Often referred to as a Discounted
Cash Flow Analysis (DCFA), PV analysis is an economic method or process of
equating all past, present, and future costs and revenues to a common
point-of-time value. Analysts generally prefer PV analysis over other
economic techniques because cash flows are accounted on a real-time, common
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