HomeMy WebLinkAboutREP FC 221 10/15/1986 1984-1988 REPORT OF THE •
COMMITTEE ON FINANCE
Date: October 7 , 1986 Re: Comm. 754
Place: North Kohala District Courthouse
Time: 1: 00 p.m.
Chairman and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Bill 247 , reports as
follows:
The purpose of Bill 247 is to amend Ordinance 86-64 , the CIP budget,
by adding the following project:
Puna Geothermal Research Facility Improvement $600 ,000
(110-199-5190 .01-115)
Bill 247 was passed on first reading by the County Council on
October 1 and referred back to Finance Committee for further
discussion.
During Committee discussion, Deputy Managing Director Greg Mooers
explained that there was some misunderstanding regarding the
expenditure of the State grant funds. The Deputy clarified that the
530 ,000 being received will be used to expand the Research Center 's
covered area, relocate the existing brine venting area from up-wind
to down-wind, and to construct a low pressure brine system which is
expected to reduce any existing hazard to users of the brine and make
its use more manageable .
The Deputy Managing Director further explained that the County' s
involvement in encumbering the State funds is due to the fact that
the monies were due to lapse. A contract with the Department of Land
and Natural Resources is very specific as to the particular projects
and improvements that the monies may be used for .
As for the agreement between Thermal Power and HGPA, which is near
completion, the Thermal Power group will operate the steam plant
piping steam from their own well and provide geothermal fluids and
steam to the research facility for four years. Thereafter , should
they continue to operate on a commercial level , they will either
negotiate to continue to operate the plant or continue to provide
brine and steam to the plant for further research and business
ventures . The Deputy Managing Director cited that the scientists
have concern over the capping of the well for the four-year period .
Though no one knows for sure, the scientists feel that the well has a
50-50 survival rate if capped during this period of time. Over this
controversy, four possible solutions were proposed:
FC REPORT No , 221
OCT 1986
ADOPTED :
Y. J
III Ilk
FC-221 Page 2 October 7 , 1986
1 ) Vent the HGPA well once a month for the four years;
2) Reheat the well bore by pumping steam down the hole; or
3) Redrill another well if there is no commercial operation in
the area to bring steam in .
Mr . Mooers further explained that the. $80 ,000 from the University of
Hawaii grant will be used to improve the storage area above the
existing offices at the Puna Research Center and to install a heat
exchanger , inclusive of its integral system, such as the piping,
valves , pumps and silica removal unit.
The major concern of the committee was over the large expenditure of
monies ($600 ,000 ) for a project dependent on a resource having such a
questionable recovery percentage rate of 50 percent .
Pursuant to Section 10-6 , Hawaii County Charter , the Council, by
ordinance and the affirmative vote of two-thirds of the entire
membership, may amend the capital budget for that year .
Your Committee on Finance concurs with the intent of Bill 247 and
recommends that it pass second and final reading.
(ABSENT & EXCUSED)
FRANK DE LUZ III, CHAIRMAN
(ABSENT & EXCUSED) \& ‘
41r:.:i
LORRAINE R. JITCHAKU-INOUYE, V.C. • V L. K. DAHLBERG MEMBE
tit00,040/Ate
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TAKASHI DOMINGO, MEM:'': : R SSELL S. KOKUBUN, MEMBER
eir` (ABSENT & EXCUSED)
ME' E K. LAI, ME717. R SPENCER K. SCHUTTE, MEMBER
LA/MS