Review of methods used in the geothermal industry to value resource, February 1991

Abstract

"According to the Geothermal Resource Council, as of May 31, 1990, the installed capacity of electrical power plants fueled by geothermal resources in the United States was 2723 megawatts. The plants are located in the following areas: California (The Geysers, Imperial Valley, Coso Hot Spring, and other), Nevada, and Utah. The geothermal resources used to generate electricity are valued in order to compensate the resource supplier and/or to calculate royal ties due to the resource owner. Most project operators/owners, for proprietary reasons, do not disclose the methodology used to value resources or to calculate royalties. I have put together the following information from a variety of public sources and private conversations with project operators/owners. To show the relative use of each method of valuing resource, I have made certain estimates about the number of the megawatts in each category. In that information is not available on all projects, it should be understood that these amounts are strictly estimates."