OURAY - Colorado is at the forefront of energy development in several
areas - oil and gas, renewables, power generation - but
geothermal technologies is not one of them. Things may be
slowly changing, however, particularly in the state’s southwest
region.

The City of Ouray is examining the viability of harnessing
power from its geothermal hot springs. Fossil fuels burning in
furnaces on Main Street could be replaced with the clean energy
stored in Ouray’s deep natural furnaces, say proponents of
geothermal energy.

The U.S. Department of Energy and BLM, as well as the Colorado
Geological Society have identified southwest Colorado as a
promising site for geothermal energy development. For now,
according to May Bob Risch, Ouray is considering only small
scale projects such as a central heating district or geothermal
heating for affordable housing.

Risch said city council has received strong support from the
community for making more efficient use of geothermal and
surface water resources. “We must cut back on carbon emissions.
We owe it to the planet and future generations,” he said.
“Ouray is fortunate to have this great resource, for both
tourism and alternative energy.”

The Mayor hopes that down the road the town could be a greener,
more self-sufficient community, with geothermal energy possibly
powering the Ouray Hydroelectric Plant. In his address to the
Ouray Business Roundtable last March, he also noted the
possibility of harvesting energy from cooler springs and tail
water from springs already in use.

In February of this year the Ouray City Council agreed on the
need for an extensive survey and inventory of geothermal
resources. The city has applied for a grant for these studies
from the Governor’s Energy Office and is now awaiting word on
the status of the application.

Tapping its thermal hots springs for renewable energy is not a
new idea for the city. Back in the early 80’s Ouray received
DOE grant money for a geothermal resource assessment. Things
did not go well however, as the experimental wells drilled
throughout town did more harm than good, according to those
involved. Although the assessment provided data on flow volumes
and water quality, three town lodging businesses claimed the
drilling damaged their hot springs water rights. Years later
one of them finally received a settlement.

“I hope if there is further geothermal exploration activity,
the city and state will proceed in a safe manner and not injure
anyone’s hot springs,” said Linda Wright-Minter, owner of the
Wiesbaden.

The state’s new Geothermal Rules were enacted due to lawsuits
incurred from the 1982 drilling. In 2004 the Colorado Division
of Water Resources stiffened the requirements for well
drilling. Now the state will not issue a well permit until
owners of all water and geothermal rights within half a mile of
the proposed well have been informed and provided input.

The 1982 study by the city lacked good planning, with wells
drilled before the geothermal inventory and adequate baseline
flow monitoring was done, according an expert hydrogeologist.
Future geothermal efforts require a conservative approach,
including carefully defining existing geothermal resources;
taking flow measurements, especially in late winter; gathering
water quality data; and mapping the area’s geology.

Ouray’s Economic Development Plan reflects this type of
approach for future projects. In supporting the concept of
geothermal heat, the document urges that, “geothermal resource
development should proceed with caution and careful legal
consideration.”

The area’s three primary hot springs, already provide space
heating for a handful of buildings, including structures in the
municipal hot springs complex and the Wiesbaden facilities.

Pagosa Springs is the only municipality in Colorado with a
geothermal heating district. The system provides heat to
schools, churches and other customers, as well as hydronic
heating for sidewalks during the winter. Other communities such
as Steamboat Springs are investigating new uses for their
geothermal resources, both for environmental and economic
reasons.

Ouray will heat its businesses, city buildings, school, and
homes with its precious springs depends on a host of unknowns
including grant funding, results of geological studies, and
public acceptance. Many details have yet to be nailed down. “We
think there is potential for a central heating district in
Ouray but it’s too early to estimate costs and payback
periods,” said Risch.

The Mayor emphasizes that this time around, mistakes will not
be repeated. “Everyone knows about the problems we had last
time. We are committed to developing this valuable resource
safely.”