The objectives of this project are to develop an initial quantification of the magnitude of low-temperature geothermal resources in the San Luis Valley area of south-central Colorado, and to analyze the engineering and economic factors pertinent to the non-electric utilization of these resources. A parametric study is being conducted, considering probable variations in the quality of the available geothermal resources and the effects of such variations on the feasibility of using the contained energy and water. The beet sugar refining process has been thoroughly investigated, and a study of barley malting is under way. A demographic study of the southern Colorado area has been initiated along with a preliminary survey of regional industries, to serve as groundwork for projections of demand for heat and water in that area. The evidence for the existence of geothermal resources in the Valley has been under review. At the end of April, a transition was begun from making a very general compilation of information on hot water resources, to an in-depth study and extrapolation of the hydrogeothermal potential in the Valley.