Agenda - 02-03-2009 - 6b - Laserfiche WebLink

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Alf Q�h m en+. 15 THE UNIVERSITY li of NORTH CAROLINA ENERGY SERVICES at CHAPEL HILL DEPARTMENT 925 BRANCH STREET P 919.966.4L00 CAMPUS BOX 1855 F 919-843.7328 CHAPEL HILL,NC 27599-185$ Ray.DuBose @energynnc.edu RAYMOND E.DUBOSE Director January 26, 2009 Orange County Board of Commissioners • 200 South Cameron Street Post Office Box 8181 Hillsborough, North Carolina 27278 Re: Landfill Gas Project Issues • Dear Commissioners: I am responding to the two issues which have arisen from the County. Regarding That UNC will do nothing for originally five, and now it seems like — because of the requirement for all easements to be acquired—up to six years" The proposed contract under Section 82 reflects the University's commitment to work expeditiously and in good faith to complete the LFG Collection System within eighteen (18) months from the Closing Date and complete the Gas Conversion System within thirty-four (34) months from the Effective Date. If the University breaches this covenant, the County can send the University a Notice of Default pursuant to Section 103 and begin the process for contract termination. UNC is also agreeing to a covenant stating that if the University fails to complete the LFG Project within five (5) years of the date of the issuance of the last easement/approval necessary to construct the LFG Project, the County may terminate the agreement. The University is prepared to begin immediately on this project. The University's consultant on this projects estimates that the University and the County are losing approximately $50,000 in benefits for each month that the landfill gas is not harvested. Also, every month delay results in the equivalent of over 3,000 metric tons of CO2 releasing into the atmosphere. This is strong incentive for the University to move forward expeditiously. The University has invested over $75,000 to date (not including UNC staff time and expenses) on Consultant/legal fees for a feasibility study, subsequent economic modeling and contract negotiation, $28k on a property survey of the proposed pipeline routing and is prepared to commit to several hundred thousand dollars in fees for the project design as soon as the contract is approved. All this money will be pre-invested before the system becomes operational, clearly demonstrating UNC's commitment to advancing the project in a timely fashion.