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a-~ <br />Ong n+e <br />1414 Raleigh Road, Suite 305 <br />Chapel Hill, North Carolina <br />(919) 419-9802 (Fax 419-9803) <br />IVleeting Notes <br />UNC -Alternative Energy Analysis Landfill Gas Investigation <br />Project <br />University of North Carolina- Chapel Hill <br />Ownar <br />Review Meeting No. 5, 6 and 7 <br />Type of Meeting <br />08029-00 <br />Project No. <br />3/25, 4/1 and 04/08/2008 <br />Meeting Date <br />Page 2 of 3 jas <br />Page Typist <br />c. NG pricing is per NYMEX futures market, current pricing <br />d. 10% contingency added to capital costs <br />The results indicate positive cash flow for both parties over 20 years, with about 2.1 million NPV to <br />County and $1.15 million NPV to UNC. The results change significantly as each risk factor is <br />assumed to be at its worst case condition. In all those cases, the County NPV deceases slightly <br />(except for high price of NG, in which case it increases, and capital cost overruns are encountered, <br />in which case there is no change. In all cases, the UNC distribution decreases significantly. <br />4. To mitigate the risks; UNC suggested some language in the commercial terms to reduce the <br />distribution to the County to 10% in the event of no compliance market for carbon or less than <br />estimated LFG quantities are collected. Also, a cap on NG prices was included. No specific <br />measures for capital cost overruns were noted, but UNC would like to have some method of <br />mitigating risk in this area. <br />5. A written document of the proposed commercial terms was distributed to Orange County and is <br />included in the monthly progress report. Comments were requested prior to next week's meeting. <br />This document is attached and will continue to be discussed and modified as we move toward a <br />final agreement. <br />6. The legal terms are continuing to be advanced in the form of a preliminary term sheet. Will Tricomi <br />will forward the latest version for inclusion in the~final 30 day report going to the County next week. <br />7. A preliminary project schedule was distributed and discussed. The following comments were made: <br />a. The approval process for Orange County is too short. We should have the following items: <br />1. April 15~' -approval from County Commissioners to continue negotiations and <br />finalize and Agreement with UNC <br />2. Sometime thereafter, prepare a detailed presentation to County Commissioners on <br />the proposed project scope at either the joint planning meeting (JPA) with the <br />Town of Chapel Hill or at one of the regularly scheduled County meetings <br />3. Late August 2008 - Final Agreement is prepared and issued to County <br />Commissioners and UNC for approval <br />b. A copy of an updated schedule is included in the progress meeting. <br />8. It was agreed that the option of locating the power.generation equipment at the landfill site would be <br />left open as a possibility. This would help mitigate the initial capital cost and may simplify permitting <br />issues. <br />Page 4 of 15 <br />