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3a <br />reasonable notice, elect to request that the University discontinue the <br />Carbon Credit Advisor program. <br />Upon termination of the Carbon Credit Advisor program, the County <br />shall thereafter receive title to the Allocated Carbon Credits for <br />disposition at their sole discretion. <br />The regulations, policies and procedures governing reductions in <br />greenhouse gas (GHG) emissions and associated markets for carbon <br />credits are evolving. As the regulations, policies, procedures, and <br />markets for carbon credits evolve, the University will strive to adopt <br />cost effective practices with respect to the LFG project to maximize the <br />credits resulting from the project and to measure and document those in <br />away that meets both the University's internal carbon reduction <br />objectives and the County's objective to generate cash flow with access <br />to appropriate markets through which the Allocated Carbon Credits can <br />be sold. <br />B. Adjustments to the Payments to the County <br />a. The Btu Equivalent Gas Price shall be subject to a cap which shall be <br />calculated as $9.00 per MMBtu in 2010 escalating at 2% per annum. <br />b. The economic viability of the project to the University is highly <br />dependent on: <br />1). The quantity of LFG and associated methane content collected <br />from the landfill. If the cumulative quantity of methane collected <br />by the project for the years 2011 through 2014 is less than 90% of <br />the cumulative amount shown in Exhibit XXX, then the percentage <br />on which the Allocated Energy Content and Allocated Carbon <br />Credits are based shall be reduced to ten percent (10%) starting in <br />2015. <br />2). The future market value of carbon credits. If, as of December 31, <br />2014, substantive federal regulations to reduce GHG emissions have <br />not been enacted and market values for US carbon allowances as <br />estimated by the Carbon Credit Advisor or other independent expert <br />are not projected to average at least $15.00 per MTCOze for the <br />period 2015 through 2019, then the percentage on which the <br />Allocated Energy Content and Allocated Carbon Credits are based <br />shall be reduced to ten percent (10%) starting in 2015. <br />3). (Sharing of risk of capital cost overruns to be discussed.) <br />Note: The above allocation assumes University will be responsible for <br />maintenance of the collection and flare systems, pipeline, and engine <br />generator. <br />Confidential Preliminary Draft for Discussion Only <br />Attorney Client Privileged <br />March 31, 2008 <br />Page 9 of 15 <br />