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4 <br />Fetter of Understanding for the Planned Development <br />Of a Landfill Gas Collection and Use System <br />Between <br />Orange County, North Carolina <br />And <br />The University of North Carolina at Chapel Hill <br />Purpose <br />Orange County, North Carolina (the County) and the University of North Carolina at <br />Chapel Hill (the University) will, subject to the withdrawal provision specified in the <br />Guiding Principles, enter into an agreement to develop a landfill gas collection and use <br />system that will provide landfill gas from the County's Eubanks Road Landfill for future <br />use by the University. This Letter of Understanding outlines the guiding principles for <br />developing a more detailed agreement for designing, building, operating, and maintaining <br />a landfill gas collection and use system as further described herein. <br />Background <br />The County and the University hereby express their full intent to develop a landfill gas <br />collection and use system that will initially allow the collection and flaring of the gas to <br />reduce the discharge of methane to the atmosphere and will in the future provide a fuel <br />for the University to utilize for providing useful energy to its buildings. The methane in <br />the landfill gas is a potent greenhouse gas, and collecting and flaring it or using it as a <br />fuel provides benefit to the environment. By developing and using this system, carbon <br />offsets will be created that the University will use to offset its use of fossil fuels to <br />provide energy to its campus. <br />The use of this system demonstrates the County's and the University's shared <br />commitment to responsibly manage waste streams and resources in a sustainable manner <br />which offers many important benefits to the County, the University, the community, and <br />the environment. The collection and use of the landfill gas will: <br />• Allow the County to dispose of the methane gas generated by the County's landfill <br />in an environmentally sound and reliable manner and reduce the amount of <br />greenhouse gases currently being discharged to the atmosphere by the County's <br />landfill. <br />• Provide exclusive rights to the energy and carbon credits for the University to use <br />to offset its current use of fossil fuels, and provide a locally controlled energy <br />resource for the University. <br />{00011915.DOC} <br />