Agenda - 12-11-2008 - 3a - Laserfiche WebLink

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2 Under the proposed agreement the County will grant UNC the rights to the landfill gas ("LFG") generated at the Eubanks Road Landfill. UNC will construct a system to collect, transport, and combust such LFG, initially through flaring and then through electricity generation. In exchange for the LFG rights, UNC will make monthly payments to the County for a percentage of the heating energy value of LFG that UNC has flared and used to generate electricity. UNC is responsible for all costs and operating responsibilities associated with the LFG Project. Ke Ty erms . Rights Granted UNC: The County grants UNC the rights to the LFG generated by the Landfill during the Agreement's Term along with a license to access the Landfill and easements across County-owned properties to construct the pipeline used to transport the LFG to UNC. . Condition Precedent: The obligations of UNC to perform its obligations under the proposed agreement are subject to the County granting various easements and rights-of- way set forth in Exhibit C: These easements granting access and use of portions of the landfill and other County property are necessary to the development, construction, and operations of the project, including the design and permit process. County and UNC representatives are working to jointly review and prepare .the technical documents for prompt BOCC approval and execution. . Operating Responsibilities: UNC is solely responsible for constructing, operating, maintaining, and repairing the LFG Project, including all associated costs and legal compliance obligations. The County is solely responsible for operating and maintaining the Landfill, exclusive of the LFG Project, including all associated costs and legal compliance obligations. The Agreement also provides the Landfill's operations take precedence over the LFG Project's operations. . Commercial Terms: UNC will make monthly payments to the County calculated on .the heating energy content of LFG delivered to UNC multiplied by an index price for natural gas that is capped at $9.00 per MMBtu (inflation adjusted on a compound basis at 2% per year). The commercial terms rest on an economic analysis resulting in an equal sharing of project value between the County and UNC. during the Term of the Agreement. For LFG combusted through flaring, UNC pays the County 5.3% of the LFG's heating energy content multiplied by the natural gas price. For LFG combusted through energy conversion, UNC pays the County 16.6% of the LFG's heating energy content multiplied by the natural gas price. These percentages are subject to upward or downward adjustments should the U.S. enact federal legislation restricting greenhouse gas emissions affecting certain underlying economic assumptions agreed to by the parties. However, the 5.3% flare percentage cannot go lower than 2.09%or higher than 8.51 %. The 16.6% energy conversion percentage cannot go lower than 6.52% or.higher than 26.68% The Agreement grants the County the right to obtain up to 15% of the carbon credits generated by the LFG Projecf through a carbon credit-exchange mechanism.