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6.2. ERMUSR 05-11-2004 Elk River Municipal Utilities 13069 Orono Parkway phone: 763.441.2020 Elk River, MN 55330 Fax:763.441.8099 April 28, 2004 To: Elk River Municipal Utilities Commission Jerry Takle James Tralle John Dietz From: Bryan Adams Subject: Aquifer Storage and Recovery Attached is a proposal for Engineering Services for phase 1 A Aquifer Storage and Recovery Testing Plan and Permitting. Correspondence describes in detail the entire program and range of possible costs. The concept behind Aquifer Storage and Recovery (ASR) is to treat water during off peak (Oct. thru March) when we have treatment capacity and inject it back into the aquifer(storage). During periods of high demand (summer months), this treated water can be pulled back out of the aquifer (recovery), re-chlorinated and pumped into the distribution system. The benefit is not building a water treatment facility at an approximate cost of$1,000,000 for a 1000 gpm plant. The downside is we must pump this water twice and chlorinate it twice at an additional cost of approximately $140/million gallons or $9,800 for 7,000,000 gallons/year. Additional $9,800/year to save a $1,000,000 plant investment is a substantial savings. The other risk is this technology has been done in other states but never in Minnesota. It could ultimately cost us $250,000 in testing and engineering fees to see if this technology will work. It does make sense to phase into this project. If started in 2004, it would be a non budget expense. Is this type of project of interest to this commission? Howarc R. Green Company March 17, 2004 File: 821480J Mr. Bryan Adams Elk River Municipal Utilities 322 King Street Elk River, MN 55330 RE: PROPOSAL FOR ENGINEERING SERVICES AQUIFER STORAGE AND RECOVERY Dear Bryan: We propose to provide analysis and regulatory approval assistance for utilizing the aquifer storage and recovery (ASR) process per the attached scope of services dated March 17, 2004. Please remember that the ASR analysis and approval process is a multi-step process involving the Minnesota Department of Health (MDH), the Minnesota Pollution Control Agency (PCA), the Department of Natural Resources (DNR), and the United States Environmental Protection Agency (USEPA). Per your request, we have reduced the scope of services to the bare minimum to provide a portion of the typical Phase I analysis. Additional work will be required to provide the remaining effort of the Phase I analysis and the Phase II work that is typically required to gain regulatory approval for the process. We will work with MDH to have them perform as many of the chemical analyses as they can, thereby reducing the cost. The effort described in the scope of services totals to $45,000 Sincerely, Howard Green Company Chris Catlin, P.E. Project Manager Cc: Terry Maurer Ltr-012201-Ada ms-p roposa I.d oc 2550 University Avenue West • Suite 400N • St. Paul. MN 55114 • 651/644-4389 fax 651/644-9446 toll free 888/368-4389 MARCH 17,2004 Phase IA Scope of Services Aquifer Storage and Recovery Testing Plan and Permitting Elk River Municipal Utilities Introduction Elk River Minnesota is a rapidly growing community with increasing potable water demands. Their current system consists of 6 operating wells, with individual iron and manganese removal pressure filters on each well. An additional well, Well No. 8 was recently constructed without a pressure filter. The well will be used as a blending well to provide flows during peak demands. The flows from Well No. 8 will be blended at a calculated pumping rate with the total treated flow stream to provide a final quality of potable water that meets all required drinking water standards, and is of an acceptable aesthetic quality for peak demand periods. The work described in this document is to evaluate the feasibility of using Well No. 8 in an Aquifer Storage and Recovery(ASR) capacity, as well as in a blending capacity. In an ASR capacity, Well No. 8 would be recharged with treated potable water during the low demand months. During the peak demand months, the water from Well No. 8 could then be recovered and returned to the water system with only disinfection treatment. In an ASR capacity, Well No. 8 could be pumped at a higher rate than feasible when pumping in a blending application. This application could provide Elk River with a rate of production from the well equal to, or greater than, a well equipped with pressure filtration, at a potentially lower cost. Howard R. Green has provided Elk River with engineering design, construction, and startup/testing services for Well No. 8. Recharge tubes and modifications to the wellhead piping were included in the design to facilitate conversion to ASR operations. This scope of work provides CH2M HILL technical support and consulting to Howard R. Green Company during the implementation of ASR testing and operations using Well No. 8. The work is proposed to be conducted by CH2M HILL under subcontract to Howard R. Green Company. Page 1 of 1 MARCH 17,2004 Phase IA Scope of Services 1. Project Management and Setup This task includes efforts to prepare project instructions, open project numbers and accounts, and prepare invoices for the 6-month project duration. Staff management and scheduling associated with the following scope of work are also project management activities. 2. Develop Testing Plan HRG/CH2M HILL will develop an ASR pilot testing plan for Well No. 8. Pilot testing will entail baseline pumping tests, several cycles of recharge(injection), storage, and recovery pumping using Well No. 8. Potable water from the Elk River Municipal Utilities (ERMU) distribution system will be used for recharge. One objective of the pilot testing will be to evaluate the hydraulic response of the Mt. Simon-Hinckley aquifer to recharge and recovery pumping. Although the December 9, 2003 letter from the MDH suggests that monitoring wells may be required, the draft plan will be prepared describing a testing approach that does not include monitoring wells; or, an approach that will allow use of the existing test hole as a monitoring well. Costs associated with siting, designing, drilling, and testing of a monitoring well are not included in this scope of work. A second objective of the pilot testing is to demonstrate the feasibility of ASR using the Mt. Simon-Hinckley aquifer by thoroughly evaluating the water chemistry' during a series of cycle tests. CH2M HILL will perform a preliminary geochemical evaluation of native groundwater chemistry, potable recharge water chemistry, and Mt. Simon-Hinckley mineralogy to develop the ASR testing plan. The testing plan will include detailed sampling tables, parameter lists, and analytical methods, for the recharge water and recovered water. Multiple recovery water samples will be collected as the stored water is recovered to determine the percentage of the potable water that can be recovered without additional treatment beyond the addition of disinfectant residual. Given that treated water from other Mt. Simon-Hinckley aquifer wells will be used for recharge, adverse reactions during storage are not anticipated due to the geochemical similarity of the recharge water and native groundwater. CH2M HILL and HRG will develop the Testing Plan, and incorporate ERMU comments into the draft plan and submit the draft final Testing Plan to the regulatory agencies for approval. Agency comments will be incorporated into the final plan. Additional scope and fee will be required if monitoring wells or groundwater modeling are necessary before the agencies will approve the testing plan. Page 2 of 2 • MARCH 17,2004 3. Permitting Support CH2M HILL and HRG met with the Minnesota regulatory agencies to begin establishing the permitting requirements for ASR in Minnesota. On December 9, 2003, the MDH sent a letter to HRG summarizing the possible regulatory requirements for using Well No. 8 as an ASR well. Several agencies will be involved: Minnesota Department of Health is responsible for regulating source water protection, recovered water quality, and a variance from their Well Management Section may be needed for both the pilot test, and operational use. Department of Natural Resources is responsible for water appropriations permits. A modification will be required to amend the current ERMU permit to allow for use of the ASR well. Pollution Control Agency will require a variance to allow for injection of the potable water. US EPA, Region V is responsible for the Underground Injection Control (UIC) program, which regulates all types of injection wells. There is still considerable uncertainty on the degree of regulatory interaction and negotiation that may be involved to acquire the first ASR testing or operational permit in the State of Minnesota. Thus, the scope of this task is limited to 24 hours of engineering time to communicate and correspond with the various agencies to secure their approval to conduct limited ASR testing on Well No. 8. The above limitation includes one meeting with the agencies to discuss the proposed testing plan. The scope does not include developing a 3- dimensional groundwater model of the ASR test site, which may be required by MDH for Source Water Protection purposes. Future Phases Implementation of the approved testing plan is necessary to confirm the technical feasibility of ASR for Elk River Municipal Utilities. Pilot testing will likely involve 3 cycles of recharge and recovery over a 9 to 12 month period. The exact duration, laboratory requirements, and level of effort on the part of CH2M HILL, HRG, or ERMU staff cannot be determined until after the testing plan is accepted by the regulatory agencies. However, the typical cost of Phase I(A and B) pilot testing is typically between $100,000 and $250,000. The cost of Phase II testing is dependent on whether additional construction work is needed to allow for recharge operations, the number of testing cycles, laboratory analyses, and reporting requirements. Upon completion of a successful pilot testing program (Phase IA and B, and Phase II), ERMU 'ill have one full-scale operational ASR well permitted for subsequent operational use. Page 3 of 3 MARCH 17,2004 Assumptions 1. Permitting support will include up to 24 hours of office support by a qualified ASR engineer or hydrogeologist. One (1) day-long meeting associated with permitting support is included in the estimated budget, and will be attended by one qualified ASR engineer or hydrogeologist. 2. Ten (10) copies of the draft testing plan will be provided to HRG for distribution the ERMU and the various regulatory reviewers. Twenty(20) copies of the final testing plan will be produced and provided to HRG for distribution. 3. Chris Catlin, P.E., Howard R. Green, will stamp any documents as the professional engineer in charge, if required by the regulatory agencies. 4. The project duration will not exceed 6 months from notice to proceed. 5. The budget does not include consideration of a monitoring well for the pilot testing • plan 6. The budget does not include groundwater modeling 7. The cost of Future Phases of work is not included 8. Costs of water quality testing will be paid separately by ERMU, and are not included in the project cost. We will attempt to have MDH perform as many of the tests as possible, thereby reducing total project cost. Budget Compensation for the proposed services will be made based on labor hours at hourly rates plus expenses. The estimated cost is $45,000 Page 4 of 4 MAY. 04 '2004 14:33 651 644 9446 H R GREEN CO #6344 P. 002/004 PP:// Howard R. Green Company May 4, 2004 Re: 821480J Mr. Bryan Adams Elk River Municipal Utilities 13065 Orono Parkway Elk River, MN 55330 RE: PROPOSAL FOR ENGINEERING SERVICES AQUIFER STORAGE AND RECOVERY Dear Bryan: We propose to provide analysis and regulatory approval assistance for utilizing the aquifer storage and recovery (ASS) process per the attached scope of services dated March 17, 2004. This letter serves to provide a brief background of the ASR process and summarizes the work effort that we have proposed in our Phase 1A Scope of Services, Aquifer Storage and Recovery Testing Plan and Permitting along with an outline of future work necessary to complete the analysis and approval process, Background ASR is a process of storing filtered water underground for long periods of time for later use. Its application in Elk River would be to store excess filtered water during fall, winter and spring for use during summer peak demands. In this way, the existing treatment facilities are utilized more efficiently year-round, and additional treatment plant construction can be delayed or eliminated. ASR has been used in other states for several years. The process Is most common in Florida and California, where is has been used for over 20 years. There are two installations in Iowa that have been in use for over 5 years. The process has not yet been used in Minnesota. Gaining approval for using the ASR process involves several steps and coordination and approvals from several agencies. The proposal we have provided begins these steps and agency approvals. ovidd Our Proposal The proposal details a preliminary assessment of the ASR process, its suitability for Elk River, and forming a testing plan to be used to gain regulatory agency approval to begin pilot scale testing of Well #8. The services we are proposing include: 1. Perform a brief desktop analysis of the suitability of the ASR process for Elk River using the Mt. Simon aquifer a. Analyze geochemistry of aquifer opeo.15827460J ERMIJ No,13 Valve Sta1ASRVir-05 4 04-Adams-proposal.doc 2650 University Avenue West • Suite 400N • St. Paul, MN 55114 • 651/644-4389 fax 651/644.9446 toll free 868/368.4389 MAY.04 '2004 14 :35 651 644 9446 H R GREEN CO #6344 P.003/004 b. Analyze native groundwater and potable water recharge chemistry c. Determine 1 order estimate of quantity of water to be stored and recovered 2. Develop a testing plan to be used for Well#8. 3. Review testing plan with regulators (Minnesota Department of Health, Minnesota Department of Natural Resources, Minnesota Pollution Control Agency, United States Environmental Protection Agency), 4. Modify testing plan as appropriate, based on agency comments 5. Submit final testing plan to agencies for approval 6. Provide initial permitting support a. Provide 24 hours of effort towards gaining permit approval b. Target use of Well #8 as a pilot scale test of the ASR process The Intention of the Phase 1A work is to provide a preliminary assessment of the suitability of the ASR process and achieve agency approval to use Well#8 for pilot scale testing of the process. The effort described in the scope of services totals to $45,000 • Additional steps will be necessary in the future, as described below. Future Steps The Phase 1B work will provide additional analysis determining in more detail the suitability of the Mt. Simon aquifer for the ASR process. The proposed services for Phase 16 include the following: 1. Computer modeling of the aquifer's response to the ASR process 2. Additional geochemical analysis 3. Final permitting required for pilot scale testing 4. Pilot scale testing using Well #8 5. Cost analysis of ASR versus alternative methods of water supply Costs of the Phase 18 work are estimated to be $80,000 to $100,000, depending on whether or not the agencies require a monitoring/test well to be drilled. Phase 2 work will include final permitting work associated with the production ASR well and field testing of an existing well. The estimated engineering cost for this phase is $125,000, not Including design of the support systems that may be required (electrical, chemical feed, piping). Much of the support system work would not be required If an existing well was converted to ASR. The support system work required for a new ASR well is almost exactly the same as would be required for a new traditional production well. The Phase 2 work Is completed with one operational and permitted ASR production well. Benefits As we have previously discussed, the benefits of the ASR process are significant: 1. Ability to store filtered water underground to meet peak summer-time demands 2. Avoiding/delaying construction of additional treatment plants 3. Providing high quality water even during peak demands 4. Utilizing existing treatment plants more fully during fall, winter and spring seasons. 5. Providing additional system redundancy created by storing large quantities of treated water underground OMROJ1821480J ERMIJ No 8 1r c.Gre Q pany / • MAY.04 '2004 14:36 651 644 9446 H R GREEN CO #6344 P. 004/004 Also as previously discussed, this process provides large savings in capital expenditures by avoiding/reducing costs associated with treatment plant construction and/or expansions. For approximately $250,000 of ASR analysis and permitting, the utility could save approximately $1,000,000 of treatment plant construction cost($750,000 of savings). Future ASR wells would be permitted al a substantially reduced cost, thereby increasing savings on future ASR wells in lieu of additional treatment plants. In addition, operations and maintenance costs would be reduced, as ASR wells will require less effort to operate and maintain than would treatment plant equipment. We recommend proceeding with this preliminary ASR work in order for the utility to realize the benefits of the process as soon as possible. Sincerely, Howard R. Green Company R. Chris Catlin, P.F_. Project Manager Cc: Terry Maurer OaPROJ1821480J ERMU No.B+IekyQraFdRpC.:fl al t"laj"1y