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5.5. ERMUSR 11-13-2007~j Elk River -~ Municipal Utilities 13069 Orono Parkway • P.O. Box 430 Elk River, MN 55330-0430 November 5, 2007 To: Elk River Municipal Utilities Commission Jerry Takle Jerry Gumphrey Jim Tralle From: Bryan Adams Subject: LFG Expansion Update Phone: 763.441.2020 Fax: 763.441.8099 The last couple of commission meetings we have discussed the expansion of the LFG electric generation facility. Waste Management has decided to allow us to do the expansion with the contraction arrangements similar to the existing agreements. Elk River Landfill is now in the process of securing the necessary permits to expand the landfill to the south. The preliminary schedule is as follows. Secure necessary permits for landfill expansion Now to June 2008 (Jerry Gumphrey will update commission on City council's feelings on Landfill expansion) Secure necessary air permits to expand LFG electric generation facility June 2008 to June 2009 Negotiate LFG generation facility agreements June 2008-January 2009 Purchase and place order for engine/generator January 2009 LFG generation facility construction July 2009-January 2010 LFG generation facility complete February 2010 On another LFG issue, we continue to be experiencing engine head maintenance problems due to high hydrogen sulfide (H2S) levels in the landfill gas from 4-6 wells. We are now changing heads at an approximate 4 month interval instead of a 12 month interval at a cost of approximately $40,000/change. We will be doing a major overhaul on the older 3 engines starting in February 2008. To solve the H2S issue, we were looking at re-piping the 4-6 wells to the existing flair thus bypassing the LFG generating facility. The estimated cost is $486,000. The only reasonable way to pay for this is to build this cost into the next plant expansion in 2009-2010 timeframe mentioned above. I am not sure if we should delay it this long. Another possibility is to find a H2S removal system and hope Sherburne County will fund the cost of the equipment with landfill abatement money. Staff will keep you posted on this issue.