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5.6. ERMUSR 06-12-2007Elk River Municipal Utilities 13069 Orono Parkway Elk River, MN 55330 June 6, 2007 To: Elk River Municipal Utilities Commission Jerry Takle Jerry Gumphrey Jim Tralle From: Bryan Adams Subject: Landfill Gas Facility phone: 763.441.2020 Fa 763.441.8099 As you may recall, last year we experienced premature head and valve failure on the engines at the landfill. The failure was thought to be high hydrogen sulfide from sheet rock in the landfill. Further testing by Waste Management has confirmed our thoughts but the hydrogen sulfide concentration is much higher than anticipated. Waste Management is now pursuing isolating the effected wells with an alternate piping system and installing a candlestick flare for those wells only. This modification takes a revision to the air permit by MPCA. MPCA is not noted for their speed and efficiency, and this may take some time. In a related issue, Waste Management has installed additional gas wells and has enough gas to supply two more engines. Our initial intent was to expand the landfill gas electric generation facility when the landfill expands. Waste Management is not hopeful that the landfill will be expanded. The cost of the land to the south is far above what Waste Management desires to pay. Does this commission desire to pursue adding two more units? This would probably be a stand- alone facility. The estimated cost is in the $2,000,000 range and I am sure Sherburne County would finance this again but that will be verified. There is a complicating factor. Due to the perceived price for renewable energy, Waste Management may desire to do this addition on their own.