Common Contracts

From: Donald Greeley, Deputy Director of Department of Water Management Simon Lobdell, PE, Civil Engineer III Subject: Third Amendment to Landfill Gas Utilization, Cooperation and Royalty agreement with Methane Power Durham, LLC

April 5th, 2012

• Filed
  April 5th, 2012

The City entered into a contractual agreement with Methane Power Durham, LLC (hereafter MP Durham) on July 26, 2008 to use methane gas drawn from the City’s closed landfill for the generation of electricity. The agreement identified that MP Durham would pay a royalty of $85,000 per generator on site. MP Durham has requested that the royalty agreement be modified to make the royalty payment proportional to the amount of gas available for their generators. The modification would allow MP Durham to maximize their generators and their use on site, thus, allowing MP Durham to keep their third generator on site. The Department of Water Management Staff has reviewed the proposed modification and is in support of the modification.