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Mr. Patrick Klaers <br />September 4, 1997 <br /> <br />City will provide the site and methane gas to UPA at no charge and will allow <br />UPA to connect the power plant to the treatment plant motor control center. If <br />after the test period, the microturbine proves to be an economical source of <br />power and UPA believes it can continue to provide economical power for the <br />foreseeable future, the City and UPA will discuss the future disposition of the <br />plant. It could possibly stay at the site indefinitely, generating electricity as long <br />as methane is available. If not, UPA would remove the plant and return the <br />wastewater treatment plant to its original state. <br /> <br />Our request of the City of Elk River is to provide UPA with a letter of interest, <br />stating the City will provide the site and gas to UPA for the demonstration of the <br />microturbine on methane gas. This would not be a contractual obligation. It is <br />simply a statement that the City is interested in participating in this project, <br />contingent upon the City and UPA agreeing to certain terms and conditions at a <br />later date. We believe the City and UPA will both benefit from participation in <br />this project. It enhances the "Elk River: Energy City" image and goals and helps <br />UPA gain valuable information on this technology. In addition, it is our intent to <br />present our findings at a national conference, giving "Energy City" further <br />recognition. <br /> <br />Your letter of interest would greatly enhance our chances of receiving the grant. <br />Therefore, if possible, we would appreciate receiving the letter by September 12. <br />You likely have many questions. Please feel free to contact me at 241-2300 and <br />I will gladly discuss this in greater detail. <br /> <br />Sincerely, <br /> <br />UNTED POWER ASSOCIATION <br /> <br />Stephen J. Shurts, P.E. <br />Manager, Generation Development <br />SJS\kflcityofer <br /> <br />Enclosure <br /> <br />c: Stephen Rohlf, City of Elk River <br /> <br /> <br />