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<br />Landfill Gas <br />March 31, 1994 <br />Page 2 <br /> <br />e <br /> <br />have received, ERL had to substantially discount its gate fee, which further <br />complicates our financial position. <br /> <br />The bottom line is, it takes approximately $180,000 per month to maintain operations <br />at ERL regardless of waste flows. During the first 4 months of this year we fell short <br />of that mark from $35,000 to $75,000 per month. This has quickly drained any cash <br />reserves that we had. <br /> <br />ERL has cut as much out of the budget that it can without severely damaging the <br />services that we provide. Further cuts affect our ability to meet regulatory <br />requirements, paperwork requirements, services to our customers, or would cause <br />lawsuits which could lead to bankruptcy. ERL has sold equipment, tried to re- <br />negotiate loans, cut hours of operation and laid off employees in an attempt to control <br />the bleeding. <br /> <br />e <br /> <br />Marchand April had shown an increase in waste flows at ERL. This increase was <br />due to the road restrictions which were blocking Jlowtoourcompetition in Wright <br />County. These restrictions have now been lifted, and volumes have again dropped <br />off. <br /> <br />To complicate matters even further, it is almost impossible to forecast what will <br />happen in the next year. Legislation is popping up all over the place that could either <br />increase the problems or diminish them. Two lawsuits currently being argued will <br />have an affect one way or the other. The only prudent way to forecast is to plan on <br />things getting worst instead of better. <br /> <br />ERL intends to install a gas extraction system at its facility this year. This system is <br />needed to curb the migration of landfill gas off our property. It is our opinion that this <br />system is needed this year ERL estimates that the capital expenditures for this <br />system will be approximately $252,000.00. This does not include excavation work or <br />labor that we would supply out of our normal working crew. <br /> <br />The following paragraphs explain landfill gas and the systems used to control it: <br /> <br />Landfill Gas: <br /> <br />e <br /> <br />Landfill gas is made up of numerous gaseous chemicals, the largest volume of <br />which is methane. Methane is generated when certain materials are biologically <br />decomposed in a non-oxygen atmosphere. Many different things generate methane <br />gas, including mixed municipal waste (MSW), swamps, and manure piles. When <br />large amounts of methane gas are produced, manageability of the gas can become a <br />problem. This is due in part to the nature of the construction of the landfill, the <br />