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Letter of Intent <br /> <br />Landfill Gas to Energy Project <br /> <br />Elk River Municipal Utilities ("ERMU") and Elk River Landfill Inc. ("ERL") wish to <br />express their intent to enter into negotiations with respect to an agreement or agreements <br />providing for the design, construction and operation ora landfall gas-to-energy project at <br />the Elk River Landfill. <br /> <br />WHEREAS, ERL owns and operates the Elk River Landfill Landfill gas, consisting <br />primarily of methane and carbon dioxide, is produced as a byproduct of the decomposition <br />of waste within the landfall. <br /> <br />WHEREAS, ERL wi.shes to sell landfill gas extracted from the landfill to ERMU on an <br />exclusive basis for use as fuel in a landfill gas to energy, facility., and ERMU wishes to <br />purchase the landfill gas, subject to ERMU and ERL executing an agreement containing <br />mutually acceptable terms and conditions. <br /> <br />WHEREAS, ERMU wishes to generate and supply electricity in an environmentally <br />sound manner to its customers. <br /> <br />NOW THEREFORE, ERi, and ERMU agree that they will negotiate exclusively with one <br />another and negotiate in good faith with the respect to the development of the landfill gas- <br />to-energy project described above. The negotiations will be based on the premise that: <br /> <br />ERL will sell landfill gas to ERMU, supply the design specifications and <br />provide technical oversight to assist ERMU in developing a plant design for a <br />landfill gas to energy facility and in obtaining industry standard warranties from <br />the manufacturer of the generating equipment; <br /> <br />ERL will provide assistance and guidance relating to permits, eonsm~ction, <br />operation and maintenance of the landfill gas to energy facility; <br /> <br />o <br /> <br />ERL will assist ERMU in identifying a suitable engineering and/or general <br />contractor who ~4.L! design and build the facility based on plans and <br />specifications approved by ERL and ERMU; <br /> <br />ERMU will lease or purchase the land on which the generating facility will be <br />located, obtain permits (with ERL's assistance as required by ERMU) and <br />provide interconnection between the generating facility and ERMU's electric <br />distribution system; <br /> <br /> <br />