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~j <br />Elk River -~ <br />Municipal Utilities <br />13069 Orono Parkway • P.O. Box 430 <br />Elk River, MN 55330-0430 <br />November 5, 2007 <br />To: Elk River Municipal Utilities Commission <br />Jerry Takle <br />Jerry Gumphrey <br />Jim Tralle <br />From: Bryan Adams <br />Subject: LFG Expansion Update <br />Phone: 763.441.2020 <br />Fax: 763.441.8099 <br />The last couple of commission meetings we have discussed the expansion of the LFG electric <br />generation facility. Waste Management has decided to allow us to do the expansion with the <br />contraction arrangements similar to the existing agreements. Elk River Landfill is now in the process <br />of securing the necessary permits to expand the landfill to the south. The preliminary schedule is as <br />follows. <br />Secure necessary permits for landfill expansion <br />Now to June 2008 <br />(Jerry Gumphrey will update commission on City council's feelings <br />on Landfill expansion) <br />Secure necessary air permits to expand LFG electric generation facility June 2008 to June 2009 <br />Negotiate LFG generation facility agreements June 2008-January 2009 <br />Purchase and place order for engine/generator January 2009 <br />LFG generation facility construction July 2009-January 2010 <br />LFG generation facility complete February 2010 <br />On another LFG issue, we continue to be experiencing engine head maintenance problems due to <br />high hydrogen sulfide (H2S) levels in the landfill gas from 4-6 wells. We are now changing heads at <br />an approximate 4 month interval instead of a 12 month interval at a cost of approximately <br />$40,000/change. We will be doing a major overhaul on the older 3 engines starting in February 2008. <br />To solve the H2S issue, we were looking at re-piping the 4-6 wells to the existing flair thus bypassing <br />the LFG generating facility. The estimated cost is $486,000. The only reasonable way to pay for this <br />is to build this cost into the next plant expansion in 2009-2010 timeframe mentioned above. I am not <br />sure if we should delay it this long. Another possibility is to find a H2S removal system and hope <br />Sherburne County will fund the cost of the equipment with landfill abatement money. <br />Staff will keep you posted on this issue. <br />