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AMENDMENT NO. ONE TO CONTRACT K-1819-92: TO A PROJECT DEVELOPMENT AGREEMENT BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND ENTEGRITY ENERGY PARTNERS, L.L.C TO PROVIDE INVESTIGATION INTO THE POSSIBILITY OF SELLING DIGESTER BIO-GAS AND BUDGET APPROPRIATION FROM THE WATER RECLAMATION FUND BALANCE.
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BACKGROUND: The Norman Water Reclamation Facility (NWRF) continues its efforts for efficiency and resourcefulness and researching ways to reuse or recycle any of the products it produces such as its highly treated effluent, bio-solids and bio-gas (methane). Council authorized and approved Contract K-1819-92 between the Norman Utilities Authority (NUA) and Entegrity Energy Partners, LLC to provide investigation into the possibility of selling bio-gas.
DISCUSSION: In December 2017, Entegrity Energy Partners, LLC (Entegrity) contacted the NWRF to determine the possibility of capturing, cleaning and selling the bio-gas produced by the anaerobic digesters. A preliminary review completed by Entegrity in March 2018 determined the NWRF produced sufficient bio-gas to merit additional investigation. This investigation was considered Phase 1 of the project. As a result of the Phase 1 investigation, Entegrity estimated annual revenues of $50,000 to over $100,000 over a 10 year period.
The Phase 2 agreement (Contract K-1819-92) approved by Council on January 8, 2019 is to determine if the project is feasible. Entegrity will more specifically determine the quantity and quality of the bio-gas available, the treatment necessary to clean the bio-gas, the ability to transport the gas to a willing purchaser and the cost of this endeavor.
The initial cost of Phase 2 investigation will be borne by Entegrity. The Phase 2 investigation will culminate in the selection of one of the three following alternatives.
* Alternative One - The investigation shows the project is not feasible; in this case the NUA owes nothing and both parties end the relationship.
* Alternat...
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