In a recent government meeting, officials discussed the findings of the Landfill Renewable Natural Gas Agreement Audit, which was initiated at the request of the previous managing director. The audit aimed to assess the accuracy, completeness, and timeliness of payments received by the city, as well as to verify compliance with contract terms by the operator, Moro Renewables.

The audit covered the period from January 21, 2020, to January 31, 2024, and highlighted the proactive measures taken by the landfill team, particularly Chris and Maiella, in facilitating a transparent audit process. The team developed their own checklist and conducted annual audits, demonstrating a commitment to compliance and operational efficiency.

Moro Renewables operates a gas collection and control system that captures landfill gas, converting it into renewable natural gas for commercial sale. This operation not only mitigates odors for nearby communities but also generates significant revenue for the city. Since the partnership's inception, the city has received over $3.5 million in revenue, averaging approximately $370,000 per quarter.

The audit revealed several revenue streams for the city, including a fixed payment of 40 cents per million British thermal units (MMBtu) of renewable gas produced, regardless of whether it is sold. Additionally, the city earns a 4% royalty on gross revenue from gas sales and benefits from government-sanctioned credit systems.

However, the audit also identified areas for improvement. Recommendations included amending the contract to clarify offtake agreement criteria, requiring Moro to install a separate water meter to monitor utility usage, and transitioning to electronic payment methods to enhance security. Management has agreed to these recommendations and is taking steps to implement them.

The recent acquisition of Moro by Enbridge, an energy and pipeline company, was also noted, with assurances that contract terms will remain unchanged during a planned three-year transition period. The landfill management is optimistic about the future of the partnership and is committed to addressing the identified risks and enhancing operational practices.