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ERC forwards request to County Board to negotiate amendment extending Verity landfill gas agreement deadline
Summary
On June 3, 2025, the Marathon County Environmental Resources Committee voted to forward to the County Board authorization for staff to negotiate an amendment to the landfill gas purchase agreement with Verity if Verity cannot reach commercial operation by Sept. 1, 2025.
The Marathon County Environmental Resources Committee on June 3, 2025, voted to forward to the County Board a recommendation that staff be authorized to negotiate an amendment to the landfill gas purchase agreement with Verity to mitigate the county's financial impact if commercial operation is delayed.
Director Heigenbroecher summarized recent project challenges and permitting and easement issues for the renewable natural gas plant. He said the company notified the county that "there may be challenges reaching COD or commercially operational delivery to the RNG pipeline by September 1." Heigenbroecher said the county's contract includes a right to terminate if commercial operation is not achieved by Sept. 1, 2025, but that the contract also allows the county, in lieu of termination, to negotiate a financial arrangement to minimize county impact.
Heigenbroecher said discussions with Administrator Leonard and Corporation Counsel Purner yielded a recommendation to authorize staff to negotiate an amendment that would extend the commercial operation deadline to Dec. 31, 2025, and to address royalty or other financial terms to limit county losses while giving the developer additional time to reach commercial operation.
Corporation counsel confirmed that the committee may forward such a recommendation to the County Board, which would have authority to approve any contract amendment. Supervisor Breaux moved to forward the recommendation to the County Board; Supervisor Crow seconded the motion. Committee members discussed how a negotiated payment would be calculated; Heigenbroecher said staff would look at records of what gas could have been delivered and use that to evaluate the county's royalty entitlement during any delay.
The committee voted by voice and the chair recorded "All in favor, say aye" followed by "Opposed? Motion carries." The motion to forward the authorization to negotiate the amendment passed and will go before the County Board later in June for final action. No detailed amended contract language was approved at the committee level; the motion authorized staff to negotiate and present any amendment to the County Board for approval.
