Elkhart County approves consent and severance agreements to support landfill gas project

The Elkhart County Board of Commissioners on Aug. 11 approved a consent and agreement with Elkhart Project LLC and JPMorgan Chase Bank and a related severance agreement with Delcar Project LLC and JPMorgan Chase Bank to support a proposed landfill gas conversion project, County Attorney Steve Olson told commissioners.

Olson said the documents implement provisions of the underlying gas-rights agreement for a project tied to Northern Biogas and are intended to make it possible for a lender to step in and keep operations running if the operating company encounters financial distress. Under the consent and agreement, the lender would have rights tied to its security interest in equipment so operations can continue without delay, Olson said. He told commissioners the county negotiated language to ensure the county receives owed payments before the lender in relevant circumstances.

Olson described the severance agreement as a protection that treats installed equipment as removable fixtures if necessary, so the lender may remove equipment but cannot place liens on the county'owned land. He said those measures are meant to leave county land in no worse condition than before the project and to preserve county priority for payment if revenues are owed.

Both documents were presented for approval subject to final legal review and were carried unanimously. Olson said the county and JPMorgan were finalizing any remaining language adjustments.

The agreements advance steps required under the county's earlier gas-rights understanding with the project operator and its lender; commissioners did not take public testimony during the agenda item.

Next steps noted in the meeting record include completion of final legal review and execution of the consent and severance documents.