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Council approves expansion and notice to proceed for landfill gas project; contract extension follows
Summary
Elkhart County approved an acknowledgment allowing expansion of the landfill-gas conversion system and granted notice to proceed to the county's project company, enabling a capacity increase and a time extension in the sale agreement.
Elkhart County officials voted June 19 to acknowledge expansion rights and issue a notice to proceed for the landfill gas (LFG) project developed by Elkhart Project LLC.
County Attorney Steve Olson told council that ongoing monitoring and work at the landfill indicate available LFG volumes above the initial expectations. The developer has requested to expand the conversion system capacity from the originally anticipated baseline (1,000 standard cubic feet per minute) up through a higher operating baseline; staff said the company now expects to expand processing capacity to at least 2,000 standard cubic feet per minute.
Under the previously negotiated landfill gas purchase agreement, arriving at higher production baselines entitles the developer to an automatic extension of the project's term. The council's acknowledgement clears the way for the conversion system expansion and for the contract to receive an automatic 10-year extension tied to baseline thresholds (extension structure: five years after the first baseline, five years after second baseline, with any further extension subject to agreement of the parties). Council approved the acknowledgement 7-0.
At the same meeting the council also approved a verification notice to proceed. County counsel said the company has met financing, bonding and insurance conditions required for construction to begin; the notice to proceed authorizes the firm to commence construction under the LFG purchase agreement. That motion also passed 7-0.
Why it matters: the county will receive revenue tied to the volume of methane processed through the conversion system; staff said increased gas capture and processing would boost county receipts. Commissioners and council members noted the project required close attention to financing, bonding and insurance milestones before construction could start. The approvals only authorize construction to begin after required conditions are verified and do not themselves guarantee a timeline for cash flow; the project company must still complete construction and commissioning steps before material revenue flows occur.
