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Reno County advances methane-capture easement with Spark Renewables, commissioners stress county control

December 23, 2024 | Reno County, Kansas


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Reno County advances methane-capture easement with Spark Renewables, commissioners stress county control
Reno County commissioners voted to approve staff's recommendation to advance an easement and gas-rights agreement with Spark Renewables (also referenced as Meadowlark/Spark) to capture and process landfill gas into pipeline-quality methane.

Patrick (county staff) introduced the project and Norman Herrera, chief executive officer of Spark Renewables, walked the commission through the technical approach: use existing horizontal and vertical collection wells, install an off-site processing facility on leased county land, and treat impurities so the gas meets Kansas Gas Service pipeline quality. Herrera said the company would install metering at the interconnect to the county's wellheads, assume processing operations and staff the plant with 4–5 full-time employees.

Herrera provided projected financial terms presented in the packet: an initial royalty-floor monthly payment (cited at $37,500 per month in the presentation) and an agreed royalty share on produced and processed gas (presentation referenced an 18.75% royalty on "brown gas" and the county would receive a share of environmental attributes). The presentation said project revenue scenarios were included for years 2, 5 and 10 and that the firm anticipated an 18-month timeline to construction and commissioning.

Commissioners extensively questioned safety, access, control and long-term liability. Staff emphasized the county's obligation to ensure landfill operations comply with Kansas Department of Health and Environment requirements and said final legal language must preserve county control over well field operations, access routes and final sign-off on design and risk issues. Norman Herrera said Spark would perform HAZOP-style training with county first responders and provide technical training; he confirmed processing would produce renewable fuel credits (RINs) and that obligated refiners buy those credits, which supports the higher market value for the environmental attribute component of the product.

Commissioners also asked about where unprocessed byproduct gas would go; Herrera replied that non-pipeline-quality byproduct is today combusted (flared) and that future byproduct uses (e.g., hydrogen) might be explored. Staff said certain permitting and easement terms (access routes, metering, rights and a future legal part two) still needed to be finalized before the agreement becomes binding.

After questions and discussions about oversight and final legal review, the commission approved staff's recommended motion to move forward with the easement framework, with a 4-0 roll call. Commissioners requested further refinement of the agreement language on access, monitoring, liability and enforcement prior to final execution.

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