Randolph County approves agreements to monetize landfill methane with WAGA Energy

Randolph County commissioners on June 1 authorized county staff to finalize and sign a package of agreements with WAGA Energy to harvest and process methane from the county landfill into renewable natural gas to be injected into the local pipeline.

The agreements approved by the board include a gas rights and development agreement and a tripartite cooperation agreement with Waste Management, plus a site lease for WAGA’s facility. The board voted to approve the first set of agreements by voice vote (motion passed 5 to nothing) and then approved the site lease in a second motion.

Why it matters: county leaders said the project preserves and monetizes an asset the county retained when it contracted landfill operations years ago and could generate recurring royalty revenue for the county for the life of the landfill. County counsel said the contracts contain indemnities, insurance, liquidated‑damage provisions and termination rights intended to limit the county’s financial exposure.

What was presented: Tony Largo of WEG/WAGA Energy described the technology: a containerized, stainless‑steel purification “WAGA box” that would accept current landfill gas and produce pipeline‑quality methane. Largo said the planned initial plant capacity is about 3,300 standard cubic feet per minute with the ability to expand; construction of a roughly 1‑acre plant site and a 1,000‑foot lateral to the Piedmont Natural Gas pipeline are part of the plan. Largo said the company will finance, build, own and operate the facility and will not ask the county for capital investment.

County outside counsel Grace Stiers, who led contract drafting and negotiation, told commissioners the transaction was structured with three interlocking documents—the gas rights agreement, a cooperation agreement among the county, Waste Management and WAGA, and a site lease—and that she negotiated terms to secure the royalty stream and protect the county from unexpected financial obligations. "I can, as your attorney recommend, approval of the motion to authorize the county manager to sign the documents," she said.

Revenue assumptions and risks: the county record includes tiered royalty sharing. Counsel described the royalty split in rough terms: 20% of annual project revenues to the county for up to $8 million of revenue, 25% between $8 million and $12 million, and 50% above $12 million, with additional modeled scenarios in the RFP. Counsel and staff emphasized that projections rely on assumptions about gas volumes, natural‑gas prices and environmental attribute (RIN) values; one projection in the RFP showed county annual revenues in the roughly $4–5 million range under specific assumptions, while other scenarios with expansion and different market assumptions showed larger amounts; counsel cautioned there are no guarantees. Staff and lawyers also told the board operations are expected to begin ramping up in 2028 with a testing and commissioning period.

Board action and next steps: the board authorized the county manager to sign the agreements substantially in the form presented and approved a lease amendment process once a sealed survey and legal description are available. Commissioners said they expect WAGA and Waste Management to finalize outstanding details with county staff and that air, building and other permits will be required before construction.

County officials said the arrangement includes reimbursement procedures for collection‑system construction and annual budget meetings among the parties to document and approve pipe and well work that Waste Management will construct and WAGA will pay for or maintain. The agreements also include reclamation and removal provisions requiring a bond near contract end to ensure equipment removal.

The board’s approval completes the county’s contractual selections; staff will proceed with engineering, permitting and contract execution.