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2022-269
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Last modified
1/5/2023 2:23:32 PM
Creation date
1/5/2023 2:22:41 PM
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Template:
Official Documents
Official Document Type
Amendment
Approved Date
12/20/2022
Control Number
2022-269
Agenda Item Number
15.B.5.
Entity Name
Nopetro Eco District, LLC
Subject
Amendment No. 3 to Landfill Gas Agreement
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On the months whereby the District provides an average gas flow greater <br />than or equal to 1,150 scfm per month, the LFG Price for a Landfill Gas to <br />RNG Facility, the Company shall pay to the District a royalty payment of <br />12% of the Gross Receipts generated by the RNG Facility from the <br />Acceptable LFG ("RNG Gross Receipts"). If the average gas flow is <br />greater than or equal to 1,150 scfin per month of unacceptable LFG, the <br />Company shall pay to the District a royalty payment of 10% of RNG Gross <br />Receipts. <br />2. On the months whereby the average gas flows are between 800 scfin and <br />1,150 scfin of Acceptable LFG, the LFG Price for a Landfill Gas to RNG <br />Facility, the Company shall pay to the District a royalty payment of 10% of <br />the RNG Gross Receipts. If the average gas flows are between 800 scfin <br />and 1,150 scfin per month of unacceptable LFG, the Company shall pay to <br />the District royalty payment of 8% of RNG Gross Receipts. <br />3. On the months whereby the average gas flows are less than 800 scfin of <br />Acceptable LFG, the LFG Price for a Landfill Gas to RNG Facility, the <br />Company shall pay to the District a royalty payment of 8% of the RNG <br />Gross Receipts. If the average gas flows are less than 800 scfin per month <br />of unacceptable LFG, the Company shall pay to the District royalty payment <br />of 6% of RNG Gross Receipts. <br />The above translated into table format is shown below where "x" is the average gas <br />flow rate: <br />Average Gas Flowrate <br />SCFM <br />Acceptable LFG <br />Unacceptable LFG <br />x > 1,150 <br />12% <br />10% <br />800:5 x < 1,150 <br />10% <br />8% <br />x < 800 <br />8% <br />6% <br />Notwithstanding the above, the District and the Company agree that royalty <br />payments will only be subordinate to any debt service payments between Company <br />and its financing party for the RNG Facility if the prior months' transacted RINS <br />price as listed on RIN Trades and Price Information I US EPA <br />(httt)s://www.eDa. Sov/fuels-registration-renortina-and-compliance-help/rin-trades- <br />and-price-information) is less than $1.25 per RIN. If subordination occurs, the <br />Company is still obligated to accrue any royalty payments due and will begin <br />making payments within 30 days. On day 31, interest will accrue on the unpaid <br />balance at a 6% annualized interest rate until paid. <br />ARTICLE 9 — LFG STATEMENT AND INVOICE <br />Section 9.1 is amended to read as follows (other clauses not referenced below will stay as <br />written): <br />A. Monthly LFG Statement. On the fifth (5t') day of each month, starting with the <br />first full month after the LFG Commencement Date, the Company shall provide a <br />Monthly LFG Statement to the District. The Monthly LFG Statement will be <br />marked "Confidential" and shall identify: <br />Amendment No. 3 to LFG Agreement Page 6 of 9 <br />
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