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BioResource Development, LLC - Lease at W&RRC_BRD Three, LLC Copyright 2014 City of Dubuque Items to be set for Public Hearing # 2. ITEM TITLE: BioResource Development, LLC - Lease at Water& Resource Recovery Center SUMMARY: City Manager recommending a public hearing be set for August 15, 2016, on the Lease between the City of Dubuque and BIRD Three, LLC at the Water and Resource Recovery Center. The night of the public hearing, the City Council will also be considering the Development and Operating Agreement. RESOLUTION of Intent to dispose of an interest in the City of Dubuque-owned property by lease between the City of Dubuque and BIRD Three, LLC SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution, Set Public Hearing for 8/15/16 ATTACHMENTS: Description Type Development& Operating Agreement and Lease with City Manager Memo BioResource Development LLC-MVM Memo Water& Resource Recovery Center Information Sheet Supporting Documentation Lease Supporting Documentation Operating Agreement Supporting Documentation Resolution Supporting Documentation THE CM OF Dubuque AAA-A m c DUB E 11 1r Masterpiece on the Mississippi -2012I rP PP �oo� .zo13 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Development and Operating Agreement and Lease between the City of Dubuque and BioResource Development LLC (BIRD Three, LLC) DATE: July 27, 2016 In 2013 the City's new Water & Resource Recovery Center went online, producing biogas through the anaerobic digestion of waste. The Water & Resource Recovery Center converts waste into electricity and heat. The anaerobic digestion process produces methane gas. The gas is captured, cleaned, and burned to power turbines that generate electricity. The heat produced through this process is used to heat the complex, and the electricity produced is used to power the facility. Currently, the facility produces enough electricity to power approximately 300 households per day, which is 70% of the electricity needed to operate the facility. Thanks to the ability to produce electricity and operational efficiencies, the facility's electricity demand has dropped by 70-75%, from 1000 kilowatts down to just 250-300 kilowatts. Because of these efficiencies and the plant now producing its own electricity, annual electricity costs have dropped from $579,205 in fiscal year (FY) 2011 to $342,230 in FY2015, for a savings of $237,000. Before the facility upgrade, the bio- solids produced at the plant were incinerated. In FY2011, the City spent $300,000 on fuel oil for this activity at the plant. Because anaerobic digestion is now used, incineration is not needed so the City was able to reduce operating costs by $300,000 per year. The Water & Resource Recovery Center is producing more methane than can be used at the facility. The City and the Greater Dubuque Development Corporation have been researching methods to use this excess methane to increase revenues and further reduce operating costs. The requirements set for any methane gas beneficial use project includes: ❑ Must create additional positive environmental outcomes. ❑ Must generate revenue or cost reductions. ❑ Must create opportunity for additional economic development and growth in the Greater Dubuque region. 11 Must not require additional direct investment or risk from the City. David Lyons of the Greater Dubuque Development Corporation, as part of their Sustainable Innovations Program, began conducting an opportunity review in November of 2014, both internally with industrial prospects and externally with partners such as Alliant Energy, Black Hills Energy, Iowa Department of Natural Resources, and many others. In December 2014 Greater Dubuque Development identified bio-fuel utilization as a potential opportunity. Greater Dubuque Development contacted and held meetings with potential private sector partners, focusing in January 2015 on a group led by Omaha-based BioResource Development LLC and which included local collaboration with Black Hills Energy (Dubuque's local natural gas utility) and Unison Solutions (a local manufacturer of biogas processing equipment). Over the following six months Greater Dubuque Development entered into discussions and confirmed that a collaborative and unique bio-fuels project held the best opportunity to meet the needs of the Water & Resource Recovery Center (and potentially in the future the needs of the Dubuque Metropolitan Area Solid Waste Agency). Greater Dubuque Development arranged a meeting between BioResource Development and City staff and recommended pursuit of this project to accomplish the "beneficial use" requested. Working with the Water & Resource Recovery Center, City Attorney Barry Lindahl and City staff, Greater Dubuque Development created base drafts for both an operational agreement and a lease agreement between BioResource Development and the CityM/ater & Resource Recovery Center. The project design being presented to the City for the Water & Resource Recovery Center includes the following major components: ❑ Presently the Water & Resource Recovery Center partially cleans a portion of its biogas and burns (or "flares") the remainder. ❑ BioResource Development would co-locate equipment at the Water & Resource Recovery Center and further process all biogas produced. It would deliver that gas to the Black Hills Energy pipeline, which would qualify for gas revenues and for RIN (Renewable Inventory Number) payments due to its use as an advanced bio-fuel. ❑ BioResource Development would replace the Water & Resource Recovery Center's biogas with an equal amount of natural gas, which the Water & Resource Recovery Center would use to off-set up to all of its electricity needs, off-set up to all of its natural gas needs and create additional revenue through the use or sale of excess electricity generated. ❑ In addition to the environmental value of no longer flaring waste methane gas and the economic value of off-setting present energy expenditures and adding new revenue through more efficient energy generation and use, the City would also receive an annual operating fee of ten thousand dollars ($10,000) and five percent (5%) of gross revenues that BioResource Development would generate from the sale of any products related to the biogas. 2 ❑ Lastly, Bio Resource Development will pay a monthly rent to the Water & Resource Recovery Center calculated to cover all costs which will be reexamined annually to assure coverage of all incurred costs. As designed, the proposal meets all criteria initially set out for a successful beneficial use project: ❑ It improves environmental outcomes by eliminating the "flaring" of excess methane waste biogas. ❑ It generates both cost reductions and new revenues for the Water & Resource Center and City. ❑ It creates local economic opportunity and growth working with local partners to create renewable energy here in the community. ❑ It does not require any additional direct investment or risk from the City. Given the technical nature of the project, approval of these agreements would initiate a final feasibility study and result in a final Operations Plan. If the feasibility is confirmed and the City Manager accepts the Operations Plan, the approved agreements will be in full force and effect. If the City Manager does not accept the Operations Plan the parties are to work diligently and in good faith to modify and/or amend the proposed Operations Plan so as to be mutually agreeable to the parties. If the City does not accept the Operations Plan within one hundred twenty (120) days then either party may terminate the agreements. This project continues Dubuque on the path towards greater use of alternative energy sources and advances the efforts to meet the Greenhouse Gas Reduction Goal of 50% by 2030. Given the unique ability for this project to meet all pre-established requirements for a "beneficial use" project for excess biogas generated by the Water & Resource Recovery Center, Greater Dubuque Development Corporation Sustainable Innovation Consultant David Lyons and Water & Resource Recovery Center Manager William O'Brien recommend approval of the Development and Operating Agreement and that a public hearing be set for August 15, 2016, on the Lease between the City of Dubuque and BioResource Development LLC. Final consideration of the Development and Operating Agreement will also occur at the Public Hearing for the lease. / 1&� k.,^ /A,- Mic ael C. Van Milligen MCVM:jh Attachment 3 cc: Rick Dickinson, President & CEO, Greater Dubuque Development Corporation David Lyons, Sustainable Innovations Manager, Greater Dubuque Development Corporation Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager William O'Brien, Water & Resource Recovery Center Manager John Klostermann, Public Works Director Cori Burbach, Sustainable Community Coordinator 4 Prepared by: Barry A. Lindahl, Esq. 300 Main Street Suite 330, Dubuque IA 52001 563 583-4113 Return to: Barry A. Lindahl, Esq. 300 Main Street Suite 330, Dubuque IA 52001 563 583-4113 RESOLUTION NO. 291-16 INTENT TO DISPOSE OF AN INTEREST IN CITY OF DUBUQUE OWNED PROPERTY BY LEASE BETWEEN THE CITY OF DUBUQUE AND BRD THREE, LLC WHEREAS, the City of Dubuque (City) is the owner of the Dubuque Water and Resource Recovery Center (WRRC) located in Dubuque, Iowa (the WRRC Property) legally described as: Part of Lot 1 of 1 of the NE NW, and Lot 1 of 2 of 1 of the NW NE and Lot 2 of 1 of the NE NW all in Section 6 Township 88N Range 3E of the 5th P.M., in Dubuque County, Iowa, according to the recorded plats thereof and that certain portion of the WRRC Property shown on Exhibit A attached hereto and incorporated by reference herein (the Site); and WHEREAS, City is the owner of the gas management system located at the WRRC Property (WRRC Gas Management System, and together with the Site, are collectively referred to as the Premises); and WHEREAS, City desires to lease the Premises to BRD Three, LLC (BRD), and BRD desires to lease the Premises from City, pursuant to the Water and Resource Recover Center Lease attached hereto (the Lease) for the purposes of utilizing the WRRC Gas Management System and constructing, maintaining and operating a gas utilization system to process digester gas from the WRRC into natural gas and distribute such gas for environmentally beneficial uses (the BRD Gas System), subject to and in accordance with the provisions of this Lease and that certain Water and Resource Recovery Center Gas System Development and Operating Agreement to be executed by the parties in connection with the Lease (the Development and Operating Agreement); and WHEREAS, the City Council has tentatively determined that it would be in the best interests of the City to enter into the Lease; and WHEREAS, the City Council has determined that the proposed Lease should be set for public hearing. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The City of Dubuque intends to dispose of its interest in the Premises by Lease with BRD THREE, LLC, a copy of which Lease is now on file with the City Clerk, City Hall, 13th and Central, Dubuque, Iowa. Section 2. That the City Clerk is hereby authorized and directed to cause this Resolution and a notice to be published as prescribed by Iowa Code Section 364.7 of a public hearing on the City's intent to dispose of the Property to be held on the 15th day of August, 2016, at 6:00 o'clock p.m. at the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa. Passed, approved and adopted this 1st day of Auust, 2016. Roy D. Buoy `C/layor ATTEST: Kevin F. irnstahl, City Cler Exhibit A Site 4 .44 - 1 L.A .4.4.4,4-.34,44444.44747= r • -'13q1Icting prcfces-sing. r „ ,4414, t ,•• , ^ I g = 4,44‘ '44,44 s, "4rkst,41 '41 .4, 'Z44474,'411.. a- zEEZ`rAlL t A , SRD Three BloGas Facility Location CITY OF DUBUQUE, IOWA OFFICIAL NOTICE PUBLIC NOTICE is hereby given that the City Council of the City of Dubuque, Iowa, will hold a public hearing on the 8th day of August, 2016 at 6:00 PM in the Historic Federal Building, 350 West 6th Street, second floor, Dubuque, Iowa, at which meeting the City Council proposes to dispose of an interest in the following described real property by lease to BRD Three, LLC: Part of Lot 1 of 1 of the NE NW, and Lot 1 of 2 of 1 of the NW NE and Lot 2 of 1 of the NE NW all in Section 6 Township 88N Range 3E of the 5th P.M., in Dubuque County, Iowa, according to the recorded plats thereof At the meeting, the City Council will receive oral and written comments from any resident or property owner of said City to the above action. Written comments regarding the above public hearing may be submitted to the City Clerk's Office, City Hall, 50 W. 13th Street, on or before said time of public hearing. Copies of supporting documents for the public hearings are on file in the City Clerk's Office, and may be viewed during normal working hours. Any visual or hearing impaired persons needing special assistance or persons with special accessibility needs should contact the City Clerk's Office at (563) 589-4100 or TTY 563) 690-6678 at least 48 hours prior to the meeting. Dated this 5th day of August, 2016. Kevin S. Firnstahl, CMC City Clerk 1t 8/5 DubuqueWater & Resource RecoveryCenter ROWING RETURN ON INVE$TMENT Ay.� a Center (WRRC), the City's wastewater Dubuque's Water & Resource Recover treatment plant located on Julien DUBUQUE nwww WATER&RESOURCE ` = Dubuque Drive, underwent a nearly $70 RECOVERY _- __= _ _CENTER -- -�- '�� million facility upgrade that was "== completed in 2013. At the time it was Et � . the lONO argest capital improvement project in the city's history. The new treatment kT19 IroI �I� �� system has now been in operation for two When water and "other stuff" go down the fiscal years so it's a good time to review • drain in Dubuque, it ends up at the Water & how this major investment is performing. Resource Recovery Center, which processes an average of 10 million gallons of wastewater per day! Pure-oxygen biological treatment FROM BURNING WASTE (THE OLD PROCESS)TO is used to clean the wastewater. PRODUCING A USEFUL PRODUCT Then, anaerobic digesters use 12 %z tons of soil amendment(fertilizer)are produced PER DAY helpful bacteria to convert the That's an average of ei ht semi loads erweek of useful That's the 9 9 p equivalent of wastewater sludge into a material created instead of being burned! 144 showers per minute `- entering the facility's treatment system! I I Thanks to the ability to produce electricity and operational efficiencies, the facility's electricity demand has dropped by 70-75%, from 1000 kilowatts down to just 250-300 kilowatts. ANNUAL ELECTRICITY $237 000 Because of these efficiencies and the plant now producing its own electricity, annual electricity COST SAVINGS! i costs have dropped from $579,205 in fiscal year (FY) 2011 to $342,230 in FY2015. ANNUAL FUEL-OIL $300,000 Before the facility upgrade, the bio-solids produced at the plant were incinerated. In FY2011, the City COST SAVINGS! spent$300,000 on fuel oil for this activity at the plant. Because anaerobic digestion is now used, incineration is not needed so the City was able to reduce operating costs by$300,000 per year! ANNUAL STAFFINGOperating efficiencies of the WRRC now allow the plant to operate with one less employee, resulting COST SAVINGS! 69,000 in a cost savings of$69,000 per year. $606,000 TOTAL ANNUAL OPERATING COST SAVINGS ENERGY SUPPORTING LOCAL BUSINESSES & JOBS PRODUCTION Thanks to the facility upgrades, the WRRC now has the capacity to process high-strength waste, which means the facility provides a critical service to The WRRC converts waste into a variety of local businesses that produce high-strength waste through electricity and heat.The anaerobic digestion their production or manufacturing processes. Local companies like Hormel, process produces methane gas. The gas Rousselot, and Western Dubuque Biodiesel can now take their waste is captured, cleaned, and burned to products to the WRRC to be processed. In fact, Hormel's cost per gallon for power turbines that generate electricity. The heat produced through this process is treatment/disposal was reduced by 60%. Hormel previously hauled their used to heat the complex, and the high-strength waste over 90 miles to Madison, Wis., every day. electricity produced is used to power the facility. Currently, the facility produces The WRRC's ability to process these materials saves those companies the enough electricity to power approximately, cost of having to transport that waste to other locations for disposal and 300 households per day, which is 70% of the makes Dubuque a more attractive location for business expansion and new electricity needed to operate the facility. businesses. The WRRC is expected to be electrically Processing high-strength waste also produces revenue for self-sufficient within two years. the City. The WRRC expects to generate $240,000 in revenue through this activity this year. The WRRC is producing more methane than can be used at the REDUCED ENVIRONMENTAL IMPACT facility. The City is researching A new ultra-violet light disinfection process means the facility is no methods to use this excess methane longer introducing one ton of toxic chlorine gas into the environment to increase revenues and further reduce operating costs. every week. The wastewater treatment process results in the removal of 10 tons of oxygen demand per day, which previously went into the Mississippi A NEW AND ABOVE-AVERAGE River. Fish and other aquatic life especially appreciate this benefit! FACILITY FOR AVERAGE RATES The upgrade of the facility is one component of a 2011 consent decree settlement between the City and the U.S. Department of The operation of the Water and Resource Recovery Center and the$70 Justice and the FnvironmentalProtection Agency. million upgrade made to the facility are supported through the sanitary sewer user fees paid by customers. Dubuque's average household rate for The new process improves our local air quality and supports the currentfiscal year(2016)is$36.96 per month. Although Dubuque has one of the newest wastewater treatment facilities in the state,the average Dubuque's goal to reduce greenhouse gas emissions 50 percent by monthly rate for the other I I cities in Iowa with populations over 50,000 is 2030. The elimination of the incineration process has eliminated $3a.30,just seven percent below Dubuque's rate. Davenport,Des Moines, harmful particulate matter being released into the environment. and Ankeny have higher rates with Ankeny's rate at$51.65 per month,56 percent higher than Dubuque's rate. The new facility uses 400 kilowatts less per year, which results in 4,715 metric tons of carbon dioxide equivalent NOT going into our !Onhn ' ' atmosphere. That's the equivalent of removing 693 cars ' from the road every year or the reduction of 300 homes' energy use. k v 1 oe Water & Resource Recovery Center currently erates at 60 65% of its capacity,which means LEARN MORE! BUB*FE there is considerable capacity to meet www.cityofdubuque.org/wrrc residential and industrial growth. SUSTAINABLE or 563-589-4116 C�DusuQUE WATER AND RESOURCE RECOVERY CENTER LEASE BETWEEN CITY OF DUBUQUE AND BRD THREE, LLC This WRRC LEASE(this "Lease") is made and executed this day of 12016 (the "Effective Date'), between the City of Dubuque, a governmental entity ("City'), and BRD Three, LLC, a limited liability company(`BRD"). WHEREAS, City is the owner of the Dubuque Water and Resource Recovery Center ("WRRC') located in Dubuque, Iowa (the "WRRC Property") and that certain portion of the WRRC Property legally described in Exhibit A attached hereto and incorporated by reference herein (the"Site'). Further, City is the owner of the gas management system located at the WRRC Property as described in Exhibit B attached hereto and incorporated by reference herein ("WRRC Gas Management System", and together with the Site, are collectively referred to as the`Premises'). WHEREAS, City desires to lease the Premises to BRD, and BRD desires to lease the Premises from City, for the purposes of utilizing the WRRC Gas Management System and constructing, maintaining and operating a gas utilization system to process digester gas from the WRRC into natural gas and distribute such gas for environmentally beneficial uses (the`BRD Gas System'), subject to and in accordance with the provisions of this Lease and that certain Water and Resource Recovery Center Gas System Development and Operating Agreement executed by the parties in connection herewith (the "Development and Operating Agreement"). WHEREAS, this Lease includes all Easements (as defined herein) benefiting the Premises, the WRRC and WRRC Property necessary to develop and operate the BRD Gas System, including those Easements set forth in Section 16. NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein set forth, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by each party hereto, City and BRD hereby agree as follows: 1. Definitions. All capitalized terms used herein and undefined shall have the meanings ascribed thereto in the Development and Operating Agreement. 2. Lease of Premises. City hereby leases the Premises to BRD upon the terms and conditions contained herein and in accordance with the Development and Operating Agreement. For purposes of this Lease, the term `Premises" shall include the Site as described in Exhibit A and the WRRC Gas Management System as described in Exhibit B (such descriptions to be amended and updated as may be necessary during the development and operation of the BRD Gas System). 3. Term. (a) The initial term of this Lease shall be from the Effective Date until the end of the initial term set forth in the Development and Operating Agreement (the "Initial Term"). BRD shall have the option to renew this Agreement for one (1) additional five (5) year period ("Renewal Term') upon the same terms and conditions contained herein ("Renewal Option"). BRD may exercise its Renewal Option 1 by delivering to City within ninety (90) days of the expiration of the Initial Term a written notice exercising its Renewal Option hereunder. Within ninety (90) days prior to the expiration of the Renewal Term, the parties agree to negotiate in good faith the terms for any subsequent renewal terms. "Term" shall be defined to include the Initial Term and any Renewal Term. (b) Notwithstanding the foregoing, the commencement of this Lease for purposes of commencement of the parties' rights and obligations hereunder shall be the commencement date for construction of the BRD Gas System as notified by BRD in accordance with the terms of the Development and Operating Agreement(the"Commencement Date"). 4. Rent. Beginning with the Commencement Date and during the Term, BRD shall pay City as rental for the Premises a monthly rental amount agreed by the parties in the Operations Plan (as that term is defined in the Development and Operating Agreement). During the Term, City shall provide BRD, in accordance with the Operations Plan, with access to and use of such space, utilities and resources as may be required to operate the BRD Gas System. No later than thirty (30) days prior to the expiration of the first Year of Operations, and each subsequent calendar year ending June 30th thereafter during the Term, the parties shall re-calculate BRD's monthly rent based upon actual costs incurred by the City. Rent is due and payable the first of each month. BRD also shall reimburse City for any additional costs incurred as a result of the BRD System being inoperable. 5. Securitv Deposit. As security for BRD's compliance with its Removal Obligations set forth herein, BRD will deliver to City upon the Commencement Date the amount of Twenty-Five Thousand Dollars ($25,000) as a security deposit. This security deposit will be returned to BRD at the expiration of this Lease, provided BRD has fully complied with its Removal Obligations contained herein. 6. Use of Premises. BRD may only use the Premises for the purposes of constructing, maintaining and operating the BRD Gas System in accordance with the terms of the Development and Operating Agreement. Such use shall not interfere with City's WRRC operations. Subject to the terms of this Lease and the Development and Operating Agreement, the County shall not unreasonably interfere with BRD's operations at the Premises. 7. Compliance with Law. During the Term, each party shall, at its sole cost and expense, comply with all applicable statutes, laws, ordinances, regulations, and requirements in effect during the term of this Lease applicable to its operations at the WRRC Property. 8. Maintenance and Repairs. BRD shall maintain and repair the WRRC Gas Management System in accordance with the Development and Operating Agreement. BRD shall keep the Site in good and safe condition and repair. Additionally, BRD shall keep the Site free of trash, junk, derelict vehicles and derelict equipment 9. Indemnity. (a) Each party (the "Indemnifying Party") shall indemnify, defend and hold harmless the other party, its elected and appointed officials, managers, members, officers, affiliates, employees, successors, legal representatives and assigns (the "Indemnified Party"), from and against any all claims, damages, liabilities, losses, judgments, settlements and costs (including, without limitation, reasonable attorney's fees and disbursements) ("Claims") relating to (i) an Indemnifying Party's, or its personnel or agent's breach of this Lease, including, but not limited to, the parties obligations pursuant to Section 11 hereof, and/or(ii)bodily injury or death of any person or damage to real and/or tangible personal property arising from the negligence or willful misconduct of the Indemnifying Party, its personnel or agents during the Term. 2 (b) The Indemnified Party must provide notice to the Indemnifying Party promptly upon learning of any Claim for which defense or settlement may be sought, but failure to do so will have no effect except to the extent the Indemnifying Party is prejudiced by the delay. The Indemnified Party seeking defense or settlement will allow the Indemnifying Party to control the defense and settlement of the Claim and will reasonably cooperate with the defense. The Indemnifying Party will use counsel reasonably experienced in the subject matter at issue and will not settle a Claim without the written consent of the Indemnified Party,which consent will not be unreasonably withheld or delayed, except that no consent will be required to settle a claim where relief against the Indemnified Party is limited to monetary damages that are paid by the Indemnifying Party under this Section 10. The Indemnifying Party shall have no obligation to indemnify for any settlement made without its prior written consent 10. Environmental. (a) City's Covenants.Representations and Warranties: (i) City represents and warrants,to the best of its actual knowledge, that there are no Environmental Conditions currently existing on the WRRC Property. City further covenants that it shall not cause nor by its act or omission permit to be caused any Environmental Conditions to occur or exist on the WRRC Property during the Term. City shall comply with any and all federal, state and local environmental laws and regulations applicable to City's operations at the WRRC, and, specifically, shall not take any action or make any omission which may cause the WRRC to violate any environmental permit, law or regulation. For the purposes of this Lease, "Environmental Conditions" shall mean the presence, release or threatened of hazardous substances or materials, created or caused by any party, that does or may reasonably be expected to (1) require abatement or correction under any environmental law or regulation, (2) give rise to any civil or criminal liability on the part of any party under any environmental law, or(3) create a public or private nuisance; and (ii) City shall obtain and comply with any and all permits currently held, and subsequently required to be held during the Term, by the City related to the operation of the WRRC, except the City shall not be responsible for obtaining any permits related to the development and operation of the BRD Gas System. City shall provide BRD all assistance necessary in order to obtain any and all permits or authorizations necessary to construct and operate the BRD Gas System. (b) BRD Covenants.Representations and Warranties: (i) BRD, its directors, officers, owners, employees and agents shall not cause nor by its act or omission permit to be caused an Environmental Condition on the WRRC Property; (ii) BRD shall comply with any and all federal, state and local environmental laws and regulations applicable to the WRRC, and, specifically, shall not take any action or make any omission which may cause the WRRC to violate an environmental permit, law or regulation; (iii) BRD shall obtain all applicable environmental permits and authorizations necessary for the development and operation of the BRD Gas System; and (iv) BRD shall sign the existing Consent Decree applicable to the WRRC and WRRC Property, and to the extent applicable to BRD's operations,BRD shall comply with the terms thereof. IL Insurance. BRD shall procure and maintain during the Term, at its own expense, the insurance as required under the Development and Operating Agreement. For clarity, BRD shall not be required to procure and maintain duplicative insurance for purposes of complying with this Section. 3 12. Surrender. (a) Within six (6) months after the expiration or earlier termination of the Tenn, except for the WRRC Gas Management System, BRD shall, at its own expense, remove all physical material pertaining to the BRD Gas System from the Premises (the "Gas System Assets') and leave the area formerly occupied by the Gas System Assets in substantially the same physical condition which existed immediately before the installation of the Gas System Assets (the "Removal Obligations'); provided, however, that if any Gas System Asset shall remain on the Premises, at City's discretion, such Gas System Asset(s) shall not be subject to the Removal Obligations hereunder and thereafter shall become the property of City. With respect to any equipment or materials that are installed by BRD to connect the BRD Gas System with the WRRC Gas Management System, City shall make final determinations as to which physical materials shall remain where the Gas System Assets interconnect with the WRRC Gas Management System. (b) City shall grant BRD all necessary or reasonably required easements and access rights to and from the WRRC Property in order for BRD to perforin its aforesaid Removal Obligations and for the purposes of effecting or completing any required decommissioning under any permit, license or agreement issued in connection with the BRD Gas System. (c) City hereby acknowledges and agrees that BRD shall not be responsible in any manner for the removal from the WRRC Property of the WRRC Gas Management System or other WRRC assets or property at the WRRC Property (the "WRRC Assets") or for the restoration of the WRRC Property arising out of the removal of the WRRC Assets by the City or any third party; provided, however, that in the event the BRD Gas System or BRD's Removal Obligations cause any damage to the WRRC Assets, BRD shall remedy such damage and/or restore the WRRC Assets. (d) BRD's Removal Obligations pursuant to this section shall be secured by the security deposit set forth in Section 5 above. 13. Eminent Domain. If any part of the Premises shall be taken by any public authority (other than City) under the power of eminent domain, then this Lease shall terminate as to the part of the Premises taken upon the date of taking by such public authority. City shall have no right to receive any portion of the condemnation award made for BRD's buildings, fixtures and improvements on the Premises, and BRD shall have no right to receive any portion of the condemnation award made for the Premises (including the value of any leasehold interest). City hereby agrees that, during the term of this Lease, it shall not exercise any power of eminent domain with regard to the Premises. 14. Taxes. To the extent assessed against BRD, BRD shall pay before delinquent all real and personal property taxes and ad valorem taxes that are levied against BRD's use of the Premises, improvements on the Premises, and all personal property installed or located by BRD on or about the Premises, which are assessed for any year during the Term of this Lease and notified by any taxing authority or City to BRD. If any such taxes shall cover any period of time prior to or after the expiration of the Term, BRD's share of such taxes shall be equitably prorated to cover only the period of time within the tax fiscal year during which this Lease shall be in effect, and City shall reimburse BRD to the extent required. Notwithstanding any of the foregoing, the parties hereby agree to cooperate in good faith to (a) resolve any disputed tax bill attributable to any third parties' use of the Premises, and (b) explore and utilize any sales, excise, use or other tax exemption, refund or abatement with respect to or arising out of the development and operation of the BRD Gas System. 15. Grant of Easements. City hereby grants to BRD all rights and easements necessary and required by BRD in carrying out its activities and operations pursuant to the Operations Plan approved by City pursuant 4 to the Development and Operating Agreement, including without limitation: (a) the right to construct, operate, maintain,replace, and move the BRD Gas System on the Premises; (b)the right to maintain,replace and repair the WRRC Gas Management System in accordance with the Operations Plan; (c) the right to (i) construct and/or use all underground wires and cables, for the transmission of electrical energy and/or for communication purposes, and all necessary and proper foundations, footings, and other appliances and fixtures for use in connection with said wires and cables on, along and in the WRRC Property, and (ii) construct, use,maintain, repair and replace one or more lateral pipeline(s) on the WRRC Property, including interconnection and/or switching facilities from which BRD, or its utility partners, may interconnect to a utility transmission system,together with the appropriate rights of way, on, along and in the WRRC Property (said, wires, cables, pipelines, facilities and rights of way are herein collectively called the "Transmission Facilities'); and(d)the right of 24-hour access to the WRRC Properly, including ingress to and egress from the BRD Gas System and Transmission Facilities to cavy out its activities and operations as described herein and in the Development and Operating Agreement (all such rights and easements, collectively, the 'Easements'). 16. Default; Termination; Remedies. (a) Upon the occurrence of a material default hereunder, which default is not cured within thirty (30) days following written notice of default, or, if such default is not reasonably capable of cure during such period, within ninety (90) days following written notice of default provided that the defaulting party is exercising good faith and due diligence to cure the default, the non-defaulting party may terminate this Lease. (b) City may terminate this Lease with immediate effect if BRD (i) makes an assignment or any general arrangement for the benefit of creditors, (ii) files a petition or otherwise commences, authorizes or acquiesces in the commencement of a proceeding or cause of action under any bankruptcy or similar law for the protection of creditors, or has such a petition filed against it, (iii) otherwise becomes bankrupt or insolvent(however evidenced), or(iv) is unable to pay its debts as they fall due. (c) Upon the termination of the Development and Operating Agreement in accordance with its terms, this Lease shall terminate, without any further action on the part of the parties hereto, upon the termination date of the Development and Operating Agreement. (d) In the event of termination of this Lease for any reason, BRD shall, with immediate effect, cease to be obligated to pay any rental amounts or Operating Costs due hereunder which are incurred and/or payable after the termination date and shall have no further liability or obligations to the City except as otherwise provided for in this Lease. (e) Notwithstanding the termination or expiration of this Lease, and except as otherwise stated in this Lease, those obligations contained herein that by their terms or nature are intended to survive such termination or expiration and shall be binding upon the parties and their legal representatives,heirs, successors and assigns. 17. BIRD to Maintain Free and Clear Title. BRD shall not mortgage or transfer its interest in the Premises as security for a debt nor allow any lien, encumbrance or restriction arising through BRD to attach to the Premises during the Term; provided, however, nothing in this Section 18 shall prohibit BRD from incurring any security interest, lien or encumbrance on its personal property located at the Premises or in any BRD products or proceeds generated by BRD under the Development and Operating Agreement. 5 18. Quiet Enioyment. City covenants, represents and warrants that it shall (a) not disrupt BRD's peaceful and quiet enjoyment of the Premises, including all rights to develop and operate the BRD Gas System, during the Term, and (b) defend BRD's possession of the Premises against the claims of any third party, however arising. 19. Recording Lease or Memorandum of Lease. BRD shall have the right to record an original of this Lease or a memorandum of this Lease, including the grant of Easements contained herein. City will cooperate with BRD in the execution and delivery of such documents (including a memorandum or short form of this Lease or comparable documents) as may be required to effectuate the foregoing in accordance with the requirements, customs and practices governing such recordation. 20. Representations and Warranties. Each of the parties represents and warrants to the other that (a) it has the full right, power and authority to enter into this Lease and to consummate, undertake and perforin its obligations contemplated herein, (b) this Lease is the legal, valid and binding obligation of such party, enforceable in accordance with its terms, and (c) no consent, authorization, license, permit, registration or approval of, or exemption or other action is required in connection with its execution and delivery of this Agreement and the performance of its obligations hereunder. 21. Brokerage Commission and Finder's Fee. The parties agree that they have dealt exclusively with each other and not through any real estate broker, investment banker, person, firm or entity that would, by reason of such dealings, be able to claim a real estate brokerage, business opportunity brokerage or finder's fee as the procuring cause of this transaction. Each of the parties agrees to indemnify the other and hold the other harmless of and from any and all loss, cost, damage, injury or expense arising out of, or in any way related to, assertions, by any other person, firm or entity, of a claim to real estate brokerage, business opportunity brokerage of finder's fee based on alleged contacts between the claiming party and the indemnifying party which have resulted in allegedly providing a broker or finder with the right to claim such commission or finder's fee. The provisions of this Section 22 shall survive the termination of this Lease. 22. Entire Agreement. Except as the parties hereto may otherwise agree in writing, this Lease, the Development and Operating Agreement, together with the agreements referred to herein and the Exhibits hereto and thereto, constitute the full and entire agreement and understanding between the parties with regard to the subject matter of this Lease. This Lease may not be modified or amended except in a writing signed by the parties. In the event of any conflict between the terms of this Lease and the Development and Operating Agreement, the terms of the Development and Operating Agreement shall control. Except for the Development and Operating Agreement, and as the parties hereto may otherwise agree in writing, all prior and contemporaneous agreements, covenants, representations and warranties, express or implied, oral and written, of the parties with regard to the subject matter of this Lease are superseded by this Lease, the Exhibits to this Lease, and the documents referred to or implementing the provisions of this Lease. For clarity, the confidentiality obligations of the parties pursuant to the Development and Operating Agreement shall apply to and govern this Lease. 23. Governing Law. This Agreement shall be governed in all respects by the laws of the State of Iowa and the venue for any litigation with respect to this Agreement shall be in the courts of Dubuque County,Iowa. 24. Waiver. No waiver of any provision of this Lease shall be effective unless it is in writing and signed by the party against which it is sought to be enforced, and no such waiver shall constitute a further or continuing waiver of any preceding or succeeding breach of the same or any other provision. 6 25. Assignment. Except as specifically provided otherwise in this Lease, neither this Lease nor any interest herein shall be subcontracted or assigned, in whole or in party, by BRD without the prior written consent of City, which consent may not be unreasonably withheld, conditioned or delayed. Notwithstanding the foregoing, the restriction on assignment set forth in this Section shall not be deemed violated by virtue of (a) a merger or change in control or ownership of BRD's parent or any successor entity, or (b) the use of any Easement by any third party partner or subcontractor of BRD in the development and operation of the BRD Gas System. 26. Force Majeure. A party shall be excused from performing its contractual obligations if it is prevented or delayed in such performance by conditions that constitute force majeure, such as acts of God, acts of terrorism, acts of the public enemy, labor disturbances, authority of law, fire or explosion, war or warlike act, insurrection, a party's reasonable response (by way of example and not limitation, such as taking evasive action or canceling meetings or events) to a governmental warning affecting local or national security, or any like causes beyond its control. A party wishing to take advantage of the relief provided in this Section must as soon as practical advise the other party in writing of the existence of the force majeure condition and the estimated time of its duration. The parties shall cooperate to ascertain the facts and the effect of the delay on, and make appropriate adjustments where necessary. 27. Successors and Assigns. Each of the terns, provisions, and obligations of this Lease shall be binding upon, shall inure to the benefit of, and shall be enforceable by the parties and their respective legal representatives, successors and permitted assigns. 28. Notices. All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed to have been given or made if in writing and delivered personally or sent by registered or express mail (postage prepaid) or by facsimile to the parties at the following addresses and facsimile numbers: If to BRD: BRD Three,LLC 5062S. 108th Street, #113 Omaha, Nebraska 68137 Attn: Gregory S. MacLean Facsimile: (402) 682-3680 Copy to: Fraser Stryker PC LLO 500 Energy Plaza 409 S. 17" Street Omaha, NE 68102 Attn: Stephen M. Bruckner,Esq. Facsimile: (402)341-8290 If to City: Michael C. Van Milligen City Manager, City of Dubuque 50 W. 13th St Dubuque, IA 52001 Copy to: Barry Lindahl City Attorney, City of Dubuque Suite 330, Harbor View Place 00 Main Street Dubuque, Iowa 52001-6944 7 29. Severability. If any term of this Agreement is found to be invalid or unenforceable, the remaining provisions will remain effective and such term shall be replaced with another term consistent with the purpose and intent of this Agreement. 30. Cumulative Remedies; Offset. No remedy made available hereunder by any of the provisions of this Lease is intended to be exclusive of any other remedy, and each and every remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute or otherwise. Without limiting any other rights or remedies available to the parties hereto, (i) either may offset from amounts otherwise due to the other party, arising under or related to this Lease or the transactions contemplated herein, any sums owed by such party (whether arising under or related to this Lease or the transactions contemplated herein, or otherwise). 31. No Third-Party Beneficiaries. Except as specifically provided in this Lease, nothing in this Lease will be construed as giving any person, other than the parties hereto and their respective heirs, successors and permitted assigns, any right, remedy or claim under or in respect of this Lease or any provision hereof. 32. Counterparts. This Lease may be executed in one or more counterparts, including counterparts by facsimile each of which shall be deemed an original, but all of which together shall constitute a single agreement [Remainder of Page Intentionally Left Blank; Signature Page Follows] 8 IN WITNESS WIIEREOF,the parties have executed this Lease as of the date first written above. City of Dubuque, Iowa, an Iowa governmental entity By: Name: Title: BRD Three, LLC, an Iowa limited liability company By: Name: Gregory S. MacLean Title: Manager 1467582.3 STATE OF IOWA ) )ss. COUNTY OF DUBUQUE ) On this day of 20 before me a Notary Public in and for said county and state, personally appeared as of the City of Dubuque, Iowa, an Iowa governmental entity , known to me to be the identical person who subscribed their name to the foregoing, and acknowledged the execution thereof to be their voluntary act and deed and the voluntary act and deed of said corporation. Notary Public STATE OF ) ss. COUNTY OF On this day of 20 before me a Notary Public in and for said county and state, personally appeared as of BRD Three, LLC, an Iowa limited liability company, known to me to be the identical person who subscribed their name to the foregoing, and acknowledged the execution thereof to be their voluntary act and deed and the voluntary act and deed of said corporation. Notary Public EXHIBIT A Section 1 System Overview Page 11 Legal Description of Site MMW l I e .. tr ® =Y • BRD Three Facility Location -\- �a + Solids C°A _ Processing =%w j Building �{ Parcel lD , 1606200004 Alternate ID 3-08-14 Property Address m ^- 795 JULIEN DUBUQUE DR DUBUQUE IA 52003 l b Sec/Tvrp/Rng N/A swr® c u Brief Tax Description a9 SUB OF FR GOV LOT IOF - LANDS INSIDE NEI/4 OF NEI/4 OF SEC 6 IN TWSP 88 NR.3 E. '� [ o LOT 3 1 IM 3 BRD Three BioGas Facility Location Water a Recovery Center f 3iahesource 799 Julien 5 Julien Dubuque Dr. Dubuque,IA 52003 D a v e l o p rn e n I, L L C Section 1 System Overview Page 12 EXHIBIT B Description of«ARRC Gas Management System SYSTEM OVERVIEW The Unison Solutions, model BGS-350-112-HS, gas conditioning system is designed to supply up to 350 scfm of clean, dry, gas compressed to 3 psig. The system will be installed at the Dubuque WPCP in Dubuque, IA. The compression/moisture removal skid is designed for indoor operation in a Class I, Division 1 area. The HZS and siloxane removal systems are designed for outdoor operation in a Class 1, Division 1 area. The gas conditioning system control panel is designed for indoor operation in an unclassified area. The glycol chiller is designed for outdoor operation in an unclassified area. The gas conditioning system is comprised of several parts including: the HZS removal system, the gas conditioning skid which pressurizes the gas, removes moisture, and regulates the discharge pressure,the siloxane removal system, the glycol chiller which supplies cold glycol for use by the gas conditioning skid, and the gas conditioning system control panel which controls the system. Gas is supplied to the system through a 6" inlet where it passes through the inlet scrubber (FLT 300) where any free moisture and particulates larger than 3 µ in the biogas are removed. The gas then enters two HZS removal vessels piped in lead/lag configuration. The gas then enters the gas conditioning skid and passes through a 6" fail closed actuated butterfly valve before entering the suction scrubber which removes moisture and any particulates left over from the HZS removal process. The gas enters a blower (BLR 331) where it is compressed to approximately 4 psig at a temperature of about 169 °F. After leaving the blower, the gas enters the drying process. The process begins with gas passing through a dual core, gas to glycol heat exchanger (HX 341). The first stage uses the hot gas after compression to reheat the cool dry gas to its final reheat temperature. Gas then travels through the second stage of the heat exchanger which uses cold glycol from a remote glycol chiller to cool the gas to its dew point of approximately 40 °F. Condensate from the heat exchanger is removed via a float drain (FD 741). The gas then completes the process by being reheated via the hot compressed gas to a temperature of approximately 80 °F. Section 1 System Overview Page 13 Once the gas has been dried, it flows through two siloxane vessels (FLT 361 & 362), which remove the siloxanes and other VOC's from the gas stream. The vessels are piped in lead/lag configuration. After exiting the siloxane removal vessels, the gas flows through a final particulate filter (FLT 351)to ensure that any carryover siloxane media/dust is removed from the gas stream. The gas is then ready for delivery to the end use equipment at a temperature of about 80 °F and a pressure of 3 psig. The gas conditioning system control panel is equipped with a Programmable Logic Controller (PLC)that receives data from transmitters, RTD's, and digital inputs. The PLC also protects the equipment during process interruptions. The control panel includes auxiliary terminals for a remote run command input, and a customer fault input. Dry contact outputs are included for run status, warning status, fault status, and turbine run outputs. An Allen Bradley Ethernet IP connection is available for connection to the facility SCADA system. The customer is responsible for providing a broadband internet connection to the gas conditioning system control panel. This will create a VPN between the site and Unison; creating a faster response time to customer's requests by allowing Unison to remotely log onto the PLC, Human Machine Interface (HMI), and individual devices. Section 1 System Overview Page 14 SYSTEM MANUAL VALVE LISTING Valve# Normal operating position Function VY 3001 OPEN Close to isolate the HZS Removal System VI 3001 OPEN Close to isolate PDI 300 VI 3002 CLOSED Open to vent PDI 300 VI 3003 OPEN Close to isolate PDI 300 VI 3004 CLOSED Open to vent PDI 300 VB 301 CLOSED Open to vent HZS piping VB 302 CLOSED Open to vent FLT 301 VB 303 CLOSED Open to vent FLT 301 VB 304 CLOSED Open to vent HZS piping VB 305 CLOSED Open to vent HZS piping VB 306 CLOSED Open to vent FLT 302 VB 307 CLOSED Open to vent FLT 302 VB 308 CLOSED Open to vent 1-12S piping VI 3005 OPEN Close to isolate PDI 301 VI 3006 CLOSED Open to vent PDI 301 VI 3007 OPEN Close to isolate PDI 301 VI 3008 CLOSED Open to vent PDI 301 VI 3009 OPEN Close to isolate PDI 302 VI 3010 CLOSED Open to vent PDI 302 VI 3011 OPEN Close to isolate PDI 302 VI 3012 CLOSED Open to vent PDI 302 VB 701 OPEN Close to isolate STR 701 and FD 701 VB 702 CLOSED Open to manually drain condensate from FLT 300 VB 703 OPEN Close to isolate FD 701 VB 704 CLOSED Open to manually drain condensate from FLT 301 VB 705 CLOSED Open to manually drain condensate from FLT 301 VB 706 CLOSED Open to manually drain condensate from FLT 302 Section 1 System Overview Page 15 VB 707 CLOSED Open to manually drain condensate from FLT 302 VY 3008 OPEN Close to divert gas to future HZS vessel VY 3009 CLOSED Open to connect a future HZS vessel to the system VY 3010 CLOSED Open to connect a future HZS vessel to the system VB 3601 CLOSED Open to fill FLT 361 with nitrogen VB 3602 CLOSED Open to fill FLT 362 with nitrogen VB 3603 CLOSED Open to vent siloxane piping VB 3604 CLOSED Open to vent siloxane piping VB 3605 CLOSED Open to drain FLT 361 VB 3606 CLOSED Open to drain FLT 362 VB 3607 CLOSED Open to allow flow to QC 361 VB 3608 CLOSED Open to allow flow to QC 362 VB 3609 CLOSED Open to allow flow to QC 363 VB 3610 CLOSED Open to allow flow to QC 364 VY 3607 CLOSED Open to connect a future siloxane vessel to the system VY 3608 OPEN Close to divert gas to future siloxane vessel VY 3609 CLOSED Open to connect a future siloxane vessel to the system VY 3610 OPEN Close to isolate the siloxane removal system VI 321 OPEN Close to isolate PDI 321 VI 322 CLOSED Open to vent PDI 321 VI 323 OPEN Close to isolate PDI 321 VI 324 CLOSED Open to vent PDI 321 VB 721 CLOSED Open to manually drain condensate from FLT 321 VB 722 OPEN Close to isolate STR 721 and PMP 721 VB 741 OPEN Close to isolate STR 741 and FD 741 VB 742 CLOSED Open to manually drain condensate from HX 341 VB 743 OPEN Close to isolate FD 741 VB 231 CLOSED Open to drain oil from BLR 331 VB 731 CLOSED Open to manually drain condensate from SIL 331 Section 1 System Overview Page 16 VB 331 OPEN Close to isolate blower bearing chamber from inlet VI 331 CLOSED Open to test gas VB 341 CLOSED Open to vent to atmosphere VI 341 CLOSED Open to test gas VY 341 VARIABLE Adjust to change gas reheat temperature VY 342 OPEN Close to isolate siloxane removal system VY 343 CLOSED Open to by-pass gas around siloxane removal system VY 351 OPEN Close to isolate siloxane removal system VY 352 OPEN Close to isolate end use equipment VY 353 CLOSED Open to discharge gas to a future high pressure system VI 351 OPEN Close to isolate PDI 351 VI 352 CLOSED Open to vent PDI 351 VI 353 OPEN Close to isolate PDI 351 VI 354 CLOSED Open to vent PDI 351 VB 351 CLOSED Open to vent to atmosphere VB 751 CLOSED Open to manually drain condensate from FLT 351 VB 141 CLOSED Open to manually drain glycol piping VB 142 CLOSED Open to vent glycol piping VB 143 CLOSED Open to manually drain glycol piping Section 1 System Overview Page 17 Select the FIZS removal vessel configuration from the following list: Mode 1: FLT-301 is primary and FLT-302 is secondary Mode 2: FLT-302 is primary and FLT-301 is secondary Mode 3: FLT-301 and FLT-302 are in parallel Mode 1 Position Mode 2 Position Mode 3 Position VY 3002 OPEN CLOSED OPEN VY 3003 CLOSED OPEN OPEN VY 3004 CLOSED OPEN OPEN VY 3005 OPEN CLOSED OPEN VY 3006 CLOSED OPEN CLOSED VY 3007 OPEN CLOSED CLOSED Select the siloxane removal vessel configuration from the following list: Mode 1: FLT-361 is primary and FLT-362 is secondary Mode 2: FLT-362 is primary and FLT-361 is secondary Mode 3: FLT-361 and FLT-362 are in parallel Mode 1 Position Mode 2 Position Mode 3 Position VY 3601 OPEN CLOSED OPEN VY 3602 CLOSED OPEN OPEN VY 3603 OPEN CLOSED CLOSED VY 3604 CLOSED OPEN CLOSED VY 3605 CLOSED OPEN OPEN VY 3606 OPEN CLOSED OPEN Section 1 System Overview Page 18 UNDERSTANDING THE SYSTEM Scrubber FLT-321 Recirculation Valve VM-351 Gas Blower BLR-331 I Particulate Filter FLT-351 Gas Discharge TP-353 &TP-354 Silencer SIL-331 Skid Inlet Connection Master TP-321 Stop Junction Boxes JBOX-21 &JBOX-31 Condensate Pump PMP-721 Inlet Actuated Valve VA-321 (GAS CONDITIONING SYSTEM CONTROL PANEL, GLYCOL CHILLER, HZS REMOVAL FILTERS, AND SILOXANE REMOVAL FILTERS NOT SHOWN) Section 1 System Overview Page 19 i 4 r Motor pr M-331 Siloxane Connections TP-342 &TP-351 Heat Exchanger HX-341 Glycol Connections Condensate Discharge TP-142 &TP-143 TP-741 (GAS CONDITIONING SYSTEM CONTROL PANEL, GLYCOL CHILLER, HZS REMOVAL FILTERS, AND SILOXANE REMOVAL FILTERS NOT SHOWN) Section 1 System Overview Page 20 SYSTEM SUMMARY Inlet Conditions Discharge Conditions Design Flow 350 scfm Design Flow 350 scfm Design Pressure 0.36 psig Design Pressure 3.05 psig Design Temperature 98°F Design Temperature 80°F Design R.H. 100% Design R.H. 23% Maximum allowable incoming Temperature 98°F Maximum allowable incoming Pressure 0.36 psig Inlet Process Connection 6" Class 150 RF Flange Discharge Process Connection 4" Class 150 RF Flange Condensate Process Connections 2" Class 150 RF Flange Glycol Process Connections 2" Class 150 RF Flange Section 1 System Overview Page 21 SYSTEM OVERVIEW The Unison Solutions, model CGS-350-178, gas conditioning system is designed to compress and cool up to 350 scfm of gas compressed to 100 psig. The system includes the following: gas compression skid consisting of an inlet moisture/particulate filter, flooded screw compressor, oil separator, oil heat exchanger (using effluent water), oil mist eliminator and a remote mounted air to gas after-cooler. In addition, the system includes a remote mounted gas conditioning system control panel which provides power and control to the system. The gas compression skid is designed for indoor operation in a Class I, Division 1 area. The gas conditioning system control panel is designed for indoor operation in an unclassified area. Gas enters the gas compression skid through a 4" electrically actuated,fail close, butterfly valve (VA 371). Gas travels to a moisture/particulate filter (FLT 371) sized for 350 SCFM and used to capture 99% of particulates 3 micron and larger. Condensate formed in this filter collects in the bottom of the filter and exits thru a float drain (FD 771). After leaving the moisture/particulate filter, the gas enters a flooded screw compressor (CMP 371) where it is compressed to approximately 105 psig at a temperature of 200°F. Upon exiting the compressor, the gas enters an oil-gas separator (FLT 271)to remove any remaining oil from the gas stream. Gas then travels to a remote mounted air/gas after- cooler which cools the gas to approximately 122°F. Gas then re-enters the compression skid thru an oil mist eliminator (FLT 372) which removes any remaining oil and particulate 0.3p or greater. The process (at the discharge of the skid) produces a final temperature of 122°F with a relative humidity of approximately 44%. The gas exits the skid through a 2"flanged connection. The gas then travels to a field mounted sour gas fuel kit which will provide final filtration and regulates the pressure to the desired set point (approximately 75-85 psig)for the Capstone CR1000 micro-turbines. The gas conditioning system control panel is equipped with a Programmable Logic Controller (PLC)that receives data from transmitters, RTDs, and digital inputs. The PLC also protects the equipment during process interruptions. The gas conditioning system control panel includes auxiliary terminals for a remote run command input and a customer fault input. Dry contact outputs are included for skid run status, skid warning status and skid alarm status. Section 1 System Overview Page 22 THIS PAGE INTENTIONALLY LEFT BLANK Section 1 System Overview Page 23 SYSTEM MANUAL VALVE LISTING Valve q I Normal operating position Function Effluent Water Line Valves VB 141 Open Close to Isolate STR 141 or system piping VG 141 Variable Close to Isolate STR 141 or adjust water flow VB 142 Open Close to Isolate system piping VB 143 Closed Open to vent water piping VB 144 Closed Open to drain water piping Oil Line Valves VB 270 Closed Open to drain STR 271 VB 271 Closed Open to drain oil from FLT 271 VB 272 Closed Open to drain or add oil from/to FLT 271 VB 273 Closed Open to drain oil from FLT 271 or FLT 272 VB 274 Closed Open to drain oil from FLT 272 VB 275 Closed Open to vent FLT 272 VB 276 Closed Open to drain TK 271 VB 277 Closed Open to drain down-stream side of FLT 372 VB 278 Closed Open to drain up-stream side of FLT 372 Gas Line Valves VB 371 Closed Open to vent FLT 271 VB 372 Open Close to isolate HX 372 VB 373 Open Close to isolate HX 372 VB 374 Open Close to isolate skid from end use device VB 381 Open Close to isolate from skid discharge VB 382 Open Close to isolate FLT 381 VB 383 Open Close to isolate FLT 382 VB 384 Open Close to isolate FLT 381 VB 385 Open Close to isolate FLT 382 VB 386 Closed Open to vent FLT 381 VB 387 Closed Open to vent FLT 382 VB 388 Closed Open to drain fuel kit Condensate Line Valves VB 771 Open Close to isolate FD 771 and STR 771 VB 772 Closed Open to manually drain FD 771 VB 773 Open Close to isolate FD 771 VB 774 Closed Open to manually drain condensate from HX 372 VB 775 Closed Open to manually drain condensate from TK 371 Instrument Valves VI 371 Open Close to isolate PDI 371 VI 372 Closed Open to calibrate PDI 371 (while isolated)or to sample gas VI 373 Open Close to isolate PDI 371 VI 374 Closed Open to calibrate PDI 371(while isolated) VI 375 Open Close to isolate PDI 372 VI 376 Closed 10pen to calibrate PDI 372 (while isolated) VI 377 Open lClose to isolate PDI 372 VI 378 1 Closed 10pen to calibrate PDI 372 (while isolated) Section 1 System Overview Page 24 THIS PAGE INTENTIONALLY LEFT BLANK Section 1 System Overview Page 25 UNDERSTANDING THE SYSTEM Junction Boxes JB-21/32 Oil Filter FLT-272 Oil Separator ' FLT-271 Buffer Tank TK-371 Oil Mist Eliminator 2" Discharge FLT-372 Connection (TP-3708) 4" Inlet Connection (TP-3701) i 4" Inlet Valve Oil Cooler VA 371 HX 271 Inlet Filter FLT 371 Effluent Inlet TP-141 Condensate Outlet TP-771 Compressor Effluent Outlet CMP 371 TP-142 Motor M-371 (GAS CONDITIONING SYSTEM CONTROL PANEL NOT SHOWN) Section 1 System Overview Page 26 THIS PAGE INTENTIONALLY LEFT BLANK Section 1 System Overview Page 27 SYSTEM SUMMARY Inlet Conditions Discharge Conditions Design Flow 350 scfm Design Flow 350 scfm Design Pressure 3.0 psig Design Pressure 100 psig Design Temperature 80°F Design Temperature 122°F Design R.H. 23% Design R.H. 44% Inlet Process Connection 4" Class 150 pattern Lug Valve Discharge Process Connection 2" Class 150 pattern Lug Valve Condensate Process Connections 1/2" Class 150 RF Flange Effluent Water (Oil Cooler) Process Connections 2" Class 150 RF Flange Section 1 System Overview Page 28 THIS PAGE INTENTIONALLY LEFT BLANK WATER AND RESOURCE RECOVERY CENTER GAS SYSTEM DEVELOPMENT AND OPERATING AGREEMENT BETWEEN CITY OF DUBUQUE AND BRD THREE, LLC This WRRC GAS SYSTEM DEVELOPMENT AND OPERATING AGREEMENT (the "Agreement") is made and executed this day of 2016 (the "Effective Date'), by and between the City of Dubuque, a governmental entity ("City"), and BRD Three, LLC, a limited liability company(`BRD'). WHEREAS, City is the owner of the Dubuque Water and Resource Recovery Center (the "WRRC') and is responsible for operating, monitoring and maintaining the WRRC, including digester gas management; WHEREAS, City and BRD desire to develop a project to collect Digester Gas from the WRRC, process such gas into natural gas and distribute such gas for environmentally beneficial uses (the "Project; WHEREAS, City and BRD desire to enter in this Agreement for BRD to (1) assess the feasibility of developing the Project, and (2) subject to the results of BRD's feasibility study, to develop and operate a system, incorporating all of the current gas management system at the WRRC (the "WRRC Gas Management System'), to collect, process and distribute the Digester Gas (the `BRD Gas System') as provided herein; WHEREAS, provided BRD confirms the feasibility of the Project and in consideration of the right to develop and operate the BRD Gas System and the lease granted hereunder, BRD has agreed to pay City an operating fee and rent as provided for herein; and WHEREAS, provided City accepts the Operations Plan (as defined below) and approves a lease for the purposes stated herein(the"Lease'). NOW, THEREFORE, the parties hereto, for themselves, their successors and permitted assigns, in and for the consideration of the performance of the mutual covenants, duties and responsibilities set forth herein, the receipt and adequacy of such consideration being hereby acknowledged, do hereby covenant and agree as follows: 1. Feasibilitv Studv. (a) City hereby grants BRD the right to perform a feasibility study for the Project (the "Feasibility Study"). City shall provide BRD with such information and access to the WRRC property necessary for BRD to perform the Feasibility Study. BRD shall complete the Feasibility Study within three (3) months of the Effective Date of this Agreement Upon the completion of the Feasibility Study, BRD shall deliver to City (i) the Feasibility Study, (ii) provided the Project's feasibility has been confirmed in BRD's sole discretion, a copy of the BRD Gas System operations plan (the "Operations Plan'), and (iii) the description of the WRRC property for the Lease. The Operations Plan shall be reviewed and accepted by the Dubuque City Manager within forty-five (45) days of the City's receipt of the Operations Plan, which acceptance shall not be unreasonably withheld, conditioned or delayed. If the Operations Plan is not accepted in accordance with the previous sentence,the parties shall work diligently and in good faith to modify and/or amend the proposed Operations Plan so as to be mutually agreeable to Page 1 of 40 the parties, If the Operations Plan is not accepted by the City within one hundred twenty(120) days from the City's receipt of the Operations Plan, this Agreement may be terminated by either party upon five (5) days prior written notice to the other party. The as-approved Operations Plan shall set forth the commencement date for construction of the BRD Gas System (the "Commencement Date"), which shall not be more than 12 months from the date of this Agreement. (b) At any time during the Term hereof, BRD may, in its sole discretion, conduct such studies, including commissioning studies by third parties, as are necessary to reassess the continuing feasibility, or development, of the Project and BRD Gas System and, if necessary, shall notify City of any material updates or modifications to the Operations Plan. (c) If the Project is determined by BRD, in its sole discretion, not to be, or no longer, feasible, BRD may terminate this Agreement pursuant to the terms and conditions set forth in Section 8 without any liability or penalty. (d) For the avoidance of any doubt, BRD shall perform the Feasibility Study, and any future feasibility studies, at BRD's sole expense. 2. Grant of Rights to Develop and Operate BRD Gas Svstem. (a) City hereby grants to BRD for the Term the right to construct and operate the BRD Gas System in accordance with the terms of this Agreement The rights granted to BRD pursuant to this Agreement are exclusive and City hereby agrees that during the Term, BRD shall have the sole and exclusive right to perform, directly and through its subcontractors, all development and operating activities with respect to the BRD Gas System including, without limitation, any and all activities contained in or consistent with the Operations Plan and to the extent permitted by law. The parties hereby acknowledge and agree that the right granted to BRD hereunder to operate the BRD Gas System includes the right to (i) connect the BRD Gas System to the RVRRC Gas Management System; (ii) collect and process all of the Digester Gas from the RVRRC Gas Management System; (iii) subject to the terms of Section 4(a)(iv), limited rights to perform such repairs, replacement, maintenance and modifications to the WRRC Gas Management System in accordance with the policies and procedures set forth in the Operations Plan; and(iv) lease the (1) relevant portions of the Project site required by BRD to operate the BRD Gas System(the "Site") and(2) WRRC property,for the Term and under the conditions provided in the Lease. (b) City hereby further grants, transfers and conveys to BRD the exclusive right for the Term, to use all of the gas collected by the WRRC Gas Management System (the `Digester Gas')for the collection and processing of such Digester Gas, and the marketing, distribution and sale of any and all products derived therefrom. Furthermore, City hereby grants, transfers and conveys to BRD, and hereby releases any interest, ownership rights or claims of City in and to any and all products created by BRD from the Digester Gas, including, but not limited to, natural gas or other gases or gas related products created by BRD as developer and operator of the BRD Gas System (the `BRD Products"). In the event that the BRD Gas System shall be inoperable for any reason during the Term, City's use and access rights to use the Digester gas to operate the WRRC Gas Management System and the other City facilities at the Site, shall automatically be reinstated for only such time at the BRD System is out of operation. Any such use of the Digester Gas by City shall directly offset the amounts to be paid by BRD for Replacement Gas (as hereinafter defined) pursuant to Section 6. Upon BRD's recommencement of operations, BRD's use and access rights to the Digester Gas shall automatically be reinstated. The parties hereby agree to promptly (i) notify the other of any downtime in the WRRC Gas Management System and BRD System and any event requiring the temporary reinstatement of use and access rights provided herein, and(ii)take all actions necessary to reinstate the use and access rights in accordance with the terms of this Section. Page 2 of 40 (c) City agrees that during the Term it will not negotiate or enter into any agreement with any other person(s) to lease, sell or otherwise encumber or alienate any interest in the WRRC or WRRC property, whether as buyer, lessee, broker, agent or otherwise, that adversely affects BRD's ability to develop and operate the Project without the prior written consent of BRD, which consent BRD may not unreasonably withhold or delay. (d) The parties hereby acknowledge and agree that the exclusive rights to (i) operate the BRD Gas System, including such limited rights to maintain and repair the WRRC Gas Management System set forth in Section 4(a)(vi), (ii) make use of the Digester Gas and (iii) title to the BRD Products granted by City to BRD pursuant to this Section 2 is an essential term of this Agreement and of the bargained for benefits and obligations contained herein. 3. Development and Operating Performance Requirements. (a) Construction of the BIRD Gas System. BRD shall construct the BRD Gas System. Any construction or development by BRD at the Site or M7RRC property hereunder, shall be in accordance with the Operations Plan and in compliance with all applicable laws, regulations and permits. Such construction shall begin upon the Commencement Date and be completed within the construction schedule set forth in the Operations Plan. (b) Equipment and Personnel. Except for the WRRC Gas Management System, BRD shall supply all equipment, materials and supplies (collectively the `BRD Equipment') necessary to (i) to develop and operate the BRD Gas System, and (ii) perform the Feasibility Study. The BRD Equipment shall be kept in good condition and working order and shall be replaced as may be necessary. BRD shall provide all personnel necessary to operate the BRD Gas System and perform the Feasibility Study. Such personnel shall have the experience and background necessary to perform the responsibilities in a good and workmanlike matter, and in accordance with industry standards and Iowa law. In the event any services are performed by a subcontractor, BRD shall be responsible for ensuring compliance by all subcontractors with the terms and conditions of this Agreement, and shall be liable for any failure by any subcontractor to comply with the terms and conditions of this Agreement. (c) Operations. Once the BRD Gas System has been constructed, BRD shall operate the BRD Gas System in compliance with this Agreement and the Operations Plan. In the event of any conflicts between this Agreement and the Operations Plan,then this Agreement shall control. (d) Cost and Expenses. BRD shall pay for all costs and expenses for constructing, operating and maintaining the BRD Gas System and the Site, performing the Feasibility Study and otherwise performing its obligations under the Operations Plan and under this Agreement; provided, however, except for any repairs or replacements directly arising out of BRD's negligent acts or omissions, City shall be responsible for the costs and expenses for any repairs or replacements necessary to keep the R'RRC Gas Management System in good working order. (e) No Interference. BRD's development of the Site and operations under this Agreement shall not interfere with City's continuing obligations at the WRRC. Subject to the terms of this Agreement, City shall not interfere with BRD's operations under this Agreement. (f) Permits. BRD shall obtain and comply with all applicable permits, licenses, or other approvals necessary to construct and operate the BRD Gas System, and for BRD to otherwise provide the services contemplated under this Agreement City shall reasonably cooperate with BRD at BRD's sole cost and expense (excluding time of City personnel) in obtaining such permits, licenses and approvals (other than those permits, licenses and approvals which are issued by City). Page 3 of 40 4. wRRC Gas Manaaement Svstem and Services. (a) City hereby acknowledges and agrees that it shall continue to be responsible for the performance during and after the Tenn of the WRRC gas management services as specified in Exhibit A attached hereto and incorporated herein by this reference (the "WRRC Gas Management Services"). City hereby further agrees that, during the tern, it shall, and shall cause its authorized agent or service provider to,perforin the WRRC Gas Management Services in accordance with the following terms and conditions: (i) The WRRC Gas Management Services shall be performed (1) by qualified personnel with the experience and background necessary to perform the work, (2) in a good and workmanlike matter, (3) in accordance with industry standards, and (4) in compliance with all applicable laws,regulations and permits; (ii) City shall cause its service providers to deliver to BRD Digester Gas meeting or exceeding the gas quality and quantity specifications set forth on Exhibit A except during scheduled maintenance or servicing notified to BRD in accordance with Section 4(iv) or due to force majeure events; (iii) The WRRC Gas Management System shall be maintained in good working order and condition, and subject to City's prior written approval, which shall not be unreasonably withheld, conditioned or delayed, BRD shall, at its sole cost and expense, have the right to undertake any maintenance, repairs, replacements, modifications or improvements to the WRRC Gas Management System(other than those obligations of City set forth herein)necessary to operate the BRD Gas System; (iv) The parties shall use their commercial best efforts to cooperate in the scheduling of any maintenance, repair or replacement of the WRRC Gas Management System, and, without limiting any of the foregoing, City shall provide BRD with no less than ten(10)business days prior written notice of any such scheduled maintenance, repair or replacement; BRD shall provide written confirmation that its actions will cause no negative effect to existing equipment warranties; (v) City shall immediately notify BRD of, and the parties shall use their commercial best efforts to remediate and resolve as soon as possible, any event or occurrence that may result in downtime of the WRRC Gas Management System and/or an adverse change in the quality and/or quantity of Digester Gas collected at the RVRRC; and (vi) City hereby grants BRD and its agents access to the WRRC Gas Management System as provided in the Operations Plan for purposes of exigent or emergency circumstances and where City or its authorized agent or service provider is otherwise unavailable to attend or resolve the situation, for the sole purpose of remedying any defect in the operation or performance of the WRRC Gas Management System. (b) Except for any repairs, replacements, modifications or other services that BRD may request from time-to-time to improve the operational efficiency of the RVRRC Gas Management System, City shall be responsible for all costs and expenses related to the performance of the WRRC Gas Management Services and repair,replacement and maintenance of the WRRC Gas Management System. 5. Citv Obliaations. At all times during the Tenn, City shall: (a) Upon BRD's reasonable request, make available within a reasonable time period to BRD any and all documents in City's custody or control relating to the WRRC, the Site, the WRRC property and the WRRC Gas Management System, including, but not limited to plans, surveys, consultant or other Page 4 of 40 third party reports, service plans which affect the WRRC, the Site, Gas Management System, or R7RRC property, soils and/or environmental reports, correspondence or memoranda, and copies of all existing easement agreements, site development agreements and any other agreements affecting development and operation of the Project; (b) Upon BRD's reasonable request, provide such assistance to BRD as may be reasonably necessary in providing or securing information from City, the State of Iowa, the Federal Government and any third parties to whom City has reasonable access concerning the WRRC, the Site and WRRC property, including public tax-exempt and taxable and other financing and grant sources and programs that may be available for the BRD Gas System (including the WRRC Gas Management System), including without limitation sales tax exemptions, tax-increment financing, public improvement fees, community development block grants, sustainability and energy assistance funds under the American Recovery and Reinvestment Act of 2009 or otherwise, and other sources of information, materials and approval authority regarding the WRRC, and the Project development, compliance, financing and operations; (c) As provided in the lease, grant BRD all access rights to the WTRC, the Site and R7RRC property, and such easements and use rights, necessary to develop and operate the BRD Gas System and perform the Feasibility Study including, without limitation, all rights of ingress and egress, and use of existing roadways over City land, to access the WRRC, the Site and WTRC property, and assisting in obtaining any other easements and rights of way necessary to develop the Project and BRD Gas System; for the avoidance of doubt access rights granted hereunder shall be 24 hour access rights for BRD and its authorized agents; and (d) Provide reasonable assistance to BRD to pursue and approve, within its designated authority, such public and other approvals deemed required or desirable by BRD under this Agreement and to perform its obligations hereunder, including any assistance as may be necessary for BRD to obtain sales tax exemptions, environmental permits or authorizations. 6. Ooeratina Fee and Rent. (a) As consideration for the exclusive right to develop and operate the BRD Gas System, BRD hereby agrees to pay City an operating fee (the "Operating Fee"), calculated annually, of Ten Thousand Dollars ($10,000) plus five percent(5%) of the Gross Revenue received by BRD from the sale of the BRD Products. The $10,000 portion of the Operating Fee shall be paid on the Commencement Date of this Agreement and annually on the anniversary date thereof during the Term. The 5%portion of the annual Operating Fee shall be paid as set forth in Section 6(c). (b) In addition to the Operating Fee, and as consideration for the Lease and the exclusive rights to all of the Digester Gas granted hereunder, commencing on the Commencement Date, BRD shall pay City the rent and any other costs and expenses set forth in the Lease in accordance with the terms thereof. (c) For each calendar year ending on March 31s` (or portion thereof) during the Term, BRD shall calculate the 5% portion of the Operating Fee pursuant to Section 6(a), and within sixty (60) days following the expiration of such calendar year, BRD shall deliver to City a written statement certified by its accountants showing the calculation of such amounts. BRD shall pay to City the Operating Fee within thirty (30) days of the date of each such statement but in no event later than June 30", in accordance with the City's payment instructions. For purposes of this Agreement, "Gross Revenue" shall mean the gross revenue received by BRD from the sale of the BRD Products, including any regulatory credits received by BRD. Page 5 of 40 7. Term. The initial term of this Agreement is fifteen (15) years from the date hereof(the "Initial Term"). BRD shall have the option to renew this Agreement for one (1) additional five (5) year period ("Renewal Term") upon the same terms and conditions contained herein ("Renewal Option"). BRD may exercise its Renewal Option by delivering to City within ninety (90) days of the expiration of the then current term a written notice exercising its Renewal Option hereunder. Within ninety (90) days prior to the expiration of the Renewal Term, the parties agree to negotiate in good faith the terms for any subsequent renewal terms. `°Perm"shall be defined to include the Initial Term and any Renewal Term. 8. Termination. (a) Upon the occurrence of a material default hereunder, which default is not cured within thirty (30) days following written notice of default, or, if such default is not reasonably capable of cure during such period, within ninety (90) days following written notice of default provided that the defaulting party is exercising good faith and due diligence to cure the default, the non-defaulting party may terminate this Agreement. (b) BRD may terminate this Agreement upon thirty (30) days' written notice in the event BRD determines, in its reasonable discretion, that(i) the Project is not, or no longer, feasible pursuant to Section 1 or (ii) permits or authorizations deemed necessary or desirable by BRD with respect to the development and operation of the Project have not been obtained or, in BRD's reasonable opinion, are unlikely to be obtained without undue delay or material adverse effect to the Project. (c) City may terminate this Agreement with immediate effect if BRD (i) makes an assignment or any general arrangement for the benefit of creditors, (ii) files a petition or otherwise commences, authorizes or acquiesces in the commencement of a proceeding or cause of action under any bankruptcy or similar law for the protection of creditors, or has such a petition filed against it, (iii) otherwise becomes bankrupt or insolvent(however evidenced), or (iv) is unable to pay its debts as they fall due. (d) In the event of termination by the parties pursuant to this Section 8, BRD shall cease to be obligated to perform hereunder and shall have no further liability or obligations to City, including the payment of any rent or expenses under the Lease after the termination date, except as otherwise provided for in this Agreement. (e) Notwithstanding the termination or expiration of this Agreement, and except as otherwise stated in this Agreement, those obligations contained herein that by their terms or nature are intended to survive such termination or expiration and shall be binding upon the parties and their legal representatives,heirs, successors and assigns. 9. Removal of BRD Gas Svstem Assets. (a) Within six (6) months after the expiration or earlier termination of the Term, except for the WRRC Gas Management System, BRD shall, at its own expense, remove all physical material pertaining to the BRD Gas System from the Site (the "Gas System Assets'), leave the area formerly occupied by the Gas System Assets in substantially the same physical condition which existed immediately before the installation of the Gas System Assets (the "Removal Obligations'); provided, however, in the event the parties agree that any Gas System Asset shall remain on the Site, such Gas System Asset(s) shall not be subject to the Removal Obligations hereunder and thereafter shall become the property of City. With respect to any equipment or materials that are installed by BRD to connect the BRD Gas System with the WRRC Gas Management System, City shall make final determinations as to Page 6 of 40 which physical materials shall remain where the Gas System Assets interconnect with the WRRC Gas Management System. (b) City shall grant BRD all necessary or reasonably required easements and access rights to and from the WRRC property in order for BRD to perform its aforesaid Removal Obligations and for the purposes of effecting or completing any required decommissioning under any permit, license or agreement issued in connection with the Project. (c) City hereby acknowledges and agrees that BRD shall not be responsible in any manner for the removal from the WRRC property of the WRRC Gas Management System or other WRRC assets or property currently in place at the WRRC property (the "WRRC Assets") or for the restoration of the WRRC property arising out of the removal of the WRRC Assets by City or any third party; provided, however, that in the event the BRD Gas System or BRD's Removal Obligations cause any damage to the WRRC Assets,BRD shall remedy such damage and/or restore the WRRC Assets. (d) BRD's Removal Obligations pursuant to this section shall be secured by the security deposit agreed by the Parties and set forth in the Lease. 10. Representations and Warranties. (a) Each of the parties represents and warrants to the other that(i) it has the full right, power and authority to enter into this Agreement and to consummate or cause to be consummated the transaction contemplated herein, (ii) this Agreement is the legal, valid and binding obligation of such party, enforceable in accordance with its terms, and (iii) no consent, authorization, license, permit, registration or approval of, or exemption or other action is required in connection with its execution and delivery of this Agreement and the performance of its obligations hereunder. (b) BRD represents and warrants that (i) it possesses the professional and technical skills required to perform its obligations under this Agreement; (ii) it understands the currently known hazards which are presented to persons, property, and the environment in connection with its performance under this Agreement; (iii) it is aware of all laws, regulations, orders, and other governmental requirements pertaining to performance of this Agreement; (iv) it will perform its obligations hereunder in full compliance with all applicable laws, regulations, orders, permits, and other governmental requirements; (v) any subcontractors, agents or personnel employed by BRD will meet the same standards as apply to BRD; and (vi) it and its subcontractors, agents and personnel shall (1) replace, repair and maintain the WRRC Gas Management System (to the limited extent provided for herein) in accordance with the applicable manufacturer's warranties therefor and(2) develop and operate the BRD Gas System so as not to adversely affect such manufacturer's warranties. IL Insurance. BRD shall procure and maintain during the Term, at its own expense, insurance as required by the Insurance Schedule attached hereto as Exhibit B. 12. Indemnitv. (a) Each party (the "Indemnifying Party") shall indemnify, defend and hold harmless the other party, its elected and appointed officials, managers, members, officers, affiliates, employees, successors, legal representatives and assigns (the "Indemnified Party'), from and against any all claims, damages, liabilities, losses, judgments, settlements and costs (including, without limitation, reasonable attorney's fees and disbursements) ("Claims') relating to (a) an Indemnifying Party's, or its personnel or agent's breach of this Agreement, including, but not limited to,the Parties obligations under Section 13 of this Agreement, and/or (b)bodily injury or death of any person or damage to real and/or tangible personal Page 7 of 40 property arising from the negligence or willful misconduct of the Indemnifying Party, its personnel or agents during the Term of this Agreement. (b) The Indemnified Party must provide notice to the Indemnifying Party promptly upon learning of any Claim for which defense or settlement may be sought, but failure to do so will have no effect except to the extent the Indemnifying Party is prejudiced by the delay. The Indemnified Party seeking defense or settlement will allow the Indemnifying Party to control the defense and settlement of the Claim and will reasonably cooperate with the defense. The Indemnifying Party will use counsel reasonably experienced in the subject matter at issue and will not settle a Claim without the written consent of the Indemnified Party,which consent will not be unreasonably withheld or delayed, except that no consent will be required to settle a claim where relief against the Indemnified Party is limited to monetary damages that are paid by the Indemnifying Party under this Section 12. The Indemnifying Party shall have no obligation to indemnify for any settlement made without its prior written consent. 13. Environmental. (a) City's Covenants.Representations and Warranties. (i) The City represents and warrants, to the best of its actual knowledge, that there are no Environmental Conditions currently existing on the WRRC property. The City further covenants that it shall not cause nor by its act or omission permit to be caused any Environmental Conditions to occur or exist on the WRRC property during the Term of this Agreement. The City shall comply with any and all federal, state and local environmental laws and regulations applicable to City's operations at the WRRC, and, specifically, shall not take any action or make any omission which may cause the WRRC to violate an environmental permit, law or regulation. For the purposes of this Agreement, "Environmental Conditions" shall mean the presence, release or threatened of hazardous substances or materials, created or caused by any party, that does or may reasonably be expected to (i) require abatement or correction under any environmental law or regulation, (ii) give rise to any civil or criminal liability on the part of any party under any environmental law, or(iii) create a public or private nuisance. (ii) The City shall obtain and comply with any and all permits currently held, and subsequently required to be held during the Term hereof, by the City related to the operation of the WRRC, except the City shall not be responsible for obtaining any permits related to the development and operation of the BRD Gas System. The City shall provide BRD all assistance necessary in order to obtain any and all permits or authorizations necessary to construct and operate the BRD Gas System. (b) BRD Covenants.Representations and Warranties: (i) BRD, its directors, officers, owners, employees and agents shall not cause nor by its act or omission permit to be caused an Environmental Condition on the WRRC Property. (ii) BRD shall comply with any and all federal, state and local environmental laws and regulations applicable to the WRRC, and, specifically, shall not take any action or make any omission which may cause the WRRC to violate an environmental permit, law or regulation. (iii) BRD shall obtain all applicable environmental permits and authorizations necessary for the development and operation of the BRD Gas System and the services to be performed hereunder. (iv) BRD shall sign the existing Consent Decree which shall be attached as Exhibit C, and to the extent applicable to BRD's operations at the Site,BRD shall comply with the terms thereof. Page 8 of 40 (c) City hereby covenants and agrees to indemnify and hold harmless BRD and its managers, members, officers, affiliates, employees, successors, legal representatives and assigns from and against all claims, damages, liabilities, losses, judgments, settlements and costs (including, without limitation, reasonable attorney's fees and disbursements) related to Environmental Conditions at the WRRC, or any portion thereof, whether currently existing or subsequently caused, known, or unknown, and howsoever caused, to the extent not directly caused by BRD. 14. Limitation on Liability. To the fullest extent allowable by law, and notwithstanding any other provision of this Agreement,the parties agree that,whether as a result of breach of contract,warranty,tort (including negligence or patent infringement), strict liability or otherwise, neither party shall be liable to the other party for any special, consequential, incidental, indirect or exemplary damages including but not limited to loss of profit, loss of revenue or loss of use of equipment, whether or not either party was advised of the possibility of such damages, relating to the performance of this Agreement. 15. Confidentiality. (a) The parties agree not to disclose any confidential information furnished by the other party, except as provided under this Agreement. For purposes hereof, "Confidential Information" includes, but is not limited to, each party's know how, trade secrets, customer lists, prices, purchasing patterns, designs, data, methodologies, sales and marketing plans, technical, business and financial information, whether or not marked or labeled as confidential. Access to the Confidential Information shall be restricted to City and BRD personnel (including such personnel employed by affiliated entities) on a need to know basis solely for the performance of their obligations hereunder and development and operation of the Project. (b) Nothing in this Agreement shall prohibit or limit either party's use of information (including, but not limited to, ideas, concepts, know-how, techniques, and methodologies) (i) previously known to it without an obligation of confidence, (ii) independently developed by or for it, (iii) acquired by it from a third party which is not under an obligation of confidence with respect to such information, or (iv)which is or becomes publicly available through no breach of this Agreement. (c) If either party(the "Receiving Party") receives a request, subpoena or other legal process demanding Confidential Information of the other party (the `Disclosing Party"), it shall promptly notify the other party to enable such disclosing party to seek protective legal remedies and the recipient party shall reasonably cooperate in connection therewith. However, if the Receiving Party reasonably concludes that it is legally compelled pursuant to applicable law, rule, or regulation, to disclose any Confidential Information, it shall provide the Disclosing Party with prompt notice of each such request so that the Disclosing Party may seek an appropriate protective order, at the Disclosing Party's sole cost and expense, and/or waive the Receiving Party's obligation to comply with the provisions of this Agreement. Failure of the Disclosing Party to commence appropriate proceedings to seek an appropriate protective order within fourteen (14) days of receipt of notice from the Receiving Party shall permit the Receiving Party to disclose such Confidential Information; provided, however, that (i) the parties shall cooperate in good faith following any such request for Confidential Information to review and address the terms of any request and the legal conclusion compelling the disclosure of any Confidential Information and (ii) that the Receiving Party shall disclose no more Confidential Information than is necessary to comply with law. (d) All Confidential Information shall remain the property of the disclosing party, and no right to license or use the Confidential Information is granted to the recipient other than for purposes described in this Section. Recipient shall promptly return to the disclosing party, upon request, any and all tangible material concerning such Confidential Information, including all copies and notes, or destroy the Page 9 of 40 same and provide the disclosing party with a written certification that such destruction has occurred. Under no circumstances shall any Confidential Information or copy thereof be retained, except with the express written approval of the disclosing party. (e) In the event of any breach of this section, the parties agree that monetary damages may not be sufficient to remedy such breach and that the non-breaching party may suffer irreparable damages. The parties agree that the non-breaching party will be entitled to seek equitable and injunctive relief. In addition, unless expressly required by applicable law,neither party shall,without the prior written consent of the other, issue press releases, marketing literature, public statements, or in any way engage in any other form of public disclosure relating to this Agreement. 16. Further Assurances. City and BRD agree to use their commercially reasonable efforts to take, or cause to be taken, all actions, and to do, or cause to be done, all things reasonably necessary, proper or advisable to consummate and make effective the arrangements contemplated by this Agreement. In addition, City and BRD will at any time, and from time to time after the Effective Date, upon written request of the other party, execute, acknowledge and deliver all such further documents and assurances and take all such further action, as may be required to carry out the intent of this Agreement and to protect the right, title and interest in and enjoyment of the rights provided pursuant to this Agreement; provided, however, that this Agreement shall be effective regardless of whether any such additional documents are executed. 17. Miscellaneous. (a) Entire Agreement; Amendment; Order of Precedence. This Agreement sets forth the entire understanding between the parties hereto and supersedes all prior agreements, arrangements and communications, whether oral or written, with respect to the subject matter hereof. This Agreement may not be modified or amended except in a writing signed by the parties. The following order of precedence shall be followed in resolving any inconsistencies between the terms of this Agreement and the terms of any Exhibits, or other documentation attached hereto or delivered hereunder: (i) First, the terms contained in the body of this Agreement; (ii) Second, the terms of the Operations Plan; (iii) Third, the terms of the remaining Exhibits or other attachments to this Agreement, provided that no order of precedence shall be applied among such Exhibits or attachments; and (iv) Fourth, any other documentation provided hereunder. (b) Governing Law. This Agreement shall be governed in all respects by the laws of the State of Iowa and the venue for any litigation with respect to this Agreement shall be in the courts of Dubuque County,Iowa. (c) Waiver. No waiver of any provision of this Agreement shall be effective unless it is in writing and signed by the party against which it is sought to be enforced, and no such waiver shall constitute a further or continuing waiver of any preceding or succeeding breach of the same or any other provision. (d) Assignment. Except as specifically provided otherwise in this Agreement, neither this Agreement nor any interest herein shall be subcontracted or assigned, in whole or in party, by BRD without the prior written consent of City, which consent may not be unreasonably withheld, conditioned or delayed. Notwithstanding the foregoing, the restriction on assignment set forth in this Section shall not be deemed violated by virtue of a merger or change in control or ownership of BRD's parent or any successor entity. Page 10 of 40 (e) Force Majeure. A party shall be excused from performing its contractual obligations if it is prevented or delayed in such performance by conditions that constitute force majeure, such as acts of God, acts of terrorism, acts of the public enemy, labor disturbances, authority of law, fire or explosion, war or warlike act, insurrection, a party's reasonable response (by way of example and not limitation, such as taking evasive action or canceling meetings or events) to a governmental warning affecting local or national security, or any like causes beyond its control. A party wishing to take advantage of the relief provided in this Section must as soon as practical advise the other party in writing of the existence of the force majeure condition and the estimated time of its duration. The parties shall cooperate to ascertain the facts and the effect of the delay on, and make appropriate adjustments where necessary. (f) Successors and Assigns. Each of the terms, provisions, and obligations of this Agreement shall be binding upon, shall inure to the benefit of, and shall be enforceable by the parties and their respective legal representatives, successors and permitted assigns. (g) Notices. All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed to have been given or made if in writing and delivered personally or sent by registered or express mail (postage prepaid) or by facsimile to the parties at the following addresses and facsimile numbers: If to BRD: BRD Three,LLC 5062S. 108th Street, #113 Omaha, Nebraska 68137 Attn: Gregory S. MacLean Facsimile: (402) 540-0400 Copy to: Fraser Stryker PC LLO 500 Energy Plaza 409 S. 17" Street Omaha, NE 68102 Attn: Stephen M. Bruckner,Esq. Facsimile: (402)341-8290 If to City: Michael C. Van Milligen City Manager, City of Dubuque 50 W. 13th St Dubuque, IA 52001 Copy to : Barry Lindahl City Attorney, City of Dubuque Suite 330, Harbor View Place 300 Main Street Dubuque, Iowa 52001-6944 (h) Severability. If any term of this Agreement is found to be invalid or unenforceable, the remaining provisions will remain effective and such term shall be replaced with another term consistent with the purpose and intent of this Agreement. (i) Cumulative Remedies. No remedy made available hereunder by any of the provisions of this Agreement is intended to be exclusive of any other remedy, and each and every remedy shall be Page 11 of 40 cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute or otherwise. 0) No Third-Party Beneficiaries. Except as specifically provided in this Agreement, nothing in this Agreement will be construed as giving any person, other than the parties hereto and their respective heirs, successors and permitted assigns, any right, remedy or claim under or in respect of this Agreement or any provision hereof. (k) Independent Contractor. The relationship between City and BRD shall be that of an independent contractor. This Agreement is not intended to create and shall not be construed as creating between the parties a relationship of principal and agent,joint venturers, co-partners, master and servant, franchisor and franchisee, or any other similar relationship, the existence of which is hereby expressly denied by the parties. Employees of BRD are not employees of City. No party will have any right or authority to assume or create any binding obligations or to make any representations or warranties on behalf of the other party whether express, implied, by appearance, or otherwise. (1) Time is of the Essence. In the performance of each part of this Agreement, time shall be of the essence. Each party hereto acknowledges and agrees that the periods of time set forth in this Agreement for the performance contemplated hereunder area reasonable. (m) Counterparts. This Agreement may be executed in one or more counterparts, including counterparts by facsimile each of which shall be deemed an original, but all of which together shall constitute a single agreement. (n) Dispute Resolution. In the event of any dispute, question or difference of opinion between the City and BRD arising out of or under this Agreement (each a "Dispute"), a party may give to the other party a notice ("Dispute Notice") specifying the Dispute and requiring its resolution under this Section 17(n). If the Dispute is not resolved within seven (7) days after a Dispute Notice is given to the other party, each party must nominate one representative from its senior management to resolve the Dispute (each, a "Dispute Representative"). If the Dispute is not resolved within sixty (60) days of the Dispute being referred to the respective Dispute Representatives, then either party may request binding arbitration to resolve the dispute by delivering written notice of its intention to refer the matter to arbitration (the "Arbitration Notice") to the other party and thereafter the Dispute shall be referred to arbitration for final settlement binding on the parties in accordance with American Arbitration Association's Commercial Arbitration Rules, subject to the following: the arbitration tribunal shall consist of one (1) Arbitrator who shall be jointly selected by the parties (the "Arbitrator"). If the parties cannot agree on the Arbitrator within thirty(30) days after the delivery of the Arbitration Notice, either party may apply to a court of competent jurisdiction to appoint the Arbitrator. The Arbitrator shall be instructed that the arbitration is confidential and that time is of the essence in proceeding with the determination of any Dispute. The Arbitrator shall determine and communicate the rules governing the arbitration prior to its commencement to each party, and all hearings shall take place in Des Moines, Iowa unless otherwise determined by the written agreement of the parties; the arbitration award shall be in writing and shall be final, binding on the parties, not subject to any appeal or review, and shall deal with the question of costs of arbitration, pre-award interest and all other matters related thereto (the "Arbitration Decision"). The non-prevailing party shall pay all reasonable legal fees and expenses (including all expert witness fees and other related and miscellaneous expenses) of the prevailing party to the prevailing party. Judgement upon the Arbitration Decision rendered may be entered into any Page 12 of 40 court of competent jurisdiction, or application may be made to such court for a judicial recognition of the Arbitration Decision or an order of enforcement thereof, as the case may be, if a party fails to abide by the Arbitration Decision. During the existence of any Dispute, including arbitration, the parties must continue to perform all of their obligations under this Agreement without prejudice to their position in respect of such Dispute, unless the parties otherwise agree in writing. Nothing in this Section 17(n) prevents a party from seeking any urgent interlocutory relief which may be required in relation to this Agreement, including without limitation, enforcement of the rights set forth in this Section and Sections 2 and 15. [Remainder of Page Intentionally Left Blank; Signature Page Follows] Page 13 of 40 IN WITNESS WHEREOF,the parties have executed this Agreement as of the Effective Date. City of Dubuque, Iowa a governmental entity By: Name: Title: BRD Three, LLC, an Iowa limited liability company By: Name: Gregory S. MacLean Title: Manager Page 14 of 40 EXHIBIT A WRRC Gas Management Services and Specifications SYSTEM OVERVIEW The Unison Solutions, model BGS-350-112-HS, gas conditioning system is designed to supply up to 350 scfm of clean, dry, gas compressed to 3 psig. The system will be installed at the Dubuque WPCP in Dubuque, IA. The compression/moisture removal skid is designed for indoor operation in a Class I, Division 1 area. The HZS and siloxane removal systems are designed for outdoor operation in a Class 1, Division 1 area. The gas conditioning system control panel is designed for indoor operation in an unclassified area. The glycol chiller is designed for outdoor operation in an unclassified area. The gas conditioning system is comprised of several parts including: the HZS removal system, the gas conditioning skid which pressurizes the gas, removes moisture, and regulates the discharge pressure,the siloxane removal system, the glycol chiller which supplies cold glycol for use by the gas conditioning skid, and the gas conditioning system control panel which controls the system. Gas is supplied to the system through a 6" inlet where it passes through the inlet scrubber (FLT 300) where any free moisture and particulates larger than 3 µ in the biogas are removed. The gas then enters two HZS removal vessels piped in lead/lag configuration. The gas then enters the gas conditioning skid and passes through a 6" fail closed actuated butterfly valve before entering the suction scrubber which removes moisture and any particulates left over from the HZS removal process. The gas enters a blower (BLR 331) where it is compressed to approximately 4 psig at a temperature of about 169 °F. After leaving the blower, the gas enters the drying process. The process begins with gas passing through a dual core, gas to glycol heat exchanger (HX 341). The first stage uses the hot gas after compression to reheat the cool dry gas to its final reheat temperature. Gas then travels through the second stage of the heat exchanger which uses cold glycol from a remote glycol chiller to cool the gas to its dew point of approximately 40 °F. Condensate from the heat exchanger is removed via a float drain (FD 741). The gas then completes the process by being reheated via the hot compressed gas to a temperature of approximately 80 °F. Section 1 System Overview Page 15 Once the gas has been dried, it flows through two siloxane vessels (FLT 361 & 362), which remove the siloxanes and other VOC's from the gas stream. The vessels are piped in lead/lag configuration. After exiting the siloxane removal vessels, the gas flows through a final particulate filter (FLT 351)to ensure that any carryover siloxane media/dust is removed from the gas stream. The gas is then ready for delivery to the end use equipment at a temperature of about 80 °F and a pressure of 3 psig. The gas conditioning system control panel is equipped with a Programmable Logic Controller (PLC)that receives data from transmitters, RTD's, and digital inputs. The PLC also protects the equipment during process interruptions. The control panel includes auxiliary terminals for a remote run command input, and a customer fault input. Dry contact outputs are included for run status, warning status, fault status, and turbine run outputs. An Allen Bradley Ethernet IP connection is available for connection to the facility SCADA system. The customer is responsible for providing a broadband internet connection to the gas conditioning system control panel. This will create a VPN between the site and Unison; creating a faster response time to customer's requests by allowing Unison to remotely log onto the PLC, Human Machine Interface (HMI), and individual devices. Section 1 System Overview Page 16 SYSTEM MANUAL VALVE LISTING Valve# Normal operating position Function VY 3001 OPEN Close to isolate the HZS Removal System VI 3001 OPEN Close to isolate PDI 300 VI 3002 CLOSED Open to vent PDI 300 VI 3003 OPEN Close to isolate PDI 300 VI 3004 CLOSED Open to vent PDI 300 VB 301 CLOSED Open to vent HZS piping VB 302 CLOSED Open to vent FLT 301 VB 303 CLOSED Open to vent FLT 301 VB 304 CLOSED Open to vent HZS piping VB 305 CLOSED Open to vent HZS piping VB 306 CLOSED Open to vent FLT 302 VB 307 CLOSED Open to vent FLT 302 VB 308 CLOSED Open to vent 1-12S piping VI 3005 OPEN Close to isolate PDI 301 VI 3006 CLOSED Open to vent PDI 301 VI 3007 OPEN Close to isolate PDI 301 VI 3008 CLOSED Open to vent PDI 301 VI 3009 OPEN Close to isolate PDI 302 VI 3010 CLOSED Open to vent PDI 302 VI 3011 OPEN Close to isolate PDI 302 VI 3012 CLOSED Open to vent PDI 302 VB 701 OPEN Close to isolate STR 701 and FD 701 VB 702 CLOSED Open to manually drain condensate from FLT 300 VB 703 OPEN Close to isolate FD 701 VB 704 CLOSED Open to manually drain condensate from FLT 301 VB 705 CLOSED Open to manually drain condensate from FLT 301 VB 706 CLOSED Open to manually drain condensate from FLT 302 Section 1 System Overview Page 17 VB 707 CLOSED Open to manually drain condensate from FLT 302 VY 3008 OPEN Close to divert gas to future HZS vessel VY 3009 CLOSED Open to connect a future HZS vessel to the system VY 3010 CLOSED Open to connect a future HZS vessel to the system VB 3601 CLOSED Open to fill FLT 361 with nitrogen VB 3602 CLOSED Open to fill FLT 362 with nitrogen VB 3603 CLOSED Open to vent siloxane piping VB 3604 CLOSED Open to vent siloxane piping VB 3605 CLOSED Open to drain FLT 361 VB 3606 CLOSED Open to drain FLT 362 VB 3607 CLOSED Open to allow flow to QC 361 VB 3608 CLOSED Open to allow flow to QC 362 VB 3609 CLOSED Open to allow flow to QC 363 VB 3610 CLOSED Open to allow flow to QC 364 VY 3607 CLOSED Open to connect a future siloxane vessel to the system VY 3608 OPEN Close to divert gas to future siloxane vessel VY 3609 CLOSED Open to connect a future siloxane vessel to the system VY 3610 OPEN Close to isolate the siloxane removal system VI 321 OPEN Close to isolate PDI 321 VI 322 CLOSED Open to vent PDI 321 VI 323 OPEN Close to isolate PDI 321 VI 324 CLOSED Open to vent PDI 321 VB 721 CLOSED Open to manually drain condensate from FLT 321 VB 722 OPEN Close to isolate STR 721 and PMP 721 VB 741 OPEN Close to isolate STR 741 and FD 741 VB 742 CLOSED Open to manually drain condensate from HX 341 VB 743 OPEN Close to isolate FD 741 VB 231 CLOSED Open to drain oil from BLR 331 VB 731 CLOSED Open to manually drain condensate from SIL 331 Section 1 System Overview Page 18 VB 331 OPEN Close to isolate blower bearing chamber from inlet VI 331 CLOSED Open to test gas VB 341 CLOSED Open to vent to atmosphere VI 341 CLOSED Open to test gas VY 341 VARIABLE Adjust to change gas reheat temperature VY 342 OPEN Close to isolate siloxane removal system VY 343 CLOSED Open to by-pass gas around siloxane removal system VY 351 OPEN Close to isolate siloxane removal system VY 352 OPEN Close to isolate end use equipment VY 353 CLOSED Open to discharge gas to a future high pressure system VI 351 OPEN Close to isolate PDI 351 VI 352 CLOSED Open to vent PDI 351 VI 353 OPEN Close to isolate PDI 351 VI 354 CLOSED Open to vent PDI 351 VB 351 CLOSED Open to vent to atmosphere VB 751 CLOSED Open to manually drain condensate from FLT 351 VB 141 CLOSED Open to manually drain glycol piping VB 142 CLOSED Open to vent glycol piping VB 143 CLOSED Open to manually drain glycol piping Section 1 System Overview Page 19 Select the FIZS removal vessel configuration from the following list: Mode 1: FLT-301 is primary and FLT-302 is secondary Mode 2: FLT-302 is primary and FLT-301 is secondary Mode 3: FLT-301 and FLT-302 are in parallel Mode 1 Position Mode 2 Position Mode 3 Position VY 3002 OPEN CLOSED OPEN VY 3003 CLOSED OPEN OPEN VY 3004 CLOSED OPEN OPEN VY 3005 OPEN CLOSED OPEN VY 3006 CLOSED OPEN CLOSED VY 3007 OPEN CLOSED CLOSED Select the siloxane removal vessel configuration from the following list: Mode 1: FLT-361 is primary and FLT-362 is secondary Mode 2: FLT-362 is primary and FLT-361 is secondary Mode 3: FLT-361 and FLT-362 are in parallel Mode 1 Position Mode 2 Position Mode 3 Position VY 3601 OPEN CLOSED OPEN VY 3602 CLOSED OPEN OPEN VY 3603 OPEN CLOSED CLOSED VY 3604 CLOSED OPEN CLOSED VY 3605 CLOSED OPEN OPEN VY 3606 OPEN CLOSED OPEN Section 1 System Overview Page 20 UNDERSTANDING THE SYSTEM Scrubber FLT-321 Recirculation Valve VM-351 Gas Blower BLR-331 Particulate Filter FLT-351 Gas Discharge TP-353 & TP-354 Silencer SIL-331 Skid Inlet Connection Master TP-321 Stop Junction Boxes JBOX-21 & JBOX-31 Condensate Pump PMP-721 Inlet Actuated Valve VA-321 (GAS CONDITIONING SYSTEM CONTROL PANEL, GLYCOL CHILLER, HZS REMOVAL FILTERS, AND SILOXANE REMOVAL FILTERS NOT SHOWN) Section 1 System Overview Page 21 i Motor M-331 Siloxane Connections TP-342 & TP-351 Heat Exchanger HX-341 Glycol Connections y Condensate Discharge TP-142 & TP-143 TP-741 (GAS CONDITIONING SYSTEM CONTROL PANEL, GLYCOL CHILLER, HZS REMOVAL FILTERS, AND SILOXANE REMOVAL FILTERS NOT SHOWN) Section 1 System Overview Page 22 SYSTEM SUMMARY Inlet Conditions Discharge Conditions Design Flow 350 scfm Design Flow 350 scfm Design Pressure 0.36 psig Design Pressure 3.05 psig Design Temperature 98°F Design Temperature 80°F Design R.H. 100% Design R.H. 23% Maximum allowable incoming Temperature 98°F Maximum allowable incoming Pressure 0.36 psig Inlet Process Connection 6" Class 150 RF Flange Discharge Process Connection 4" Class 150 RF Flange Condensate Process Connections 2" Class 150 RF Flange Glycol Process Connections 2" Class 150 RF Flange Section 1 System Overview Page 23 SYSTEM OVERVIEW The Unison Solutions, model CGS-350-178, gas conditioning system is designed to compress and cool up to 350 scfm of gas compressed to 100 psig. The system includes the following: gas compression skid consisting of an inlet moisture/particulate filter, flooded screw compressor, oil separator, oil heat exchanger (using effluent water), oil mist eliminator and a remote mounted air to gas after-cooler. In addition, the system includes a remote mounted gas conditioning system control panel which provides power and control to the system. The gas compression skid is designed for indoor operation in a Class I, Division 1 area. The gas conditioning system control panel is designed for indoor operation in an unclassified area. Gas enters the gas compression skid through a 4" electrically actuated,fail close, butterfly valve (VA 371). Gas travels to a moisture/particulate filter (FLT 371) sized for 350 SCFM and used to capture 99% of particulates 3 micron and larger. Condensate formed in this filter collects in the bottom of the filter and exits thru a float drain (FD 771). After leaving the moisture/particulate filter, the gas enters a flooded screw compressor (CMP 371) where it is compressed to approximately 105 psig at a temperature of 200°F. Upon exiting the compressor, the gas enters an oil-gas separator (FLT 271)to remove any remaining oil from the gas stream. Gas then travels to a remote mounted air/gas after- cooler which cools the gas to approximately 122°F. Gas then re-enters the compression skid thru an oil mist eliminator (FLT 372) which removes any remaining oil and particulate 0.3p or greater. The process (at the discharge of the skid) produces a final temperature of 122°F with a relative humidity of approximately 44%. The gas exits the skid through a 2"flanged connection. The gas then travels to a field mounted sour gas fuel kit which will provide final filtration and regulates the pressure to the desired set point (approximately 75-85 psig)for the Capstone CR1000 micro-turbines. The gas conditioning system control panel is equipped with a Programmable Logic Controller (PLC)that receives data from transmitters, RTDs, and digital inputs. The PLC also protects the equipment during process interruptions. The gas conditioning system control panel includes auxiliary terminals for a remote run command input and a customer fault input. Dry contact outputs are included for skid run status, skid warning status and skid alarm status. Section 1 System Overview Page 24 THIS PAGE INTENTIONALLY LEFT BLANK Section 1 System Overview Page 25 SYSTEM MANUAL VALVE LISTING Valve q I Normal operating position Function Effluent Water Line Valves VB 141 Open Close to Isolate STR 141 or system piping VG 141 Variable Close to Isolate STR 141 or adjust water flow VB 142 Open Close to Isolate system piping VB 143 Closed Open to vent water piping VB 144 Closed Open to drain water piping Oil Line Valves VB 270 Closed Open to drain STR 271 VB 271 Closed Open to drain oil from FLT 271 VB 272 Closed Open to drain or add oil from/to FLT 271 VB 273 Closed Open to drain oil from FLT 271 or FLT 272 VB 274 Closed Open to drain oil from FLT 272 VB 275 Closed Open to vent FLT 272 VB 276 Closed Open to drain TK 271 VB 277 Closed Open to drain down-stream side of FLT 372 VB 278 Closed Open to drain up-stream side of FLT 372 Gas Line Valves VB 371 Closed Open to vent FLT 271 VB 372 Open Close to isolate HX 372 VB 373 Open Close to isolate HX 372 VB 374 Open Close to isolate skid from end use device VB 381 Open Close to isolate from skid discharge VB 382 Open Close to isolate FLT 381 VB 383 Open Close to isolate FLT 382 VB 384 Open Close to isolate FLT 381 VB 385 Open Close to isolate FLT 382 VB 386 Closed Open to vent FLT 381 VB 387 Closed Open to vent FLT 382 VB 388 Closed Open to drain fuel kit Condensate Line Valves VB 771 Open Close to isolate FD 771 and STR 771 VB 772 Closed Open to manually drain FD 771 VB 773 Open Close to isolate FD 771 VB 774 Closed Open to manually drain condensate from HX 372 VB 775 Closed Open to manually drain condensate from TK 371 Instrument Valves VI 371 Open Close to isolate PDI 371 VI 372 Closed Open to calibrate PDI 371 (while isolated)or to sample gas VI 373 Open Close to isolate PDI 371 VI 374 Closed Open to calibrate PDI 371(while isolated) VI 375 Open Close to isolate PDI 372 VI 376 Closed 10pen to calibrate PDI 372 (while isolated) VI 377 Open lClose to isolate PDI 372 VI 378 1 Closed 10pen to calibrate PDI 372 (while isolated) Section 1 System Overview Page 26 THIS PAGE INTENTIONALLY LEFT BLANK Section 1 System Overview Page 27 UNDERSTANDING THE SYSTEM V � 1 Junction Boxes JB-21/32 i Oil Filter FLT-272 , Oil Separator FLT-271 Buffer Tank TK-371 Oil Mist Eliminator 2" Discharge FLT-372 Connection (TP-3708) -1W 4" Inlet Connection (TP-3701) i 4" Inlet Valve Oil Cooler VA 371 HX 271 Inlet Filter FLT 371 Effluent Inlet TP-141 Condensate Outlet TP-771 Compressor Effluent Outlet CMP 371 TP-142 Motor M-371 (GAS CONDITIONING SYSTEM CONTROL PANEL NOT SHOWN) Section 1 System Overview Page 28 THIS PAGE INTENTIONALLY LEFT BLANK Section 1 System Overview Page 29 SYSTEM SUMMARY Inlet Conditions Discharge Conditions Design Flow 350 scfm Design Flow 350 scfm Design Pressure 3.0 psig Design Pressure 100 psig Design Temperature 80°F Design Temperature 122°F Design R.H. 23% Design R.H. 44% Inlet Process Connection 4" Class 150 pattern Lug Valve Discharge Process Connection 2" Class 150 pattern Lug Valve Condensate Process Connections 1/2" Class 150 RF Flange Effluent Water (Oil Cooler) Process Connections 2" Class 150 RF Flange Section 1 System Overview Page 30 THIS PAGE INTENTIONALLY LEFT BLANK Section 1 System Overview Page 31 EXHIBIT B Insurance Insurance Schedule B Class A: Asbestos Removal Earthwork Piles&Caissons Steel Asphalt Paving Electrical Plumbing Storm sewers Concrete Elevators Retaining Walls Structural Steel Construction Managers Fiber Optics Reinforcement Trails Cranes Fire Protection Roofing Tunneling Culverts Fireproofing Sanitary Sewers Water main Decking General Contractors Sheet Metal Demolition HVAC Site Utilities Deconstruction Mechanical Shoring Paving&Surfacing Special construction Class B: Chemical Spraying Landscaping Rough Carpentry Doors,Window& Masonry Stump Grinding Glazing Vehicular Snow Removal Tank Coating Drywall Systems Painting&Wall Covering Tree Removal Fertilizer Application Pest Control Tree Trimming Geotech Boring Scaffolding Tuckpointing Insulation Sidewalks Waterproofing Finish Carpentry Plastering Well Drilling Class C: Carpet Cleaning Carpet&Resilient Flooring Caulking& Sealants Acoustical Ceiling Filter Cleaning General Cleaning Grass Cutting Janitorial Non Vehicular Snow&Ice Removal Office Furnishings Power Washing Tile &Terrazzo Flooring Window Washing Section 1 System Overview Page 32 Insurance Schedule B (continued) INSTRUCTIONS FOR INSURANCE SUBMITTAL: 1. Contractor shall furnish a signed Certificate of Insurance to the City of Dubuque, Iowa for the coverage required in Exhibit I prior to commencing work and at the end of the project if the term of work is longer than 60 days. Providers presenting annual certificates shall present a Certificate at the end of each project with the final billing. Each Certificate shall be prepared on the most current ACORD form approved by the Iowa Department of Insurance or an equivalent. The issued certificate must clearly indicate the project number, project name, or project description for which it is being provided Eg: Project # Project name: or Project Location at or construction of 2. All policies of insurance required hereunder shall be with a carrier authorized to do business in Iowa and all carriers shall have a rating of A or better in the current A.M. Best's Rating Guide. 3. Each Certificate required shall be furnished to the City of Dubuque Department. 4. Failure to provide minimum coverage shall not be deemed a waiver of these requirements by the City of Dubuque. Failure to obtain or maintain the required insurance shall be considered a material breach of this contract. 5. Subcontractor(s) and sub subcontractor(s) performing work or service shall provide a Certificate of Insurance in accord with its' respective classification. The City of Dubuque may request a copy of a subcontractor(s) Certificate of Insurance from the general contractor. 6. All required endorsements to various policies shall be attached to the Certificate of insurance. 7. Whenever an ISO form is referenced the current edition must be used. 8. Provider shall be required to carry the minimum coverage/limit, or greater if required by law or other legal agreement, in Exhibit I - Insurance Schedule B. If the provider's limit of liability is higher than the required minimum limit then the provider's limit shall be this agreement's required limit. Section 1 System Overview Page 33 Insurance Schedule B (continued) Exhibit I A) COMMERCIAL GENERAL LIABILITY General Aggregate Limit $2,000,000 Products-Completed Operations Aggregate Limit $2,000,000 Personal and Advertising Injury Limit $1,000,000 Each Occurrence $1,000,000 Fire Damage Limit(any one occurrence) $ 50,000 Medical Payments $ 5,000 a) Coverage shall be written on an occurrence,not claims made,form.The general liability coverage shall be written in accord with ISO form CG0001 or business owners form BP0002. All deviations from the standard ISO commercial general liability form CG 0001,or Business owners form BP 0002,shall be clearly identified. b) Include ISO endorsement form CG 25 04"Designated Location(s)General Aggregate Limit'or CG 25 03 "Designated Construction Project(s)General Aggregate Limit"as appropriate. c) Include endorsement indicating that coverage is primary and non-contributory. d) Include endorsement to preserve Governmental Immunity.(Sample attached). e) Include an endorsement that deletes any fellow employee exclusion. f) Include additional insured endorsement for: The City of Dubuque,including all its elected and appointed officials,all its employees and volunteers,all its boards,commissions and/or authorities and their board members,employees and volunteers.Use ISO form CG 2010. Ongoing operations. g) All contractors shall include The City of Dubuque(per the above verbiage)as an additional insured for completed operations under ISO form CG 2037 during the project term and for a period of two years after the completion of the project. B) AUTOMOBILE LIABILITY $1,000,000 (Combined Single Limit) C) WORKERS'COMPENSATION&EMPLOYERS LIABILITY Statutory Benefits covering all employees injured on the job by accident or disease as prescribed by Iowa Code Chapter 85. Coverage A Statutory—State of Iowa Coverage B Employers Liability Each Accident $100,000 Each Employee-Disease $100,000 Policy Limit-Disease $500,000 Policy shall include an endorsement providing a waiver of subrogation to the City of Dubuque. Coverage B limits shall be greater if required by Umbrella Carrier. Section 1 System Overview Page 34 D) Umbrella Liability Umbrella liability coverage must beat least following form with the underlying policies included herein. All Class A contractors with contract values in excess of$10,000,000 must have an umbrella of $10,000,000. All Class A and Class B contractors with contract values between$500,000 and $10,000,000 must have an umbrella of$3,000,000. All Class A and B contractors with contractvalues less than$500,000 must have an umbrella of $1,000,000. All Class C contractors are not required to have an umbrella. E) Pollution Liability Coverage required: yes no Pollution Liability coverage shall be required if project involves any pollution exposures including abatement of hazardous or contaminated materials including, but not limited to, the removal of lead, asbestos,or PCB's. Pollution product and complete operations coverage shall also be covered. $2,000,000 each occurrence $4,000,000 policy aggregate a) Policy to include premises and transportation coverage. b) Include additional insured as stated in Ae above. c) Include preservation of governmental immunity as stated in Ad above. F) Railroad Protective Liabilitv Coverage required: yes no Any Contract for construction or demolition work on or within Fifty feet (50') from the edge of the tracks of a railroad and effecting any railroad bridge or trestle, tracks, roadbeds, tunnel,underpass, or crossing for which an easement or license or indemnification of the railroad is required, shall require evidence of the following additional coverages. Railroad Protective Liability: $ each occurrence(per limits required by Railroad) $ policy aggregate (per limits required by Railroad) OR An endorsement to the Commercial General Liability policy equal to ISO CG 2417(Contractual Liability-Railroads). A copy of this endorsement shall be attached to the Certificate of Insurance. Section 1 System Overview Page 35 Preservation of Governmental Immunities Endorsement 1. Nonwaiver of Governmental Immunity. The insurance carrier expressly agrees and states that the purchase of this policy and the including of the City of Dubuque, Iowa as an Additional Insured does not waive any of the defenses of governmental immunity available to the City of Dubuque, Iowa under Code of Iowa Section 670.4 as it is now exists and as it may be amended from time to time. 2. Claims Coverage. The insurance carrier further agrees that this policy of insurance shall cover only those claims not subject to the defense of governmental immunity under the Code of Iowa Section 670.4 as it now exists and as it may be amended from time to time. Those claims not subject to Code of Iowa Section 670.4 shall be covered by the terms and conditions of this insurance policy. 3. Assertion of Government Immunitv. The City of Dubuque, Iowa shall be responsible for asserting any defense of governmental immunity, and may do so at any time and shall do so upon the timely written request of the insurance carrier. 4. Non-Denial of Coverage. The insurance carrier shall not deny coverage under this policy and the insurance carrier shall not deny any of the rights and benefits accruing to the City of Dubuque, Iowa under this policy for reasons of governmental immunity unless and until a court of competent jurisdiction has ruled in favor of the defense(s) of governmental immunity asserted by the City of Dubuque, Iowa. No Other Change in Policy. The above preservation of governmental immunities shall not otherwise change or alter the coverage available under the policy. Section 1 System Overview Page 36 Addendum to Exhibit B Notice of Insurance Coverage for City of Dubuque BRD acknowledges that City is a member of the Iowa Communities Assurance Pool(ICRP). City shall maintain its membership in ICAP or at its option purchase general liability insurance with equivalent coverage. City shall provide BRD with a certificate showing City's ICAP coverage. Section 1 System Overview Page 37 EXHIBIT C Consent Decree Section 1 System Overview Page 38 Rev 01/2015 CONSENT DECREE RELATING TO THE CITY OF DUBUQUE, IOWA WATER & RESOURCE RECOVERY CENTER AND SANITARY SEWER COLLECTION SYSTEM NO CONTRACTOR OR CONSULTANT MAY PERFORM ANY WORK FOR THE CITY OF DUBUQUE RELATED TO THE WATER & RESOURCE RECOVERY CENTER OR THE SEWER COLLECTION SYSTEM UNLESS COPY OF THIS DOCUMENT IS RETURNED TO THE CITY OF DUBUQUE ENGINEERING DEPARTMENT The City of Dubuque, Iowa has entered into a Consent Decree in the case of The United States of America, and the State of Iowa v. The City of Dubuque, Iowa, Civil Action No. Case 2:11-cv-01011-EMJ, Civil Action Number 2008V00041, DOJ Case Number 90-5-1-1-09339, United States District Court for the Northern District of Iowa. The provisions of the Consent Decree apply to and are binding upon the City and its officers, directors, employees, agents, servants, successors, assigns, and all persons, firms and corporations under contract with the City to perform the obligations of the Consent Decree. The City is required to provide a copy of the Consent Decree to any contractor or consultant retained to perform work required by the Consent Decree. A copy of the Consent Decree can be found at http://www.citvofdubugue.org/DocumentCenter/HomeNiew/3173. A paper copy is available upon request from the City of Dubuque Engineering Department. The City must condition any contract to perform work required under the Consent Decree upon performance of the work in conformity with the provisions of the Consent Decree. The Consent Decree also provides that until five years after the termination of the Consent Decree, the City shall retain, and shall instruct its contractors and agents to preserve, all non-identical copies of all documents, reports, data, records, or other information (including documents, records, or other information in electronic form) in its or its contractors' or agents' possession or control, or that come into its or its contractors' or agents' possession or control, and that relate in any manner to the City's performance of its obligations under this Consent Decree, including any underlying research and analytical data. This information-retention requirement shall apply regardless of any contrary City, corporate or institutional policies or procedures. At any time during this information-retention period, upon request by the United States or the State, the City shall provide copies of any documents, reports, analytical data, or other information required to be maintained under the Consent Decree. At the conclusion of Page 1 of 2 Section 1 System Overview Page 39 the information-retention period, the City shall notify the United States and the State at least ninety (90) Days prior to the destruction of any documents, records, or other information subject to such requirements and, upon request by the United States or the State, the City shall deliver any such documents, records, or other information to the EPA or IDNR. CERTIFICATION BY CONTRACTOR OR CONSULTANT The undersigned, on behalf of the Contractor or Consultant, with full authority to act on behalf of the Contractor or Consultant, certifies to the City of Dubuque as follows: 1. 1 have received a copy of the Consent Decree in the case of The United States of America, and the State of Iowa v. The City of Dubuque, Iowa, Civil Action No. Case 2:11-cv-01011-EMJ, Civil Action Number 2008V00041, DOJ Case Number 90-5-1-1- 09339, United States District Court for the Northern District of Iowa. 2. All work performed will be in conformity with the provisions of the Consent Decree. 3. All documents, reports, data, records, or other information (including documents, records, or other information in electronic form) that relate in any manner to the performance of obligations under the Consent Decree, including any underlying research and analytical data, will be retained as required by the Consent Decree. The Contractor or Consultant agrees to defend, indemnify, and hold harmless the City, its officers, agents, or employees from and against any claims, including penalties, costs and fees as provided in the Consent Decree, relating to or arising out of the Contractor's or Consultant's failure to comply with the Consent Decree. Contractor or Consultant: &iu bvtliywer4 LC c By.� c� !' BR/� %ree3 LLC Its: — Date: Return signed copy to: Denise Ihrig P.E. Environmental Engineer City Hall - Engineering Department 50 W. 13th Street Dubuque, IA 52001 Page 2 of 2 Section 1 System Overview Page 40