HomeMy WebLinkAboutPlanergy - renegoatiated contract 4/1/17-3/31/18-4/17/2017April 17, 2017
Please return this copy to:
City Clerk & Finance Dept.
715 Mulberry St.
Waterloo, IA 50703
CITY OF WATERLOO, IOWA
WASTE MANAGEMENT SERVICES DEPARTMENT
3505 Easton Ave. • Waterloo, IA 50702 • (319) 291-4553
Steve Hoambrecker, Director
Mr. John Sprangers Planergy Waterloo, LLC
680 Commerce Dr., Suite 270
Woodbury, MN 55125
Re: City of Waterloo — Planergy
Dear Mr. Sprangers:
This letter confirms terms negotiated by Planergy and the City with respect to temporary reduction in
pricing and related matters. During the limited period that the terms of this letter agreement are in
effect, the terms stated in this letter will prevail over any contradictory terms in the Gas Rights
Purchase and Operation Agreement between the parties, dated as of May 1, 2006 (referred to as the
Contract). Subject to the foregoing, the parties have worked out the following terms:
1. Price reduction; Commencing with the April, 2017 invoice to be issued, the price of gas will be
reduced from $0.50 per net MMBtu of methane to $0.10 per MMBtu of methane for volumes up to
130,000MMBTu and thereafter to $0.20 per MMBtu of methane produced by the lagoon for the period
commencing April 1,2017 through March 31, 2018.
2. Contract Renegotiation. The parties acknowledge that this agreement is for the period April 1,
2017 thru March 31, 2018. The parties will promptly pursue, in good faith and with diligence,
discussions for contract extensions beyond March, 2018. As stated in the Contract, the City makes no
promises or guarantees as to the quality or quantity of gas that may be produced.
3. Confidentiality. Planergy has advised the City that financial and other information that Planergy
provides must be maintained as confidential under applicable regulations and agreements that Planergy
has with third parties. Planergy has indicated that it would not provide this information to the City
unless it is held in confidence and not be made available for public examination or disclosure. Therefore,
the City agrees to hold this information as confidential.
If you concur with the above terms, please have this letter agreement executed in duplicate by a duly
authorized representative of Planergy. On the City's side, this letter agreement must be approved by
the City Council before it can be signed by the Mayor and made binding upon the City. We will attempt
to secure this approval at the earliest possible date following Planergy's approval. The parties agree
that counterpart signatures to this letter are acceptable, that copies will be treated as originals, and that
all of such signatures taken together will constitute one and the same document.
Thank you for your cooperation in addressing the issues between us.
Very truly yours,
Steven Hoambrecker
By their signatures below, the undersigned represent that they have been duly authorized to execute
this letter agreement and that the foregoing terms are binding.
Planerg A aterloo, LLC
J
B
Jo ' n Spranger
resident
City of Waterloo, Iowa
By: FIC.A.S J1'1
Quentin Hart, Mayor
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