Surry County is ahead of the game when it comes to environmental protections at the county landfill. While it is not yet required, the county several years ago entered into an agreement with Hep Petra to being collecting excess methane gas that was collecting at the landfill.
Under the gas-to-energy project, Petra installed a collection system in 2011 to harvest methane gas and direct it to an engine. Specifically designed by Caterpillar for methane collection the engine uses the methane gas to produce the horsepower necessary to power a 1,600-kilowatt generator.
Commissioner Larry Phillips called the project at its launch a win-win for the county, “What you’re seeing here is a problem being taken and converted into a renewable form of energy that will in turn become a source of revenue for the county,” he said.
On Monday, the board of county commissioners were asked to renew the lease agreement with Renew Petra for their operation at the landfill as part of a refinancing plan of the company.
County Attorney Ed Woltz advised the board on the process and that there were some documents needed from Renew Petra that had not yet been received before the county could proceed. However, he suggested the board agree to the lease pact ahead of the paperwork being completed.
Public Works director Jessica Montgomery told the board this was essentially a formality, “They have always been there on that piece of land, they are trying to work out legalities on it. For some reason they keep getting hiccups; I understood they needed this by the end of June.”
The delays in Renew Petra getting the documents to the county are not of their own making, He further explained to the board, and they should therefore not be penalized. With no further board meetings this month, and the first meeting of July delayed for Independence Day Woltz wanted the county ready to act. “It’s a big deal for them. I don’t want to interfere with their financing if we can help it.”
Renew Petra needs the lease agreement to move forward in a timely fashion as they are using the lease agreement to collateralize new loans. The new funds will allow Petra to improve their installation at the landfill and other operations they have across the state.
“We need to get this moving,” Montgomery advised as there are concerns with the equipment currently in use at the Surry County landfill. She spoke of $500,000 of improvements to be made to the engine they use, “They are constantly replacing parts, so they need to overhaul it. Its not going to pass when it gets tested for emissions.”
Commissioner Mark Marion asked if the methane collection project was something the county is required to do. Montgomery answered it is not rather it is a good faith effort by the county. “We are not to the point where we are required to do this. But it does power 600-800 homes in the area; and it does prevent leak outs from the landfill. It is very good for the environment, but we are not required – yet.”
There is going to come a time when draining the methane would be required Chairman Bill Goins commented, but that it is some years away. Montgomery concurred, “Yes, but we are years away from that. We are testing very low right now.”
Money matters in Surry County, as with everywhere else, and Vice Chairman Eddie Harris wanted to know if the methane recovery effort was still a net revenue producer. He took it in stride when he was informed that it is a null sum project currently.
“We are making nothing,” Montgomery said, “We are in a cost sharing phase starting two years ago. Putting so much money into keeping the engine alive, we are not making any money at this point.” She did address Commissioner Larry Johnson’s direct question and reiterated that the county is not spending money either.
The fiscally conservative Harris kept his cool noting that “heretofore we were making money at some point in time not just a few years ago.” There is confidence that with the right equipment on site, the project will again be a source of revenue for the county.
Commissioners Van Tucker and Johnson both had questions for Woltz about the process and whether extending the lease would commit the county to anything long term. “Does extending the lease prevent us from getting out of it at any time?”
Woltz confirmed that and assured them the county was protected, “If the thing should unwind, they are also required to take away their equipment and remove it from our site.”
Harris summarized, “This methane program is something that prior boards have been very proud of because this methane is recovered from our landfill and used to run a gen to electrify hundreds of homes. I still believe this is a worthy project and I reiterate my support for it.”
The board approved the lease renewal pending the delivery of the remaining documents.
Source: https://www.mtairynews.com
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