HomeMy WebLinkAboutIR 7343 INFORMAL REPORT TO CITY COUNCIL. MEMBERS No. 7343
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�gfORl To the Mayor and Members of the City Council January 3, 1989
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�raxrg, Subject: METHANE GAS RECOVERY PROJECT AT NORTHEAST LANDFILL
A proposal has been made by Clark Energy, Inc. , a Wichita Falls based company,
to lease a tract of land at the City of Fort Worth's closed Northeast Landfill .
The company proposes to recover and sell methane gas obtained from the site
to an asphalt company located on property directly east and adjacent to the
site.
Clark Energy requests to lease the site for a period of three years during
which time they will :
1. conduct tests to determine whether enough gas can be produced to
make the project feasible,
2. permit the project with the Texas Department of Health, and
3. develop the collection, processing and transportation system.
They propose that the terms of the lease be extended thereafter as long as
gas is produced in sufficient commercial quantities. Clark will be responsible
for all testing, permitting and development costs. In consideration of leasing
the property, Clark Energy will pay to the City of Fort Worth a one-eighth
., (1/8) royalty on the proceeds of the sale of the landfill gas. Gross monthly
revenues are estimated to be between $5,000 and $9,000. The City of Fort
Worth would receive 1/8 of this amount.
The asphalt company is in the process of designing a new burner capable of
using alternate fuels, thus providing a use for the methane gas. In the
past, unfavorable rates from the utility companies for the purchase of the
gas or any electricity that might be produced from it and the lack of any
immediate users for methane gas have deterred us from doing any projects
like this.
Clark Energy is a small oil and gas company that has been involved in a similar
project with the City of Wichita Falls. Because of unresolved questions
concerning ownership of the landfill in Wichita Falls and the rights to the
solid waste and the methane gas that is produced from it, this project has
not been developed.
The proposed project will not affect the athletic fields located on the
unfilled Northern portion of the landfill . It is also not expected to affect
usage of an area on top of the filled area by the Southwest Radio Control
Flying Club.
If the City Council concurs, staff will proceed to draft a contract with
Clark Energy to lease this site and do this project. Additional information
will be provided upon request.
Dou as NHaWrma"n _@.-t__
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS --