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An ordinance authorizing the granting of easements and approving a Gas Rights Agreement and Lease Agreement between the Metropolitan Government of Nashville and Davidson County, through the Department of Water and Sewerage Services, and Burnham Nashville LLC, for the Renewable Natural Gas Project. (Proposal No. 2026M-025AG-001)
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WHEREAS, the Metro Water and Sewerage Services (“MWS”) Biosolids Facility at the Central Water Reclamation Facility, located at 1810 Cement Plant Road, produces an average of 1,500,000 Cubic Feet of biogas everyday as a byproduct of the biological processes occurring in its anaerobic digesters; and,
WHEREAS, although the Biosolids Facility uses a portion of this biogas for internal processes, a significant amount of the biogas is burned off using waste gas burners; and,
WHEREAS, pursuant the Gas Rights Agreement, attached hereto as Exhibit 1, Burnham Nashville LLC (“Burnham”) will construct a facility on MWS property (“RNG Facility”), which will receive biogas from the Biosolids Facility, convert the biogas into Renewable Natural Gas (“RNG”) and inject it into a nearby gas pipeline; and,
WHEREAS, this process will allow for the beneficial reuse of 100% of the biogas produced at the Biosolids Facility and the RNG that is injected into the pipeline will generate energy credits that can be marketed; and,
WHEREAS, Burnham will finance, design, construct, own, and operate the RNG Facility and in exchange for the biogas provided by MWS, Burnham will provide MWS with a minimum of 70% of the net revenue generated from the marketing of the RNG and the energy credits; and,
WHEREAS, pursuant to the Lease Agreement, attached hereto as Exhibit 2, Burnham will lease approximately 1.2 acres, located at 1815 Cement Plant Road, to construct and operate the RNG Facility; and,
WHEREAS, MWS will convey two (2) permanent easements to Burnham and one (1) temporary construction easement to Burnham for Burnham to access, construct and operate the RNG Facility, as described and shown in the Permanent and Temporary Easement Agreement, attached hereto as Exhibit 3; and,
WHEREAS, contracts beyond 60 months must be approved by ordinance; and,
WHEREAS, it is in the best interest of the Metropolitan Government of Nashville and Davidson County to grant the easements to Burnham and to approve the Gas Rights Agreement and the Lease Agreement.
NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. That the Gas Rights Agreement between the Metropolitan Government of Nashville and Davidson County, through the Department of Water and Sewerage Services, and Burnham Nashville LLC, attached hereto as Exhibit 1 and incorporated herein, is hereby approved.
Section 2. That the Lease Agreement between the Metropolitan Government of Nashville and Davidson County, through the Department of Water and Sewerage Services, and Burnham Nashville LLC, attached hereto as Exhibit 2 and incorporated herein, is hereby approved.
Section 3. That the Permanent and Temporary Easement Agreement granting to Burnham Nashville LLC permanent and temporary easements to access, construct and operate the RNG Facility, attached hereto as Exhibit 3 and incorporated herein, is hereby approved.
Section 4. That the Director of the Department of Water and Sewerage Services or his designee is authorized to execute such other documents as are necessary to carry out the objectives of this ordinance.
Section 5. Amendments to this legislation shall be approved by resolution.
Section 6. This ordinance shall take effect from and after its final passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.