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HomeMy WebLinkAboutAEA Round 8 Chignik BaySeptember 12,2014 Alaska Energy Authority 813 West Northern Liglits Boulevard Anchorage, Alaska 99503-2495 Attn: Grant Manager: Shawn Calfa City of Chignik PO Box 110 Chignik, A K 99564 Phone (907) 74 9-22 80 Fa,'< (9 07) 74 9-23 00 Re : Renewable Energy Fund Grant Program Round 8: Chignik Hydroelectric Project Dear Mr. Calfa and Review Panel: The City of Chignik res~ectfullysubmits the enclosed application for grant funds available through the Renewable Energy Fund Grant Program. Tlie City of Chianik would like to request $1 ,3 ~5,000 for a hydroelectric design and permitting project for the community of Chignik Bay . The Chis;nik Hydroelectric Project has received prior Renewable Ener~;y Funding (round one) ana is ready to move to final desian/permitting . The Project will oe capable of generating an average of 2,295,000 kWh annually . The project will run year round and meet the existing ana future electricity demands of the community . Please contact the City of Chignik staff if you have any questions . Sincerely, e//~ Adam Anderson Chignik Mayor Renewable Energy Fund Round VIII Grant Application -Standard Form -,~ AJ ASKl:\=::z-'7<-f ".:J ENERGY AUTHORITY II SECTION 1 -APPLICANT INFORMATION I Name (Name of utility, IPP, or government entity submitting proposal) / City of Chignik Type of Entity: Second Class City Fiscal Year End: June 30 Tax ID # 92-0094970 Tax Status: D For-profit D Non-profit ~ Government (check one) Date of last financial statement audit: Certified Financial Statement for FY13-0ctober 7,20 13 Mailing Address: Physical Address: PO Box 110 101 Tsunami Dr. Chignik, Ak 99564 Chignik, Ak 99564 Telephone: Fax: Email: 907-749-2280 907-749-2300 chignikci tyclerk(a}gmail. com /1.1 APPLICANT POINT OF CONTACT I GRANTS MANAGER I Name: Title: Adam Anderson Mayor Mailing Address: PO Box 110 Chignik, Ak 99564 Telephone: Fax: Email: 907-7 49-2280 907-749-2300 chignikcitymayor@gmail.com / 1.1.1 APPLICANT ALTERNATE POINTS OF CONTACT Name Telephone: Fax: Email: Alana Anderson 907-749-2280 907-749-2300 cityofchignik@gmail.com AEA 15003 Page 2 of 51 7/2/14 Renewable Energy Fund Round VIII Grant Application -Standard Form 1.2 APPLICANT MINIMUM REQUIREMENTS ':i) AJ~ASK~~ f ~)ENERGY AUTHOR ITY Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. I 1.2.1 As an Applicant, we are: (put an X in the appropriate box) D An electric utility holding a certificate of public convenience and necessity under AS 42.05 , or D An independent power producer in accordance with 3 AAC 107 .695 (a) (1 ), or 181 A local government, or D A governmental entity (which includes tribal councils and housing authorities) 1.2 APPLICANT MINIMUM REQUIREMENTS (continued) Please check as appropriate. 181 1.2.2 Attached to this application is formal approval and endorsement for the project by the applicant's board of directors, executive management , or other governing authority. If the applicant is a collaborative grouping, a formal approval from each participant's governing authority is necessary . (Indicate by checking the box) 181 1.2.3 As an applicant , we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement (Sect ion 3 of the RFA). (Indicate by checking the box) 181 1.2.4 If awarded the grant, we can comply with all terms and conditions of the award as identified in the Standard Grant Agreement template at http://www.akenergyauthority .org/REFund8 .html. (Any exceptions should be clearly noted and subm itted with the application.) (Indicate by checking the box) 181 1.2.5 We intend to own and operate any project that may be constructed with grant funds for the benefit of the general public. If no please describe the nature of the project and who will be the primary beneficiaries . (Indicate yes by checking the box) AEA 15003 P age 3 o f 51 7/2/14 I ------------ Renewable Energy Fund Round VIII Grant Application -Standard Form SECTION 2-PROJECT SUMMARY I This section is intended to be no more than a 2-3 page overview of your project. I 2.1 Project Title-(Provide a 4 to 7 word title for your project). Type in space below. Chi gnik H ydro electri c Proj e ct D es ign and P ermitting 2.2 Project Location - Include the physical location of your project and name(s) of the community or communities that will benefit from your project in the subsections below. 2.2.1 Location of Project-Latitude and longitude, street address, or community name. Latitude and longitude coordinates may be obtained from Google Maps by finding you project 's location on the map and then right clicking with the mouse and selecting "What is here? The coordinates will be displayed in the Google search window above the map in a format as follows: 61 .195676.-149 .898663. If you would like assistance obtaining this information please contact AEA at 907-771-3031 . Chignik B ay N5 6d17'4 0 ",W158d24 ' 14 " 2.2.2 Community benefiting -Name(s) of the community or communities that will be the beneficiaries of the project. [ Chignik Bay 2.3 PROJECT TYPE Put X in boxes as appropriate I 2.3.1 Renewable Resource Type D Wind D Biomass or Biofuels (excluding heat-only) ~ Hydro , Including Run of River D Hydrokinetic D Geothermal , Excluding Heat Pumps D Transmission of Renewable Energy D Solar Photovoltaic D Storage of Renewable I D Other (Describe) D Small Natural Gas I 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Pre-Construction Construction D Reconnaissance ~ Final Design and Permitting D Feasibility and Conceptual Design D Construction AEA 15003 Pag e 4 of 51 7/2/14 Renewable Energy Fund Round VIII Grant Application -Standard Form 2.4 PROJECT DESCRIPTION '~~)j A-bASK'Ac -;-,-~ ~ ..:::::-) ENERGY AUTHORITY Provide a brief one paragraph description of the proposed project. The Project is an existing Federal Energy Regulatory Commission (FERC) licensed hydro project located on Indian Creek in Chignik Bay, Ak. The existing infrastructure was built in 1947 and consists of a wooden timber framed dam, a 1 0' to 12' wood and steel pipeline that has a licensed output of 60 kW going to the Trident Seafood processing plant. In 2012, the City of Chignik became the Project Owner and FERC Licensee . The existing hydro project currently only serves as the community 's raw source and transmission and does not produce power for the city. The hydro project is in imminent danger of failing , and a replacement dam and pipeline will be required in the near future. This work will fulfill the design and permitting needs of the replacement project. This project will complete the necessary design and permitting for the recommended hydroelectric project for Chignik Bay. This project will run year-round and meet all the existing and future electricity demands of the community. 2.5 PROJECT BENEFIT Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel costs, lower energy costs, local jobs created, etc.) During the design phase, the primary benefit of this project will be to prepare the final design and obtain permits for the hydroelectric facility in Chignik Bay. When this work is completed the City ofChignik will be able to seek and acquire funding for the construction of the project. The construction phase of the project will have a positive economic impact on the community due to the availability of jobs and the need for local employment. The City will benefit significantly from the reduced diesel engine maintenance, improved water supply , electric energy security, reduced fuel use , handling and storage. The public benefits of the redevelopment include displacin g nearly I 00% of Chignik's diesel electric generation with locally generated hydroelectric power. The lower energy costs would help stimulate both residential and commercial development in the community of Chignik. Stabili ze d power costs will allow for improved operation of existing public services. Fossil fuel emissions will be reduced , resulting in improved air quality and decreased contribution to global climate change. Reduced fuel consumption reduces the volume of fuel transported and the potential for fuel spills and contamination. I 2.6 PROJECT BUDGET OVERVIEW AEA 15003 Page 5 of 51 7/2/14 Renewable Energy Fund Round VIII Grant Application -Standard Form Briefly discuss the amount of funds needed, the anticipated sources of funds , and the nature and source of other contributions to the project. The total project cost for the final design/permitting to reconstruct the hydroelectric project in Chignik Bay is $1,3 75 ,000. The City Council understands the high importance of this project and is contributing a matching fund of $70,000 towards the project. Therefore, the City is seeking $1,305,000 from the Alaska Energy Renewable Fund. The City has obtained a grant writer and will continue searching for other funding for the construction phase of the hydroelectric project. 2.7 COST AND BENEFIT SUMMARY Include a summary of grant request and your project 's total costs and benefits below. Costs for the Current Phase Covered by this Grant (Summary of funds requested) 2.7.1 Grant Funds Requested in this application /2.7.2 Cash match to be provided 1 2.7.3 In-kind match to be provided /2.7.4 Other grant funds to be provided $ 1,305,000 $ 70,000 $ $ 2.7.5 Total Costs for Requested Phase of Project (sum of 2.7.1 through 2.7.4)$ 1,375,000 I Other items for consideration 1 2.7.6 Other grant applications not yet approved $ AEA 15003 Page 6 of 51 712/14 Renewable Energy Fund Round VIII Grant Application -Standard Form Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.7 Total Project Cost $ 6,610,000 Summary from Cost Worksheet, Section 4. 4. 4, including estimates through construction. 2.7.8 Additional Performance Monitoring Equipment not $ covered by the project but required for the Grant Only applicable to construction phase projects 2.7.9 Estimated Direct Financial Benefit (Savings) $ 12,530,000 The economic model used by AEA is available at www. akenergy_authority_. org/REFund8. html. This economic model may be used by applicants but is not required. Other economic models developed by the applicant may be used, however the final benefit/cost ratio used will be derived from the AEA model to ensure a level playing field for all applicants. 2.7.10 Other Public Benefit $ 8,440,000 If you can calculate the benefit in terms of dollars please provide that number here and explain how you calculated that number in Section 5 below. SECTION 3-PROJECT MANAGEMENT PLAN Describe who will be responsible for managing the project and provide a plan for successfully completing the project within the scope, schedule and budget proposed in the application. 3.1 Project Manager Tell us who will be managing the project for the Grantee and include contact information, a resume and references for the manager(s). In the electronic submittal, please submit resumes as separate PDFs if the applicant would like those excluded from the web posting of this application . If the applicant does not have a project manager indicate how you intend to solicit project management support. If the applicant expects project management assistance from AEA or another government entity, state that in this section . The City of Chignik has worked with CE2 Engineers, Inc. over the past 30 years. CE2 Engineers will use its online project management system to organize all progress , schedules, milestones , budgets, and progress report and reporting activities. All cooperating parties will assess the management system to update their own tasks and view the work of the other partners. All documentation on the final design/permitting will be made available to the Authority. Jeanette Leftwich is the office manager for CE2 Engineers, Inc. which will be working with the City. She has over 20 years of progressive and stable experience in office management. The points of contact for the City will include the following: Adam Anderson (907-749-4094) ~ayor chignikcitvmavonci'.l!mail .com Becky Boettcher (907 -749-2280) City Clerk chignikcitvclerkJ{.{~gmail.com AEA 15003 Page 7 of 51 7/2/14 -------- Renewable Energy Fund Round VIII Grant Application -Standard Form Alana Anderson (907-444-1701) Grant writer citvofchignik~i!gmail.com As always , the City will follow its local government procurement policies for all services , material and final design/permitting for this project. AEA 15003 Page 8 of 51 7/2/14 -------- Renewable Energy Fund Round VIII Grant Application -Standard Form 3.2 Project Schedule and Milestones Please fill out the schedule below. Be sure to identify key tasks and decision points in in your project along with estimated start and end dates for each of the milestones and tasks. Please clearly identify the beginning and ending of all phases of your proposed project. Please fill out form provided below. You may add additional rows as needed. Start End Milestones Tasks Date Date Grant Award Sign Grant Agreement 6/15 6115 RFP Create RFP, Issue RFP , Select De sign Contractor 7/15 8/15 Contract Negotiations Work with AEA to Negotiate Contract Details 8/15 9115 Final Design and Permitting Complete Final Design and Permitting 9/15 12 /16 3.3 Project Resources Describe the personnel, contractors, personnel or firms , equipment, and services you will use to accomplish the project. Include any partnerships or commitments with other entities you have or anticipate will be needed to complete your project. Describe any existing contracts and the selection process you may use for major equipment purchases or contracts . Include brief resumes and references for known, key personnel, contractors , and suppliers as an attachment to your application. CE2 Engineers, Inc. have worked for tribal organizations, cities, state and federal governments, school district and health corporations. They have worked on several projects in our community, such as the Chignik Harris Sub-Regional Clinic. Throughout its hi story, CE2 has never failed to meet its obligations to its clients. Engineering consultant: The City has had Hatch Associates Consultants , Inc., under contract though CE2 Engineers Inc. in support of this project. Hatch has completed all engineering work in support of the FERC licensing and environmental process involving the feasibility study for the Chignik Hydroelectric Project. The City will follow AEA required procedures for grant compliance, solicitation and ward of contracts, and grant accounting. AEA 15003 Page 9 of 51 7/2/14 I Renewable Energy Fund Round VIII Grant Application -Standard Form 3.4 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status . Please provide an alternative contact person and their contact information. The project management firm, CE2 Engineers Inc. will be in contact with AEA and provide the monthly and quarterly reports as necessary. The City along with CE2 Engineers Inc , will require that monthly written progress reports be provided from the contractors. The progress reports will include a summary of tasks completed, issues or problems experienced, upcoming tasks, and contractor's needs from the City. Quarterly meetings will occur between CE2 Engineers Inc., City and AEA to discuss the status of the Hydroelectric project funded through the AEA Renewable Energy Fund Grant. Individual project meetings will be held, as required or requested by AEA. AEA 15003 Page 10 of 51 7/2114 I Renewable Energy Fund Round VIII Grant Application -Standard Form 3.5 Project Risk Discuss potent ial prob lems and how you would address them . T he on ly for eseen r is k associated with thi s proj ect wo uld in vol ve d e lays in t he p ermitting and the avail ability o f fundin g . T he City intend s to id entify permit is su es earl y in the exe cution o f thi s project. The city w ill al so conti nue to seek fundin g opportuniti e s for th e constructi on phase o f the project. 3.6 Project Accountant(s) Tell us who will be performing the accounting of this Project for the Grantee and include contact information, a resume and references for the project accountant(s). In the electronic submittal, please submit resumes as separate PDFs if the applicant would like those excluded from the web posting of this application . If the applicant does not have a project accountant indicate how you intend to solicit project management support . Jeanette Leftwich is the office manager for CE2 Engineers , Inc. and is skilled in financial operation management , including creating and maintaining annual budgets , accounts receivable and supervise the work of others. She has over 20 years of management professional experience . Rebecca Boettcher, the City clerk has been trained in Quickbooks Accounting software, has had personnel management training through RUBA and is currently administrator of the FFY2012 CDBD grant. Rebecca will be the contact personnel at the City office. Resumes are included . 3. 7 Financial Accounting System Discuss the accounting system that will be used to account for project costs and whom will be the primary user of the accounting system. CE2 Engineers , Inc. uses the Ajera Accounting software . This system has been successful used in the Chignik Harrison Sub Region Clinic project located in Chignik. 3.8 Financial Management Controls Discuss the controls that will be utilized to ensure that only costs that are reasonable , ordinary and necessary will be allocated to this project. Also discuss the controls in place that will ensure that no expenses for overhead , or any other unallowable costs will be requested for reimbursement from the Renewable Energy Fund Grant Program . CE2 Engineers, Inc. and the City will follow AEA required procedures for grant compliance and grant accounting. CE2 has a reputation for extremely successful online project management system to organize all progress . All documentation on the final design/permitting will be made AEA 15003 Page 11 of51 7/2/14 Renewable Energy Fund Round VIII Grant Application -Standard Form JJ :) AbASK~-·';,. , ~:::>ENERGY AUTHORITY available to the Authority . CE2 has successfully completed several AEA renewable projects throughout the State of Alaska . AEA 15003 Page 12 of51 7/2/14 Renewable Energy Fund Round VIII Grant Application -Standard Form ECTION 4-PROJECT DESCRIPTION AND TASKS The level of information will vary according to phase(s) of the project you propose to undertake with grant funds. If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. 4.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available. Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be available for the market to be served by your project. For pre-construction applications, describe the resource to the extent known . For design and permitting or construction projects, please provide feasibil ity documents, design documents, and permitting documents (if applicable) as attachments to this application. A wind meteorological tower was installed on "Mud Bay Hill " which is located 2 \..j miles north- northwest along the western shore of Anchorage Bay in Chignik. The area around Chignik suffers from very high winds and turbulence , therefore , could not be recommended for turbine develelopment. The proposed 420 kW hydroelectric project and the amount of energy available has been evaluated as part of the feasibility study . The proposed project would be able to displace nearly all of the City's diesel electric generation with hydroelectric generation , it is a more reliable system and is a lower maintenance energy generation option. The resource consists of utilizing additional flows from Indian Lake for generating power at a new powerhouse location at the upper limit of salmon spawning habitat on Indian Creek. The feasibility of the project is demonstrated in the attached preliminary feasibility determination. The final Chignik Hydroelectric Feasibility Study has been completed , however, the final report has not been issued to the City at this time. I 4.2 Existing Energy System 4.2.1 Basic configuration of Existing Energy System Briefly discuss the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. The power plant in Chignik has the following diesel generators that were installed in 2009 . John Deere 6090 , 6 years old , rated 230 kW John Deere 6090 , 6 years old , rated 230 kW John Deere 4045 , 6 years old , rated 117 kW The City owns an existing hydroelectric project, with a nameplate capacity of 60 kW, that is not producing power, and is not connected to the City 's distribution system. It was built in 1947 and primarily conveys raw water from Indian Lake to the community of Chignik , for drinking water purposes. AEA 15003 Page 13 of 51 7/2/14 ----------------- Renewable Energy Fund Round VIII Grant Application -Standard Form iJ :S AbASK~~ I ) ENERGY AUTHORITY 4.2.2 Existing Energy Resources Used Briefly discuss your understanding of the existing energy resources. Include a brief discussion of any impact the project may have on existing energy infrastructure and resources. Diesel generation is the sole source of electricity for the Chignik community. The construction of the hydroelectric would have a significant positive impact by enabling the diesel generator to go off line except in periods when the hydro is unavailable. This would reduce the wear and tear on generators and extend their life expectancy, thus decreasing generator operations and maintenance cost. The anticipated benefit of the project is decreased usage of diesel fuel for electrical power generation. Also , fuel shipping and handling will be reduce significantly , resulting in additional savings to the utility. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers . Existing diesel electric generation is 950,000 kWh per year, using 70 ,262 gallons of diesel fuel. The proposed hydroelectric project could generate 2 ,733 ,000 kWh per year and would displace 953 ,333 kWh of diesel generated energy , saving 68 ,805 gallons of fuel annually . (98% penetration) Chignik is known for high winds, rain and long periods of winter darkness . A reliable power service is essential for the operation of lighting for home residence, commercial businesses, city buildings , boat harbor , school and streetlights. Outside lighting greatly improves the safety of the community residents. Many customers supplement their electrical use with wood, kerosene , oil , or gas generators. Several customers also use propane for cooking, clothes dryers , and hot water heaters. If the electric rates come down the need for other sources will decline. 4.3 Proposed System Describe the system you are intending to develop and address potential system design , land ownership, permits, and environmental issues. 4.3.1 System Design Provide the following information for the proposed renewable energy system: • A description of renewable energy technology specific to project location • Optimum installed capacity • Anticipated capacity factor AEA 15003 Page 14 of 51 7/2/14 Renewable Energy Fund Round VIII Grant Application -Standard Form • Anticipated annual generation • Anticipated barriers • Basic integration concept • Delivery method A description of renewable energy technology renewable energy system Hydroelectric Optimum installed capacity 420kW Anticipated capacity 62% Anticipated annual generation 2,733,333 kWh Anticipated barriers Permitting/Funding Basic integration concept Hydro to provide prime power, diesel generation supplement as needed Delivery methods Transmission connection directly to distribution system 4.3.2 Land Ownership Identify potential land ownership issues , including whether site owners have agreed to the project or how you intend to approach land ownership and access issues . The City owns the lands required for the project. Deed in Attachments. 4.3.3 Permits Provide the following information as it may relate to permitting and how you intend to address outstanding permit issues . • List of applicable permits • Anticipated permitting timeline • Identify and discuss potential barriers Permits required: FERC, ADF&G, USACOE, AKDNR, SHPO, ADEC Timeline: 711 /20 15-12/31/16 AEA 15003 Page 15 of 51 7/2/14 Renewable Energy Fund Round VIII Grant Application -Standard Form Potential barriers include impacts to resident aquatic species. 4.3.4 Environmental Address whether the following environmental and land use issues apply, and if so how they will be addressed : • Threatened or endangered species • Habitat issues • Wetlands and other protected areas • Archaeological and historical resources • Land development constraints • Telecommunications interference • Aviation considerations • Visual, aesthetics impacts • Identify and discuss other potential barriers Threatened or endangered species None Habitat Issues Increased aquatic impacts to resident habitat , decreased impacts to anadromous. Wetlands and other protected areas Minimal impact to wetlands and protected areas. Archaeological and historical resources Replacement of historical infrastructure Land development constraints None Telecommunications interference None Aviation considerations Eagle nest survey expected. Visual , aesthetics impacts None Identify and discuss other potential barriers Construction funding a barrier for the City, mitigation to include future grant and other funding applications. AEA 15003 Page 16 of 51 7/2/14 Renewable Energy Fund Round VIII Grant Application -Standard Form ;'_;; ALorASK~ f ) ENERGY AUTHORITY 4.4 Proposed New System Costs and Projected Revenues (Total Estimated Costs and Projected Revenues) The level of cost information provided will vary according to the phase of funding requested and any previous work the applicant may have done on the project. Applicants must reference the source of their cost data. For example: Applicants records or analysis, industry standards, consultant or manufacturer's estimates. 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following: • Total anticipated project cost , and cost for this phase • Requested grant funding • Applicant matching funds -loans, capital contributions, in-kind • Identification of other funding sources • Projected capital cost of proposed renewable energy system • Projected development cost of proposed renewable energy system Total anticipated project cost $6,610,000 Request grant funding for this phase $1,305,000 Applicants matching funds: $70,000 Identification of other funding sources: 0 Projected capitol cost of proposed renewable energy system: $6,610,000 Projected development cost of proposed renewable energy system: $1,375,000 The net present cost over the 50 year life of the project, using the capital cost and the O&M cost , is 6,666,653, as calculated from the ISER economic spreadsheet (2014 _06-R7Prototype Chi gnik.xlsm , 999-AEA tab). 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for new facilities constructed and how these would be funded by the applicant. (Note: Operational costs are not eligible for grant funds however grantees are required to meet ongoing reporting requirements for the purpose of reporting impacts of projects on the communities they serve.) The O&M is estimated to be $56,000 per year. The annual cost would be funded by the electric utility customers. No grant funding is required for operations and maintenance. 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following: AEA 15003 Page 17 of 51 7/2/14 ----------- Renewable Energy Fund Round VIII Grant Application -Standard Form • Identification of potential power buyer(s)/customer(s) ~:g) .{;}.JwASK~,""'" i ~ENERGY AUTHORITY • Potential power purchase/sales price -at a minimum indicate a price range • Proposed rate of return from grant-funded project The City of Chignik owns the electric utility that serves the community of Chignik. The residents and businesses in Chignik will be the customers. The current electric rate for Residential Customers , Community Facilities is $.549 kWh. These rates will be used until the system has been in operation for several months and a clear picture of energy savings is developed. At that time a new rate may be implemented, but a percentage of the savings will go towards a Replacement and Repair account. The rates will be reviewed annually. It is hopeful that performance of high penetration system will warrant further rate reductions. The City of Chignik benefits greatly by reducing the need to import fuel which increases yearly. AEA 15003 Page 18 of 51 7/2/14 Renewable Energy Fund Round VIII Grant Application -Standard Form D..; AJ"~ASK~~ , ' ENERGY AUTHORI TY 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Please fill out the form provided below. I Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis . Annual average resource availability. 99.5 availability. 62% capacity factor, 98% displaced diesel generation and Unit depends on project type (e .g . windspeed , hydropower output , biomass fuel) I Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt 1 grid , leave this section blank) i. Number of generators/boilers/other 3 generators ii . Rated capacity of generators/boilers/other 577 kW total capacity iii. Generator/boilers/other type Die se l electric iv . Age of generators/boilers/other 6 years v . Efficiency of generators/boilers/other 13 kWh /ga l b) Annual O&M cost (if system is part of the Railbelt grid , leave this section blank) i. Annual O&M cost for labor ii. Annual O&M cost for non -l abor $ 3.14 /hour used for labor and non-labor combined c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Railbelt grid, leave this section blank) i. Electricity [kWh] ii . Fuel usage Diesel [gal] Other iii. Peak Load iv . Average Load v . M inimum Load vi. Efficiency vii. Future trends 952,756 estimated for 2014 68 ,37 4 gals estimated for 2014 211 kW estimated for 20 14 I 09 k W estimated for 20 14 14 kWh /gal 2% annual electric demand growth r ate, other benefits based on electric (Fuel only) Utilization of all excess energy avail able from hydro d) Annual heating fuel usage (fill in as applicable) 1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Vall ey Electric Association , the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power . AEA 15003 Page 19 of 51 7/2/14 Renewable Energy Fund Round VIII Grant Application -Standard Form II;~) AbASK~~ ) ENERGY AUTHORITY i. Diesel [gal or MMBtu] ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv . Coal [tons or MMBtu] v. Wood [cords , green tons , dry tons] vi. Other Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a) Proposed renewable capacity (Wind , Hydro , Biomass , other) [kW or MMBtu/hr] 420 k W Storage Hydro b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] 2 ,295 ,000 kWh --------------------------------------- ii . Heat [MMBtu] c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu] a) b) c) d) a) ii. Coal [tons or MMBtu] iii . Wood or pellets [cords , green tons , dry tons] iv . Other Project Cost Total capital cost of new system Development cost Annual O&M cost of new system Annual fuel cost Project Benefits Amount of fuel displaced for $ 7,410 ,000 ($6 .6M N PV) $ 780 ,000 ($0. 7M N PV) Varies , $ 56 ,000 initial 0 i. Electricity 64,3 00 gals (ye ar 2 01 4 ), 4 ,590,000 lifetim e ga ls, (throu gh 2063), lifetim e e lectric bene fi ts= $3 0 ,620 ,000 ($12.5M N PV) ii . Heat ii i. Transportation b) Current price of displaced fuel c) Other economic benefits AEA 15003 $ 4.25 /gal 2 ,950 ,000 lifetime gal s , (through 2063) v alued at 16 .8M ($8.4M NPV) P ag e 20 of 51 7/2/14 Renewable Energy Fund Round VIII Grant Application -Standard Form d) Alaska public benefits Power Purchase/Sales Price a) Price for power purchase/sale Project Analysis a) Basic Economic Analysis Project benefit/cost ratio 3.2 [)~:: Al--cASK'A~'~;.. , ~)ENERGY AUTHORITY ------------------------------------------------ Payback(years) 16 ------------------------------------------------ 4.4.5 Impact on Rates Briefly explain what if any effect your project will have on electrical rates in the proposed benefit area. If the is for a PCE eligible utility please discuss what the expected impact would be for both pre and post PCE. The City of Chignik is a PCE eligible community. The Community facilities and residence of the City received $79,636.99 in PCE credits for the FY13. The electrical rates for residential consumers using less than 500 kWh per month are not expected to see a significant reduction. Commercial Businesses , Community facilities, State and Federal customers will see the benefit of reduced power costs through their electric rates. The City council is conservative in its predictions, but very hopeful there will be further rate reductions after the system has been in operation for several months and a clear picture of energy savings is developed . AEA 15003 Page 21 of 51 7/2/14 Renewable Energy Fund Round VIII Grant Application -Standard Form SECTION 5-PROJECT BENEFIT Explain the economic and public benefits of your project. Include direct cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following: • Potential annual fuel d isplacement (gallons and dollars) over the lifetime of the evaluated renewable energy project • Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or cost based rate) • Potential additional annual incentives (i.e. tax credits) • Potential additional annual revenue streams (i.e . green tag sales or other renewable energy subsidies or programs that might be available) • Discuss the non-economic public benefits to Alaskans over the lifetime of the project Project benefits are determined from the preliminary feasibility finding report prepared by Hatch and the ISER economic spreadsheet (2014_06-R&Prototype Chignik.xlsm , 999-AEA tab) Potential annual fuel displacement (gallons and dollars) over the lifetime of the evaluated renewable energy project is 3,950,485 gallons valued at $10 ,906 ,457. The 0 & M savings over the lifetime of the project yields another $1,993 ,894 in savings. Tax Credits are not expected to be beneficial to the project due to City of Chignik's status as a non profit entity. The reliance on diesel fuel and the rising cost of unpredictable prices is a major motivating factor in establishing alternative and sustainable energy sources. The proposed reconstruction of the hydroelectric infrastructure will help stabilize energy costs and provide long-term economic benefits to the community of Chignik. The City began providing electric power to Trident's fish processing support operations. This arrangement is expected to continue in the future. The timing of fish processing activities, and processing support operations, occurs in late May and continues until the first of September, which coincides with the peak runoff times from Indian Creek. Promoting community stability and wellness with affordable energy will help stop the fluctuation of outward migration of families unable to afford to live in cities or villages in rural Alaska. I 5.1 Public Benefit for Projects with Private Sector Sales AEA 15003 Page 22 of 51 7/2/14 Renewable Energy Fund Round VIII Grant Application -Standard Form Projects that include sales of power to private sector businesses (sawmills, cruise ships, mines , etc .), please provide a brief description of the direct and indirect public benefits derived from the project as well as the private sector benefits and complete the table below. See section 1.6 in the Request for Applications for more information. This project will not provide power to an y large private sector business. Trident only uses the City electric for their fish processing support operations. By reducing the cost of power production, small businesses , public facilities , lodges, city , tribe and boat harbor (not eligible for PCE) will see a cost savings which may be passed along to residents in the form of lower product or service prices. Renewable energy resource availability (kWh per month) n/a Estimated sales (kWh) n/a Revenue for displacing diesel generation for use at n/a private sector businesses ($) Estimated sales _(kWh) n/a Revenue for displacing diesel generation for use by the n/a Alaskan public ($) AEA 15003 Page 23 of 51 7/2/14 Renewable Energy Fund Round VIII Grant Application -Standard Form SECTION 6-SUSTAINABILITY Discuss your plan for operating the completed project so that it will be sustainable . Include at a minimum: • Proposed business structure(s) and concepts that may be cons idered. • How you propose to finance the maintenance and operations for the life of the project • Identification of operational issues that could arise. • A description of operational costs including on-going support for any back-up or existing systems that may be require to continue operation • Commitment to reporting the savings and benefits The business structure will remain the same with the addition of the Hydro , will not cause any structural changes. The cost of operations and maintenance will be funded through ongoing energy sales of the City. The City does not foresee any operational issues once the Hydoelectric project is constructed. The hydro structure is straightforward and will require minimal maintenance, that can be handled by staff. The City of Chignik if fully committed to sharing the savings and benefits accrued from this project with its community members and AEA. Reporting the savings is quite easy and can be shown in the monthly PCE reports in the fuel consumption section. SECTION 7-READINESS & COMPLIANCE WITH OTHER GRANTS Discuss what you have done to prepare for this award and how quickly you intend to proceed with work once your grant is approved. Tell us what you may have already accomplished on the project to date and identify other grants that may have been previously awarded for this project and the degree you have been able to meet the requirements of previous grants. The project is a FERC licensed primarily because it occupies approximately 58 acres of lands formerly owned by the United States Bureau of Land Management (BLM). The BLM conveyed all the lands to the local native corporation (Farwest Inc.) which has been subsequently transferred to the current project owner, the City of Chignik (FERC License Transfer Order Issued September 6, 2012) The City of Chignik was awarded $207,500 from the legislature during the 151 round on the Renewable Energy Fund Program. These funds were used to complete the feasibility study ofthe Chignik Hydroelectric Power System on Indian Lake. Funds for this grant have been exhausted. AEA 15003 Page 16 of24 7/2/14 Renewable Energy Fund Round VIII Grant Application -Standard Form f ,..u aL-ASK~ ~)~~-~~::;;;,. -==::) ENERGY AUTHOR ITY The final Chignik Hydroelectric Feasibility study is due within the week. The City has been wo rking on a road for easy access for the project. SECTION 8 -LOCAL SUPPORT AND OPPOSITION Discuss local support and opposition, known or anticipated, for the project. Include letters of support or other documentation of local support from the community that would benefit from this project. The Documentation of support must be dated within one year of the RFA date of July 2, 2014 The entire community of Chignik is in favor of the City pursing fun ding for the Hydroelectric project. This support is reflected by the attached letters from Trident Seafoods , Chignik Village Council, and Chignik Adventures (small business in Chignik). AEA 15003 Page 17 of24 7/2/14 Renewable Energy Fund Round VIII Grant Application -Standard Form SECTION 9-GRANT BUDGET i ~ Al~SK~ -.:;;::)>'fi""W02h A-~· .• 1:;;:, -=:D ENERGY AUTHORITY Tell us how much you are seeking in grant funds . Include any investments to date and funding sources, how much is being requested in grant funds, and additional investments you will make as an applicant. 9.1 Funding sources and Financial Commitment Provide a narrative summary regarding funding source and your financial commitment to the project The City is seeking $1 ,305 ,000 in grant funds. The City council understands the great impact that this hydroelectric will have on the community and is providing a matching fund of $70,000. The City has also invested significantly in the proposed project by constructing the partially completed road to the dam. The City is committed to completing the design and permitting of this project and will continue undertaking the necessary work to proceed with construction and bring the project online as soon as possible. The City is well aware that every year's delay in having this project online is costing the City over $250,000. The growth, wellness and security of the community of Chignik depends on the development of renewable energy. 9.2 Cost Estimate for Metering Equipment Please provide a short narrative, and cost estimate, identifying the metering equipment, and its related use to comply with the operations reporting requirement identified in Section 3. 15 of the Request for Applications. Metering of the hydroelectric output will be done with a dedicated meter installed in the powerhouse to monitor project performance. Labor and expenses associated with the hydro operation and maintenance will have a dedicated account to allow for monitoring of costs. These measures of performance will be reported to the State as required for PCE and AEA grant funding(l 0 years minimum). AEA 15003 Page 45 of 51 7/2/14 ------------------ Renewable Energy Fund Round VIII Grant Application -Standard Form Applications MUST include a separate worksheet for each project phase that was identified in section 2.3.2 of this application , (1. Reconnaissance, II. Feasibility and Conceptual Design , Ill. Final Design and Permitting, and IV. Construction and Commissioning). Please use the tables provided below to detail your proposed project's budget. Be sure to use one table for each phase of your project. If you have any question regarding how to prepare these tables or if you need assistance preparing the application please feel free to contact AEA at 907-771-3031 or by emailing the Grants Administrator, Shawn Calfa, at scalfa@aidea. org. Source of Matching Anticipated Grantee Funds: RE-Fund Cash/In-Milestone or Task Completion Grant Funds Matching kind/Federal TOTALS Date Funds Grants/Other State Grants/Other (List milestones based on phase and type of project. $ $ $ See Milestone list below . ) Design and Permitting 12/31/2016 $1,375,000 $ $1,375,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $ $ $1,375,000 Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $1,375,000 $ $1,375,000 Construction Services $ $ $ Other $ $ $ TOTALS $ $ $1 ,375,00 0 AEA 15003 Page 46 of 51 7/2/14 Renewable Energy Fund Round VIII Grant Application -Standard Form II SECTION 10-AUTHORIZED SIGNERS FORM Community/Grantee Name: City of Chignik Regular Election is held: October 7, 2014 I Authorized Grant Signer(s): Printed Name Title I Date: September 12,2014 Term Signature Rebbecca K. Boettcher City Clerk z h«~ v &.,49-_ I authorize the above person(s) to sign Grant Documents: Hi hest rankin or anization/communit /municipal official Printed Name Title Term Signature Adam Anderson Mayor I Grantee Contact Information: Mailing Address: PO Box 110 Chignik, Ak 99564 Phone Number: 907-7 49-2280 Fax Number: 907-7 49-2300 E-mail Address: chignikcitvclcrk/i~gmaiJ .cor}} chignikci tyma yor@gmai 1. com Federal Tax ID #: 92-0094970 Please submit an updated form whenever there is a change to the above information. AEA 15003 Page 30 of31 7/2/14 Renewable Energy Fund Round VIII Grant Application -Standard Form n ~) AI ASKA Jl ..::;-~;';~ ~";.;--"\:... , ~!E NERGY AUTHOR ITY SECTION 11-ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A. Contact information and resumes of Applicant's Project Manager, Project Accountant(s), key staff, partners, consultants, and suppliers per application form Section 3.1, 3.4 and 3.6. Applicants are asked to provide resumes submitted with applications in separate electronic documents if the individuals do not want their resumes posted to the project web site. B. Letters or resolutions demonstrating local support per application form Section 8. C. For projects involving heat: Most recent invoice demonstrating the cost of heating fuel for the building(s) impacted by the project. D. Governing Body Resolution or other formal action taken by the applicant's governing body or management per RFA Section 1.4 that: Commits the organization to provide the matching resources for project at the match amounts indicated in the application. Authorizes the individual who signs the application has the authority to commit the organization to the obligations under the grant. Provides as point of contact to represent the applicant for purposes of this application. Certifies the applicant is in compliance with applicable federal, state, and local, laws including existing credit and federal tax obligations. E. An electronic version of the entire application on CD or other electronic media, per RFA Section 1.7. F. CERTIFICATION The undersigned certifies that this application for a renewable energy grant is truthful and correct, and that the applicant is in compliance with, and will continue to comply with, all federal and state laws including existing credit and federal tax obligations and that they can indeed commit the entity to these obligations . Print Name .Ad ~v¥1 I-! A ,/I J .(! ,.. s o v1 Signature ~/-~ Title /VI tA '/0 v / Date '1--J )_-/'f AEA 15003 Page 31 of31 7/2/14 RESOLUTIONS City of Chignik PO Box 11 0 Chignik, AK 99564 Ph on e (907) 74 9-22 80 Fax (90 7) 749 -2 300 RESOLUTION 14-03 A RESOLUTION OF THE CITY OF CHIGNIK TO PLACE AN APPLICATION FOR THE ALASKA ENERGY AUTHORITY'S RENEW ABLE ENERGY FUND ROUND VIII FOR CHIGNIK HYDROELECTRIC PROJECT DESIGN AND PERMITTING WHEREAS, the City of Chignik is a recognized as the local form of government for the community of Chignik, Alaska; and WHEREAS, the City of Chignik has a Capital Improvement Priority List in association w~th.the La~e and Peninsula Borough for the purpose of making community improvements w1thm the c1ty; and WHEREAS, a social and economic benefits associated with these types of projects will increase the safety , health, and environment of the community and its residents; and WHEREAS, the Alternative Energy is one of the top priorities; and WHEREAS, the Hydo to provide prime power, diesel generation supplement as needed: WHEREAS, the existing diesel electric generation is 950,000 kWh peryear using 70,262 g allons of diesel fuel. The hydroelectric project could generate 2,733.000 kWh per year and would displace 953,333 kWh of diesel generated energy saving 68,805 gallons of fuel annually , ( 98 % penetration) "VHEREAS, the Indian Creek Hydo Feasibility Study is complete; and W~~AS, the City of Chignik would like to pursue the Chignik Project Design and P erm1ttmg phase; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chignik to elect to p articipate in the Alaska Energy Authority 's Renewable Energy Fund Rouna VIII. PASSED AND APPROVED by a duly constituted quorum of the Chignik City Council on this _ _Day of September, 2014 ~,/ Signed: ~~~~ AamA11dersOll,Mayor Attest 5~ A4_ e CJ\..I..rt c., t Yl'\..-€.-f1 h ~ s- City of Chignik PO Box.llO Chignik, AK 99564 Phone (907) 749,22 80 Fax (907) 749-2:300 city'oflice@chignikorg COPY Resolution 12~04 A RESOLUTION ALLOWING Tilli MAYOR TO SIGN ANY AND ALL DOCUMENTS PERTAINING TO THE TRANSFER OF FERC-620 WHEREAS, the City of Chignik is a second class city, and WHEREAS, the City of Chignik desires to obtain FER 620 from Trident/NorQuest Seafoods for the purpose of producing hydroelectric power, and WHEREAS, The City of Chignik and Trident/NorQuest have reached an agreement where PERC 620 will be transfened to the City of Chinik. NOW THEREFORE BE IT RESOLVED: That the Mayor of Chignik is · given permission by the Council of the City of Chignik to sign any and all documents regarding the transfer of PERC 620 from Trident Seafoods/Norquest to the City of Chignik PASSED AND APPROVED by a quorum of the City Council this 2ih day of September, 2012. I ·~-7==~~~~~-zu.~~ . . Rr~h.arJ1. Sha e, M;;yor /J ATTEST Y4~ Polly Aleck/Deputy Clerk II I 111111111 I II II I IIIII IIII I I III II 7 of 7 2012-000336-0 LETTERS OF SUPPORT September 22, 2014 Chignik City Council P.O. Box 110 THE LAKE AND PENINSULA SCHOOL DISTRICT 101 Jensen Drive P.O. Box498 King Salmon, Alaska 99613 Phone (907) 246-4280 I Fax (907) 246-4473 _..., Chignik Bay, AK 99564 Chignik City Council, The Lake and Peninsula School District is pleased to offer full support for the Hydroelectric Project. The benefits of this project for the Lake and Peninsula School District promise to be tremendous. The cost of running a small school in Chignik Bay is staggering and it is almost entirely tied to the cost of fuel oil. Not relying on diesel for the generation of power in the Bay will undoubtedly benefit the School and the level of educational service that we will be able to offer. In addition, any attempt to make Chignik Bay a more affordable place to live for community members will benefit the school and it's enrollment. We are currently serving sixteen students in the Bay. A clean, affordable power source promises to have a positive effect on village population and school enrollment. This project will, without a doubt, enhance the education we can offer in Chignik Bay. If we can further assist in your efforts to analyze and evaluate the project's possible contributions to our district, please feel at liberty to contact us. Sincerely, :::.-;>~ TyMase Superintendent Lake and Peninsula School District Chignik Bay • Chignik Lagoon • Chignik Lake • Egegik • Igiugig • lvanof Bay • Kokhanok • Levelock Newhalen • Nondalton • Pedro Bay • Perryville • Pilot Point • Port Alsworth • Port Heiden Trident;?. TRIDENT SEAFOODS CORPORATION SEAFOOD S :: Q.. ! :::: 5303 Shilshole Ave. NW, Seattle, W A 98 107-4000 US A • (206) 783 -3818 •Fax 782-7195 Dom est ic Sales: (206 ) 783-3474 • Fax: (206) 782-7246 C a nned Sales: (206 ) 781 -7606 • (2 06 ) 781-7604 Export Sa les: (20 6) 783-3718 • (206) 782-7195 September 11, 2014 To whom it may concern: Trident Seafoods in Chignik Alaska is writing this letter in support of a Hydro Electric Dam in Chignik Bay Alaska . We are looking forward to the prospect of this project coming to fru ition. Currently Trident Seafoods processes fish in Chignik during the summer months and we currently purchase some generated power from the City of Chignik year around . We feel the installation of this Hydro will bring reliability , lower overall cost and provides an excellent source for power, while assist in bringing renewable energy into Chignik Bay. Thank you for your consideration. Dean Fasnacht Alaska Operations Trident Seafoods 206-783-3818 Alaska t2 Tile Americen Connection "' Akutan • Anchorage • Chignik • Clarks Point • Cordova • Dillingham • Dutch Harbor ~ Ketchikan • Kodiak • Naknek • Petersburg • Sand Po int • South Naknek • Sl Paul Motley, MN • N ewport, OR Washington Anacortes • Bellingham • Everett Tacoma • Seattle September 8, 2014 Adam Anderson Chignik City Mayor P. 0 . Box 110 Chignik , Ak 99564 Dear Mr. Anderson, We would like to express our support for the Chignik Hydroelectric Project. The community of Chignik has a long history of hydropower which began over 60 years ago . However, the existing infrastructure has deteriorated and is no longer functioning. Hydropower is a known commodity and dependable source of renewable energy. The Hydoelectric project will help offset the continued increase cost of living in the village as wells as keeping the air free of harmful pollutants. The surveys and studies have shown no impact on our wetlands , or historical resources and no danger to any species that inhabit our area. In summary , this project is important to the City of Chignik and the need for renewable energy to displace the rising cost of fuel will greatly help the community. Sincerely , Chignik Village Tribal Council (907) 266-4326 September 15, 2014 To: Mayor Adam Anderson, Chignik Bay, Alaska Adam, I am writing to strongly support and urge Chignik Bay City council to pursue hydro-electric projects that will help to lower our energy costs and allow for us to mitigate the ever increasing costs of living in rural Alaska. Indian Creek provides an excellent opportunity for our community to utilize natural energy generation and move away from the high cost of fuel generated power. My wife and I own and operate Chignik Bay Adventures, a small fishing lodge and B&B. We have been in business here for fourteen years and the ever increasing cost of power, shipping, transportation and fuel combine to make it very difficult to maintain our business here. We believe a hydro electric generator will be helpful and that every effort should be made to lower any of these rising costs. Thank you for considering our views and addressing the needs of Chignik Bay to best of our communities needs . John and Mary Rantz Chignik Bay Adventures -------------- ATTACHMENTS ---- _,-"!"'\ ,~ j "-. j / i i r// / / City of Chignik P.O. Box 110 FAR WEST, INC. 236 W. 1Oth Avenue, Suite 100 Anchorage, AK 99501 Telephone No.: 632-2580 May 9, 2011 Chignik, Alaska 99564-0110 RE: ANCSA, Section 14(c)(3) Land Exchange Dear Ladies and Gentlemen: It is our pleasure to provide you with a conformed copy of the Quitclaim Deed I have now signed as President ofFar West, Inc., conveying a total of 1,267.87 acres of land to the City of Chignik pursuant to the Alaska Native Claims Settlement Act, Section 14(c)(3). The lands conveyed are also as more fully shown on the plan of survey now of 5 as Plat No. 2009-5, recorded in the Aleutian Islands Recording District. The Quitclaim Deed therefore satisfies Far West, Inc.'s obligation under and pursuant to the Alaska Native Claims Settlement Act, Section 14(c)(3). Per our discussions in Chignik Bay in August 2010, Far West, Inc. has reserved an easement to permit its continued management of the Bristol Bay Native Corporation Indian Creek Quarry during the life of that quarry. Accordingly, this easement was made a part of our Quitclaim Deed. I look forward to continued cooperation between the City and Far West, Inc. into the future and it has been our pleasure to have finalized this matter. Very truly yours, FAR WEST, INC. i . ' j {c./ QUITCLAIM DEED Aleutian Islands Recording District Pursuant to its obligations under 14(c)(3) of the Alaska Native Claims Settlement Act, Public Law 92-203, 43 U.S.C. § 1601 et seq. (85 Stat. 688), the Grant or, Far West, Inc. Grantor, whose address is 236 W. lOth Ave., Suite 100, Anchorage, Alaska 99501 (Grantor) grants unto the City of Chignik, P.O. Box 110, Chignik, Alaska 99564 (Grantee) the following described parcel: Tract One, consisting of 19.95 acres, as more fully described in Sheet 2 of 11, Alaska Native Claims Settlement Act (ANSCA), Section 14( c), Tracts 1-16,P.L. 92-203 (85 Stat. 688,702, 703), Far West, Incorporated at Chignik, Alaska, according to Plat #2009-5, recorded in the Aleutian Islands Recording District. Tract Two, consisting of 9.61 acres, as more fully described in Sheet 2 of 11, Alaska Native Claims Settlement Act (ANSCA), Section 14(c), Tracts 1-16, P.L. 92-203 (85 Stat. 688, 702, 703), Far West, Incorporated at Chignik, Alaska, according to Plat #2009-5, recorded in the Aleutian Islands Recording District. .Tract Three, consisting of 70.40 acres, as more fully described in Sheet 2 of 11, Alaska Native Claims Settlement Act (ANSCA), Section 14(c), Tracts 1-16, P.L. 92-203 (85 Stat. 688,702, 703), Far West, Incorporated at Chignik, Alaska, according to Plat #2009-5, recorded in the Aleutian Islands Recording District. Tract 4A, consisting of 447.96 acres, as more fully described in Sheet 3 of 11 , Alaska Native Claims Settlement Act (ANSCA), Section 14(c), Tracts 1-16, P.L. 92-203 (85 Stat. 688, 702, 703), Far West, Incorporated at Chignik, Alaska, according to Plat #2009-5, recorded in the Aleutian Islands Recording District, reserving for and in favor of Grantor; Far West, Inc. an easement as follows: An easement for ingress and egress with respect to the Indian Creek Quarry, situate in Tract 4A, in that portion thereof described as situate in the NE 1/4 SE 1/4 Section 12, T45 S, R59 Wand a portion of theSE 1/4 N/E 1/4 Section 7, T45 S, R58 W, S.M. as more fully portrayed in Exhibit A attached hereto which • .. _.is made a part .ofthis Quitclaim Deed and Reservation of Easement. This easement shall continue during the entire life of the Indian Creek Quarry and Grantee shall take no action which may unreasonably interfere with the uses and purposes reserved herein. Tract 5, consisting of9.99 acres, as more fully described in Sheet 4 of 11, Alaska Native Claims Settlement Act (ANSCA), Section 14(c), Tracts 1-16, P .L. 92-203 (85 Stat. 688, 702, 703), Far West, Incorporated at Chignik, Alaska, according to Plat #2009-5, recorded in the Aleutian Islands Recording District. Tract 13, consisting of 479.98 acres, as more fully described in Sheet 4 of 11, Alaska Native Claims Settlement Act (ANSCA), Section 14(c), Tracts 1-16, P.L. 92-203 (85 Stat. 688, 702, 703), Far West, Incorporated at Chignik, Alaska, according to Plat #2009-5, recorded in the Aleutian Islands Recording District. Tract 14, consisting of 160 acres, as more fully described in Sheet 4 of 11, Alaska Native Claims Settlement Act (ANSCA), Section 14( c), Tracts 1-16, P.L. 92-203 (85 Stat. 688, 702, 703), Far West, Incorporated at Chignik, Alaska, according to Plat #2009-5, recorded in the Aleutian Islands Recording District. Tract 15, consisting of 144.74 acres, as more fully described in Sheet 4 of 11, Alaska Native Claims Settlement Act (ANSCA), Section 14( c), Tracts 1-16, P.L. 92-203 (85 Stat. 688, 702, 703), Far West, Incorporated ::1t Chignik, Alaska, according to Plat #2009-5, recorded in the Aleutian islands Recording District. - QUITCLAIM DEED Page 2 of6 Chignik, Alaska, according to Plat #2009-5, recorded in the Aleutian Islands Recording District. Tract 6B, consisting of 1.19 acres, as more fully described in Sheet 6 of 11, Alaska Native Claims Settlement Act (ANSCA), Section 14(c), Tracts 1-16, P.L. 92-203 (85 Stat. 688,702, 703), Far West, Incorporated at Chignik, Alaska, according to Plat #2009-5, recorded in the Aleutian Islands Recording District. Tract 6C, consisting of 1.98 acres, as more fully described in Sheet 6 of ... -11 ;-AlaskaNative Claims Settlement Act (ANSCA), Section 14( c), Tracts 1-16, P.L. 92-203 (85 Stat. 688,702, 703), Far West, Incorporated at Chignik, Alaska, according to Plat #2009-5, recorded in the Aleutian Islands Recording District. Tract 7, consisting of 10 acres, as more fully described in Sheet 6 of 11, Alaska Native Claims Settlement Act (ANSCA), Section 14(c), Tracts 1- 16, P.L. 92-203 (85 Stat. 688, 702, 703), Far West, Incorporated at Chignik, Alaska, according to Plat #2009-5, recorded in the Aleutian Islands Recording District. Tract 10, consisting of98.69 acres, as more fully described in Sheet 7 of 11, Alaska Native Claims Settlement Act (ANSCA), Section 14( c), Tracts 1-16, P.L. 92-203 (85 Stat. 688,702, 703), Far West, Incorporated at Chignik, Alaska, according to Plat #2009-5, recorded in the Aleutian Islands Recording District. Tract 11, consisting of 44.07 acres, as more fully described in Sheet 7 of 11, Alaska Native Claims Settlement Act (ANSCA), Section 14(c), Tracts 1-16, P.L. 92-203 (85 Stat. 688, 702, 703), Far West, Incorporated at Chignik, Alaska, according to Plat #2009-5, recorded in the Aleutian Islands Recording District. Tract 12, consisting of7.92 acres, as more fully described in Sheet 7 of 11, Alaska Native Claims Settlement Act (ANSCA), Section 14(c), Tracts 1-16, P.L. 92-203 (85 Stat. 688,702, 703), Far West, Incorporated at Chignik, Alaska, according to Plat #2009-5, recorded in the Aleutian Islands Recording District. ' All of which together totall,267.86 acres, more or less, and QUITCLAIM DEED Page 4of6 Net revenues derived from the sale of surface resources harvested or extracted from the lands described hereinabove, including the easement reserved herein, shall be paid to Far \Vest, Inc. by the Grantee, its successor or assigns, provided, however, that the word "sale" as used herein, shall not include utilization of service resources for governmental purposes by the Grantee, its successors or assigns, nor shall it include the issuance of free use permits or other authorizations for such purposes; provided further, however, the Grantee shall not, in any case, use, enter, or otherwise interfere with Far West, Inc.'s easement as elsewhere above described. This deed is subject to all the reservations, restrictions, and easements of record. This conveyance is in satisfaction of Grantor's obligation to Grantee arising pursuant to and out of Section 14(c)(3) of the Alaska Native Claims Settlement Act, and which shall be in full satisfaction of the Grantor's obligations to the Grantee under Section 14(c)(3) of the Alaska Native Claims Settlement Act (43 U.S.C. §1601 et seq). DATED thiJr/fA.aay o(~ 2011. GRANTOR: Far West, Inc. QUITCLAIM DEED Page 5 of6 ---------- STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) ~ TillS IS TO CERTIFY that on this __1t!_ day of P f:J/2011, before me, the undersigned, a Notary Public in and for Alaska, personal y appeared Marit Carlson Van-Dort, President of Far West, Inc., to me known to be the individual named in the foregoing instrument, and she acknowledged to me that she had executed the foregoing instrument for and on behalfofFar West, Inc. as the free and voluntary act ..... and .deed of Far West; Inc., for the purposes therein stated; · wiTNESS my hand and official seal the day a d y r in this certificate first above written. Record in the Aleutian Islands Recording District AFTER RECORDING, RETURN TO: Samuel J. Fortier Fortier & Mikko, PC 101 West Benson Blvd., Suite 304 Anchorage, AK 99503 QUITCLAIM DEED '· -..\ Page 6of6 After Recording in the Aleutian Islands Recording District, Return to City of Chignik Attention: Mayor P.O. Box 110 Chignik, AK 99564-0110 A L A s K A 2012-000336-0 Recording Dist: 305 -Aleutian Islands 10/8/2012 1:49PM Pages: 1 of 7 11111111111111111111 II 111111111111111111111111 I II IIIII 1111111 I If I II I fill 1111111 Ill QUITCLAIM OF RIGHTS TO ENTER UPON , OCCUPY, AND USE LAND AND EASEMENTS ASSOCIATED WITH FERC POWER PROJECT NO. 620 Norquest Seafoods, Inc. ("Norquest"), whose address is c/o Trident Seafoods Corporation, Attention: General Counsel, 5303 Shilshole Avenue N.W., Seattle, WA 98107- 4000 hereby quitclaims, without warranty , all rights to "enter upon, occupy and use" the following described real property and all easements associated with Power Project No. 620 to the City of Chignik ("Chignik"), whose address is Attention: Mayor, P.O. Box 110, Chignik, AK 99564-0110: 1. A portion of Section 24 ofT45S, R59W, Seward Meridian, described on page 4, paragraph 2 of Patent No. 50-2004-0399 recorded as Reception No. 2004-000611-0 , records of the Aleutian Islands Recording District, Third Judicial District, State of Alaska; 2. A portion of Section 13 ofT45S , R59W , Seward Meridian, and Section 19, T45S, R58W, as a reservation of easements as described in Interim Conveyance No. 081, recorded at Book 18 , Page 212, records ofthe Aleutian Islands Recording District, Third Judicial District, State of Alaska; 3. A portion of Sections 7 and 18 ofT45S, R58W, Seward Meridian, described on page 2, paragraph 3 oflnterim Conveyance No. 1897, recorded as Reception No. 2005-000498-0, records of the Aleutian Islands Recording District, Third Judicial District, State of Alaska ; 4. A one hundred (1 00) foot wide pipeline easement located within the boundaries of U.S . Survey 4896 , according to the official plat thereof filed as Plat No. 87-4, records of the Aleutian Islands Recording District, Second Judicial District, State of Alaska); and DWT 2 03012 2 7vl 0064929-00 004 7 -------- 5. A one hundred (1 00) foot wide pipeline easement depicted on Plat No. 2002-9, records of the Aleutian Islands Recording District, Third Judicial District, State of Alaska). A copy of an Order Approving Transfer ofLicense (Issued September 6, 2012) by the Federal Energy Regulatory Commission ("FERC") approving the transfer of the FERC License for Project No. 620 from Norquest Seafoods, Inc. to the City of Chignik is attached hereto as Exhibit A. These rights are quitclaimed "as-is, where-is" with all disclaimers set forth in the Asset Purchase and Sale Agreement dated as of May 21,2012 between Norquest, Chignik, and others. Grantor: Norquest Seafoods, Inc. By:@r Name J Gam r Its: ice Presi ent :~~~ Name. · ard J. Sharpe Its: ayor STATE OF WASHINGTON ) ) ss. KING COUNTY ) On this J5"'1l+' day of Se.pt:elli be...r , 2012, before me, a Notary Public in and for the State of Washington, personally appeared John Gamer, to me known to be the Vice President ofNorquest Seafoods, Inc., the corporation that executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said corporation for the uses and purposes therein mentioned and on oath stated that he was authorized to execute said instrument. IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. AMY J. GROARK NOTARY PUBLIC STATE OF WASHINGTON COMMISSION EXPIRES OCTOBER 19 ,2014 DWT 20301227vl 0064929-000047 n , PrintName: A-t~ \T 6-ro-ovL Residingat: ;:;?-dfic_, wry?;p_i-wl My commission expires: 1 i fi 1} = 111 11111 11 11 1111111111111111 111 1!1 2 of 7 2012-000336-0 STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) On this /'Jiffa.y of , 2012 , before me, a Notary Public in and for the State of Alaska, personally a peared Richard J. Sharpe, to me known to be the Mayor of the City of Chignik, Alaska, the second class municipality that executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said municipality for the uses and purposes therein mentioned and on oath stated that s/he was authorized to execute said instrument. IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. DWT 20301227vl 0064929-000047 II I II II IIIII I II II I 11111111111 111 11 3 of 7 2012-000336-0 EXH IBIT A ORDER APPROV ING TRANSFER OF LI CENSE 20120 906-3030 FERC PDF (Unoffic:iali 09 /06/2012 140 FERC ~ 62.175 UNITED STATES OF A~lERICA FEDERAL ENeRGY REGULATORY COlvL~~IISSION NorQuest Seafoods, Inc. City of Chignik Project No. 620-024 ORDER APPROVING TRA.NSFER OF LICENSE (Issued September 6 , 2012) l. By application tiled June 21, 20 12, NorQuest Seafoods , Inc. (transferor) and the City of Chignik (transferee) seek Commission approval to transfer the l icense 1 for the Chignik Hydroelectr ic Pr~ject. FERC No. 620, from the transferor to trausfere.e. The project is located on Indian Creek, in Lake and Peninsula Boroughs. near the City of Chignik. Alaska. 2. Public notice of the applic<1tion was issued on July 19 , 2012, setting August 17 , 2012. as the deadline for filing comments , protests. and motions to intervene. 2 No couunents. protests , or motions to intervene were filed. 3. Transferee has agreed to accept all of the tenns and conditions of the license and to be bound by th e license as if it ·were the original licensee . 4. Transferor has generally complied w ith the terms and co udirions of the license and agrees to pay annual charges that ha ve accrued to the date of the transfer. Transferee will be required to compl y with the requirements of the licen se ns though it were the original licensee. Transfer of the license for this project is consistent with the Commission's regulations and is in the public interest. The Director orders: (A) Transfer of the license for the Chignik Hydroelectiic Project No . 620 fi·om NorQuest Seafoods, Inc. to the City of Chignik is approved. (B) NorQuest Seafoods. Inc. shall pay all mumal charges tha t. accme np to the etiective date of the tran s fer. 1 On Febmary 8. 2006. the Commission issued a 30-year license to NorQuest Seafoods, Inc . for the Chignik Hydroelectric Project. NorQucst Se(?fcwd~·, In c., 114 FERC ~ 62 .135 (2006). 2 77 FeeL Reg. 37 ,035 (June 20. 201 2). DWT 2030 1227v l 0064929 -000047 111 //II!III//I!IIIIII/11/IIII I/J// 4 Of 7 2012-000336-0 201 20906-3030 FER C PDF (Uno ff icial) 09 /06/201 2 Project No. 620-024 -2- (C) Approval of the transfer is contingent upon: ( l) transfer of title of the prope11ies lUlcler licen se. tran sfer of all projec.t file s inc-luding all dan1 safety related documents, and delivery of all license instmments to City of Chignik which shall be subj ect to the terms and conditions of the license as though it were the original licensee ; and (2) City of Chignik acknowledging acceptance of this order and its renns and conditions by s igning and retuming the attached acceptance sheet. Within 60 days fi"om the date of this order. the transferee shall submit certified copies of all in stnunents of conveyance and the signed ncceptance sheet. (D) TI1is order cons tin1tes final agency action. Any pany may file a request for rehe<Jring of this order vvithin 30 cl<Jys from the cl<Jte of its issuance. as provided in section 313(a) ofthe FPA, 16 U.S.C. § 8251 (2006), and the Commission 's regulations <Jt 18 C.P.R. § 385.713 (20 12). The filing of a request for rehearing does not operate as a stay of the effective date of this order. or of any other date specified in this order. The licensee's failure to file a request tt.)r rehearing shall constitute acceptance of this order. Charles K Cover, P.E. Chief, Project Review Branch Division of Hydropower Administration and Compliance DWT 20301227vl 0064929-000047 Ill III/I IIII I 111/llll/llllllllll /1 5 o f 7 2012-000336-0 After Recording in the Aleutian Islands Recording District, Return to: City of Chignik P.O. Box 110 Chignik, AK 99564-0110 2012-000337-0 Recording Dist: 305 -Aleutian Islands 10/8/2012 1 :50 PM Pages: 1 of 4 A L A s K A 11111111111111111111111111111111111111111111111111111111111111111111111111111111 11 UTILITY EASEMENT The Grantor, TRIDENT SEAFOODS CORPORATION, a Washington corporation, whose mailing address is 5303 Shilshole Avenue N.W., Seattle, WA 98107-4000, for good and valuable consideration, in hand paid, does convey, grant, warrant, set-over and deliver to CITY OF CHIGNIK, ALASKA (hereinafter "CHIGNIK") whose mailing address is P.O. Box 110, Chignik, AK 99564-0110 and its successors, assigns, licensees, and permittees, a perpetual full and unrestricted easement and right of way along, through, over, in, under, and across the following described parcel ofland located in the State of Alaska and more particularly described as follows: A one-hundred (100) foot wide strip ofland through the following described tracts ofland: U.S. Survey 2234located in the Aleutian Islands Recording District, Second Judicial District, State of Alaska; and Alaska Tidelands Survey 63, located in the Aleutian Islands Recording District, Second Judicial District, State of Alaska. as shown on the Exhibit G drawing for Project No. 620, approved by the United States of America, Federal Energy Regulatory Commission by order issued July 26,2007, a copy of which drawing is set forth on Exhibit A. Said easement is hereby granted, conveyed, warranted, set-over and delivered to Chignik for purposes associated with Chignik's ownership ofFERC Project No. 620, including use of such easement for a corridor for a pipeline, a 60-KW turbine generating unit, and an underground tailrace to a slough discharging into the Pacific Ocean (the "Hydro Facility"), and all associated uses; and to construct, reconstruct, and install, and to continue to operate, maintain, repair, alter, inspect, replace, improve, and relocate, and to remove the Hydro Facility and any related facilities; to go through, tmder and across the aforementioned easement area as may from time to time be necessary or desirable for the exclusive use, occupation, and enjoyment of such right of way, including the right of ingress and egress to said easement area and the right to excavate, remove soils or fill on said parcel , and the right to cut and keep clear of all trees, shrubbery, under-growth, and other obstructions on said parcel as may be reasonably required for the construction, reconstruction, relocation, installation, operation, and maintenance of the Hydro Facility. UTILITY EA SEMENT --1 DWT 20 3032 0lvl 0064929 -000047 Grantor agrees all improvements associated with the aforementioned facilities which may be installed on the above described easement area by Chignik or its successors, assigns, licensees, and permittees, shall remain the property of Chignik, or the property of such successors, assigns, licensees, or permittees , as the case may be and removable at its or their options. The failure of Chignik to exercise any of its rights granted herein, shall not be construed as a waiver or abandonment of the right. Grantor covenants that it will not interfere with the lateral support of the easement or right of way and will not excavate or fill in any portion of the above described easement without written approval of Chignik, its successors, assigns, licenses, or permittees. Grantor covenants that it is the owner of the above described premises, and that it has good title to the afore-described tract of land and covenants Chignik shall have quiet and peaceable possession thereof, and shall have a free and unrestricted right to maintain said facilities. Dated this --~-'"<-----tb=-___ day of Qe.J.eb~y' , 2012. Grantor: Trident Seafoods Corporation By:~ ((p"._+ Name: Paul Padgett I Its: President Grantee: City of Chignik By:~~ Name: Richard J. S e Its: Mayor STATE OF WASHINGTON ) ) ss. KING COUNTY ) On this c::?Sn+--day of ~p+e-Y'Vt-bc..-r , 2012, before me, a Notary Public in and for the State of Washington, personally appeared Paul Padgett, to me known to be the President of Trident Seafoods Corporation, the corporation that executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said corporation for the uses and purposes therein mentioned and on oath stated that he was authorized to execute said instrument. UTILITY EASEMENT --2 DWT 2030320lvl 0064929-000047 AMYJ .GROARK NOTARY PUBLIC STATE OF WASHINGTON COMMISSION EXPIRES ttr!l, :s10i1iC~T$SOijjBE~R;s1~9~, 2$0~14~ ~ -~ llllllll lllllllllllllllllll lllllll 2 of 4 2012-000337-0 IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. AMY J. GROARK ~ NOTARY PUBLIC STATE OF WASHINGTON COMMISSION EXPIRES OCTOBER 19. 2014 STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) /;{~ On this _[j_ day of , 2012, before me, a Notary Public in and for the State of Alaska, personall appeared Richard J. Sharpe, to me known to be the Mayor of the City of Chignik, Alaska, the second class municipality that executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said municipality for the uses and purposes therein mentioned and on oath stated that s/he was authorized to execute said instrument. IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. U TILITY EASEMENT --3 DWT 203032 0 I v I 0064929 -00 00 4 7 lll lllllllll lllllllllllll lll/1/l ll 3 of 4 2012-000337-0 EXHIBIT A Diagram for Easement ~t.OT No() ..0CX loiUW80tS ~ ~ not.~ PUT 17-A A Rti"\.Af Of'' ~ to~Sil'f) ··1. ~-~"-• ot df poOnts~wt;.;:.O:,_~ ~ ~·-;-~--~ · orw:·:~nc . ..,..., Thot -~ ~lo ~ ~,...,.,.,_ ~t '•,'-1:.:· <M~_:_pot_l~~ •1>7& n.t1Wt.....' :~ ~ --' ~ i ~~,~~ 1\--.... ~.--~ .1~ -~ ~;, :~r ,). ~-~ ""-~.-~~-~;-~~\~~~~)).it ~-;.J,~ ~e.6Jtil\g _~ 'rOl"""' odglndtr ·~:~-·'~--~-(lt~ft•tio·)~ ~)It--'694 ..tUI t;P$:~ ft'D( ~tb\~ ~ \M C(jj;W .. -'Of UWI ~t~ 4. eo.;;.w_ -~~ ),fwm.tkn ~ .t-*~=..--ob~ hftl -~~u tnd ""'-"""'"""".....-""~ . . . j ~-~~-1~~ ~~:u:; :t:..;t=..:t '2oo1~1~"7r.~~.- lSI2Q01-S ~ , f. ·ib• ~of Coort-I:I N f<.r !hilt~ .oot#tf' ~d PMttlon ·b" ~~ · ~ ~,. s~~:ett7 1 r~ ~~ ~cu:!). o 'BiiOiM cq, h -~~ -~~ ~~~c::.--~~)1~ ~=-=-5~ .. ~ ~ ~~ • + 0 ~ ~ STA'DCIN 1917 I ~ (PO NlOlJ) tll.llt.i~T lir..CO.~C(J$ PftOf'llfTY cc:AC:R [1;)0[" or ,..,.,""' troY No.I:CT.J.I!£.4 ')tX'iJtXX ~DAH. (xx d ~ R£CORD OAT~ N:R UTILITY EASEMENT --4 DWT 2030320 I vI 0064929-00004 7 " .. llf:MJl. Non~lnternetP ub\\o I'I!OJ(Ct • LocA~ -·----".J CHIGNIK HYDROELECTRIC PROJECT P-620-009 INDIAN CRffl<-OiiGNIK, N< EXHIBIT G WW<~'-·•-h 1.4)1.1l~-'Liltl.l(. _,,1.-~'Uo4HI.. II IIIII I 1111 IIIII/ II 1111 I IIIII till 4 of 4 2012-000337-0 ------