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Kipnuk Bulk Fuel 2005
-@ ee wee ee ee D©18°-0" T OF " _--PRIMARYsepou!KI \FUEL FILTER © HOPPER OIL BLENDING HEAT 6 5 Ol BLENDING EXCHANGER &PUMP EF-1 AY |Ly a FILTERS |xX [we ©|"XN ELEVATION.} r 1 }.3fatCAC 1 ..GEN #1 C iW475kW\ k WARNING 16"ss |i:Vl ® TYP,SEE , SHEET M11 \A4TYP_SECTION S) °faa]EF-2 |XN 7wbs)x |we>ZN 3 ||_|S } T 1 is GEN #1 C)cAC=2 475KW UN S uit Uj (o) t C7 T ro) 9 F-3 AY |Ly fod I x SY ened >ae |7N|_|3-0"FRONT OF SKID |7 TO GRID,TYP(3) GEN |4 o ENGINE CENTERLINE,TYP(3)__Ie'I],=CAC-3 ay 250K = ---e YT T (oe)ON ne EXTINGUISHER,3A40BC,TYP(3)ELEVATION /HEAT RECOVERYaPIPING&EQUIPMENT4 Ho/)COSTATION.SERVICE CABINET wt oOPANELSSHEATERCUH J Q © WARNING SIGN/PLACARD, TYP,SEE SHEET = OFIREsuPPRESSION-”0AGENTRACK FIRE SUPPRESSION ||CONTROL PANEL GEN #1 GEN #2 GEN #3 |MASTER STATION SERVICE TRANSFORMER ] 1]=aHOSSbp= ,|ie SSToee INSTALLATION,SEE SHEET M6.2 SSS==SSMUFFLER&EXHAUST PIPE > T Pee Tee OooEETeeeeeeeeeeeeeeReeee =| 4 vy OS T Dp pt To Reeen =aJ---S pee a Sen -fl_.#7 _----s2--!s L WIREWAY ||y q Y...ES,KNY .:yt Ba]Toss 8”EXHAUST |L.-7 \\u FFPOWER&1 |A >CONTROL |Xs ;CONDUIT,SEE |EE WIREWAY,SEEELECTRICAL4”COOLANT SUPPLY AT 20"-»-0}1 ELECTRICAL | +bed 1 K-44 1 +] 5 eae|1 2°CRANK VENT PIPE 1 Ay 'AT 55"+(SLOPING)1 4 < =*1+_4°COOLANT (N RETURN AT wn 1 TH SfLOCOOLANT1fH --iS Ty !an[|Z HOSE,TP |TL CHARGE AIR=i TH COOLER &TUBINGF'FA)INSTALLATION,SEE_Ht]SHEET M6.1 in TT HHaa 1 SGsuuaraenesedusnseeehaaunn BOLT VIBRAi CH ISOLATOR TO INSTALL 6'-0"LONG SECTION OF 3-1/4"DEEPSTEELFLOCKSTRUCTURESTRUT&CLAMP PIPES,SEE PIPE SUPPORT DETAIL 3,rc--=.wd 2 \TYPICAL SECTION THROUGH GEF<RATOR3.Y Vest FE BOLT GENERATOR SKID TO VIBRATION meen]eee DRILL &TAP FLOOR PLATE &TOP FLANGE OF FLOOR JOIST FOR BOLT,TYP(2} (1.\EQUIPMENT LAYOUT PLANWS.)3/8=t'(3.\VIBRATION_ISOLATOR_INSTALLAT:ONM3.1/7 No ScaLe Liblea of ':clini nace motole Aes)) State ofAlaska ;Deportgent of Community and Economic DevelopmentalexAIDEA/AEA _AS FRALASISARura!Energy Group 813 West Northern Lights Blvd.PRELIMINARY *Anchorage,Alaska 99503 NOT FOR =|°Oer AEA STANDARD 18x42 (MEGA ULTRA) CONSTRUCTION |MODULAR POWER PLANT EQUIPMENT LAYOUT PLAN,SECTION,&DETAILS ALASKA ENERGY AND ENGINEERING,INC P.O,BOX 111405 ANCHORAGE,ALASKA 99511-1405 PHONE (907)349-0100 DRAWN BY:BCG SCALE:AS.NOTED FILE NAME:4 By AD M2-B SHEET: PROJECT NUMBER:_M 3 .1 oDESIGNEDBY:BCS DATE:7/16/08 4”CRANK VENT,EXTEND 12”BEYOND ?EAVE &SUPPORT FROM SOFT.\?f*EXHAUST,TYP(2)eb CHARGE AIR,TYP(6) INTERIOR WALL ELEVATIONS &DETAILS RANK MNO /eF=1 /EF -2 /EF-3 / 1)ALL PIPE ABS WITH DRAINAGE FITTINGS EXCEPT Brx4"NO-HUB B ©°/ CLEAR PVC SITE GAUGE.SLOPE TO DRAIN 70 COUPLING,FERNCO ®')XL oT SITE GAUGE AS SHOWN.1006-64,TYP(2)OFFSET ”RETURN 7 - -_----"BEHIND MW iFROMHX-1].2)ROUTE 2°ON 45°ACROSS CORNER TO ALLOW o=4 ©©===©©©@ #MANS a uw Os i [CLEAR ACCESS TO TOP OF FILTER._Sr i STRAINER . . 47x3"SAN-TEE,OPEN 7 1 co”STRAINE!= 3)MOUNT VACUUM GAUGE ON WALL.SYSTEM oer 5 a eT -TI i re,DESIGNED TO MAINTAIN 0.50”WATER COLUMN 2”ABS i wpe .A a Mt ve VACUUM IN LINE,SET ALARM SWITCH TO NOTE 2 NOTE 3 FUEL FILTER foarte]VENT PIE Sf}2-1/2°€CS-”(artery "ECS |parteRY RORACTIVATEWHENVACUUMFALLSBELOW0.25".452"SAN-TEE &PING (CHARGER «ci ope pown 2"aw CHARGE!SEE NOTE i CHARGER = :a au 1..cI-24°CLEAR PVC _ter ae V1 .,we +2”SUPPLY u 3 SR ECR 2°45°SWEEP OPEN TO HX-1 ©|__ USED OIL OIL BLENDING FILTERS WA 4°x2"ABS REDUCER ===in LlHOPPER:DIESEL FUEL &2°ABS FPT .7 m /CIRC PUMP CLEANOUT ADAPTER 1”DFS&R u ENGINE FUEL PIPING 2”FLANCED-4 GLYCOL &HEAT OUT WALL i it CONNECTION,TYP(3)an FLOW METER HANDEAHNCER2°x3/4"BUSHING,3/4”\a CD L. PUMP BRASS STREET El,&3/4°a i FER ©' HOSE END DRAIN VALVE ;BATTERY,OuAFF TO [TT T1\|||||TyP(6)|RADIATOR '-Nt vor }8'-10"T+7-10"ZHRSER (HY CENTER OF PIPING NOTE:INSTALL 2°x2"x1-1/2"FIXTURE TEE WITH 1-1/2°xt"2-1/2"HRS&R\WS.7/SUPPORT,TYP(3)BUSHING FOR CONNECTION OF ENGINE CRANK VENT HOSE,TYP(3).OUT WALL (1END WALL ELEVATION 2 \BACK WALL ELEVATION (3.INTERIOR WALL ELEVATION wy sy yr WRAP 4"COPPER TUSE WITH 13"OF 7 TW -«--2"COPPERVIBRACUSHIONSTRIP&FASTEN WITH a”SOLDER END TUBE TO HX 4 3/8"0.D.CLAMP,B-LINE B2056 VERTICAL STRUT,ALIGN WITH CENTER 24”LONG SECTION OF BALL VALVEOFHEATEXCHANGER&BOLT TO aN STRUT,ATTACH TO WALLiALL3HORIZONTALSTRUTSagWITH3EACH1/4”SELF ,INSTALL SHALLOW STRUT AS REQUIRED -|TAPPING SCREWS &aaaraesani FOR ALIGNMENT OF BRANCH PIPING FENDER WASHERS,TYP(3)fesaSeeeeerecesereeerect5 ENTER TUBE IN PIPECLAMPHEATEXCHANGER. C TO WALL WITH STRUT &F----INSTALL 4S HIGH AS POSSIBLE (e-E SOLDER END SLEEVE &SEAL WITH HIGH ALL THREAD WHILE ALLOWING CLEARANCE FOR COMPANION FLANGE TEMP SILICONE CAULK ALL14REMOVALOFVENT/PRESSURE CAP . AROUND BOTH ENDSLier SHOP WELD Pane CK3-1/4"DEEP STRUT,B-LINE B11,FASTEN CUT TO LENGTH &N .12"PIPE CLAMP,B-LINE TEMPORARY PLATETOWALLWITH1/4”SELF TAPPING SCREWS INSTALL FRAME CAP 3)8"ALL THREAD,TYP(2)B2132 OR EQUAL,TYP(2)CAP,IN FIELD CUT 2"SCH 40 WELDED&FENDER WASHERS AT 12°O.C.i OFF FOR CONNECTION STEEL PIPE S 3 \ZL TO ARCTIC PIPE 9)H |20"LONG STRUT,FASTEN TO WALL oY FASTEN STEEL PIPES WITH RIGID 4 12"LONG 90°STRUT BRACKET,al NOTE:USE 14 GA WITH 3 EACH 1/4"SELF TAPPING 3 ; STEEL PIPE SLEEVE WELDED CONDUIT CLAMPS,B-LINE 82010 ty B-LINE B409-12 OR EQUAL,SHALLOW (13/16")STRUT ane SCREWS &FENDER WASHERS HOLE SAW WALL &INTO WALL,SEE SHEET MP1 BOLT TO VERTICAL STRUT 7 FOR ALL SUPPORTS.SEAL WELD 10 PIPE FOR LOCATIONS &SIZES H (4.PIPE SUPPORT (5.\HEAT EXCHANGER SUPPORT FROM WALL (6 \EXPANSION TANK SUPPORT (CT TRANSITION TO ARCTIC PIPE (8 \TYPICAL PIPE WALL PENETRATION\U3.2/NO SCALE \W3.2/NO SCALE \W3.2/NO SCALE \y3.2/%SCALE \W3.2/©SCALE State of Alaska ;ak Pepartyent of Community and Economic Developmentx8RAIDEA/AEAte.ural Energy Group -we 813 West Northern Lights Bivd.=ALASKAPRELIMINARYKKo*Anchorage,Aloska 99503 NOT FOR |"8"AEA STANDARD 18x42 (MEGA ULTRA)CONSTRUCTION MODULAR POWER PLANT TITLE: P.O,BOX 111405 ANCHORAGE,ALASKA 99511-1405 ALASKA ENERGY AND ENGINEERING,INC PHONE (907)349-0100 DRAWN BY:BCG SCALE:AS NOTED FILE NAME:18x42 M2-8 DESIGNED BY:BCG PROVECT NUMBER:_.DATE:7/16/08 SHEET: M3.2 "se FUEL DAY TANK 6,000 GALLON DIESEL va OUTLINE OF MODULE ABOVE aLoMAINBEAMS,TYP 4 D COO L ' K Dy W10x19 JOISTS,TYP '7 L y N PILING,TYP(8)IN K TYPICAL SECTION aa /2”GRIP STRUT,TP 1.aNEIAif i019 PURUNS -10x19 vests,|Nout SKID BEAM,TYP (2.\TYPICAL SECTION THROUGH FOUNDATION =Winds MAN BEAM ee ®00,%SooeaeoSx'es<3oxRSRKOSSS&i'eexseee6|. |\-DECK FOR GENSET SERVICE QAXXXX QOLOY?SOKXSSSomDECK FOR COOLERS &RADIATORS+ by | (1.\FOUNDATION PLAN ae 12-0"Lee] PRELIMINARY NOT FOR CONSTRUCTION -State of Alaska ;Department of Community and Economic Development*+* A8 a ADEA/AEAi»ural Energy Grouppatie813WestNorthernLightsBlvd.(eALASKAx*Anchorage,Alaska 99503 PROJECT:AEA STANDARD 18x42 (MEGA ULTRA) MODULAR POWER PLANT FOUNDATION PLAN &SECTION ALASKA ENERGY AND ENGINEERING,INC P.O.BOX 117405 ANCHORAGE,ALASKA 99511-1405 PHONE (907)349-0100WLSm3"ORAWN BY:BCG SCALE:NO SCALE FILE MAME:1 BY AD MY SHEET:oFDESIGNEDBY:BCG DATE: --7/16/08 PROJECT NUMBER:M 1 .3 8 s Alaska Industrial Development and Export Authority Alaska Energy Authority November 29,2004 Mr.Nelson Anavar,Manager Kugkaktlik Limited P.O.Box 36 Kipnuk,Alaska 99614 Re Kipnuk Bulk Fuel Upgrade Project Dear Mr.Anavar: The purpose of this letter is to ask Kugkaktlik Limited and all community members to review the conceptual design for Kipnuk's Bulk Fuel Upgrades project scheduled for construction to start January 2006.Please distribute the report and provide written comments by March 2005.2 hard copies and one CD of the Conceptual Design Report are enclosed.Please provide comments to the Alaska Energy Authority's (AEA)project manager,Mr.Mark Schimscheimer. Phone:(907)269-4689 (or 888-300-8534 toll free),or Fax:(907)269-3044 Timely receipt of your comments will allow the project to continue without delay. The Denali Commission provides most of the funding for bulk fuel upgrade projects.The Commission requires villages to demonstrate that each project will satisfy the Commission's "Criteria for Sustainability”.Before the Commission will provide construction funds,the village will need an approved business plan.AEA has hired a business consultant to help your village prepare a draft business plan.The business consultant is Ms.Ann Campbell of Aurora Consulting,telephone:(907)245-9245. In order to begin construction in January 2006,we will need to complete many tasks.A proposed schedule is described below: Drafting Business Plan:February 2005CounciltosendreviewcommentstoAEA:March 2005 Start Final Design:April 2005 Final Design Complete:Fall 2005BYNE 5.Business Plan and Grant Agreement to be signed by Council and Denali Commission: Fall 2005. 6.Denali Commission Meeting,funding approvals:Fall 2005 to Spring 2006. 7.AEA Construction Manager mobilizes:Fall 2006 This schedule is flexible;however,will affect the project completion date. I look forward to working with you on the Bulk Fuel Upgrades Project for Kipnuk.Please give me a call if you have any questions. Sincerely, Mark Schimscheimer,PE AEA Project Manager (907)269-4689 Enclosure:Conceptual Design Report (2 hard copies and 1 CD) Page 2 Alaska Industrial Development and Export Authority Alaska Energy Authority Postit Fax Note 7671 |Pateg 19 OS |ages>S °f From September 12,2005 =eles brennan =Davtd Loe. -Phone #2649-"e 54) Nelson Anavar,Manager mw a%S-O8ZzZ xt Kugkaktlik Limited PO Box 36 Kipnuk,AK 99614 Dear Mr.Anavar: |am writing to respond to a faxed letter |received from Jim Brennan of Hedland, Brennan and Heideman on September 1,2005.|have attached a copy of that letter for your reference. My responses below are numbered to correspond to the questions in Mr.Brennan's letter: 1.No,itis not an absolute requirement that the fuel storage and dispensing facilities be owned by a local government entity. 2.The language referenced in this question may not apply directly to the situation in Kipnuk.At this early stage in project development,|suggest that the Corporation retain ownership of the two 110,000 gallon tanks it currently owns.If those tanks are included in an Alaska Energy Authority (AEA)bulk fuel project in Kipnuk,the Corporation's interest and investment in those tanks should be protected. 3.The tank farm site selection is not final.|welcome any comments or suggestions you may have regarding possible sites in Kipnuk. 4.There are many creative ways in which the Corporation's interests and investments in the proposed facility could be protected.For example,a renewal and replacement escrow account could be established requiring signatures from each party before 'funds are withdrawn.The first step is to define the scope of the project before drafting the business plan and legal agreements.Note that all of these aspects of project development are contingent upon available funding,and the Denali . Commission retains the responsibility for final authorization of all business plans and construction funding requests. 813 West Northern Lights Boulevard *Anchorage,Alaska 99503907/269-3000 *FAX 907 /269-3044 «Toll Free (ALASKA ONLY)888 /300-8534 »www.aidea.org 5.AEA business plans are drafted by an AEA business consultant.The plans are. circulated to all project participants and interested parties for comment.Once they are finalized,the plans are again circulated to participants and the Denali Commission for final signature. 6.The current proposal in the CDR is that one of the Corporation's tanks would be used by the Corporation and one would be used by the Council (see p.C-2 of the conceptual design drawings).In exchange,the Corporation would use several smaller new tanks.If that arrangement is not in the Corporation's best interest, please let me know. David Lockard,P.E. AEA Project Manager cc:Jimmy Paul,Manager,Kipnuk Tribal Council Kathy Prentki,Denali Commission Energy Program Manager Chris Mello,AEA Program Manager Jim Brennan,Hedland Brennan &Heideman Enclosure:9/1/05 letter from Jim Brennan to David Lockard ;_SEP-01-2005 THU 02:09 PM HEDLAND BRENNAN HEIDEMAN FAX NO.907 279 5528 P,Ot LAW OFFICES HEDLAND BRENNAN &HEIDEMAN A PROFESSIONAL CORPORATION ANCHORAGE 1227 WEST NINTH AVENUE,SLITE 300 OfCounsel: JAMES T.BRENNAN ANCHORAGE,ALASKA 99501-3218 JOHN S.HEDLAND SARA E.HEIDEMAN TELEPHONE:(907)279-5528 : TELEFAX:(907)278-0877 FACSIMILE COVER SHEET The following document,including cover sheet,contains __3_pages. Date:September 1,2005 TO:David Lockard Project Manager,Kipnuk Bulk Fuel Upgrades.Fax No.:269-3044 FROM:James T.Brennan 'Our File No:3583 Phone:(907)279-5528 Fax:(907)278-0877 MESSAGE: THE INFORMATION CONTAINED IN THIS FACSIMILE TRANSMITTAL IS CONFIDENTIAL,MAY BE SUBJECT TO THE ATTORNEY- CLIENT PRIVILEGE AND IS INTENDED ONLY FOR THE USE OF THE RECIPIENT NAMED ABOVE,If THE READER OF THIS INFORMATION IS NOT THE INTENDED RECIPIENT,OR THE EMPLOYEE OR AGENT RESPONSIBLE FOR DELIVERY TO THIS INFORMATION TO THE INTENDED RECIPIENT,YOU ARE HEREBY NOTIFIED THAT THIS IS NOT A WAIVER OF PRIVILEGEANDANYDISSEMINATION,DISTRIBUTION OR COPYING OF THIS INFORMATION IS STRICTLY PROHIBITED,IF YOU HAVE RECEIVED THIS INFORMATION IN ERROR,PLEASE NOTIFY THE SENDER IMMEDIATELY BY TELEPHONE AND RETURN THE ORIGINAL INFORMATION TO THE SENDER,BY U.S,MAIL,AT TIE ABOVE ADDRESS, Originak Mailed __Not Mailed ___ SEP-01-2005 THU 02:10 PM HEDLAND BRENNAN HEIDEMAN FAX NO,907 279 5528 LAW OFFICES HEDLAND,BRENNAN &HEIDEMAN A PROFESSIONAL CORPORATION FROM TRE OESK OF: JAMES T,ARENNAN ATTORNEY Al LAWhaw@hbhe.alasks.net September 1,2005 VIA FACSIMILE 269-3044 David Lockard Project Manager,Kipnuk Bulk Fuel Upgrades Alaska Energy Authority 813 W.Northern Lights Blvd. Anchorage,AK 99503 Dear Mr.Lockard: As we discussed on Tuesday,August 30,2005,I represent Kugkaktlik Ltd.,the Native Corporation of Kipnuk.The Corporation's board and management have asked me to assist them in obtaining clarification of what is envisioned by the CDR for the Kipnuk Bulk Fuel Upgrades project.The primary matters they would like clarified concern © ownership and operation of the facility and its components.When I]spoke with you,I had not yet seen a copy of the CDR;I have now reviewed it.You asked that I put my questions to you in writing,which I am happy to do.J continue to think,however,that at some point it may be useful for you and I to discuss this matter directly.You also indicated you would like to communicate directly with Kugkaktlik Ltd.officials;I do not have a problem with this and in fact encourage it.I was glad to learn that you had called Nelson Anaver,General Manager,Wednesday moming. My questions at this point are: 1.Is it absolutely required,under the Denali Commission's Private Enterprise Policy (CDR,p.6)that the fuel storage and dispensing facilities be owned by a "local government entity”?The policy states that this will "generally”be required.Is there a reason why ownership has to be under the Native village tribal entity (KTC)rather than the Native village corporation (Kugkaktlik Ltd.)? 2.What is meant by the "Primary Owner”and the "Secondary Owner”as referenced in the Denali commission's criteria for sustainability policy (CDR,pp 11-12)?Am I correct in understanding that the owner of the facility may enter into a long term,$1 per year lease with Kugkaktlik Ltd.of the tanks presently owned by Kugkaktlik Ltd.,and all associated components,including those required for dispensing fuel to retail consumers? Under this arrangement,would Kugkaktlik Ltd.be considered the "Secondary Owner'? 1227 WEST NINTH AVENUE .SUITE 3206 .ANCHORAGE,ALASKA 99501-3218 TELEPHONE (907)279-5528 .TELEFAX (907)278-0877 (SEP-O1-2005THU 02:10 PH HEDLANDBRENNAN HEIDEMAN FAX NO,907 279 g609 3.Is the tank farm site selected by LCMF,near the KPC power plant facility,a final, unalterable selection? 4.Can the sustainability policy of the Denali Commission be met by a business plan which establishes a separate renewal and replacement fund for that portion of the facility leased and operated by Kugkaktlik,Limited?If this is not the case (such that revenues of Kugkaktlik Ltd.which are placed in a renewal and replacement fund in the name of KTC),what protections would exist to assure that such funds cannot be tapped by a general creditor of KTC?The requirement that the "Primary Owner”maintain "separate accounts for the tank farm operation”suggests that if KTC is the owner of the facility it will also own and control the renewal and replacement fund,including that portion which is funded by Kugkaktlik,Ltd.Would KTC also control expenditures from this fund for purposes of renewal and replacement of the Kugkaktlik -operated components of the consolidated facility? 5.Who is to initiate development of the Business Plan?My client has been under the impression that this was going to he coordinated by AEA,is this true?What is the status of drafting a Business Plan,and what interactions with Kugkaktlik,Ltd.officials do you envision in developing the Plan? 6.Am I correct in understanding that the Ownership and the Operation section of the CDR (pp.36-37)means that the fuel tanks currently owned by Kugkaktlik would continue to be used only by Kugkaktlik,and will not be part of any "common system” that will serve the other involved entities? I look forward to your response to these questions.Please transmit an additional copy of your response directly to my client c/o Nelson Anaver,General Manager,at fax number (907)896-5140, Thank you for your attention in this matter, "Sincerely, Nowe rT BoweJamesT.Brennan ce:Nelson Anaver via Fax JTB:jcc 3583\Locard Ltr P,§3.-. TRANSMISSION VERIFICATION REPORT TIME NAME FAX TELSER.#: 89/12/2885 14:52:AIDEA 9872693644 9872693688 BROL2J850726 DATE,TIME FAX NO./NAME DURATION PAGE ¢S) RESULT MODE @9/12 14:51 92780877 69:81:36 STANDARD ECM Alaska Industrial Development and Export Authority Alaska Energy Authority September 12,2005 Nelson Anavar,Manager Kugkaktlik Limited PO Box 36 Kipnuk,AK 99614 Dear Mr.Anavar: |am writing to respond to a faxed letter |received from Jim Brennan of Hedland, Brennan and Heideman on September 1,2005.|have attached a copy of that letter for your reference. My responses below are numbered to correspond to the questions in Mr.Brennan's letter: 1.No,it is not an absolute requirement that the fuel storage and dispensing facilities be owned by a local government entity. 2.The language referenced in this question may not apply directly to the situation in Kipnuk.At this early stage in project development,|suggest that the Corporation retain ownership of the two 110,000 gallon tanks it currently owns.If those tanks are included in an Alaska Energy Authority (AEA)bulk fuel project in Kipnuk,the Corporation's interest and investment in those tanks should be protected. 3.The tank farm site selection is not final.|welcome any comments or suggestions you may have regarding possible sites in Kipnuk. 4.There are many creative ways in which the Corporation's interests and investments in the proposed facility could be protected.For example,a renewal and replacement escrow account could be established requiring signatures from each party before -funds are withdrawn.The first step is to define the scope of the project before drafting the business plan and legal agreements.Note that all of these aspects of project development are contingent upon available funding,and the Denali . Commission retains the responsibility for final authorization of all business plans and construction funding requests. 813 West Northern Lights Boulevard «Anchorage,Alaska 99503 907 /269-3000 *FAX 907 /269-3044 «Toll Free (ALASKA ONLY)888 /300-8534 »www.aidea.org 5.AEA business plans are drafted by an AEA business consultant.The plans are circulated to all project participants and interested parties for comment.Once they are finalized,the plans are again circulated to participants and the Denali Commission for final signature. 6.The current proposal in the CDR is that one of the Corporation's tanks would be used by the Corporation and one would be used by the Council (see p.C-2 of the conceptual design drawings).In exchange,the Corporation would use several smaller new tanks.If that arrangement is not in the Corporation's best interest, please let me know. Deut foebed David Lockard,P.E. AEA Project Manager cc:Jimmy Paul,Manager,Kipnuk Tribal Council Kathy Prentki,Denali Commission Energy Program Manager Chris Mello,AEA Program Manager Jim Brennan,Hedland Brennan &Heideman Enclosure:9/1/05 letter from Jim Brennan to David Lockard ' "SEP-O1- 2005 THU 02:09 PM HEDLAND BRENNAN HEIDEMAN FAX NO,907 279 5528 P,01 LAW OFFICES HEDLAND BRENNAN &HEIDEMAN A PROFESSIONAL CORPORATION ANCHORAGE 1227 WEST NINTH AVENUE,SLITE 300 Of Counsel: JAMES T.BRENNAN ANCHORAGE,ALASKA 99501-3218 JORN S.HEDLAND SARA E.HEJDEMAN 'TELEPHONE:(907)279-5528 . TELEFAX;(907)278-0877 FACSIMILE COVER SHEET The following document,including cover sheet,contains ___3__pages. Date:September 1,2005 TO:David Lockard Project Manager,Kipnuk Bulk Fuel Upgrades.Fax.No.:269-3044 FROM:James T.Brennan 'Our File No:3583 Phone:(907)279-5528 Fax:(907)278-0877 MESSAGE: THE INFORMATION CONTAINED IN THIS FACSIMILE TRANSMITTAL IS CONFIDENTIAL,MAY BE SUBJECT TO THE ATTORNEY- CLIENT PRIVILEGE AND IS INTENDED ONLY FOR THE USE OF THE RECIPIENT NAMED ABOVE,IF THE READER OF THIS INFORMATION IS NOT THE INTENDED RECIPIENT,OR THE EMPLOYEE OR AGENT RESPONSIBLE FOR DELIVERY TO THIS INFORMATION TO THE INTENDED RECIPIENT,YOU ARE HEREBYNOTIFIED THAT THIS IS NOT A WAIVER OF PRIVILEGE AND ANY DISSEMINATION,DISTRIBUTION OR COPYING OF THIS INFORMATION IS STRICTLY PROHIBITED.IF YOU HAVE RECEIVED THISINFORMATIONINERROR,PLEASE NOTIFY THE SENDER IMMEDIATELY BY TELEPHONE AND RETURN THE ORIGINALINFORMATIONTOTHESENDER,BY U.S.MAIL,AT THE ABOVE ADDRESS, Onginal Mailed Not Mailed _ "SEP-01-2005 THU 02:10 PM HEDLAND BRENNAN HEIDEMAN FAX NO.807 279 5528 LAW OFFICES HEDLAND,BRENNAN &HEIDEMAN A PROFESSIONAL CORPORATION FROM THE DESK OF: JAMES T,BRENNAN ATTORNEY AT?LAWlew@nbhe.alasks.net September 1,2005 VIA FACSIMILE 269-3044 David Lockard Project Manager,Kipnuk Bulk Fuel Upgrades Alaska Energy Authority 813 W.Northern Lights Bivd, Anchorage,AK 99503 Dear Mr.Lockard: As we discussed on Tuesday,August 30,2005,I represent Kugkaktlik Ltd.,the Native Corporation of Kipnuk.The Corporation's board and management have asked me to assist them in obtaining clarification of what is envisioned by the CDR for the Kipnuk Bulk Fuel Upgrades project.The primary matters they would like clarified concem ownership and operation of the facility and its components.When I spoke with you,I had not yet seen a copy of the CDR;I have now reviewed it.You asked that I put my questions to you in writing,which I am happy to do.J continue to think,however,that at some point it may be nseful for you and I to discuss this matter directly.You also indicated you would like to communicate directly with Kugkaktlik Ltd.officials;I do not have a problem with this and in fact encourage it.I was glad to leam that you had called Nelson Anaver,General Manager,Wednesday morning. My questions at this point are: 1.Is it absolutely required,under the Denali Commission's Private Enterprise Policy (CDR,p.6)that the fuel storage and dispensing facilities be owned by a "local government entity”?The policy states that this will "generally”be required.Is there a reason why ownership has to be under the Native village tribal]entity (KTC)rather than the Native village corporation (Kugkaktlik Ltd.)? 2..What is meant by the "Primary Owner”and the "Secondary Owner”as referenced in the Denali commission's criteria for sustainability policy (CDR,pp 11-12)?Am I correct in understanding that the owner of the facility may enter into a long term,$1 per year Jease with Kugkaktlik Ltd.of the tanks presently owned by Kugkaktlik Ltd.,and all associated components,including those required for dispensing fue]to retail consumers? Under this arrangement,would Kugkaktlik Ltd.be considered the "Secondary Owner'? 1227 WEST NINTH AVENUE .SUITE 300 °ANCHORAGE,ALASKA 99501-3218 TELEPHONE (907)279-5528 .TELEFAX (907)278-0877 - --'SEP 01-2006 THU 02:10 Pa HEDLAND BRENNAN HEIDEMAN FAX NO,907 279 5528 3.Is the tank farm site selected by LCMF,near the KPC power plant facility,a final, unalterable selection?, 4.Can the sustainability policy of the Denali Commission be met by a business plan which establishes a separate renewal and replacement fund for that portion of the facility leased and operated by Kugkaktlik,Limited?If this is not the case (such that revennes of Kugkaktlik Ltd.which are placed in a renewal and replacement fund in the name of KTC),what protections would exist to assure that such funds cannot be tapped by a general creditor of KTC?The requirement that the "Primary Owner”maintain "separate accounts for the tank farm operation”suggests that if KTC is the owner of the facility it will also own and control the renewal and replacement fund,including that portion which is funded by Kugkaktlik,Ltd,Would KTC also control expenditures from this fund for purposes of renewal and replacement of the Kugkaktlik -operated components of the consolidated facility? 5.Who is to initiate development of the Business Plan?My client has been under theimpressionthatthiswasgoingtobecoordinatedbyAEA,is this true?What is the status of drafting a Business Plan,and what interactions with Kugkaktlik,Ltd.officials do you envision in developing the Plan? 6.AmI correct in understanding that the Ownership and the Operation section of the CDR (pp.36-37)means that the fuel tanks currently owned by Kugkaktlik would continue to be used only by Kugkaktlik,and will not be part of any "common system” that will serve the other involved entities? I look forward to your response to these questions.Please transmit an additional copy of your response directly to my client c/o Nelson Anaver,General Manager,at fax number (907)896-5140. Thank you for your attention im this matter. Sincerely, Yow Tt BooneJamesT.Brennan cc:Nelson Anaver via Fax JTB:jcc 3583\Locard Lir P,03 TRANSMISSION VERIFICATION REPORT TIME NAME FAX TELSER.#: pacie/20a5 15:58:AIDE 98726930844 9872693888 BROL2J850726 DATE,TIME FAX NO./NAME DURATION PAGE(S) RESULT MODE O@9/12 15:56 919878965146 48:61:38 65 OK STANDARD ECM [p (f |V F Denali Commission WU he 510LStreet,Suite 410 Anchorage,AK 99501 OCT 0 7 2005 907.271.1414 tel 907.271.1415 faxAIDEA/AEA 888.480.4321 toll free www.denali.gov October 5,2005 Carl Dock,President Kugkaktlik Limited PO Box 36 Kipnuk,Alaska 99614-0036 RE:Kipnuk Fuel Project Dear Mr.Dock, Thank you for your letters of September 20,2005 and October 4,2005 concerning the Conceptual Design Review (CDR)being conducted by the Alaska Energy Authority (AEA).The Authority,as our program partner,is presently in the conceptual phase,gathering comments from community members and organizations in Kipnuk concerning a potential upgrade to the community fuel farm.This process began in late 2004 when AEA initially corresponded with your fuel manager,Mr.Nelson Anavar and others in the community,requesting comments on the concept design.I understand Mr.Lockard,AEA's project manager,plans to return to Kipnuk later this month to continue this dialogue. The concerns listed in your earlier letters may have merit and the CDR phase is the proper time toaddressthem.I regret that I will be out of town on October 18"when you requested to meet with us.Additionally,the 18"is a State of Alaska holiday,so to my knowledge our state partners are also unavailable. The Commission and AEA commit to working with all bulk fuel stakeholders in Kipnuk to ensure everyone has input into the project design,to include its location within the community.AEA will not proceed to final design until this occurs.However,in order for this potential project to be successful,we need all community members and stakeholders to work cooperatively with AEA.The Commission and AEA look forward to working with you,the Traditional Council,and the community members of Kipnuk to ensure a successful outcome that benefits the community for years to come. Sincerely, ECM al” Roger B.Marcil Executive Director Ce: Alaska Energy Authority Alaska Federation of Natives P.O.Box 036Kugkatlik,Ltd.Kipnuk,Alaska 99614 Phone:907-896-5414 Fax:907-896-5140 September 20,2005 Roger Marcil Denali Commission 510 L Street,4th Floor Anchorage,Alaska 99501 via fax &mail:907-271-1414 Dear Executive Director Marcil: On behalf of the Kugkaktlik,Ltd.Board of Directors (BOD)and shareholders,|am requesting that the Denali Commission consider the input of the BOD and its'shareholders in selecting a site for the Kipnuk Tank Farm Consolidation Project (tank farm project).Kugkaktlik,Ltd.is considered one of the main participants in the present tank farm project conceptual plan designed by LCMF for the Alaska Energy Authority who is the main recipient of the conceptual plan grant for Kipnuk's tank farm project. The BOD was not aware that the conceptual plan for the tank farm project involved the use of Kugkaktlik's main fuel tanks.The BOD was never invited to participate in any of the meetings that took place in Kipnuk regarding the tank farm project.The input of the shareholders of Kugkaktlik,Ltd.and tribal members of the Native Village of Kipnuk should be solicited during the formulation of the "Conceptual Plan”for the tank farm project. BODs was not aware that the conceptual plan had already been completed and published.On August 10,2005 during a regular BOD meeting,the General Manager informed the BOD that he came across a copy of the tank farm project conceptual plan at the U.S.Post Office in the public entry way.No formal documents in attention of Kugkaktlik,Ltd.were ever received either from LCMF or AEA regarding the tank farm project in Kipnuk. Written public notices have never been published by the Kipnuk Traditional Council regarding any public meetings to the village residents,including this tank farm project.They wait until the last minute to inform the public to these kind of meetings,as was the case regarding the reported meeting in June 05. The BOD has several questions on how the AEA plans to proceed with the tank farm project: 4.When and how was the site selected by LCMF without first involving the participation by the residents of Kipnuk who are intended to be the main end users of this facility? 2.When and how many meetings were there regarding the tank farm project proposal involving the residents of the community?Why weren't public notices put up in the community 10,20,30 days in advance informing the public in Kipnuk that LCMF is putting together the conceptual plan for the tank farm project in Kipnuk? 3.Kugkaktlik,Ltd.is identified as the main participant in the tank farm project for Kipnuk.Why wasn't the BODs informed about the pending "conceptual plan”formulation/design prior to its publication? 4.Other viable locations/sites are available and need to be considered and discussed with the village residents for this tank farm project. @ Page 2 September 20,2005 5.Proposed pipeline traversing through a residential neighborhood was never presented to thecommunityfortheirinput.Why is the pipeline going through a residential neighborhood without anyinputfromthecommunityresidents? 6.The Kipnuk Traditional Council (KTC)is identified as a potential primary owner of the tank farm. They will have responsibility to operate and maintain the facility.Recent year ('(01-03)audit revelations of KTC finances have resulted in loss of KTC's contract with BIA,and they owe the federal government several hundred thousand dollars.Based on the financial irregularities and the present population of KTC,the BOD's of Kugkaktlik Ltd will not be rushed to make commitments to place corporation assets under the auspices of KTC without first obtaining assurances in writing from KTC (or whoever they may contract )that Corporation asset(s)will not be compromised in any way .Will Denali Commission make an exception and forego the requirements of sustainability with a government that has a history of questionable operating procedures and unaccountability? This tank farm project conceptual plan will be followed by the Rural Power System Upgrade/Wind (RPSU)conceptual.plan.AEA must involve adequate participation of the community residents of Kipnuk in the process of this plan.The generator plant should be located physically closer to the tank farm for logistical reasons.There are two other sites located in the community where the tank farm and generator plant could be located. In closing,we will work with AEA to propose two other sites for consideration for the tank farm project in Kipnuk,and |hope that consideration for adequate input of our village residents will be seriously considered in future projects within the community.The KTC officials and administration have not been very effective in providing any information to the public or taking any input from the residents since 2001.They generally do not advertise or publicize council meetings.They may advertise some meetings as they did the June °'05 Oen meeting only with a few minutes heads-up VHF radio announcement and generally no written public notice. The meeting that Mr.Lockart set up with KTC and Kugkaktlik was not posted until 2 days before the meeting.This is not the proper amount of time to notify the Corportation in Kipnuk about any joint meeting.2 hours is also not enough time to plan this kind of important meeting.Mr.Lockart,AEA Project Manager and.Mr.Glen Oen,LCMF-were planning to meet with KTC and Kugkaktlik on -September 15,2005 which they postponed until after October 9",2005.They were planning to come into Kipnuk for 2 hours and then leave.Consider accomplishing your goals for this magnitude of a project in 2 hours ?.More time should be planned on a very important meeting like this.It's also easier to get more people together in the evenings.You can't get people in Kipnuk together in a meeting in one morning. AEA received this funding on behalf of Kipnuk and they should use this grant to create a project for the benefit of Kipnuk with proper input from the community residents.Kugkakilik,Ltd.has used over $3,000 of its'corporate resources,which by the way is a lot of money to us,towards this worthwhile project that the AEA should be footing with the grant that they received.The BOD feels that the time we've spent on discussing this issue has been worthwhile.We feel that our efforts will allow the AEA to consider the input of the Kipnuk residents,including the input that we provide on their behalf towards the Kipnuk tank farm project. Thank you and we will look forward to your prompt response to our questions and input. Sincerely, {LAG _- Carl Dock BOD Chairman From:unknown Page:2/2 Date:10/4/2005 3:11:16 PM KUGKAKTLIK LIMITED P.O,Box 36 Kipnuk,Alaska 99614-0036 Phone No:(907)896-5414 or 5415 Fax No:(907)896-5140 October 4,2005 Roger Marcil,Executive Director Denali Commission 510 'L'Street,Suite 410 Anchorage,Alaska 99501 VIA FACSIMILE:(907)271-1415 Re:Kipnuk Bulk Fuel Project Dear Mr.Marcil, Kugkaktlik Limited ts an ANCSA village corporation with interests in the Kipnuk Bulk Fuel Project,a project which was awarded $150,000 by the Denali Commission for itsConceptualPlanning.Despite our bulk fue]tanks being incorporated into the Kipnuk Bulk Fuel Conceptual Plan the Kugkaktlik Limited Board of Directors were never contacted by LCMF or the Alaska Energy Authority.We have tried to work with the Recipient Project Manager in resolving this encroachment on our assets,but communications have become fruitless.Kugkaktlik Limited wants to see this project commence,but proper procedures and protocols have to be followed getting there. Members of Kugkaktlik Limited will be in Anchorage on October 18,2005 and would like to schedule a meeting with Kipnuk Bulk Fuel Project Contacts,of which includes; Kathy Prentki,Energy Program Manager,Rayna Swanson,Liaison/Program Manager, Chris Mello,Recipient Program Manager,and David Lockard,Recipent Project Manager.Please let me know if you will be available to accommodate our visit.Thank you. Sincerely, Kugkaktlik Limited =} Carl Dock,President - Ce:Kathy Prentki &Rayna Swanson,Denali Commission,FAX (907)271-1415 Chris Mello &David Lockard,AEA/LCMF,FAX (907)269-3044 From:unknown Page:1/2 Date:9/20/2006 2:48:09 PM P.O.Box 036 ; Kugkatiik,Ltd.Kionuk,Alaska 99614Phone:907-898-5414 Fax:907-898-5140 September 20,2005 Roger Marcil Denali Commission 510 L Street,4th FloorAnchorage,Alaska 99501 via fax &mall:907-271-1414 Dear Executive Director Marcil: On behaif of the Kugkaktlik,Ltd.Board of Directors (BOD)and shareholders,|arn requesting that the Denali Commission consider the input of the BOD and its'shareholders in selecting a site for the Kipnuk Tank Farm Consolidation Project (tank farm project).Kugkaktlik,Ltd.is considered one of themainparticipantsinthepresenttankfarmprojectconceptualplandesignedbyLCMFfortheAlaska Energy Authority who is the main recipient of the conceptual plan grant for Kipnuk's tank farm project. The BOD was not aware that the conceptual plan for the tank farm project involved the use of Kugkaktik's main fuel tanks.The BOD was never invited to participate in any of the meetings that tookplaceinKipnukregardingthetankfarmproject.The input of the shareholders of Kugkaktik,Ltd.and tribal members of the Native Village of Kipnuk should be solicited during the formulation of the "Conceptual Plan”for the tank farm project BODs was not aware that the conceptual plan had aiready been completed and published.On August 10,2005 during a regular BOD meeting,the General Manager informed the BOD that he came across a copy of the tank farm project conceptual plan at the U.S.Post Office in the public entry way.No formal documents in attention of Kugkaktlik,Ltd.were ever received either from LCMF or AEA regarding the tank fann project in Kipnuk. Written public notices have never been published by the Kipnuk Traditional Council regarding any public meetings to the village residents,including this tank farm project.They wait until the last minute to inform the public to these kind of meetings,as was the case regarding the reported meeting in June 05 . The BOD has several questions on how the AEA plans to proceed with the tank farm project 41.When and how was the site selected by LCMF without first involving the participation by the residents of Kipnuk who are intended to be the main end users of this facility? 2.When and how many meetings were there regarding the tank farm project proposal involving the residents of the community?Why weren't public notices put up in the community 10,20,30 days in advance informing the public in Kipnuk that LCMF is putting together the conceptual plan for the tank farm project in Kipnuk? 3.Kugkaktik,Ltd.is identified as the main participant in the tank farm project for Kipnuk.Why wasn'ttheBODsinformedaboutthepending"conceptual plan”formulation/design priorto its publication? 4.Other viable locations/sites are available and need to be considered and discussed with the villageresidentsforthistankfarmproject. From:unknown =Page:2/2,«Date:9/20/2006 2:49:09 PM ®Page 2 September 20,2005 5.Proposed pipeline traversing through a residential neighborhood was never presented to thecommunityfortheirinput.Why is the pipeline going through a residential neighborhood without any input from the community residents? 6.The Kipnuk Traditional Council (KTC)is identified as a potential primary owner of the tank farm.They will have responsibility to operate and maintain the facility.Recent year (01-03)audit revelations of KTC finances have resulted in loss of KTC's contract with BIA,and they owe the federal government several hundred thousand dollars.Based on the financial imeguiarites and the presentpopulationofKTC,the BOD's of Kugkaktlik Ltd will not be rushed to make commitments to placecorporationassetsundertheauspicesofKTCwithoutfirstobtainingassurancesinwritingfromKTC (or whoever they may contract )that Corporation asset(s)will not be compromised in any way .WillDenaliCommissionmakeanexceptionandforegotherequirementsofsustainabilitywitha government that has a history of questionable operating procedures and unaccountability? This tank farm project conceptual plan will be followed by the Rural Power System Upgrade/MWind(RPSU)conceptual plan.AEA must involve adequate participation of the community residents ofKipnukintheprocessofthispian.The generator plant should be located physically closer to the tank farm for logistical reasons.There are two other sites located in the community where the tank farm and generator plant could be located. In closing,we will work with AEA to propose two other sites for consideration for the tank farm project in Kipnuk,and |hope that consideration for adequate input of our village residents will be seriously considered in future projects within the community.The KTC officials and administration have not been very effective in providing any information to the public or taking any input from the residents since 2001.They generally do not advertise or publicize council meetings.They may advertise some meetings as they did the June '05 Oen meeting only with a few minutes heads-up VHF radio announcement and generally no written public notice. The meeting that Mr.Lockart set up with KTC and Kugkaktik was not posted until 2 days before the meeting.This is not the proper amount of time to notify the Carportation in Kipnuk about any jointmeeting.2 hours is also not enough time to plan this kind of important meeting.Mr.Lockart,AEA Project Manager and Mr.Glen Oen,LCMF were planning to meet with KTC and Kugkaktik onSeptember15,2005 which they postponed until after October 9",2005,They were planning to come into Kipnuk for 2 hours and then leave.Consider accomplishing your goals for this magnitude of a project in 2 hours ?.More time should be planned on a very important meeting like this.It's also easier to get more people together in the evenings.You can't get people in Kipnuk together in a meeting in one moming. AEA received this funding on behalf of Kipnuk and they should use this grant to create a project for the benefit of Kipnuk with proper input from the community residents.Kugkaktik,Ltd.has used over $3,000 of its'corporate resources,which by the way is a lot of money to us,towards this worthwhile project that the AEA should be footing with the grant that they received,The BOD feels that the time we've spent on discussing this issue has been worthwhile.We feel that our efforts will allow the AEA to consider the input of the Kipnuk residents,including the input that we provide on their behalf towards the Kipnuk tank farm project Thank you and we will look forward te your prompt response to our questions and input. Sincerely, LAG- Can Dock BOD Chairman Kipnuke dy Ie as-O05Py ,Lovecy77tak@wWhBe Fy t9 lL 5 . | Cya\bo 324Lk Wh | Evaz de'b AE4 260byoYpb20#¢'/kwh ETI pawn Fernie oF --NM.7a hiehtr |Dan Les Ds Ya res)=L vg lent bs A <hahpyyren Need Ae CAF eS.| | /€ndne epthaodl 200 44 #7E]C2 5SOkW)Commins in Ln chonege ase waeb Ley ¥p-ANTNEraeoNnpcion, L KSD hes pribler w/its powerhouse A-3 hyuces L-cur <ohmDIlon Temny OL fered 4.nnktoyr ne5InepeckSeichgearMeshrecovery| Prd.jor c ble,oualhs-KrpxK Ti wre,o=i Neroned |Cobre)!cons La hbalek C Poul”Nee Moy be shal 0k galbens ot fral =g inns The snitch ©_a7 od Ls Aart ,3 pH sheally,F but Jocnt wort |B ruce VUAF.efnd J TCDPBE WD JDewrra suggeaced f_ther.ty renevtte ND ave stlened ts ae:we estinaling3{ned <4 wept jo nr. euny =bp farvod|[pce veyed s,ole e ke ence pe :Abt te Cp to aProject Completion Report Alaska Energy Authority,Rural Energy Programs Kipnuk New Powerhouse Project Program:my o Rural Power System Upgrade Recipient: Native Village of Kipnuk Total Cost:-4 $537,930.00 id oll Funding Sources: Division:$537,930.00 Budget Code 15030 Federal:$0.00 .Completion Date:12/31/95 Local:$0.00 Agreement Number:2143137 Other:$0.00 Election District:39 Project Description:. A new powerhouse was constructed for Kipnuk Light Plant.The powerhouse included three new diesel generator units and associated switchgear.The former powerhouse was refurbished and used to house new waste heat capture equipment which distributes heat to the nearby community building.This is a fully automated system with the capability to evaluate load requirements and match them with appropriate generator capacity.The new powerhouse conforms to the latest Rural Utility Services (RUS,formerly the Rural Electrification Administration)and National Electrical Safety Code standards.Division staff designed the powerhouse and procured equipment and materials.As part of the project,a rate study was performed for the utility. Supplemental Information: This project was constructed in conjunction with Budget Code 83562,Kipnuk DistributionUpgrade.; Page 193 The photograph at left shows the switchgear in the new Kipnuk powerhouse.The switchgear and control panel in the previous powerhouse did not meet National Electric Code requirements.This is a fully automated system.Load requirements are evaluated and generator capacities are matched to the loads automatically. This photograph shows one of the three diesel generator units in the new Kipnuk powerhouse.Also visible is part of the waste heat capture equipment that was installed as part of the project. The salvaged heat is used save on heating fuel costs in a nearby community building. _s,Project Completion Report Alaska Energy Authority,Rural Energy Programs Kipnuk Distribution Upgrade Project Program:& Rural Power System Upgrade Recipient: Native Village of Kipnuk Total Cost:"4 .P $189,738.00 Mate.et oO Funding Sources: Division:$189,738.00 Budget Code 14562 Federal:$0.00 Completion Date:12/31/95 Local:$0.00 Agreement Number:2803174 Other:$0.00 Election District:39 Project Description:.cress eeeAnewoverheadelectricdistributionsystemwasconstructedforKipnukLightPPlant.The new overhead system conforms to the latest Rural Utility Services (RUS,formerly Rural Electrification Administration)and National Electrical Safety Code standards.The existing distribution system was retired. Supplemental Information:; This project was constructed in conjunction with Budget Code,15030 Kipnuk NewPowerhouse. Page 194 Denali Commission ov p cE |iV 510LStreet,Suite 410IEWiealAnchorage,AK 99501i907.271.1414 telJEC022005907.271.1415fax 888.480.4321 toll free www.denali.govADEA/ARA November 29,2005 Car]Dock,President Kugkaktlik Limited PO Box 36 Kipnuk,Alaska 99614-0036 RE:Kipnuk Fuel Project Location Concerns Dear Mr.Dock: Thank you for meeting me briefly at the AFN Convention,and discussing with me your concerns about the proposed bulk tank farm project in Kipnuk.I understand you're concerned about the proposed location,and the overall process for moving the project forward. The Denali Commission relies on our program partners to carry out most of our work on behalf of rural Alaska.The Kipnuk tank farm project is coordinated by Mr.David Lockard of the Alaska Energy Authority (AEA).David reports that the project has stalled,and the next step is for community leaders in Kipnuk to arrange a suitable community meeting date in Kipnuk where he can bring everyone up to date,and get the project moving again. Essentially,the project is still in the Conceptual Design Phase.This means that the final location for the tank farm has not been selected,although the Conceptual Design Report prepared by LCMF recommendsa site near Kipnuk's power generation plant.I understand you believe another site would be better for the community,and that you've written LCMF with your concerns. David has written community leaders urging them to propose a mutually acceptable meeting date to finalize the Concept Design Phase.Unless all parties participate in the process with AEA, design and construction for the tank farm cannot proceed. I want to be sure that all parties are communicating with each other.Mr.Lockard is sending letters to Kugkaktlik Limited,the Traditional Council,and the Lower Kuskokwim School District,Any meeting notices will be postedin the community,especially at the Post Office,HewillalsocopyMyronNanengatAVCPinBethel.If there are other organizations or individuals who should be included please advise Mr.Lockard. Please continue to work with AEA and Mr.Lockard,but feel free to copy my energy program manager,Kathleen Prentki and me with any correspondence.We look forward to getting this project moving again for the benefit of the people of Kipnuk. Sincerely, Breve George J.Cannelos Federal Co-Chair cc:Denali Commission Energy Program Manager,Kathleen Prentki Alaska Energy Authority,David Lockard Kugkaktlik Limited,Nelson O.Anaver Lower Kuskokwim School District,Pat DeSmet Kipnuk Traditional Council,Thomas Mesak Association of Village Council Presidents,Myron Naneng Denali Commission an 510 L Street,Suite 410IE(e ie |Wi ia |.Anchorage,AK 99501 }907.271.1414 telNOV292005' 907.271.1415 fax 888.480.4321 toll freeAIDEA/AE+www.denali.gov November 29,2005 Carl Dock,President Kugkaktlik Limited PO Box 36 Kipnuk,Alaska 99614-0036 RE:Kipnuk Fuel Project Location Concerns Dear Mr.Dock: Thank you for meeting me briefly at the AFN Convention,and discussing with me your concerns about the proposed bulk tank farm project in Kipnuk.J understand you're concerned about the proposed location,and the overall process for moving the project forward. The Denali Commission relies on our program partners to carry out most of our work on behalf of rural Alaska.The Kipnuk tank farm project is coordinated by Mr.David Lockard of the Alaska Energy Authority (AEA).David reports that the project has stalled,and the next step is for community leaders in Kipnuk to arrange a suitable community meeting date in Kipnuk where he can bring everyone up to date,and get the project moving again. Essentially,the project is still in the Conceptual Design Phase.This means that the final location for the tank farm has not been selected,although the Conceptual Design Report prepared by LCMF recommendsa site near Kipnuk's power generation plant.I understand you believe © another site would be better for the community,and that you've written LCMF with your concerns. David has written community leaders urging them to propose a mutually acceptable meeting date to finalize the Concept Design Phase.Unless all parties participate in the process with AEA, design and construction for the tank farm cannot proceed. I want to be sure that all parties are communicating with each other.Mr.Lockard is sending letters to Kugkaktlik Limited,the Traditional Council,and the Lower Kuskokwim SchoolDistrict.Any me¢ting notices will be postedin the community,especially at the Post Office,HewillalsocopyMyronNanengatAVCPinBethel.If there are other organizations or individuals who should be included please advise Mr.Lockard. Please continue to work with AEA and Mr.Lockard,but feel free to copy my energy program manager,Kathleen Prentki and me with any correspondence.We look forward to getting this project moving again for the benefit of the people of Kipnuk. Sincerely, George J.Cannelos Federal Co-Chair cc:Denali Commission Energy Program pa Kathleen Prentki foAlaskaEnergyAuthority,David Lockard < Kugkaktlik Limited,Nelson O.Anaver Lower Kuskokwim School District,Pat DeSmet Kipnuk Traditional Council,Thomas Mesak Association of Village Council Presidents,Myron Naneng Alaska Energy Authority (AEA)Due Diligence Checklist for:Ly Or)LUC PROJECT(S):PROJECT MANAGER(S): Bru Duwid Lecyad m&RPSU M AE&EE t=(Community) DATE NEEDED BY: 1st Step:Send out introductory letter w/IRS cover letter and Vendor Info.request. x Letter Sent to community 4 D LoS }Faxed Authorization Letter ToIRS ©Z]12,2nd Step:Contact Agencies. INQUIRY CONTACT COMMENTS ny TRS Authorization Letter Un Con lance.See Gtacked. Curren suspendedPCETerriHarper(907)269-4630 °fe See ed. No current loans.Oo AIDEA/VAEA DEBT Sue Weimer (907)269-3036 Liston ally ,"A off 2 lo Gans Michael Black 269-4564 ManagemnecKO||RUBA Scott Ruby 269-4569 Cen With.Se port: a (|IVendor Kug kala rtite Ltd.|]Cash custome,only now.BAL -SU Ie}tyishag ckbt Lenpaid- i Mt |(Vendor PROJECT MANAGER FINAL RECOMMENDATION(S); Move Forward JV On Hold until Community meets stipulation(s)* Cancel Project(s)* *Attach supporting document(s)or provide a summary below. Notes: ___Mary Judd ___Denali Commission COMPLETED BY:ANG PM SIGNATURE(S):/I DATE:©,09-05 n_q-4d (1S To 99872693044 P.@2/02 _:M IRSQUG-24-2025 86:25 FRO PAGE #966/22/2805 14:41 9872693044 aIDEA AIDE HEX Authorization to Request Federal Tak informationAllApplicantsMustCompleteThisForm We hereby authorize Mr.Chrig Mefo,Program Manager of the Alaska Energy Authority (Authority),toobtaininformaitonfromtheInternalRevenveService(IRS)conbeming our federal tax retums for thetaxForms(s)944,940,720 and information return Forms W-3,W-2,1098,and 1099 for all tax periodsfrom04/01/2000 to 12/41/2004.The following information may ba released by the [RS to the AuthorityprovidedfherequestismadetotheIRSwithin60daysofoursignatureanddateofthieauthorization.(chook all rolgvant boxes below]. Whether we are cureniy in compliance with federal Empicyment and Exctee tax Ming requirements.30.Whather wa have failed to file Employment/Excise tax returny,for which retums are currently due,Whether we have falled to file Information retums (Forms W-3,W-2,1086,1099)and Civil Penaltres are due,;raf har notices of Feaeral Tax Usne have been filed agers ue it any recording District.Whether we curently Rave a formal payment arrangement for,any amounts pwad to the [RS.The amounts of any currently outstanding balance due whether or not secured by any racorded Notice of Federal Tax Lien.on an Specific use net racarded on Centrafized Authorization File (CAF). !Cortfy|heve the authority to execute this form with respact to the tax mattersfperiads covered, x JIMMY PAULSs!re and Tithe Nameé (Fiaas.é Print} Kipnuk Traditional Coun¢eil 92-0059660 Taxpayers Name Taxpayer Employer (2. P.O.Box 0057,Kipnuk,Ak 39614 8/23/05 Taxpayers Address Data REPLY }ED Federal Tax Arrearage:Years/Periode:Amount: Gi Notice(s)of Federal Tax Lien Racotded:District \Stte, O Wen Tax Years/Poriods:.Balance Due: O federal Tax Len(s}may be releeaed for payment of :5 4 byNorecorieadNoticeofFedaratTaxLienagainsttheabovetaxpayaer(e)has been loczied,at ayer has not filed for the following tax periods /Information RetumnsyarIsIncompliancewithfederalemploymentand/or ex sike tax filing requirements.Taxpayer is in compliance with Faderal Tax Depoatt:(ves)___;ano} FOR INTERNAL REVENUE SERVICE;G72.Title:pte bake eDate:Pravios we 7 ws. B13 WEST NORTHERN LIGHTS BOULEVARD =ANCHOR GE,ALASKA omena0071268-3902-FAR 907|ZOR2046 +www.8-tel.OrgTOLLFREE[ALASKA ONLY)048 /900-8534 TOTAL P.@2 Terri Harper From:Jolene John Sent:Thursday,August 25,2005 3:24 PM To:Sue Weimer;Terri Harper Subject:Due Diligence:Kipnuk To complete my due diligence work for the BFU program,I am in need of your program status report for the following: Kipnuk Traditional Council Kugkaktlik Limited (Kipnuk Village Corporation) Your input is much appreciated! Jolene Jolene John AIDEA/AEA Development Specialist (907)269-3022 Kuprude kajol Plarst promned Ury sraditipral)CotenifRequtlocedUnker| Ducpindid PCL_premiam Yriori-Cormplanta aK Babo]oS RUBA Report Page 1 of 3 RUBA Status Report | Community:Kipnuk RUBA Community:Yes RUBA Staff:Ken Berlin -2479 Agreement:No DCA Region:Bethel Agreement Date: Region:Lower Kuskokwim Expiration Date: Govt Type(s):Traditional Council RUBA Status:Meets Essential & Sustainable Indicators Borough:Unorganized Essential Score:24 of 24 (100.00%) Population:649 Sustainable Score:20 of 27 (74.07%) Reportable:Yes Total Capacity Score:44 of 51 (86.27%) Borough:Unorganized Date Updated:7/1/2005 Community Sanitation A new 210,000 gallon water storage tank is filled from a reservoir on a nearby lake; Overview:residents haul treated water from several watering points.Honeybuckets are hauled by the village to a sewage lagoon.Homes are not plumbed.Construction has begun on infrastructure improvements,including a new reservoir pumphouse,a water treatment plant and sewage lagoon.The Village Council collects refuse and maintains the Class III permitted landfil.The Kipnuk School needs additional funds to complete its bio-pure sewage treatment plant and increase storage capacit RUBA Status and Kipnuk Traditional Council continues to send financial reports regularly.There were no Activities This Quarter:requests for assistnace in the 4th quarter of FY05. Capacity Indicator:Finances Essential Indicators Yes All revenues and expenses for the utility are listed in the utility budget. Yes The utility has adopted a balanced realistic budget. Yes Monthly financia!reports are prepared and submitted to the policy making board. Yes The utility is receiving revenues (user fees or other sources)sufficient to cover Sustainable Indicators operating expenses. No The utility is receiving revenues (user fees or other sources sufficient to cover operating expenses and Repair &Replacement (R&R)costs. Yes YTD revenues are at a level equal to or above those budgeted. Yes YTD expenditures are at a level equal to or above those budgeted. No A monthly manager's report is prepared. Yes Budget amendments are completed and adopted as necessary. Finance Comments: Capacity Indicator:Accounting SystemsEssentialIndicators Yes The utility has adopted a collection policy and actively follows it. Yes The utility bills customers on a regular basis. Yes An accounts receivable system is in place which tracks customers and reports past due accounts and amounts. Yes An accounts payable system is in place. Yes The payroll system correctly calculates payroll and keeps records. Yes A cash receipt system is in place that records incoming money and what it was for. Yes The utility has a cash disbursement system that records how money was spent. Sustainable Indicators Yes Achart of accounts is used that identifies categories in a reasonable,usable manner. Yes Monthly bank reconciliations have been completed for all utility accounts. Yes The utility has a purchasing system that requires approval prior to purchase,and the Accounting Comments: http://www.commerce.state.ak.us/dca/ruba/report/Ruba_Print.cfm?rID=168 approval process compares proposed purchases to budgeted amounts. The Tribe has a collection policy and is charging for services and doing billings.It was 8/25/2005 RUBA Report Page 2 of 3 recommended to change over to NEBS cash receipt system,which allows totaling receipts by account code and cross checking with bank deposits. Capacity Indicator:Tax Problems Essential Indicators Yes Yes Yes N/A Tax Comments: The utility has a system to accurately calculate,track,and report payroll tax liabilities. The utility is current on filing tax reports. The utility is current on making tax deposits. if there are any past due tax liabilities,a repayment agreement has been signed and repayments are current. As stated in the Accounting Systems section,the TKC bookkeeper calculates,tracks, reports and pay payroll tax liabilities. Capacity Indicator:Personnel SystemEssentialIndicatorsYes Sustainable Indicators Yes Yes Yes Yes Yes Yes Yes Personnel Comments: The utility has a posted workers compensation insurance policy in effect. The utility has adopted and uses a Personnel Policy,which has been reviewed by an attorney,AML or Commerce for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties th job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least:I-9,Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation,job training/oversight,and evaluations. The utility provides training opportunities to staff as needed and available. None. Capacity Indicator:Organizational Management Essential Indicators Yes Yes Yes Yes Yes Yes Yes Sustainable Indicators Yes Yes Yes Organizational The entity that owns the utility is known;the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately training manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator or operators. The utility has adopted the necessary ordinances (or rules and regulations)necessary to give it the authority to operate. The utility has adopted an organizational chart that reflects the current structure. The policy making body meets as required. The utility complies with the open meeting act for all meetings. The KTC owns and operates the water pump house and sewer haul system.The KTC Management Comments:is the policy making body for the utility.The KTC appears to be active in making policy for the utility.The Tribal Administrator started working for TKC in November 2003.His experience is in the military working as a supply officer.The utility has adequately trained operators.The main operator is not certified,but is working towards and has experience.Back-up operator is OIT certified in water treatment and water distribution. The Tribe has adopted a water utility ordinance that gives it the authority to operate, and it covers most of the aspects needed in a utility ordinance.Along with a collection policy,the ordinance includes policies on service area,level of service,customer agreements,the utility's responsibilities,the customers'responsibilities,billing procedures,shut-off procedures,and penalties for violating provisions of the ordinanc http://www.commerce.state.ak.us/dca/ruba/report/Ruba_Print.cfm?rlD=168 8/25/2005 RUBA Report Page 3 of 3 Capacity Indicator:Operation of UtilityEssentialIndicatorsYes Yes Sustainable Indicators No Yes Yes Yes Yes No No No No Operation of Utility Comments:- RUBA Activities for the Coming Quarter. The utility operator(s)are actively working towards necessary Certification. The utility has a preventative maintenance plan developed for the existing sanitation facilities. The manager receives a monthly O&M report from the utility operator and routinely "spot checks"the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are unresolved. The utility is operating at the level of service that was proposed.The operator provides status reports to the manager on a routine basis.The utility has completed and distributed its "Community Confidence Report'. The utility is not on the "Significant Non-Compliance"(SNC)list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. The operators are working on achieving the necessary certification to operate the current utility.The KTC Administrator is not aware of any existing inventory control list or spare parts list. Rate study to determine cost of utility's operations including pump house.Change current cash receipt system to NEBS.Travel and update RUBA assessment. http://www.commerce.state.ak.us/dea/ruba/report/Ruba_Print.cfm?rID=168 8/25/2005 x x x Transmission Result Report (MemoryTX)(May.19.2006 9:26AM)*** 1)AIDEA/AEA 2) Date/Time:May.19.2006 9:18AM File Page No.Mode Destination Pg (s)Result Not Sent 0339 Memory TX 919078965240 P.2 OK Reason for error E.1)Hang up or tine fail E.2)Busy E.3)No answer E.4)No facsimite connection Attendees;PowBerieJahn-Kipnuk lightpl 896-54 Fxnee Z.nn . Daniel JimmyKipemk lightplant t A chair re Fs [aLennyLandis-AEA powerhouse project manag {--KienDavidLockard-AEA tank farm project masay "BEG-I00-F53KBruceTiodAEARuralCityOuter[P™'S9S-SCQ¥p |ree Reference Infe ©The Division of Energy completed a powerhouse and distribution systcm upgradeinKipnukin1995foratotalcostof$728,000.the project inclnded «nowpowerhouse,pew gensets and fh andaheatrecoverysystem.e Kipnuk power consumption increased from 1.4 GWh to 1.6 GWh betweenfy99andfy04eThecurrentresidentialrateis$0.324Wh.It has only increased |cent since fy99©The most recent fel purchase was 65,000 gallons for $169,000 in fall 2004.Thisworksoutto$0.20/Wh in fuet costse@Thefy04fuelefficiencywas13.5 kWh/gallon. 1.This meeting was beld at AEA offices at Bamic's request. 2.Bemic said they need new genset ongines.The board paid $75,000in2004torebuildoneofthe250kWCurnmins. 3.ANTHC is building a new washctcria 4.There arc several new houses in under construction. 5.LKSD bas problems runniag its powerhouse. 6.Thereare foundati blems at the new powexh 7. P .Kipnuk Traditional Council runs the lightplant.The contact is Jimmy Paul at896-5515. 8.The lightplant is shart 10,000 gallons of fuel and may ran out before the bargecomesinJune.David suggested buying fuel fram LKSD or asking thengenesisduringpeakdemandperiodsHealsnofferedtoassistthecommunityWithprojihowmuckfuelwouldbeneeded.We densnnd fad devon ty ce"Dial said hey cua guy receive 1,000gallonsatatime,although Heres have landed on the nearby lake in the past. Transmission Result Report (WemoryTX)(May.19.2006 9:35AM)*** t)AIDEA/AEA 2) Date/Time:May.19.2006 9:33AM File Page No.Mode Destination Pg (s)Result Not Sent 7723 Memory TX 919078965240 P.2 OK Reason for error E.1)Hang up or line fail E.2)Busy -E.3)No answer -E.4)No facsimite connection (eetii i1- Attendees:7BernieJohKipruklightpl996-54 pone me _7ert [aeDanielJimmny-Kipnuk liphtplant board chair |Lm Foyd iin Dad beKeeaLennyLandis-AEA powerhouseprojectmansp alae KinkDavidLockard-AEA tank fartn project ge Pree*ye g-700-Broce Tiedenan-AEA Rural Community Ou [>789Z-SDH =Sit Reference Infg ¢The Division of Enexgy completed a powerhouse and distribution syste upgradeinKipnukin1995foratotalcostof$728,000.the project included a new lle "tehpowerbouse,new gensets and tie p oar,andaheat recovery system. «Kipnuk power consumption increased from 1.4 GWh to 1.6 GWh between fy99 and fy04 ©=The carrent residential rate is $0.32/kWh.It has only increased 1 ceat since fy99¢The most recent fuel purchase was 65,000 gallons for $169,000 in fall 2004.Thisworksoutto$0.20/kWhin fuel costs , *The fy04 fuel efficiency was 13.5 kWh/gallon. I.This meeting was held at AEA offices at Barmie's request. 2.Bemic said they need new genset engines,The board paid $75,000 in 2004 torebuildoneofthe250kWCummins. 3.ANTHC is building a new washeteria .There are several new houses in under construction.4. 5.LKSD has problems runsing its powezh 6.There are foundation problems at the new powerhouse, 7.Kipnuk Traditional Couscil runs the lightplant.The contact is Jimmy Paul at 896-5515. 8.The lightplant is short 10,000 gallons of fuel and may run out before the bargecomesinJune.David suggested buying fuel from LKSD of asking thern togenerateduringpeakdemandperiods.He also offered to assist the communitywithprojectingfueliontoestihowmuchfuelwouldbenceded.Wediscussedfneldeliverybyair.Dasiel said they can only receive 1,000gallonsatatime,although Heres have landed on the acarby lake in the past. Kipnuk Meeting Summary 11-25-05 Attendees: Bernie John-Kipnuk lightplant manager 896-5427 Daniel Jimmy -Kipnuk lightplant board chair Lenny Landis-AEA powerhouse project manager David Lockard-AEA tank farm project manager Bruce Tiedeman-AEA Rural Community Outreach Specialist Reference Info The Division of Energy completed a powerhouse and distribution system upgrade in Kipnuk in 1995 for a total cost of $728,000.the project included a new powerhouse,new gensets and automatic paralleling switchgear,and a heat recovery system. Kipnuk power consumption increased from 1.4 GWh to 1.6 GWh between fy99 and fy04 The current residential rate is $0.32/kWh.It has only increased 1 cent since fy99 The most recent fuel purchase was 65,000 gallons for $169,000 in fall 2004.This works out to $0.20/kWh in fuel costs The fy04 fuel efficiency was 13.5 kWh/gallon. This meeting was held at AEA offices at Bernie's request. Bernie said they need new genset engines.The board paid $75,000 in 2004 to rebuild one of the 250kW Cummins. ANTHC is building a new washeteria There are several new houses in under construction. LKSD has problems running its powerhouse. .There are foundation problems at the new powerhouse. Kipnuk Traditional Council runs the lightplant.The contact is Jimmy Paul at 896-5515. The lightplant is short 10,000 gallons of fuel and may run out before the barge comes in June.David suggested buying fuel from LKSD or asking them to generate during peak demand periods.He also offered to assist the community with projecting fuel consumption to estimate how much fuel would be needed. We discussed fuel delivery by air.Daniel said they can only receive 1,000 gallons at a time,although Hercs have landed on the nearby lake in the past. Post-it®Fax Note 7671 Date Ea of> te Deva be From Dated b6<hes »Co./Dept.»wyKam4) Phone #f Phone #ree.POD0-E53H rei s¢e-S2HO fet 10. 11. 12. 13. David encouraged them to address this problem now while there are still many options for dealing with it.The next barge delivery will be in June. David asked about the current rate for power.He explained that some utilities charge $0.30/kWh or more for non-fuel charges,while Kipnuk is only charging $0.12/kWh for non-fuel charges.Daniel said the board is reviewing their rates. Lenny explained the due diligence requirements.David pointed out that the Council is currently behind in PCE reporting and owes significant funds to the Corporation.Lenny stressed that those issues must be addressed before any projects could proceed.He offered to monitor power consumption in the meantime. The switchgear used to start and stop engines automatically,but doesn't anymore. Lenny offered to have a technician look at it while he is installing the power monitoring equipment. Lenny said that the Kipnuk Traditional Council is the contact for AEA regarding projects in the community,and that any requests for assistance should come from the Council. Bruce suggested pursuing ICDBG funding for any upgrades. EI6-5240 ->ENERGY AUTHORITY[=>ALASKA+x +Alaska industrial DevelopmentandExportAuthority July 14,2006 Mr.Jimmy Paul,Council Manager Kipnuk Traditional Council P.O.Box 57 Kipnuk,AK 99614 Re:Kipnuk Bulk Fuel Upgrade Project Dear Mr.Paul: At your request,|am writing to provide information on how the Kipnuk Traditional Council (KTC)can move forward with its plans for a bulk fuel tank farm upgrade within the program funded by the Denali Commission and managed by the Alaska Energy Authority (AEA).There is also an opportunity for KTC to pursue repairs or an upgrade to its powerhouse with assistance from AEA. |have provided below a short history of AEA's involvement with Kipnuk energy projects: 1995 The Division of Energy (predecessor to AEA)completed a powerhouse and distribution upgrade in Kipnuk at a cost of $728,000. 1999 the Division of Energy completed a piping repair job on the Kipnuk Lightplant's fuel facility. 2000 The Division of Energy began a bulk fuel upgrade.It was canceled at the final design stage due to issues in the community. 7/14/04 Mark Schimscheimer and Ron Brown of AEA and Glen Oen of LCMF traveled to Kipnuk to collect information for a bulk fuel conceptual design report.Theyalsoparticipatedinacommunitymeetingtodiscusstheproposedproject. 11/5/04 AEA completed a conceptual design report for a new bulk fuel facility in Kipnuk.The participants were KTC,Kugkaktlik Limited (Corp),and the Lower -Kuskokwim School District (LKSD).The total proposed capacity was 467,800 gallons and the cost range was $3,284,350 to $3,777,000.The report was sent to project participants with a cover letter requesting comment.According to the Corporation,they did not receive their mailed copy.LKSD was the only participant to comment on the report. 6/15/05 Mark Schimscheimer of AEA and Glen Oen of LCMF met with KTC and Corp members in Kipnuk to discuss the bulk fuel project. 813 West Northern Lights Boulevard *Anchorage,Alaska 99503-2495www.aidea.org ©907/269-3000 *FAX 907/269-3044 ®Toll Free (Alaska Only)888/300-8534 *www.akenergyauthority.org 8/15/05 9/1/05 9/9/05 9/12/05 9/12/05 9/20/05 10/4/05 10/5/05 10/27/05 11/25/05 11/29/05 2/10/06 Carl Dock of the Corp wrote to Glen Oen,LCMF design engineer,to ask about the use of the Corp's two 112,000 gallon tanks.Glen responded to these questions by e-mail. Jim Brennan of Hedland,Brennan and Heideman,representing the Corp, wrote me with a series of questions regarding the proposed project. AEA completed its due diligence process for the proposed Kipnuk bulk fuel upgrade project participants.It found that KTC had been suspended from the PCE program and owed money to the Corp.This means that KTC does not qualify to move forward in AEA's programs. |wrote to Nelson Anavar at the Corp in response to Jim Brennan's 9/1/05 letter. Jim Brennan,Counsel to the Corp,called Chris Mello,AEA Program Manager,to request that AEA pay the airfare of Corp board members to come to Anchorage and discuss the project.. Carl Dock of the Corp wrote to Roger Marcil of the Denali Commission expressing disappointment regarding the project and asking for an opportunity to provide input. Carl Dock wrote to Roger Marcil expressing disappointment at the lack of progress on the project and requesting a meeting.As far as |know this meeting never took place. Roger Marcil responded to Carl Dock's letters and encouraged all stakeholders to work cooperatively with each other and AEA.° Carl Dock wrote to George Cannelos regarding the choice of a site for the new tank farm. Bernie John (Kipnuk Light Plant Manager)and Daniel Jimmy (Kipnuk Light Plant Board Chair)met with David Lockard (AEA Bulk Fuel Project Manager), Lenny Landis (AEA Powerhouse Project Manager)and Bruce Tiedeman (AEA Rural Community Outreach Specialist)to discuss the repairs and improvements needed at the light plant.A meeting report is available. George Cannelos,Denali Commission federal Co-Chair,wrote Carl Dock encouraging him to work with AEA to get the project moving.This letter was in response to a meeting between George and Carl at AFN. David Lockard and Lenny Landis of AEA planned a teleconference with Steven Mann of KTC.Steven did not call. 5/25/06 David Lockard and Lenny Landis participated in a teleconference with KTC and LKSD regarding the project.According to KTC,the Corp had declined to participate because of only receiving two days notice. 5/29/06 Carl Dock wrote to me to complain about the short notice given the CorpregardingtheteleconferenceonMay25",2006. 6/16/06 KTC signed a resolution approving the 11/5/04 conceptual design report. The short chronology above does not include most of the 90-plus e-mails AEA has regarding these projects and many phone conversations over the last year. 'There are three things that KTC can do to put the bulk fuel project back on track: e Submit the missing Power Cost Equalization (PCE)reports to bring the Kipnuk Light Plant back into compliance with PCE requirements.As of today's date the utility is still suspended from the program. e Re-pay or arrange terms for any outstanding debts,particularly with the Corp. Evidence of repayment of the Corp debt should be provided to AEA. e Organize a meeting of all stakeholders and AEA in Kipnuk to discuss the proposed project(s),finalize a site for the bulk fuel facility,inspect the current condition of the fuel tanks and powerhouse,review opportunities for alternative energy,decide whether the Corporation's bulk tanks will be included in the new fuel facility,etc.Planning for this meeting should be done with the Corp to ensure that all parties are satisfied with the arrangements. Please call me at 907-269-4541 or 888-300-8534 (toll-free)if you have any questions. Sincerely, Qi) David Lockard,P.E. Kipnuk Bulk Fuel Project Manager Alaska Energy Authority cc:Kathy Prentki,Energy Program Manager,Denali Commission Nelson Anavar,Kugkaktlik Limited . Pat DeSmet,LKSD Regulatory Compliance Coordinator Lenny Landis,AEA,Kipnuk Powerhouse Project Manager p.3 t Hoey ook "AIDEN.[=ALASKA*ake Alaska Industrial DevelopmentandExportAuthority July 14,2006 Mr.Jimmy Paul,Council Manager Kipnuk Traditional Council P.O.Box 57 Kipnuk,AK 99614 Re:Kipnuk Bulk Fuel Upgrade Project Dear Mr.Paul: At your request,|am writing to provide information on how the Kipnuk Traditional Council (KTC)can move forward with its plans for a bulk fuel tank farm upgrade within the program funded by the Denali Commission and managed by the Alaska Energy Authority (AEA).There is also an opportunity for KTC to pursue repairs or an upgrade to its powerhouse with assistance from AEA. |have provided below a short history of AEA's involvement with Kipnuk energy projects: 1995 The Division of Energy (predecessor to AEA)completed a powerhouse and distribution upgrade in Kipnuk at a cost of $728,000. 1999 the Division of Energy completed a piping repair job on the Kipnuk Lightplant's fuel facility. 2000 The Division of Energy began a bulk fuel upgrade.It was canceled at the final design stage due to issues in the community. 7/14/04 Mark Schimscheimer and Ron Brown of AEA and Glen Oen of LCMF traveled to Kipnuk to collect information for a bulk fuel conceptual design report.They also participated in a community meeting to discuss the proposed project. 11/5/04.AEA completed a conceptual design report for a new bulk fuel facility in Kipnuk.The participants were KTC,Kugkaktlik Limited (Corp),and the Lower Kuskokwim School District (LKSD).The total proposed capacity was 467,800 gallons and the cost range was $3,284,350 to $3,777,000.The report was sent to project participants with a cover letter requesting comment.According to the Corporation,they did not receive their mailed copy.LKSD was the only participant to comment on the report. 6/15/05 Mark Schimscheimer of AEA and Glen Oen of LCMF met with KTC and Corp members in Kipnuk to discuss the bulk fuel project. 813 West Northern Lights Boulevard *Anchorage,Alaska 99503-2495 www.aidea.org *907/269-3000 *FAX 907/269-3044 ®Toll Free (Alaska Only)888/300-8534 ©www.akenergyauthority.org 8/15/05 9/1/05 9/9/05 9/12/05 9/12/05 9/20/05 10/4/05 10/5/05 10/27/05 11/25/05 11/29/05 2/10/06 Carl Dock of the Corp wrote to Glen Oen,LCMF design engineer,to ask about the use of the Corp's two 112,000 gallon tanks.Glen responded to these questions by e-mail. Jim Brennan of Hedland,Brennan and Heideman,representing the Corp, wrote me with a series of questions regarding the proposed project. AEA completed its due diligence process for the proposed Kipnuk bulk fuel upgrade project participants.It found that KTC had been suspended from the PCE program and owed money to the Corp.This means that KTC does not qualify to move forward in AEA's programs. |wrote to Nelson Anavar at the Corp in response to Jim Brennan's 9/1/05 letter. Jim Brennan,Counsel to the Corp,called Chris Mello,AEA Program Manager,to request that AEA pay the airfare of Corp board members to come to Anchorage and discuss the project.. Carl Dock of the Corp wrote to Roger Marcil of the Denali Commission expressing disappointment regarding the project and asking for an opportunity to provide input. Carl Dock wrote to Roger Marcil expressing disappointment at the lack of progress on the project and requesting a meeting.As far as |know this meeting never took place. Roger Marcil responded to Carl Dock's letters and encouraged all stakeholders to work cooperatively with each other and AEA. Carl Dock wrote to George Cannelos regarding the choice of a site for the new tank farm. Bernie John (Kipnuk Light Plant Manager)and Daniel Jimmy (Kipnuk Light Plant Board Chair)met with David Lockard (AEA Bulk Fuel Project Manager), Lenny Landis (AEA Powerhouse Project Manager)and Bruce Tiedeman (AEA Rural Community Outreach Specialist)to discuss the repairs and improvements needed at the light plant.A meeting report is available. George Cannelos,Denali Commission federal Co-Chair,wrote Carl Dock encouraging him to work with AEA to get the project moving.This letter was in response to a meeting between George and Carl at AFN. David Lockard and Lenny Landis of AEA planned a teleconference with Steven Mann of KTC.Steven did not call. 5/25/06 David Lockard and Lenny Landis participated in a teleconference with KTC and LKSD regarding the project.According to KTC,the Corp had declined to participate because of only receiving two days notice. 5/29/06 Carl Dock wrote to me to complain about the short notice given the CorpregardingtheteleconferenceonMay25",2006. 6/16/06 KTC signed a resolution approving the 11/5/04 conceptual design report. The short chronology above does not include most of the 90-plus e-mails AEA has regarding these projects and many phone conversations over the last year. 'There are three things that KTC can do to put the bulk fuel project back on track: e Submit the missing Power Cost Equalization (PCE)reports to bring the Kipnuk Light Plant back into compliance with PCE requirements.As of today's date the utility is still suspended from the program. e Re-pay or arrange terms for any outstanding debts,particularly with the Corp. Evidence of repayment of the Corp debt should be provided to AEA. e Organize a meeting of all stakeholders and AEA in Kipnuk to discuss the proposed project(s),finalize a site for the bulk fuel facility,inspect the current condition of the fuel tanks and powerhouse,review opportunities for alternative energy,decide whether the Corporation's bulk tanks will be included in the new fuel facility,etc.Planning for this meeting should be done with the Corp to ensure that all parties are satisfied with the arrangements. Please call me at 907-269-4541 or 888-300-8534 (toll-free)if you have any questions. Sincerely, 2-2 David Lockard,P.E. Kipnuk Bulk Fuel Project Manager Alaska Energy Authority cc:Kathy Prentki,Energy Program Manager,Denali Commission Nelson Anavar,Kugkaktlik Limited Pat DeSmet,LKSD Regulatory Compliance Coordinator Lenny Landis,AEA,Kipnuk Powerhouse Project Manager p.3 |SFeven ||Gert "ii J-9-06 Monn.-RTE.FE SH. Kp mek Tele Loy Tin Seopsan -_.Coastal Vi InesRegioncurd/ZWary = Pook.Doek--LK SD,Goes)YRC 2 ee SE Bx.ISLS15).7 ad.meeebd:oewhSseLo}ee -;eo_F¢6-5)Lo IO/25/0b AER |Mome DavidLckerd Dragerincd ten.Aah fxNWDpenas"efOl rg _SreeWDewroPout AKEnsegy_Kprvuck aol Fava/ContiCeeBockKogaZOkLTA... Nelsenfewer|TMM SAN Son/KT Cover i domes Mesak Te Kronate Cig dtPlant.a Hh Sehem b Lak I<Fett eel GenesaeDeeKidiesesLC_o aMes __Sensen Q/ash,Enery4 Audboerty _(i nd)I Cocer__Wwuenew4 _COME. Vlockinn "<Dalco REA Wirad___he nny au Ace _A EA.poohetee. ee |7|Vd ur.Ko by Phone Mi pk.Pp KS preke cote:l0-S-0¢6|0KCDR.itebefenke-Beeme||Corpsfenks On.Boerne._tarlation,faiai.ee -aa OoAOReroddake oye Post-it®Fax Note 7671 jDate J)DQ TohmtoSternMaarenDsLor ke ACo./Dept. -Phone #RbI- 42 54)"Bd6-S 240 Fe KUGKAKTLIK LIMITED P.O.Box 036 +Kipnuk,Alaska 99614 «(907)896-5414 November 17,2006 David Lockard,Lead Engineer-Rural Energy Alaska Energy Authority 813 West Northern Lights Boulevard Anchorage,Alaska 99503-2495 Re:November 20,2006 Visit/Public Meeting Dear Mr.Lockard: The item list you enclosed is the same list that has been introduced to the minds ofKTC officials more than once,even as latest as last month,during the AFN Convention.To date they have not made any known effort to involve the residents of Kipnuk to debate the proposed (by them)location of tank platform and Power House,neither any possible location of wind generating towers.No discussions of any sort have been scheduled or proposed or held with potential participants of tank farm.No negotiations for any type of agreements have been held with KTC by Corp or anyone else. The Kugkaktlik,Ltd.Board will not be able to attend the meeting that you are scheduling to attend on November 20,2006 in Kipnuk.I have prior commitments for that week myself.1 feel this trip/meeting you are scheduling to be here in Kipnuk to discuss the Tank Farm project would bebetterattendedbythevillageresidentsifitwasscheduledatleastwitha2weeknotice.Kugkaltlik, Ltd has rescheduled the shareholders meeting to December 9,2006 which would be a much more ideal time for us to meet with you regarding the tank farm project in Kipnuk along with most of the residents in the village. Three board members,David Amik,Adam Kashatok,and John G.Amik don't reside in Kipnuk and therefore it would not be possible for them to attend the meeting because they have jobs in Bethel andAkiak.The best time for them to attend meetings in Kipnuk wauld be over a weekend when they are excused from their jobs. 1 would suggest you come here on Friday Dec 8.People in the village are preparing for Thanksgiving next week so it would be inconvenient for most community members to try to attend a very important meeting and at the same time try to prepare for Thanksgiving. KTC recently had an election and they still have not installed the newly elected council,so whatever T@ 39d ATLAS @PTS3968206 88:TT S3002/2AT/TT decision is made during this meeting can be changed by the next elected council.Like I suggestedbefore,AEA is obligated to inform the public in Kipnuk with the developments of the Tank Farm project,and the most effective way ta do that would be to send newsletters to all box holders in Kipnuk.You indicated in our prior meeting of October 25,2006 that it's up lo KTC to make thar decision ofwhether to inform the public or not through newsletters.I would like to inform you that the KTC officials are voted into office by the public in Kipnuk,and they have the same obligations to provide any and all information regarding this project.1 would suggest that you go ahead and provide that tank farm project information via newsletter to the public in Kipnuk. I can assure you that with that process in place that this project will move forward more smoothly than before.Our interest is to provide for the best service and information to Kugkaktlik shareholders who happen to be tribal members as well. Thank you for your attention Sincerely, Kugkakilik Ltd. LA C--- Carl Dock,Chairman -Board of Directors CC:file é@ 3oVd ATTAIN BP TS9E84B6 86-TT 98GZ/ZT/TT P.| x x x Transmission Result Report (MemoryTX)(Nov-17.2006 4:Q6PM)*** 1)AIOEA/ZAEA 2) Date/Time:Nov-17.2006 3:53PM ;;PageNo.Mode Destination Pg (s)Result Not Sent 8608 Memory TX 919078965240 P.2 OK Reason for orror E -1)Hangs up or tine fail : E.-3)No answer E24)Nooy PostttFaxNowe 77![Pw WoTYo pata?Steen Mean FDComes.i prone?pe REIaEretF4g-Sayot KUGKAKTLIK LIMITED | P.G,Moe C26 +Kipnud,Alenia 8614 (007)996-5415 Noveanber 17,2005 David Lockard,Lead Engineer-Rural Encgy Alssiat Energy AuthorityB13WestNorthernLights BoulevardAnchorage.Alaska 99503-2495 Re:November20,2006 Yisi/Public Meeting Dear Mr.Lockard: The itera Hist you sockosed is the sanse fist that has been introduced to the mtods of KTC officials more.than woce,even as latest ax last month,dung the AFIN Convention.To date they have not made anyknownefforttoinvolvetheresidestsofKipsuktodebatetheproposed(by them}location of taskplatformandPowerHouse,neither aay possible Jocation af wind gofanysorthavebeenscheduledaepepenoderheldwihpotesdial participands of tak fare.NoegntiationsfbranytypeofagreezoeatsbavebeenheldwithKTCbyCorpofanyoneelas. The Kegkakilik,Led.Board will not be able to attend the meetingthatyouare scheduling to attendoaNovember20,2006 in Kapnuk.2 ear a iacaas tor thet week avec I feel thisyouareschedulingtobehereinKipnuktodiscusstheTankFartsprojectwouldbebeerattendedbytheviageresidentsiftwasscheduledateanwitha2weaknutice.Kupkakilik,Led has redulodthe sharehold:to D bes 9,2006 which would be «much moreidealimeforustomeetwithyouregardingthetankFarmprojectinKipnukslongwithmostoftheresidentsiothevlage. 'Tiveo board members,David Amik,Adam Kashaok,and Jotm G.Amik don't resideinKlpauk andthereforeitwouldnotbepossiblefortheintosttendthemeetingbecausetheyhavejobtinBethalandAkiak.The best time for them 10 amend mectings in Kapok woud be over a weekend when they areexousedfromtheirjobs.{would migyent 708 come bere oa Fi'éty Dec 8 People in the village are preparing for Thanksgivingnextweeka0itwouldbeiformoecbarsfotry1attendaverykupostantwmectingaodatthesupetienetrytoprepareforThanksg)ving. KTC recently hed an election and they still have not installed the newly elected council,80 whalever 1)ved ATIban @>IS968LE5 OOETT BOOZ /LT/TL NATIVE VILLAGE OF KIPNUK KIPNUK TRADITIONAL COUNCIL (907)896-5515 «FAX oor 896-5240 1D)GIF ||WE DEC 15 2006 LO Kugkaktlik Limited AIDEA Board of Directors AFA Chairman-Carl Dock P.O.Box 36 Kipnuk,Alaska 99614 December 12,2006 Re;Community /AEA Meeting Mr.C.Dock; Thisis to serve notice through yourself,to inform the other members of your board about”the upcoming meeting the Kipnuk Traditional Council is conducting on December28,2006 at the Chief Paul Memorial School along with Mr.David Lockard /Lead EngineerandLennyLandis/Project Engineer both of the Alaska Energy Authority.wrTheTribalCouncilcannotaffordtohaveanymoredelaysonthisBulkFuelStorageFacilityforthecommunityandatthelastmeetingdecidedthatthismeetingonthe28" would finalize the design and sites for the structures so the the Traditional Council could proceed with the rest of the planning once the sites and the locations could be identified.This ineeting would also meet the requirements to get public input on this project andalsoto'update all the participating parties on the progress of this community project.The.meeting,will start at 1:00pm at the Chief Paul Memorial School gymnasium. For the Ki uk Traditional Council: Steven}Yann-Tribal OperationsXelfeDiogkerdijandistMerrinerCPMS,Hher mertars'of your poatd aboutteeLpconsMggen.a Oo HES Sonu©nOGe ember . AVC ath.Sh .re IU a Like2h iLéac Enyinée::"t Lenn bar ts bg bo ee tee tee ras ad Eretay uthority. et Se re coe ,Bo a On gis otk FPua}Storage a po ter tes cae dtingon tho 26° ca ta be ;_;Shoah.bls woah Courcn t. CRU ad,We be ee aG In@ociucrs could be rdenited. .:'oO Lot abet Fen le 4G3 mecos woreh ghee oa sca trea ttn wee Hiei auton Sais nroject.and-'io Loupate ME ae Sat on erp oGross of th's CO:prpUity.projet.cae mecaay iho ee temerah &hal.gymnasium.tl NATIVE VILLAGE OF KIPNUK«RYE,Kipnuk TRADITIONAL maeDye te i o|I)ut i 'a P.O.Box 57«Kipnuk,ALASKA 99614 nin ;. (907)896-5515 *FAX (907)896-5240 LA SER 2 6 25a7 MDEA ALA RESOLUTION #_07- A Resolution of Kipnuk Traditional Council endorsing the July 25,2007 Conceptual Design Report prepared by the Alaska Energy Authonty for energy infrastructure projects in the village of Kipnuk. WHEREAS:Representatives of the Kipnuk Traditional Council have been in consultation with representatives of the Alaska Energy Authority and its consultants in regards to construction of energy infrastructure upgrades,and; WHEREAS:The Kipnuk Traditional Council strongly supports the construction of new energy infrastructure and endorses the July 25,2007 Conceptual Design Report; NOW THEREFORE BE IT RESOLVED:That the Kipnuk Traditional Council by this Resolution #07-12 hereby supports the development of Final Design and Business Operating Plan documents for the proposed projects and supports a request to the DenaliCommissionforapprovaloftotalfundingtocompleteconstructionoftheKipnukenergy infrastructure upgrades. We,the undersigned,do hereby certify that the Kipnuk Traditional Council is composed ofZ__members,of whom _4 _constituting a quorum were present and the foregoingResolution#07-12.was passedand approved by the Kipnuk Traditional Council,this August day of 31,2007.Vote:_Z7_Yeas 0 Nays Signed:artLealDavidPaul,Presilent oon tte Attest:-ji pePaulDockSecretary Suire300&PROFESSIONALCORPORATIONLAWOFFICESOFJERMAINDUNNAGAN&OWENS3000ASTREET,” (e] a NuonPanHomft340A"ne@vegz2O-&=x2¢ vu z < IN THE DISTRICT COURT FOR THE STATE OF ALASKA THIRD JUDICIAL DISTRICT AT ANCHORAGE ALASKA NATIONAL INSURANCE COMPANY,| .Plaintiff,aa : VS.| KIPNUK TRADITIONAL COUCIL, | - Defendant. Case No.3AN-06-13544 Civil SATISFACTION OF JUDGMENT On June 12,2007,Alaska National Insurance Company,as Plaintiff,obtained a Default Judgment against Defendant,Kipnuk Traditional Council,in the sum of $24,888.26,plus interest.The Default Judgment was recorded in the Bethel Recording District on or about July 6,2007,at 2007-000846-0.Such record is made a part hereof and reference is herein made to such record for a full and complete description of the Default Judgment. The judgment has been paid to the satisfaction of the Plaintiff.At the time of payment, Plaintiff was the owner of the judgment and was entitled to receive payment thereof. Therefore,in consideration of satisfactory payment of the judgment,interest,and costs,the receipt of which is hereby acknowledged,Plaintiff,as the legal owner and holder of the judgment, ||acting herein by and through Mark P.Melchert,of Jermain,Dunnagan &Owens,P.C.,its duly authorized attomey of record herein,hereby declares the judgment fully paid and satisfied,and the |judgment lien fully released and discharged. Post-it*Fax Note 7671 [Date [ioe {pasea _Blown Fetters,[Fem ta cin_Go/Dept.Cozi tePhone@Phone#At p-Fax #Ath SE}{4 Fax # 52H0 LAWOFFICESOFJERMAINDUNNAGAN&OWENSAPROFESSIONALCORPORATION3000ASTREET,Suite300ANCHORAGE,ALASKA99503{9071563-8844FAX(S07)563-7222-<ED Certificate of Service The undersigned certifies that on the i | | | |P.O.Box 57 f | day of September,2007,a true and"correct copy of the forcgoing was served by U.S.Mail,postage prepaid on the following: : Patricia Peter,Finance Officer Kipnuk Traditional Council |Kipnik,AK99614fae vaAONSeeeTofetFy Alaska National Insurance Company v.Kipnuk Traditional Council SATISFACTION OF JUDGMENT submitted to the Alaska Judicial Council. DATED at Anchorage,Alaska,thise->"day of September,2007. The undersigned certifies that information required under AS 09.68.130 has been JERMAIN,DUNNAGAN &OWENS,P.C. Attorneys for ALASKA NATIONAL INSURANCE COMPANY By.enipa :Mark P."Melchert eeAlaskaBarNo.9212123 Case No.3AN-06-13544 Civil Page 2 af2 /=ALASKA@>ENERGY AUTHORITYKeSeAlaskaIndustrialDevelopmentandExportAuthority June 16,2009 Mr.Carl Dock,President Kugkaktlik Limited P.O.Box 36 , Kipnuk,Alaska 99614 Re:Kugkaktlik Limited letter dated June 12,2009:Primary Operator Request Dear Mr.Dock: |am writing to respond to your letter of June 12,2009,in which you raised objections to the proposed tank farm project location.As you pointed out in your letter,Kugkaktlik _Limited has approved this location in two separate resolutions (07-01 and 07-02)dated 2/8/07 and 10/1/07.Also,it is important to note that the Alaska Energy Authority has: been working on this project off and on since 1997 and has written five different 'conceptual design reports in its attempts to move the project forward. The project location was chosen after consideration of a numberof factors,including distance from the school and the powerhouse (primary fuel users),threat of erosion from the river,and geotechnical conditions.The proposed facility would be built on a pile foundation several feet above the maximum flood elevation,and therefore protected from flooding.Nevertheless,the Alaska Energy Authority does not ask communities to accept projects that are not supported by all project stakeholders. |encourage you to work with the other stakeholders,the Kipnuk Traditional Council and the Lower Kuskokwim School District,to find a workable solution to this project location issue. Sincerely, David Lockard P.E.. Geothermal Program Manager _Alaska Energy Authority cc:Jimmy Paul,Kipnuk Traditional Council Kate Mcintyre,Lower Kuskokwim School!District 813 West Northern Lights Boulevard e Anchorage,Alaska 99503-2495 "www.aidea.org »907/771-3000 «FAX 907/771-3044 e Toll Free (Alaska Only)888/300-8534 e www.akenergyauthority.org KUGKAKTLIK LIMITED P.O.Box 36 »Kipnuk.Alaska $9614 (907)896-5414 +(907)896-5140 a8July36,2009 David Lockard,Project Manager Alaska Energy Authority 813 W.Northern Lights Blvd. Anchorage,Alaska 99503 Re: Kipnuk Bulk Fuel Project Endorsement Dear Mr.Lockard; Kugkaktlik Limited reaffirms the support of the Kipnuk Bulk Fuel Project and Resolutions07-01 and 07-02. In my last letter to you dated June 12,2009 it was requested an alternate location for the Kipnuk Bulk Fuel Facility be considered,which was followed by your response dated June 16,2009 encouraging the stakeholders find a solution regarding the location. Kugkaktlik Limited met with the Kipnuk Traditional Council on July 5,2009 and it was determined in the meeting that the Council and Corporation work together on this project.The Council was presented with terms and conditions which were to be met before the proposed location is accepted by the Corporation.The Council has,in good faith and effort has worked with the Corporation on the Kipnuk Bulk Fuel Facility and otherissues.Kugkaktlik Limited supports the Kipnuk Bulk FuelProject and is availabletobethePrimaryOperator. Sincerely, Kugkaktlik Limited LAA DP Carl Dock,President David Lockard From:John Amik [jgamik@hughes.net] Sent:_Thursday,July 23,2009 7:55 PM To:kugltd@gmait.com .Ce:David Lockard;cdock@hughes.net;pdock@hughes.net;damik@hughes.net Subject:Re:Kipnuk Bulk Fuel Support Letter This was a hastily written letter that should not have gone out without the concurrence of the other board members.It should have been presented to the board for review before it was signed and sent.I know that some council members had conceded in their efforts to relocate the wind turbines and we need to make sure that we still are getting concessions of the council including the relocation of the wind turbines. On Jul 23,2009,Nelson Anaver <kugltd@gmail.com>wrote: |See attached KUGKAKTLIK LIMITED P.O.Box 36 *Kipnuk,Alaska 99514 (907)896-5414 +(907)896-5140 June 12,2009 David Lockard,Project Manager Alaska Energy Authority 813 W.Northern Light Blvd. Anchorage,Alaska 99503 Re:Primary Operator Request Dear Mr.Lockard; It has been suggested,perhaps determined,Kugkaktlik Limited (Corporation)be the Primary Operator for the Kipnuk Bulk Fuel Facility,as such the Corporation is afforded the right to refuse the responsibility, liability and possible additional cost of administration.We had not known several months ago the Corporation was to be designated the Primary Operator for the Kipnuk Bulk Fuel Facility when furnishing to AEA resolution no.07-01 and 07-02."It has been the Corporation's stance from the beginning the bulk 'tanks be located west of the village of Kipnuk where the facility wouldn't be in an area prone to flooding, 'however,our concerns and comments regarding the proposed location have long been disregarded by Kipnuk Traditional Council and Alaska Energy Authority. Kugkaktlik Limited welcomes the Kipnuk Bulk Fuel Facility Project and is willing to be the Primary Operator for the Kipnuk Bulk Fuel Facility.However,if the Corporation is to be designated the role of Primary Operator our concern about the location,where the facility would be prone to flooding.cannot be disregarded.Ultimately,the community will own the facility and has to take care of Operation & Maintenance and Renewal &Replacement.Placing the burden of additional maintenance cost to community residents is not taken lightly by the corporation,and it is in their best interests we have concerns on the planned location of the facility.The highest fuel rates are in remote,isolated villages such as Kipnuk.Further,high unemployment rates and transfer payments are already the "norm”in a community such as ours.Any additional cost to maintain the facility would have to be placed on the residents which use the facility,a hardship unnecessarily placed when a more suitable location is available. Soil samples have already been collected for a 300 foot communication tower,which is within relative close proximity to the site the corporation favors for the facility.Duane Miller &Associates has these samples,which can be obtained and used as a preliminary site analysis for the facility before a site- specific soil sampling is done. Again,the Corporation has the final decision whether to be the Primary Operator for the facility.If the location of the facility is not favorable we can choose to walk away and have one of the other two parties: the Kipnuk Traditional Council or the Lower Kuskokwim School District be the Primary Operators.Since the Corporation has been selected Primary Operator by the other two parties to this facility,we are again requesting Alaska Energy Authority seriously consider our concern and reevaluate the location of the bulk fuel facility. Sincerely, Kugkaktlik Limited Lo "Carl Dock,President Cc:Steve Haagenson &Kris Noonan -AIDEA,George Cannelos -Denali Commission WwIDEN =ALASKAwzakeAlaskaindustrialDevelopmentAndExportAuthors June 16,2009 Mr.Carl Dock,President Kugkaktlik Limited P.O.Box 36 Kipnuk,Alaska 99614 Re:Kugkaktlik Limited letter dated June 12,2009:Primary Operator Request Dear Mr.Dock: |am writing to respond to your letter of June 12,2009,in which you raised objections to the proposed tank farm project location.As you pointed out in your letter,Kugkaktlik Limited has approved this location in two separate resolutions (07-01 and 07-02)dated 2/8/07 and 10/1/07.Also,it is important to note that the Alaska Energy Authority has been working on this project off and on since 1997 and has written five different conceptual design reports in its attempts to move the project forward. The project location was chosen after consideration of a number of factors,including distance from the school and the powerhouse (primary fuel users),threat of erosion from the river,and geotechnical conditions.The proposed facility would be built on a pile faundation several feet above the maximum flood elevation,and therefore protected from flooding.Nevertheless,the Alaska Energy Authority does not ask communities to accept projects that are not supported by all project stakeholders. |encourage you to work with the other stakeholders,the Kipnuk Traditional Council and the Lower Kuskokwim School District,to find a workable solution to this project location issue. Sincerely,y 4 eget LO LL et David Lockard P.E. Geothermal Program Manager Alaska Energy Authority CC:Jimmy Paul,Kipnuk Traditional Council Kate Mcintyre,Lower Kuskokwim School District &13 West Northern Lights Boulevard #Anchorage.Aiaska 99503-2495 www.aidea.org e 407/771-3000 «FAX 907/771-3044 @ Toll Free (Alaska Only:888/305-8534 e www.akenergyauthority.org KUGKAKTLIK LIMITED P.O.Box 036 +Kipnuk,Alaska 99614 -(907)896-5414 Roesoborion Wo O70} A Resolution of Kugkaktlik Limited Endorsing the proposed sites for the Kipnuk bulk Buch Uperade aud Powells Upurade Proyceuts WHEREAS,representatives of Kugkaktiik limited.the Kiopnuk Traditional Council and Lower Kuskokwim School district have been in planning consultation with representatives of the Alaska Energy Authority and LCMF LLC in reuzards to the site selection for anew Kipnuk Bulk Fuel Storave Facies and Powerhouse Facility.and WHEREAS,a preliminary site has been identified tor the new Facilities,which site having been presenicd io the Kipuuk Conmiumiyv,and tdentiied on ihe LONE LEC Kipnuk Bulk Fuel Storaze Facility and Powerhouse Facility Drawing dated February 2007.and. WHEREAS,the site selection for the Kipnuk Bulk Fuel Storage Facility and the Kipnuk Powerhouse Facility will be used for performing Geotechnical lovestization for the Foundation Design of the Facilities and will be presented inthe Conceptual Design Reports to be presented to the Denali Commission for approval of funds for Phase I Design,and, WHEREAS:Kuakakthk Limited stronuly supports the construction of a new Fulk Fue) Storage Facility and a new Powerhouse Facility and endorses the following major planning component to enhance the successful completion of the Bulk Fuel Storage Project and Powerhouse Project, 'TVTHEREFORE IT BE RESOLVED:That Kugkakthk Limited,by this resolution hereby Supports die proposed stie scicetion noied above,and supports the Aiaska bineigy Authority's efforts towards Geotechnical analvsis of the site. We,the undersigned,for the KughaktUk Limited,do hereby certify that on the 8"day ofFebruary2007,a quorum of the board met,and passed the above resolution by S&Svotinginfavorand¢-voting against. Signed:Lf a ¢mrad i £ Attest: KUGKAKTLIK LIMITED P.O.Box 036 +Kipnuk.Alaska 99614 +(G07)896-5414 or 896-5415 RESOLUTION No.07-02 A Resolution of Nugkakdik Limuted endorsing the July 26,2007 Conceptual Design Report prepared by the Alaska Energy Aurhorin for energy infrastracture projects in Kupnuk. WHEREAS:Representagves of the Ruphkaktlik Liruced have heen in consultation with representatives ot the Alaska [onerg,Author and is consuleants in regards fo construcnon of energy infrastructure upgrades,arid: WHEREAS:The Kagkaktlik Lamired serongly supports che canstruction of new cnerzy infrastructure and endorses the July ?Conceprual Design Report NOW THEREVORE BE TP RESOLVIED:har the Rugkaktlik Lamired by this Resolution G?.02 hereby suppurts the developmear of Fina]Design and Business Operanng Plan documents for the proposed prajects and supports a request to the Denali Commission for approval of total funding to complete construcdon of che Nupnuk energy infrastructure upgrucics We,the undersigned,do hereby certify that the Mugkakdik Limited is composed of :”a -members,of whom __4°constituting a quoruin were present and the forey . :.wa _.WAS passed and appre wedby the Rugkakdik Limited,this |fommetny ofohremWT,Vote:Yeas Nays Signed:eect Se ne ities ,an JoeAttestyh eet Feb 13 O7 O2:44p pea NATIVE VILLAGE OF KIPNUK KIPNUK TRADITIONAL COUNCIL P.O.Box 57 «Kipnuk,ALASKA 99614 (907)896-5515 *FAX (907)896-5240 RESOLUTION No.O7-O2 A RESOLUTION ENDORSING THE PROPOSED SITES FOR THE KTPNUK BULKFUELUPGRADESANDPOWERHOUSEUPGRADESFROMTHEKIPNUK TRADITIONAL COUNCIL. WHEREAS;The Kipnuk Traditional Council has been in planning consultation withRepresentativesoftheAlaskaEnergyAuthorityandLCMFLLCinregardstotheconstructionofanewKipnukStorageFacilityandKipnukPowerhouseFacility,and; WHEREAS;A preliminary site has been identified for the new Facilities,which site having been presented to the Kipnuk Traditional Council,and identified on the LCMF LLC KipnukBulkFuelStorageFacilityandPowerhouseFacilityDrawingdatedFebruary2007,and;WHEREAS;The site selection for the Kipnuk Bulk Fuel Storage Facility and the KipnukPowerhouseFacilitywillbeusedforperformingGeotechnicalInvestigationfortheFoundationDesignoftheFacilitiesandwillbepresentedintheConceptualDesignReports to be presented to the Denali Commission for approval of funds for Phase II Design,and;WHEREAS;The Kipnuk Traditional Council strongly supports the construction of a newBulkFuelStorageFacilityandanewPowerhouseFacilityandendorsesthefollowingmajorplanningcomponenttoenhancethesuccessfulcompletionoftheBulkFuelStorageProjectandPowerhouseProject; THEREFORE IT BE RESOLVED:That the K ipnuk Council,by this resolution herebysupportstheAlaskaEnergyAuthority's efforts towards Geotechnical analysis of the site. Wee undersigned,fot the Kipnuk Traditional Council,do hereby certify that on the(2-Day of February 2007,a quorum of the council met,and passed the above resolution by(2_voting in favor and Zi "2.against.SIGN 60;agid taDezelZetlTeeName,Titte-ATTEST:{SS i >Bee Tock Sear fenName,Title ij NATIVE VILLAGE OF KIPNUK KIPNUK TRADITIONAL COUNCIL P.O.Box 57 «Kipst x.Atask\99614 (907)S9@-SSTS ¢FAN (907)806-5740 RESOLUTION#07: A Resolution of Kipnuk Traditional Council endorsing the July 25,2007 Conceptual DesignReportpreparedbytheAlaskaEnergyAuthonityforenergyinfrastructureprojectsinthevillageofKipnuk.. WHEREAS:Representatives of the Kipnuk Traditional Council have been in consultation with representatives of the Alaska Energy Authonty and its consultants in regards to construction of energy infrastructure upgrades,and; WHEREAS:The Kipnuk Traditional Council strongly supports the construction of new energy infrastructure and endorses the July 25,2007 Conceptual Design Report; NOW THEREFORE BE IT RESOLVED:That the Kipnuk Traditional Council by this Resolution #07-12 hereby supports the development of Final Design and Business Operating Plan documents for the proposed projects and supports a request to the Denali Commission for approval of total funding to complete construction of the Kipnuk energy infrastructure upgrades. We,the undersigned,do hereby certify that the Kipnuk Traditional Council is composed of__Z_members,of whom _4 _constituting a quorum were present and the foregoingResolution#07-12.was passed and approved by the Kipnuk Traditional Council,thisAugustdayof31,2007.Vote:7.Yeas OQ Nays Signed:A gts "eesDavidPaul,Président aeAttest: Paul Dock,Secretary ALASKA €_)ENERGY AUTHORITYSkexAlaskaIndustrialDevelopmentandExportAuthority July 14",2006 Mr.Jimmy Paul,Council Manager Kipnuk Traditional Council P.O.Box 57 Kipnuk,AK 99614 Re:Kipnuk Bulk Fuel Upgrade Project Dear Mr.Paul: At your request,|am writing to provide information on how the Kipnuk Traditional Council (KTC)can move forward with its plans for a bulk fuel tank farm upgrade withintheprogramfundedbytheDenaliCommissionandmanagedbytheAlaskaEnergy Authority (AEA).Thereis also an opportunity for KTC to pursue repairs or an upgrade to its powerhouse with assistance from AEA. |have provided below a short history of AEA's involvement with Kipnuk energy projects: 1995 The Division of Energy (predecessor to AEA)completed a powerhouse and distribution upgrade in Kipnuk at a cost of $728,000. 1999 the Division of Energy completed a piping repair job on the Kipnuk Lightplant's fuel facility. 2000 The Division of Energy began a bulk fuel upgrade.It was canceled at the ,final design stage due to issues in the community. 7/14/04 Mark Schimscheimer and Ron Brown of AEA and Glen Oen of LCMF traveled to Kipnuk to collect information for a bulk fuel conceptual design report.They also participated in a community meeting to discuss the proposed project. 11/5/04 AEA completed a conceptual design report for a new bulk fuel facility in Kipnuk.The participants were KTC,Kugkaktlik Limited (Corp),and the Lower Kuskokwim School District (LKSD).The total proposed capacity was 467,800 gallons and the cost range was $3,284,350 to $3,777,000.The report was sent to project participants with a cover letter requesting comment.According to the Corporation,they did not receive their mailed copy.LKSD was the only participant to comment on the report. 6/15/05 Mark Schimscheimer of AEA and Glen Oen of LCMF met with KTC and Corp members in Kipnuk to discuss the bulk fuel project. 813 West Northern Lights Boulevard*Anchorage,Alaska 99503-2495www.aidea.org ©907/269-3000*FAX 907/269-3044 ©Toll Free (Alaska Only 888/300-8534 *www.akenergyauthority.org 8/15/05 9/1/05 9/9/05 9/12/05 9/12/05 9/20/05 10/4/05 10/5/05 10/27/05 11/25/05 11/29/05 2/10/06 Carl Dock of the Corp wrote to Glen Oen,LCMF design engineer,to ask about the use of the Corp's two 112,000 gallon tanks.Glen responded to these questions by e-mail. Jim Brennan of Hedland,Brennan and Heideman,representing the Corp, wrote me with a series of questions regarding the proposed project. AEA completed its due diligence process for the proposed Kipnuk bulk fuel upgrade project participants.It found that KTC had been suspended from the PCE program and owed money to the Corp.This means that KTC does not qualify to move forward in AEA's programs. |wrote to Nelson Anavar at the Corp in response to Jim Brennan's 9/1/05 letter. Jim Brennan,Counsel to the Corp,called Chris Mello,AEA Program Manager,to request that AEA pay the airfare of Corp board members to come to Anchorage and discuss the project.. Carl Dock of the Corp wrote to Roger Marcil of the Denali Commission expressing disappointment regarding the project and asking for an opportunity to provide input. Carl Dock wrote to Roger Marcil expressing disappointment at the lack of 'progress on the project and requesting a meeting.As far as |know this meeting never took place. Roger Marcil responded to Carl Dock's letters and encouraged all stakeholders to work cooperatively with each other and AEA. Carl Dock wrote to George Cannelos regarding the choice of a site for the new tank farm. Bernie John (Kipnuk Light Plant Manager)and Daniel Jimmy (Kipnuk Light Plant Board Chair)met with David Lockard (AEA Bulk Fuel Project Manager), Lenny Landis (AEA Powerhouse Project Manager)and Bruce Tiedeman (AEA Rural Community Outreach Specialist)to discuss the repairs and improvements needed at the light plant.A meeting report is available. George Cannelos,Denali Commission federal Co-Chair,wrote Carl Dock encouraging him to work with AEA to get the project moving.This letter was in response to a meeting between George and Carl at AFN. David Lockard and Lenny Landis of AEA planned a teleconference with Steven Mann of KTC.Steven did not call. 5/25/06 David Lockard and Lenny Landis participated in a teleconference with KTC and LKSD regarding the project.According to KTC,the Corp had declined to participate because of only receiving two days notice. 5/29/06 Carl Dock wrote to me to complain about the short notice given the CorpregardingtheteleconferenceonMay25",2006. 6/16/06 KTC signed a resolution approving the 11/5/04 conceptual design report. The short chronology above does not include most of the 90-plus e-mails AEA hasregardingtheseprojectsandmanyphoneconversationsoverthelastyear. There are three things that KTC can do to put the bulk fuel project back on track: Submit the missing Power Cost Equalization (PCE)reports to bring the Kipnuk Light Plant back into compliance with PCE requirements.As of today's date the utility is still suspended from the program. Re-pay or arrange terms for any outstanding debts,particularly with the Corp. Evidence of repayment of the Corp debt should be provided to AEA. Organize a meeting of all stakeholders and AEA in Kipnuk to discuss the proposed project(s),finalize a site for the bulk fuel facility,inspect the current condition of the fuel tanks and powerhouse,review opportunities for alternative energy,decide whether the Corporation's bulk tanks will be included in the newfuelfacility,etc.Planning for this meeting should be done with the Corp to ensure that all parties are satisfied with the arrangements. Please call me at 907-269-4541 or 888-300-8534 (toll-free)if you have any questions. Sincerely, David Lockard,P.E. Kipnuk Bulk Fuel Project Manager Alaska Energy Authority cc:Kathy Prentki,Energy Program Manager,Denali Commission Nelson Anavar,Kugkaktlik Limited Pat DeSmet,LKSD Regulatory Compliance Coordinator Lenny Landis,AEA,Kipnuk Powerhouse Project Manager p.3