Pre-Financing Fatal Flaw Report 
Anaerobic Digestion of Thin Stillage for Ethanol Plant Energy
Engineering Due Diligence Project Finance

Sendero Asset Management, LLC, Ethanol Facility, Matagorda County, TX

As Principal Senior Consultant, performed a prefinancing “fatal flaw” review of the anaerobic digestion technology (“ADT”) selected for biogas production, which will be used to fire the steam boilers in a corn ethanol plant for Sendero Asset Management, LLC.  His role during this technology review was to review the principal aspects of the ADT including the basic engineering design and the incorporation of the ADT in a proposed ethanol plant in Matagorda County, Texas.

Fatal flaw review focused on review of process and design data with regard to: process flow diagrams; heat and material balances; energy conversion efficiency; specific substrates and feedstock to be applied to the ADT; availability of the ADT process; biogas quality to the ethanol plant; capacity of the proposed ADT; environmental emissions caused by biogas utilization; and ADT residuals handling and disposal provisions.

Reviewed the proposed anaerobic digestion process, met with the developer’s design team to review the design of the project, reviewed the performance of developer’s pilot plant digester prototypes, reviewed the performance and biogas production of the prototypes, investigated the developer’s predictive biogas mathematical model and biogas projections made by the project developer, reviewed the design of the proposed biogas cleaning process and prepared the Fatal Flaw Report.

Project Financing Independent Engineer’s Report
Anaerobic Digestion of Manure and Thin Stillage – Production of Biogas 
Engineering Due Diligence Project Finance

E3 Biofuel-Mead, LLC Integrated Solid Waste and Biofuels Project, Mead, Nebraska

As Senior Task Leader – Digestion, prepared portions of an Independent Engineer’s Report for financing an integrated anaerobic digestion and ethanol project in Nebraska that produces biogas from dairy cow manure and supplemental substrate consisting of thin stillage from an adjacent ethanol production facility.

The biogas produced is processed to remove moisture resulting in a biogas that will be burned in the boilers of the adjacent ethanol production facility.  The biogas provides the heat energy required for the ethanol facility. The anaerobic digestion process used for the Nebraska projects is a completely-mixed, mesophillic process operating at a temperature of 105 F.  This digestion technology has been used by many municipal and industrial entities for over 100 years.

As the anaerobic digestion task leader, reviewed the proposed anaerobic digestion process, investigated the biogas projections made by the project developer, reviewed the proposed construction schedule for reasonableness, reviewed the construction costs and the operation and maintenance costs and prepared the anaerobic digestion section of the Independent Engineer Report for project financing.

Anaerobic Digestion of Manure & Cheese Whey
Production of Renewable Natural Gas 
Engineering Due Diligence Project Finance

Intrepid Technology and Resources Biogas LLC
Gooding County Methane Facility, Gooding County, Idaho

As Principal Senior Engineer, engaged by Ferris Baker Watts (previously brokerage house and investment bank)  to prepare an Independent Engineer’s Report for financing two Renewable Natural Gas Projects consisting of two separate anaerobic digestion plants in Idaho that produce biogas from dairy cow manure and supplemental substrate consisting of cheese whey.

The biogas produced is processed and cleaned in a patented process to remove hydrogen sulfide, carbon dioxide and moisture resulting in a renewable natural gas product for sale to a local natural gas pipeline owner.  The anaerobic digestion process used for the Idaho projects is a patented upflow-expanded bed, mesophillic process operating at a temperature of 105 F.  One project has 10 individual digester reactors and the other project has 14 individual digester reactors.   This technology has been patented by UtahStateUniversity.

As the anaerobic digestion lead engineer, reviewed the proposed anaerobic digestion process, met with the developer’s design team to review the design of the project, reviewed the developer’s previously installed digester prototype, reviewed the performance and biogas production of the prototype, investigated the biogas projections made by the project developer, reviewed the design of the proposed biogas cleaning process, reviewed the proposed construction schedule for reasonableness, reviewed the construction cost methodology and the cost estimate prepared by the developer, reviewed the operation and maintenance costs prepared by the developer and prepared the anaerobic digestion section of the Independent Engineer Report for project financing.

Project Financing Independent Engineer’s Report
Anaerobic Digestion of Manure & Substrate for Production of Renewable Natural Gas
Engineering Due Diligence Project Finance

Microgy, Inc. Anaerobic Digestion Projects
Erath and Deaf Smith Counties, Texas

As Principal Senior Managing Engnieer, selected by Environmental Power Corporation, the parent company of Microgy, Inc., to prepare an Independent Engineer’s Report for financing four (4) separate anaerobic digestion projects in Texas that produce biogas from dairy cow manure and supplemental substrate consisting of food processing oils.

The biogas produced will be processed and cleaned to remove hydrogen sulfide, carbon dioxide and moisture resulting in a renewable natural gas that will be sold to a local natural gas pipeline owner.

The anaerobic digestion process used for the Texas projects is a completely-mixed, thermophilic process operating at a temperature of 125 F.  Each project will have a total of eight individual digester reactors.   This technology originally was designed and implemented in Denmark for over 25 operating plants.   Microgy has the license to implement the Danish technology in the United States.

Reviewed Microgy’s three operating anaerobic digestion projects in Wisconsin, each having single digester reactors and each using the biogas to generate electricity.

Evaluated and gave an independent engineering opinion as to the viability, feasibility and reliability of the proposed anaerobic digestion process and biogas cleaning technology, met with the developer’s design team to review the design of the project, reviewed the performance of developer’s previously installed dairy digester prototypes, reviewed the performance and biogas production of the prototypes, investigated the developer’s predictive biogas mathematical model and  biogas projections made by the project developer, reviewed the design of the proposed biogas cleaning process, reviewed the proposed construction schedule for reasonableness, reviewed the construction cost methodology and the cost estimate prepared by the developer, reviewed the operation and maintenance costs prepared by the developer, prepared the anaerobic digestion section of and managed the preparation of the Independent Engineer Report for project financing.

As Construction Oversight Manager, provided construction oversight for the four Texas anaerobic digestion projects of Microgy, assessed the progress of construction, and prepared monthly progress reports for the financial trustees and investors.  In addition, reviewed and approved Microgy’s monthly construction draws in accordance with the Loan Agreement, Trust Indenture, and Drawing Agreement prepared prior to issuing the project’s tax-exempt, non-recourse bonds.

Project Financing Independent Engineer’s Report 
Anaerobic Digestion of Manure & Substrate for Production of Renewable Natural Gas
Engineering Due Diligence Project Finance

Microgy, Inc. Anaerobic Digestion Projects 
Fresno and King Counties, California

As Principal Senior Managing Engnieer, selected by Environmental Power Corporation, the parent company of Microgy, Inc., to prepare an Independent Engineer’s Report for financing seven (7) separate anaerobic digestion projects in California that produce biogas from dairy cow manure and supplemental substrate consisting of food processing oils.

The biogas produced will be processed and cleaned to remove hydrogen sulfide, carbon dioxide and moisture resulting in a renewable natural gas that will be sold to a local natural gas pipeline owner.

The anaerobic digestion process used for the California projects is a completely-mixed, thermophilic process operating at a temperature of 125 F.  Each project will have a total of four individual digester reactors.   This technology originally was designed and implemented in Denmark for over 25 operating plants.   Microgy has the license to implement the Danish technology in the United States.

Reviewed Microgy’s three operating anaerobic digestion projects in Wisconsin, each having single digester reactors and each using the biogas to generate electricity.

Evaluated and gave an independent engineering opinion as to the viability, feasibility and reliability of the proposed anaerobic digestion process and biogas cleaning technology, met with the developer’s design team to review the design of the project, reviewed the performance of developer’s previously installed dairy digester prototypes, reviewed the performance and biogas production of the prototypes, investigated the developer’s predictive biogas mathematical model and  biogas projections made by the project developer, reviewed the design of the proposed biogas cleaning process, reviewed the proposed construction schedule for reasonableness, reviewed the construction cost methodology and the cost estimate prepared by the developer, reviewed the operation and maintenance costs prepared by the developer, prepared the anaerobic digestion section of and managed the preparation of the Independent Engineer Report for project financing.

As Construction Oversight Manager, was to provide construction oversight for the California anaerobic digestion projects of Microgy, assessed the progress of construction, and prepared monthly progress reports for the financial trustees and investors.  In addition, reviewed and approved Microgy’s monthly construction draws in accordance with the Loan Agreement, Trust Indenture, and Drawing Agreement prepared prior to issuing the project’s tax-exempt, non-recourse bonds.

INDEPENDENT ENGINEERING DUE DILIGENCE PROJECT FINANCE

Financing Capital Improvement Plans

Project Financing Independent Engineer’s Report
Annual Capital Improvement Program
Engineering Due Diligence Project Finance

South Central Connecticut Regional Water Authority
New Haven, CT

As Principal Senior Managing Engineer, performed technical due diligence reviews of the annual condition of the South Central Regional Water Authority’s (the Authority) Water System.  Technical Reviews were performed for four straight (4) annual bond issues for planned capital improvements.

The Authority owns and operates an extensive water supply and distribution system (the “Water System”) which currently serves customers in twenty (20) municipalities within the South Central Connecticut Regional Water District and owns land in eighteen municipalities.

The due diligence review was performed for the purpose of financing: (1) capital improvement projects of the Water System; and (2) costs of issuance related to the annual Bond Issue in accordance with the Authority’s Water System Revenue Bond Resolution, as adopted yearly as amended and supplemented.

1.) Reviewed the projected annual, three and five-year  capital improvements planned for the Water System; Met and talked with senior department heads and management personnel of the Authority to gain perspective of the past year’s issued faced;

2.) Visited selected Authority Water System assets and performed general field observations — visual, above-ground examinations of a representative sample of major components of the Water System for the purpose of determining whether the Water System is being maintained and operated in accordance with generally accepted engineering standards and whether the Water System is in good repair and operating condition

3.) Field observations considered the: Condition of the facilities; Operating procedures; Maintenance procedures; and Authority’s plans to comply with the Safe Drinking Water Act, the Clean Water Act, the Connecticut Inland Wetlands and Water Courses Act, and the Water Diversion Act.

4.) Reviewed the Authority’s estimate of its revenue requirements for preceding annual period as presented in Authority’s Corporate Planning Model including: Projected operating and maintenance expenses; Interest income; Payments-in-lieu-of-taxes (“PILOT”); and Estimated debt service on future indebtedness required to fund the Capital Improvements Program.

5.) Presented the results of the Technical Review in the Independent Engineers Report, to be included in the Water System Revenue Bonds Official Statement of the Authority.  

6.) As a member of the Authority’s finance team, made presentations to the Bond Attorney, Underwriter, Department Heads and the Representative Policy Board (The Representative Policy Board is composed of one representative from each of the 20 municipalities in our region plus one member appointed by the Governor of Connecticut).

Project Financing Independent Engineer’s Report
Purchase of Water System Assets
Engineering Due Diligence Project Finance

South Central Connecticut Regional Water Authority
Purcahse of Birmingham Utilities Serving Ansonia/Derby, CT 

As Principal Senior Managing Engineer, performed technical due diligence reviews of the condition of the Birmingham Utilities water system for the South Central Regional Water Authority (the Authority).  Technical Reviews were performed in anticipation of the Authority’s purchase and subsequent financing of the Birmingham Utilities assets.

Birmingham Utilities, Inc. served water to approximately 9,000 customers (including fire protection) in the cities of Ansonia and Derby and in a small part of the towns of Seymour and Woodbridge, Connecticut.  The Company owns most of its system facilities, consisting of land, wells, reservoirs, pumping plants, chemical treatment facilities and pipelines.

Visited the Birmingham Utilities water system assets and performed general field observations – visual, above-ground examinations of a representative sample of major components of the water system for the purpose of determining whether the assets were being maintained and operated in accordance with generally accepted engineering standards and whether the assets were in good repair and operating condition.

Field observations considered the: Condition of the assets; Operating procedures; Maintenance procedures; and Birmingham Utilities’ compliance with the Safe Drinking Water Act, the Clean Water Act, the Connecticut Inland Wetlands and Water Courses Act, and the Water Diversion Act.

Recommended several immediate priority improvements that would need to be made if the Authority should proceed with the purchase of he Birmingham Utilities. 

Presented the results of the Technical Review in the Independent Engineers Report, to be included in the Revenue Bonds Official Statement of the Authority for the purchase of Birmingham Utilities assets. 

As a member of the Authority’s finance team, made presentations to the Bond Attorney, Underwriter, Department Heads and the Representative Policy Board (The Representative Policy Board is composed of one representative from each of the 20 municipalities in our region plus one member appointed by the Governor of Connecticut).

INDEPENDENT ENGINEERING DUE DILIGENCE PROJECT FINANCE

Project Finance Construction Monitoring

Project Financing Independent Engineer
Construction Monitoring and Trustee Certification
Engineering Due Diligence Project Finance

Milford Power Company Combined Cycle Plant
Milford, CT