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Appendix D to Design-Build EPC Agreement

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Appendix D to Design-Build EPC Agreement - attorney-drafted template. Party names and deal-specific details have been replaced with neutral placeholders. Review before use.

APPENDIX D

ACCEPTANCE TESTING AND PERFORMANCE METRICS (DRAFT)

A. Performance Metrics for Successful Acceptance Testing at Final Completion

Overall Purpose

The overall purpose of the Acceptance Test is to provide a basis for determining the end of the responsibility of the Contractor for Final Completion, and release from any performance related damages associated therewith, by demonstrating that the Facility will perform as designed for a specifically set period of time subject to the terms of the Agreement.

The Acceptance Test will be performed for purposes of Final Completion as a seven (7) consecutive running day test while processing the design chicken manure and mortalities input and generating the design biogas output as described below. Test will restart at any point Contractor may determine the down time prohibits meeting the goal or if the goal is not met at the end of the seven (7) days. It will be Owner’s responsibility to make available sufficient input material supply meeting the specifications below at the time necessary to operate the Facility at the design capacity noted below. Testing shall be suspended for any period where Owner does not meet its responsibility, and Contractor shall be reimbursed for costs incurred from such suspension per the Change Order provisions of the Agreement.

Design Basis

Design Input

The 7- day average shall be

The Owner will be required to supply the minimum amounts described above each day in order to generate the required amount of biogas. If the Owner cannot provide the required minimum amounts, the test can be suspended and restarted as described above, or the required amount of biogas generation can be reduced, on a directly proportional basis, to account for the reduced input provided. There will be no penalty for providing higher input loadings (either tons or organic content) provided they are approved by the Contractor in advance.

Daily Methane Delivered at [COMPANY] Pipeline Quality and Pressure

The seven (7) day average shall be 476 scfm of methane, which would equate to a seven (7) day total of 4,798,080 scf/7 days. These values will be measured using a test protocol (defining test location, instrumentation used, instrumentation accuracy allowed, specific analytical procedures to be used, etc) provided by the Contractor and approved by the Owner prior to initiation of the test. The Minimum Performance Metric Level is defined as 90% of 4,798,080 scf, or a total of 4,318,272 scf/7 days..

Daily Recovered Dry Solids Delivered

The seven day average shall be 28.2 dry weight tons per day containing an average of 5,750 pounds of nitrogen on a dry weight basis. These values will be measured using a test protocol (defining test location, instrumentation used, instrumentation accuracy allowed, specific analytical procedures to be used, etc) provided by the Contractor and approved by the Owner prior to initiation of the test. The Minimum Performance Metric Level is defined as 90% of the 28.2 tons per day Dry Solids average and 90% of the average 5750pounds per day nitrogen on a dry weight basis. The performance test shall also demonstrate a removal efficiency of 70% or greater of the influent non-volatile solids greater than 200 mesh (0.149 mm) with a specific gravity of 1.5 or greater.”

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Appendix D to Design-Build EPC Agreement

Construction Agreements -- US - General