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Project Update 800 Megawatt Power Generation Facility. Guswhenta Developments October 6, 2007. Project Recap.

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project update 800 megawatt power generation facility

Project Update800 Megawatt Power Generation Facility

Guswhenta Developments

October 6, 2007

project recap
Project Recap
  • Guswhenta Developments is seeking a 30 year lease of 40 acres in the Eagles Nest Tract from Six Nations to build an 800 MW High-Efficiency natural gas power plant adjacent to the Brantford Landfill Site.
  • We initially presented to the Confederacy on Saturday, July 7th, 2007 and were directed to reappear two weeks later. However, due to various circumstances, we have been rescheduled until Saturday, October 6th, 2007.
  • To illustrate the advancements that we have made since our last presentation before Confederacy Council, Guswhenta Developments offers the following project update and response to questions and concerns that we have heard from our various meetings and discussions at Six Nations.
current impact benefits package
Current Impact Benefits Package

Initial

  • $500,000 Yearly land lease payment
  • $500,000 Yearly payment in lieu of taxes
  • Six Nations jobs in project construction and operation
  • Six Nations training program for electrical transmission line technicians

Recently Added

  • Incorporation of a green –house component
  • Creation of a community trust ($2 Million dollars confirmed to date)
  • Confirmed community savings through bulk purchase of natural gas
  • Consideration of an equity position for Six Nations at their discretion
project update
Project Update

Environmental Issues and Review

  • It is our understanding that Drew Hill of The Abor Group has been directed by the Confederacy to undertake a review of the site in question to assess environmental impact. Based upon our conversations with Drew, The Abor Group’s preliminary findings speculate that, although there has been no exhaustive archaeological study, it is unlikely that the site in question will contain archaeological remains as it is some distance removed from the site of the historic village that was located near the Mohawk Chapel and the area has been utilized for agricultural purposes for many years. It is also some distance removed from the Glebe Farm that is located on lands above the former Mohawk Canal. Regardless, it is understood that any Letter of Agreement regarding a long term lease of the land will need to be contingent upon a satisfactory environmental and archaeological assessment.
project update1
Project Update

Preliminary Review of Water Treatment Technology

  • The proponents have initiated an independent review by First Nation Engineering Services Limited of the technologies that are being proposed to treat sewage water and discharge the treated water that will ultimately find its way back into the Grand River. Their initial review, as illustrated by their letter dated July 20, 2007, indicates that their preliminary assessment is favourable and that there is merit in further study. To this end, the proponents are working on a proposal to run a pilot project to further determine the suitability of the process equipment to fully treat Grand River water, through its annual fluctuations, to all Federal and Provincial potable water standards.
  • “The effluent from the Brantford Sewage Treatment Plant has been identified as a source of contamination for the Grand River. This facility has the potential to decrease, or eliminate, this source of contamination. This facility would contribute to an improvement in the quality of water in the Grand River at Six Nations.” - Clynt King, Six Nations Environment Manager
  • “This could have a major effect on the watershed and our quality of water on Six Nations Territory. If they are to honour their commitment to properly treat Brantford waste water prior to releasing into the Grand River. This would mean better water quality for our community.” - Amy Lickers, Six Nations Community Planner
project update2
Project Update

Completion of Comparison Case Study Financial Analyses

  • As requested by Six Nations Band Council, the proponents have prepared a case study analysis of how compensation has been derived for similar ‘on reserve’ infrastructure developments as well as how leases would be negotiated through other First Nations that have long established development procedures so that a direct comparison can be made with our proposal. These case studies indicate that the compensation being offered by Guswhenta Developments to Six Nations of the Grand River is on average 25% higher than those other projects that could be identified.
  • This document can be accessed any time at www.guswhenta.com entitled “07 08 07 Compensation Discussion.pdf”
project update3
Project Update

Incorporation of

a Greenhouse

Component

  • Due to the technology and heat transfer characteristics of gas fired power plants, greenhouse facilities have always been seen as a complementary activity that could be incorporated into the master plan of such a project. In the initial planning for the facility, Guswhenta Developments identified opportunities for greenhouses to be built both on the target site as well as in the immediate vicinity that could result in either ‘on’ and ‘off’ reserve locations. In discussing the potential for the project, widespread support has been received for the inclusion of a greenhouse component. In addition, the proponents have come to understood that a legacy is in place for the site that would have it produce food for the sustenance of Six Nations. To this end, an ‘on reserve’ greenhouse component has been incorporated into phase one of the development. In doing so, the proponents remain committed, as with all other aspects of the project, to working with Six Nations of the Grand River to determine the most beneficial means to operate such a component over the life of the long term lease. In addition to numerous full time positions, seasonal employment could swell to well over 50 during peak harvest.
project update4
Project Update

Confirmation of Beneficial Bulk Natural Gas Purchases

  • As confirmed by a letter received from Six Nations Natural Gas General Manager Nick Petruzzella, the project represents a real opportunity for combined bulk purchases to be made for the supply of natural gas. This would result in the payment of lower supply prices and these savings would be passed along to both individual band members and any organization that has or would have an account with Six Nations Natural Gas.
project update5
Project Update

Establishment of a Community Trust Fund

2 Million Committed to Date

  • In addition to an annual lease payment, the proponents have pledged to establish a specific Community Trust Fund and are committed, on behalf of Six Nations of the Grand River, to secure one time contributions from the consultants, contractors, manufacturers and suppliers that will be involved in the project. While it is difficult to determine what the upper level of the fund may be, both Guswhenta Developments and GenPower have each pledged $1 Million towards the formation of such a Trust. Furthermore, the proponents are stipulating that the revenue generated from this Community Trust would be utilized specifically to fund projects related to the retention of Haudenosaunee culture such as language retention, early childhood immersion programs and archival activities that will help to ensure their survival in perpetuity.
project update6
Project Update

Impact of Emissions

The proponents have prepared a diagram that illustrates how emissions from the new facility would impact the portion of the reserve where the majority of the Six Nations membership resides. An analysis of historic empirical ‘wind rose’ data indicates that the main portion of the reserve will be subject to prevailing winds twelve percent (12%) of the time versus the forty-six percent (46%) that the reserve currently experiences from the Nanticoke coal-fired plant. It is also noteworthy that, as previously mentioned, the emissions from the new plant will contain only a small fraction of the emissions that are currently discharged from the Nanticoke plant that, when combined, will reduce the exposure to Six Nations residents by a range of approximately fifteen (15) times.

Wind Prevalence Towards Six Nations

from Power Plants

Arrows indicate the percentage of time prevailing winds would direct any emissions towards the most heavily populated portions of the Six Nations Reserve. *Note that the total amount of emissions from the Brantford location would be significantly less than that currently experienced from the Nanticoke coal-fired facility.

project misconceptions
Project Misconceptions

Q: Are agreements already in place with OPG and the Province of Ontario?

A: No. They have been made aware of the project and are extremely supportive. Ultimate jurisdiction over the project will rightfully rest with Six Nations.

Q: Could this type of plant be built in the actual community as opposed to the proposed site?

A: No. There is not an adequate source of water in our community that could meet required cooling capacities. Furthermore, the existing grid is unable to accept an input of this magnitude of power without a complete overhaul of the transmission system which is economically unfeasible under the scope of this project.

six nations band council update
Six Nations Band Council Update
  • A non-binding letter of interest was received on September 21st, 2007
  • This letter outlines their interest in further consideration of the project so long as Guswhenta Developments can immediately provide in excess of $50,000 for their due diligence and consultation process
  • At the upcoming October 22nd political liaison meeting, Council will consider a motion to amalgamate their due diligence and evaluation process with the extensive work plan that has been established by Guswhenta Developments
slide13

Draft Letter of SupportIn order to proceed, it is requested that a letter such as the following be drafted in order to illustrate Confederacy support.

project milestones
Project Milestones
  • The project work plan that has been set up has nine milestones – all of which will require approval from Six Nations of the Grand River. These milestones will assure the community that we will honor our commitments and obligations prior to the start of any construction.
  • The current version of this work plan can be accessed any time at www.guswhenta.com entitled “07 08 13 Next Steps.pdf”