Common use of Siting Clause in Contracts

Siting. The Alliance will site a CO2 storage facility and associated pipeline network to initially service the Upstream Project planned to be located in Meredosia, Illinois. However, the Alliance’s design and siting effort may consider, to the extent permitted by funding and schedule, a storage facility that could accept CO2 from other industrial sources in the future. Ameren’s facility in Meredosia, Illinois is planned as the host site for the FutureGen 2.0 – Oxy- Combustion Large Scale Test. At Meredosia, CO2 will be captured and delivered to the Alliance at the plant gate. The Alliance will identify a short list of candidate CO2 storage sites and identify the pipeline routes between the Meredosia plant and the candidate sites. As part of determining which sites are considered for final selection, the Alliance will engage DOE in consultations regarding the ability of the candidate sites to meet all minimum DOE and Alliance requirements. If it is indeterminate as to whether any candidate sites can meet the minimum requirements, then DOE and the Alliance will determine a mutually agreeable course of action and if deemed necessary develop a set of interim deliverables for the balance of the siting process. The Alliance may subsequently perform additional due diligence, including seismic surveys on one or more of sites considered candidates for final selection. With DOE concurrence, the Alliance may secure various rights at one or more sites. The Alliance will announce a preferred site by early 2011. If the preferred site is not characterized sufficiently to assure reasonable success of the project, the Alliance may identify one back-up site for inclusion in the Environmental Impact Statement (EIS). In support of DOE’s EIS, the Alliance will provide the necessary site characterization information for the CO2 storage site(s) and the pipeline route. The Alliance may also provide information regarding existing regional CO2 sources and existing rights-of-way that could be used for establishing the FutureGen 2.0 CO2 pipeline network. The following activities will be conducted: • Conduct outreach to interested host sites and the communities surrounding those sites • Develop criteria for acceptable sites and for evaluation of the proposals. The Alliance recognizes that they are developing specific site acceptance and selection criteria • Develop Request for Proposals (RFP) for prospective offerors • Evaluate the proposals received • Develop a short-list of candidate sites. • Conduct characterization of the Candidate Site(s) and provide a reference design for the pipeline, injection well, and research and training facilities for use in the EIS Information Collection • Make a final selection of a site (and back-up site if required) for the EIS The Alliance will, in consultation with DOE and the Illinois State Geologic Survey, develop site selection criteria. The site selection process, criteria and schedule will be consistent with those contained in Attachment 2. • Qualifying Criteria – criteria that a site must meet in order to be considered further. These will include, but may not be limited to, the ability of the Alliance to obtain access to the proposed CO2 target formation, the physical characteristics of the target formation, the thickness of the primary seal for the target formation, the distance from sensitive features such as dams and hazardous waste injection sites, the seismic stability of the proposed target formation, and reasonable assurances that prerequisite storage rights and pipeline rights of way are available. These criteria will be mandatory requirements, and any proposals that do not meet all of the qualifying criteria will be excluded from further consideration. • Scoring Criteria – criteria against which sites will be compared to help identify the most qualified site. These criteria will include, but not be limited to, the distance from the Ameren plant, the proximity to other CO2 sources, the ability of the site offeror to obtain the necessary property rights on behalf of the Alliance, the geologic properties of the proposed CO2 storage formation, the ability to monitor each target formation and measure and verify the location and movement of stored CO2, the extent to which the site would be conducive to a research and training facility, the degree to which the community supports the development of a CO2 storage site at the location, the availability of data to support an expedited EIS, and the availability of storage and pipeline rights of way rights. • Best Value Criteria – criteria that will allow the Alliance to use information provided by site offerors regarding cost, availability of data, land ownership, sensitive receptors above the target formation, and similar issues.