Exhibit 10.4
AMENDED AND RESTATED LANDFILL GAS
SERVICES AGREEMENT
THIS AMENDED AND RESTATED LANDFILL GAS SERVICES
AGREEMENT is entered into
this 17th day of November, 2008, and is by and among RIDGEWOOD
GAS SERVICES LLC , a Delaware limited liability company
(“ RGS ”), and RHODE ISLAND RESOURCE RECOVERY
CORPORATION (“ RIRRC ”), a Rhode Island
corporation, and solely as to Sections 3.2 and 3.3, RHODE ISLAND
LFG GENCO, LLC , a Delaware limited liability company (“
RILG ”). RGS and RIRRC may sometimes be
referred to herein individually as a “Party” and
collectively as the “Parties.”
RECITALS
WHEREAS , RIRRC is the owner of a certain landfill,
commonly referred to as the “Central Landfill,” located
in the Town of Johnston, County of Providence, State of Rhode
Island (as expanded or otherwise modified from time to time, the
“ Landfill ”);
WHEREAS , the current configuration of the Landfill,
including the RIRRC Gas Collection System, the LKD Gas Collection
System and the Condensate Control, Treatment and Disposal System at
the Landfill, are depicted on the Existing Site Plan, attached
hereto as Exhibit A ;
WHEREAS , pursuant to the Landfill Gas Services
Agreement dated as of August 1, 2003 between RGS and RIRRC (the
“ Existing Gas Services Agreement ”), RGS
operates the RIRRC Gas Collection System;
WHEREAS , as of December 31, 2007, pursuant to the
Termination and Assignment Agreement dated December 20, 2007 among
CGLP, LKD, Ridgewood Providence Power, RGS and Rhode Island Gas
Management LLC, RGS acquired the LKD Gas Collection System from LKD
and the Landfill Gas Services Agreement dated as of August 1, 2003
between CGLP and RGS (“ CGLP Services Agreement
”), under which RGS had operated and maintained the LKD Gas
Collection System, was terminated;
WHEREAS , pursuant to the Amended and Restated Site
Lease and Landfill Gas Delivery Agreement, dated as of the date
hereof, (as amended and/or restated from time to time, the “
Site Lease ”), RIRRC is granting to RILG, the sole
member in RGS, the right to construct and operate the RILG
Facilities at the Landfill and certain rights with respect to the
Landfill Gas produced at the Landfill;
WHEREAS , as of the date hereof, RGS and RIRRC are
entering into a Purchase and Sale Agreement (the “
Purchase and Sale Agreement ”), pursuant to which RGS
may acquire all of RIRRC’s right, title and interest in and
to the RIRRC Gas Collection System and the Condensate Collection
System on the Acquisition Date; and
WHEREAS , RIRRC and RGS now desire to enter into this
Amended and Restated Landfill Gas Services Agreement to enable RGS
to continue to operate and maintain the RIRRC Gas Collection
System, the Condensate Control, Treatment and Disposal System and
the LKD Gas Collection System so that all gas collection systems at
the Landfill will be operated and maintained by RGS, and RGS
desires to perform such functions, pursuant to the terms and
conditions hereof;
NOW THEREFORE , the Parties agree as follows:
ARTICLE I:
TERM/DEFINITIONS
1.1
Term . This Agreement shall become
effective as of the Effective Date and, unless terminated earlier
pursuant to Article XII hereof, shall remain in full force and
effect so long as the Site Lease remains in full force and
effect. Termination of this Agreement shall not affect
the term or termination of the Site Lease.
1.2
Definitions . Capitalized terms not
otherwise defined herein have the meanings given to them in the
Schedule of Definitions attached hereto.
1.3 Certain
Interpretive Matters . In this Agreement,
unless the context otherwise requires, the singular shall include
the plural, the masculine shall include the feminine and neuter,
and vice versa. The term “includes” or
“including” shall mean “including without
limitation.” References to a section, article, exhibit or
schedule shall mean a section, article, exhibit or schedule of this
Agreement unless the context requires otherwise. All
exhibits, annexes, schedules and other attachments to this
Agreement are hereby deemed to be attached to this Agreement and
incorporated herein by reference. The headings in this
Agreement are included for convenience of reference only and shall
not in any way affect the meaning or interpretation of this
Agreement. The definitions of agreements, contracts and
other documents contained in this Agreement which describe such
agreements, contracts or documents are not intended to be a
complete description of all terms of such agreements, contracts or
documents and shall not in any way affect the interpretation of
such agreements, contracts or documents. Whenever a
representation and warranty is made in this Agreement “to the
knowledge” of a party, the knowledge is the actual and
constructive knowledge of the directors, officers, and management
level personnel of the party.
ARTICLE II:
LANDFILL GAS SERVICES
2.1 RGS
Operator . RGS will continue to be the sole and
exclusive operator of the Gas Collection Systems and the CCS for
the remaining term hereof, and except as may be otherwise set forth
herein, RGS, as sole and exclusive operator, shall have complete
authority for all operations, maintenance, upgrades and
administration of the Gas Collection Systems and the CCS for the
remaining term hereof.
2.2 Description
of the Services . RGS shall: (a)
operate, maintain and administer the Gas Collection Systems and the
CCS, including the disposal of all Hazardous Materials, and deliver
Landfill Gas and construct additions and improvements to the Gas
Collection Systems, all in accordance with all applicable Legal
Requirements and the terms hereof and to the extent set forth
herein; and (b) perform such other services with respect to the Gas
Collection Systems and the CCS as RGS and RIRRC may agree from time
to time (the “ Services ”); provided that
all services to be performed under this Agreement shall be
performed in a manner consistent with all applicable Legal
Requirements, Good Engineering Practices, and in such a manner that
gives the highest priority to compliance with Permits and Legal
Requirements. Except as otherwise agreed upon by the
Parties pursuant to a flare plan and interim gas collection system
upgrade plan, until the earlier of (i) the Commercial Operation
Date or (ii) the third anniversary of the Decommissioning Date, RGS
shall not be required to take any action, to expend any funds or to
incur any liabilities in excess of those contained in the Operating
Plan and Budget.
2.3 No Liens
. In connection with the performance of the
Services under this Agreement, RGS shall not, without the prior
written consent of RIRRC: (a) create, or suffer the creation or
continued existence of, any Lien based on the action or inaction of
RGS on the Landfill Gas, the Landfill or the Leachate Control,
Treatment and Disposal System, or any interest in or portion of
such Landfill Gas, Landfill or the Leachate Control, Treatment and
Disposal System; or (b) take any action or fail to take any action
where such action or failure would adversely affect RIRRC’s
title to the Landfill Gas, the Landfill or the Leachate Control,
Treatment and Disposal System, or, prior to the Acquisition Date,
the Gas Collection Systems and the Condensate Control, Treatment
and Disposal System or any interest therein or portion
thereof. After the Acquisition Date, RIRRC shall not,
without the prior written consent of RGS: (a) create, or
suffer the creation or continued existence of, any Lien based on
the action or inaction of RIRRC on the Gas Collection Systems or
Condensate Control, Treatment and Disposal System, or any interest
in or portion of such Gas Collection Systems or Condensate Control,
Treatment and Disposal System, or (b) take any action or fail to
take any action where such action or failure would adversely affect
RGS’ title to the Gas Collection Systems or Condensate
Control, Treatment and Disposal System, or any interest in or
portion of such Gas Collection Systems or Condensate Control,
Treatment and Disposal System; or (c) remove any material part of
the Gas Collection Systems or Condensate Control, Treatment and
Disposal System from the Landfill unless required to comply with a
Legal Requirement or Environmental Law. Any Party
creating, or suffering the creation or continued existence of, any
Lien prohibited under this Section 2.3 shall promptly discharge
such Lien. RIRRC may create, or suffer the creation or
continued existence of, a Lien on the Landfill, provided the
Lienholder provides RGS with a subordination and non-disturbance
agreement recognizing the rights of RGS under this Agreement that
is reasonably acceptable to RGS.
2.4
Subcontracts . RGS shall give RIRRC prior
written notice of the names of the contractors or subcontractors,
if any, proposed for principal parts of the
Services. RIRRC shall have the right to reject any such
subcontractor (other than Ridgewood Power Management, LLC) for
reasonable cause, which cause shall be provided in writing to
RGS. RGS shall be fully responsible for the acts and
omissions of its contractors and subcontractors and of persons
either directly or indirectly employed by them, to the same extent
as for its own acts and omissions or those of persons directly
employed by it. RGS’ subcontracting of any
Services under this Agreement shall not in any manner whatsoever
relieve RGS of any of its duties, obligations, or liabilities under
this Agreement. Nothing contained in this Agreement
shall create any contractual relationship between any contractor or
subcontractor and RIRRC.
2.5 Permits,
Licenses and Contracts . As of the Effective
Date, RIRRC assigns to RGS all of its right, title and interest in,
to and under all Permits held by RIRRC that are capable of being
assigned by RIRRC to RGS and that are required to be held in the
name of RGS (or take such other steps that may be required) in
order to permit RGS to perform the Services hereunder.
2.6
RIRRC’s Right To Cure . If RGS
shall default or fail to perform any of its obligations hereunder
and such failure shall continue for thirty (30) days after receipt
of written notice from RIRRC of such failure, then RIRRC may, in
addition to any other remedy or right available to it, cure
RGS’ default and perform or complete such obligation,
provided , however , that any additional costs to
RIRRC for its actions hereunder shall be paid by RGS promptly after
receipt of an invoice therefor from RIRRC and, provided further,
that notwithstanding anything contrary herein, RIRRC shall have no
responsibility for, and does not agree to, indemnify or hold
harmless RGS or any Affiliate of RGS against, any claims, damages,
fines or penalties that may result from or be related to the work
performed by or on behalf of RIRRC pursuant to this Section 2.6
unless RIRRC’s actions, or those of a RIRRC subcontractor,
with respect thereto constituted gross negligence or willful
misconduct.
2.7
Improvements/Replacements . Following the
earlier of (i) the Commercial Operation Date or (ii) the third
anniversary of the Decommissioning Date and for the remaining term
of this Agreement, RGS shall provide at its expense expansions of
or capital improvements to, or replacements of, all items
comprising the Gas Collection Systems necessary to collect and
process Landfill Gas produced at the Landfill and to convey such
Landfill Gas to the Demarcation Point. Any such
expansions, capital improvements or replacements shall become an
integral part of the Gas Collection System to which they are
made. RGS and RIRRC will cooperate in assessing and, if
appropriate, effecting those expansions and capital improvements,
subject to the terms of this Agreement.
2.8 Delivery of
Landfill Gas . RGS shall collect, meter and
deliver all Landfill Gas collected in the Gas Collection Systems to
the Demarcation Point.
2.9 Title
to Landfill Gas and Environmental Attributes
. RIRRC and RGS hereby acknowledge that, while RGS will
own and operate the Gas Collection Systems (subject to the Purchase
and Sale Agreement), it does not and will not at any time during
the term of this Agreement have title to the Landfill Gas in the
Gas Collection Systems or to any Environmental Attributes
originally arising or created on or after the Effective Date, which
title shall at all times vest in RILG.
2.10
Coordination . RGS and RIRRC will use
commercially reasonable efforts to coordinate their operations
during the term of this Agreement. RGS and RIRRC will
each identify a representative to act as its primary contact under
the Agreement. RGS and RIRRC will each use commercially
reasonable efforts to assist the other, when necessary, with
applying for and complying with any Permit required to operate and
maintain its assets on the Landfill during the term of this
Agreement.
2.11 Permits and
Approvals . In the event that any Governmental
Body asserts that RGS should have obtained a Permit relating to the
Gas Collection Systems or the CCS that has not been obtained as and
when required, RGS shall not be deemed to have breached its
obligations with respect to complying with Legal Requirements for
purposes of this Agreement, and shall not be deemed to have acted
with intentional misconduct or gross negligence, if it has
cooperated with RIRRC in connection with the obtaining of, and has
used commercially reasonable efforts to obtain, any Permits in
accordance with this provision.
2.12
License . (a) As of the Effective Date and
subject to the terms of this Agreement, RIRRC hereby conveys to
RGS, and RGS hereby accepts from RIRRC, (i) such non-exclusive
licenses, rights of way and other appropriate rights, for the term
of this Agreement only, over, along or across lands of RIRRC at the
Landfill as RGS may reasonably require in such locations as
mutually agreed to between RGS and RIRRC such that RGS, its
employees, representatives, agents, contractors and subcontractors
may perform any activity at the Landfill permitted hereunder or
exercise any right granted hereunder, including, without
limitation, (A) a non-exclusive right of way over lands of RIRRC in
locations reasonably acceptable to RIRRC for ingress and egress to
the Gas Collection Systems and the CCS and RGS’ other
facilities for performance of the Services hereunder, including
staging areas during expansion and relocation the Gas Collection
Systems and the CCS, (B) such easements, if any, as may be required
by utility providers to RGS and its Affiliates at the Landfill for
electricity interconnection and metering and other utilities in
such locations as shall be reasonably acceptable to RIRRC and any
mutually agreeable improvements or additions to the Gas Collection
Systems in connection with the development of new generating
facilities by RILG or its Affiliates; and (ii) the right to conduct
all activities at the Landfill specifically permitted by this
Agreement.
(b) All activities
conducted by RGS, its employees, representatives, agents,
contractors and subcontractors at the Landfill shall be (i) at
RGS’ sole risk and responsibility, (ii) conducted in a manner
that does not unreasonably interfere in any respect with
RIRRC’s operation of the Landfill, and (iii) conducted in
compliance with all applicable Legal Requirements, including
requirements of any Permits relating to the Landfill.
(c) RIRRC reserves a
right of reasonable access to the portions of the Landfill to which
RGS has a license hereunder. RIRRC shall exercise such
right of access in a manner that does not unreasonably interfere
with RGS’ rights hereunder, unless RIRRC’s purpose is
to exercise its rights and remedies under this Agreement following
a default by RGS under, or a termination of, this
Agreement. Except in the case of emergencies where prior
notice shall not be required, such right of access shall be
exercised by advanced notice to RGS in a timely manner appropriate
under the circumstances. RIRRC also reserves the right
to grant to third parties easements or other access rights to the
Landfill as deemed necessary or appropriate by RIRRC for its use
and operation of the Landfill and to comply with applicable Legal
Requirements, such third parties to include, but not be limited to,
any Governmental Body, utility providers, electricity or other
power generators or providers and RIRRC contractors,
provided , however , that such easements or access
rights do not unreasonably interfere with the rights granted to RGS
under this Agreement.
2.13 Use of
Landfill and LCS . RGS may make reasonable use
of the Landfill, the Condensate Control, Treatment and Disposal
System and the Leachate Control, Treatment and Disposal System,
without additional compensation, to dispose of all materials
generated by RGS as a result of the activities contemplated by this
Agreement, subject to all applicable Legal Requirements and
reasonable Landfill rules promulgated by RIRRC. RIRRC
shall construct, operate and maintain the LCS, the CCS and the
Landfill at RIRRC’s sole cost so that each is capable of
receiving such materials reasonably generated by RGS as described
on Exhibit C .
2.14 LCS
Operation and Upgrade Plan . RIRRC shall be
responsible for the construction, expansion, operation and
maintenance of the LCS in accordance with Good Engineering
Practice, and all Permits, planning documents and other Legal
Requirements that are applicable to the LCS. RIRRC will
make certain upgrades and improvements to the LCS, as set forth in
the LCS Upgrade Plan, which is attached hereto as Exhibit
C .
2.15 Operation of
Landfill . RIRRC shall use commercially
reasonable efforts to operate the Landfill in a manner that does
not damage or destroy RGS’ property or interfere with
RGS’ performance, or ability to perform, under this
Agreement. Subject to Section 10.1, RIRRC shall
reimburse RGS for costs RGS incurs as a result of damage or
destruction to RGS’ property (including without limitation
the Gas Collection Systems and the CCS) caused by the action or
inaction of RIRRC or its employees or agents (other than damage or
destruction resulting from normal wear and tear) in excess of
$100,000 in the aggregate annually. RIRRC shall not be
liable for or responsible for any consequential damages caused to
RGS’ pipes or Gas Collection System, including without
limitation any interruption of Landfill Gas or contamination
thereof caused by such damage.
2.16 Interim Gas
Management . Except as extended in writing by
RIRRC, by the Decommissioning Date, and subject to RIRRC’s
reimbursement obligations set forth in Section 6.4 of the Site
Lease, RGS shall have constructed and developed, in operational
condition, and shall operate, interim gas management systems to
accommodate Landfill use and expansion as contemplated by the
Interim Gas Management Plan, as may be modified by the mutual
agreement of the parties, such systems including but not limited to
additional flaring capacity required to accommodate the projected
Landfill Gas collected at the Landfill; gas treatment facilities to
accommodate and treat all Landfill Gas in accordance with all
Environmental Laws and Permits; and integrated header and delivery
systems capable of delivering and treating Landfill Gas and
delivering it to the appropriate flares or other destruction
devices. The costs of such improvements shall be borne
by the Parties as set forth in Section 2.1(d) of the Site
Lease.
ARTICLE III:
PAYMENT AND ADMINISTRATION
(a) Until the
earlier of (i) the Commercial Operation Date or (ii) the third
anniversary of the Decommissioning Date, RIRRC shall make payments
to RGS in accordance with the terms of the Existing Gas Service
Agreement, which terms shall survive the execution of this
Agreement solely in order to preserve such payment obligations and
procedures.
(b) Commencing
on the earlier of (i) the Commercial Operation Date or (ii) the
third anniversary of the Decommissioning Date, except as expressly
set forth in this Agreement (including without limitation in
Sections 2.2 and 2.7), RGS shall be responsible for all costs
incurred in providing the Services and otherwise for the collection
and treatment of Landfill Gas as provided herein. RIRRC
shall be responsible for all costs of providing other services,
including, without limitation all electricity costs, capital costs,
fines and penalties associated with the flares.
3.2 Netting of
Payments . In any given calendar month, any
payment owed by RILG to RIRRC under the Site Lease (the “
RILG Payment ”) may be netted against any payment for
such month owed by RIRRC to RGS under this Agreement (the “
RIRRC Payment ”). The RILG Payment minus
the RIRRC Payment is hereinafter referred to as the “
Netted Amount .” If the Netted Amount is a
positive number, RILG shall pay to RIRRC only the Netted Amount and
shall pay to RGS the RIRRC Payment. If the Netted Amount
is a negative number, RIRRC shall pay to RGS the Netted Amount as
if it were a positive number and RILG shall pay to RGS the RILG
Payment. If the Netted Amount is a positive number or
upon payment of the Netted Amount by RIRRC to RGS hereunder, RIRRC
shall be deemed to have made payment of the RIRRC Payment in full
to RGS, regardless of whether RILG makes any payment to
RGS. After netting and payment by RIRRC, as set forth
herein, RGS and RILG shall reconcile and pay any amounts owed
between them as a result of such netting hereunder and RIRRC shall
have no liability therefor.
3.3 Security
Interest . RIRRC hereby grants RGS a security
interest in all amounts payable to RIRRC under the Site Lease as
security for its obligation to provide payment to RGS in accordance
with this Agreement. In the event that RIRRC fails to
make any payment in accordance with this Agreement, RGS shall have
the right to demand from RILG an amount equal to the payment due,
and RIRRC hereby authorizes RILG to deduct the amount from the
amount of the Royalty Payment required to be made to RIRRC under
the Site Lease and to pay such amount to RGS.
ARTICLE IV:
RECORDS/REPORTS
4.1 Monthly
Reports . No later than the 15th day of each
month, RGS shall provide RIRRC with a monthly report summarizing
operations of the Gas Collection Systems and the CCS at the
Landfill during the prior month. Such reports will state
briefly the status of any negotiations, Permit applications,
proposed replacements or improvements and such other information as
may be reasonably required by RIRRC. RGS shall include a
section in the report which indicates potential or actual problems
in the supply of Landfill Gas from the Landfill that have arisen or
are likely to arise. Such reports will be made in the
format of the current reports provided by RGS to RIRRC to date,
unless the parties mutually agree to a different
format. RGS shall also promptly notify RIRRC after
becoming aware of (i) a violation of a Permit, (ii) a notice from
any applicable Governmental Body of alleged non-compliance of any
of the Gas Collection Systems or the CCS of any Legal Requirement,
or (iii) any pending or threatened litigation or proceedings
regarding such facilities or any of the foregoing
instruments.
4.2 Quarterly
Reports/Meetings . RGS shall prepare and
provide to RIRRC quarterly reports summarizing the actual
operations of the Gas Collection Systems and the CCS during the
prior quarter. Such quarterly reports shall include
proposed modifications and amendments to the Operating Plan and
Budget, if any, as well as state briefly the status of any Permit
applications, environmental compliance issues, results of
operations and any other information as may be deemed necessary by
RGS or requested by RIRRC. RGS and RIRRC agree to meet
quarterly to review RGS’ quarterly report and approve any
proposed modifications or amendments to the Operating Plan and
Budget. RGS shall use reasonable efforts to adopt and
implement such recommendations to the extent that they are within
budgetary limitations and do not conflict with regulatory
requirements, Landfill activities or the production of methane gas
or electricity.
4.3 Records
. RGS shall keep and shall require any contractor
or subcontractor to keep a complete set of records showing actual
costs incurred in connection with the part of the Services assigned
to it. RIRRC shall have the right through its own
representative or through independent auditors of its choice or
both, to review RGS’ records as they pertain to the operation
and maintenance of the Gas Collection Systems and the
CCS. The right of RIRRC, or its designee, to audit the
books of account and supporting documents of RGS and its
contractors and subcontractors with respect to the Services shall
extend for three (3) years following the provision of such
Services. In addition, RGS shall have and RIRRC shall
provide RGS with reasonable access to the books and records of
RIRRC if necessary or reasonably required by RGS to perform its
obligations under this Agreement.
ARTICLE V:
REPRESENTATIONS AND WARRANTIES OF RGS
RGS hereby represents and warrants to RIRRC as
follows as of the Effective Date:
5.1
Organization; Authorization; Enforceability
. RGS is a limited liability company duly
organized, validly existing and in good standing under the laws of
the State of Rhode Island. It has all requisite power
and authority to own, lease and operate its material assets and
properties, to carry on its business as is now being conducted and
to consummate the transactions contemplated by this
Agreement. The execution, delivery and performance of
this Agreement, and the consummation of the transactions
contemplated hereby, have been duly and validly authorized by all
necessary action required on the part of RGS. This
Agreement constitutes the legal, valid and binding agreement of RGS
enforceable against it in accordance with its terms, except as such
enforceability may be limited by law or by applicable bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium or
other similar laws affecting or relating to enforcement of
creditors’ rights generally and general principles of equity
(regardless of whether enforcement is considered in a proceeding at
law or in equity) and that the remedy of specific enforcement or of
injunctive relief is subject to the discretion of the court before
which any proceeding therefor may be brought.
5.2
Non-Contravention; Approvals; Litigation; Bankruptcy
. The execution, delivery and performance by RGS of
this Agreement (a) do not and will not, with or without the giving
of notice or the lapse of time, or both, violate, conflict with, or
result in the breach of any covenant, agreement or understanding to
which RGS is a party, (b) do not and will not violate any statute,
regulation, administrative order, judgment or decree binding upon
RGS, and (c) do not require that RGS obtain the consent or approval
of any Governmental Body or any third party, other than consents
and approvals that have been obtained or that are not yet
required. RGS is not subject to any outstanding order,
ruling, decree, judgment or stipulation that would have a Material
Adverse Effect on the ability of RGS to enter into this Agreement
or the Purchase and Sale Agreement or to perform its obligations
hereunder and thereunder. RGS is not subject to any
pending or, to its knowledge, threatened litigation, which if
adversely determined could have a Material Adverse Effect on
RGS’ ability to execute, deliver and perform its obligations
under this Agreement or the Purchase and Sale Agreement or that
seeks to enjoin the consummation of the transactions contemplated
by this Agreement or the Purchase and Sale Agreement. No
bankruptcy, insolvency, reorganization, receivership or other
arrangement proceedings are pending against or being contemplated
by RGS and, to its knowledge, no such proceedings have been
threatened against it.
5.3 Experience
and Skills . RGS shall provide, or shall engage
and retain, personnel experienced, properly trained and skilled in
the rendering of the Services in accordance with Good Engineering
Practice.
5.4 Disclosure
of Permit Issues . Notwithstanding anything
contained in this Agreement to the contrary, the representations
and/or warranties of RGS contained in Section 5.2 of this Agreement
are hereby deemed qualified by the disclosure set forth in this
Section 5.4. RGS hereby discloses permits required by
Title V of the Clean Air Act and Regulation 9 of Rhode Island
Department of Environmental Management have not been obtained and
the EPA has asserted that such permits may be the responsibility of
the owner and/or operator of the Gas Collection
Systems. The proposed modification to Air Regulation 22
of Rhode Island Department of Environmental Management may require
an air toxics operating permit to be obtained in order to operate
the Gas Collection Systems.
ARTICLE VI:
REPRESENTATIONS AND WARRANTIES OF RIRRC
RIRRC hereby represents and warrants to RGS as
follows as of the Effective Date:
6.1
Organization; Authorization; Enforceability .
RIRRC is a public corporation duly organized, validly
existing and in good standing under the laws of the State of Rhode
Island. It has all requisite power and authority to own,
lease and operate its material assets and properties, to carry on
its business as is now being conducted and to consummate the
transactions contemplated by this Agreement. The
execution, delivery and performance by RIRRC of this Agreement, and
the consummation of the transactions contemplated hereby, have been
duly and validly authorized by all necessary action required on the
part of RIRRC. This Agreement constitutes the legal,
valid and binding agreement of RIRRC enforceable against it in
accordance with its terms, except as such enforceability may be
limited by law or by applicable bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium or other similar laws
affecting or relating to enforcement of creditors’ rights
generally and general principles of equity (regardless of whether
enforcement is considered in a proceeding at law or in equity) and
that the remedy of specific enforcement or of injunctive relief is
subject to the discretion of the court before which any proceeding
therefor may be brought.
6.2
Non-Contravention; Approvals; Litigation; Bankruptcy
. The execution, delivery and performance by RIRRC of
this Agreement (a) do not and will not, with or without the giving
of notice or the lapse of time, or both, violate, conflict with, or
result in the breach of any covenant, agreement or understanding to
which RIRRC is a party, (b) do not and will not violate any
statute, regulation, administrative order, judgment or decree
binding upon RIRRC, and (c) do not require that RIRRC obtain the
consent or approval of any Governmental Body or any third party,
other than consents and approvals that have been obtained or that
are not yet required. RIRRC is not subject to any
outstanding order, ruling, decree, judgment or stipulation that
would have a Material Adverse Effect on the ability of RIRRC to
enter into this Agreement or the Purchase and Sale Agreement or to
perform its obligations hereunder or thereunder. RIRRC
is not subject to any pending or, to its knowledge, threatened
litigation, which if adversely determined could have a Material
Adverse Effect on RIRRC’s ability to execute, deliver and
perform its obligations under this Agreement or the Purchase and
Sale Agreement, or that seeks to enjoin the consummation of the
transactions contemplated by this Agreement or the Purchase and
Sale Agreement. No bankruptcy, insolvency,
reorganization, receivership or other arrangement proceedings are
pending against or being contemplated by RIRRC and, to its
knowledge, no such proceedings have been threatened against
it.
6.3 Permits to
Operate . Except as set forth in Section 6.6,
to the best of RIRRC’s knowledge, without further
investigation, other than the Permits listed on Exhibit B
, no additional Permits are required
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