City Council approved a Landfill Gas Sales Agreement with Montana-Dakota Utilities (MDU) in August 2008.  The agreement allows MDU to develope a landfill gas system to extract, condition, transport, and purchase methane gas from the landfill for commercial use.  MDU needs to install a gas transport line to the gas processing facility on the south side of the landfill.  The transport line will be predominantly in the road right-of-ways except for an area on the west side of Hillcrest Road where the road shoulder has a steep slope down to the landfill property fence.  It would greatly facilitate construction to allow MDU to contruct the gas line on landfill property adjacent to the city fence line.  MDU is responsible for all construction costs and will restore the area disturbed due to construction of the gas line.  Granting of this easement will not impact development of the landfill as recommended by the Master Plan.

The City Council may:

• Approve the utility easement with MDU; or
• Decline to approve the easement and require MDU to install the gas line in the road right-of-way.

This easement will produce no financial impact to the City of Billings.

Staff recommends that the City Council approve and the Mayor execute the easement with MDU for the installation of a gas transport line on City of Billings Landfill property to transport processed methane gas.