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<br />C) <br />If) <br />00 <br />.-l <br />\~ <br />C-' <br />. <br /> <br />a aqua-chemic, <br /> <br />SIGNIFICANT ISSUES <br />GlENWOOD SPRINGS DESALINATION PROJECT <br /> <br />BUREAU OF RECLAMATION COOPERATIVE AGREEMENT: <br /> <br />Executed in 1989 for cogeneration & desalination facility by initial private venture group, <br /> <br />Project stalled after negative public reaction to proposed location and cogeneration plant. <br /> <br />AQUA-CHEM OPTION: <br /> <br />. Cooperative Agreement assignment option executed in 1993 between Aqua-Chem, Inc, <br />and former venture partner. <br /> <br />Cogeneration aspect eliminated from project. <br /> <br />New, non-urban, site selected as proposed location for desalination plant. <br /> <br />PROJECT ASSESSMENT PROCESS: <br /> <br />. Aqua-Chem proposed to Glenwood City Council a desalination-only project plan on non- <br />. urban, city owned land in rural area and received Resolution to go forward, <br /> <br />. Economic evaluations indicate 1989 Cooperative Agreement must be amended to reflect <br />additional revenue, eliminate cogeneration and provide additional time to get project on line, <br /> <br />Economic and technical presentation by Aqua-Chem and the Colorado members to <br />Salinity Control Forum (SCF) in October, 1993, gained support of the seven-state Forum <br />with directives to continue working with BOR to find an economically viable solution to <br />enable this privatized project to continue moving forward, <br /> <br />CURRENT STATUS: <br /> <br />Shortfall in revenue of approximately $3 MM I yr under current Cooperative Agreement. <br /> <br />Aqua-Chem is negotiating with a major salt producer as a potential joint venture partner <br />anticipating aggressive salt marketing to comm'l markets may reduce the revenue shortfall. <br /> <br />Aqua-Chem and BOR are continuing negotiations relative to original Cooperative <br />Agreement changes to eliminate cogeneration, revise time line and cost per ton formula, <br /> <br />. Colorado SCF members working with Aqua-Chem in all aspects of project development. <br /> <br />CONGRESSIONAL ACTION: <br />. . Authorization and appropriation for Glenwood Springs desalination project. <br />