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HomeMy WebLinkAboutMontana Hydro Electric, Inc.Hon. Kenneth Olson Mayor of the City of Laurel City Hall Laurel, MT 59044 Montana Hydro Electric, Inc. 175 N. 27th Street, Suite 1210 Billings, MT 59101 August 21, 2006 RE: Hydro testing unit Dear Mayor Olson: We thank you for the opportunity to construct a small Iow-head hydro test unit in your City at the corner of North 12th Street and 1st Avenue. It is our intention to install a Iow- head electrical generator at this location to run tests to determine how much power can be generated using the water from the Big Ditch, which flows at that corner. Our Unit will not alter the flow of the water, and we will not be attaching the unit to any part of the existing structure. It is our intent to perform initial teSts only at this point. With the exception of the necessary footings, the entire unit will consist of removal items. After the first of the year, we hope to enter in long term contract with the City of Laurel, to produce power for the City. In return for the opportunity to run our tests at this site, and the anticipated success of those tests, we are hopeful to be able to produce sufficient revenue in the future to be able to compensate the City of Laurel somewhere between five percent (5%) and ten percent (10%) of any gross revenue produced. However, it is necessary for us to run the tests first to determine just how much power can be generated to make this a viable and environmentally-sound venture for all concerned, including the citizens of Laurel. If the tests are successful, we will require a long-term contract with the City for additional sites to enable us to recoup our investment in the project and to produce jobs and a profit in the future. We propose to pay the City of Laurel One Dollar ($1.00) for rental of the North 12~h Street and 1s~ Avenue site for the remainder of 2006. Between January and March, 2007, depending on the outcome of the testing process, we expect we will be in a position to negotiate a long-term agreement between our organization and the City of Laurel which will be of benefit to us all. We will do what ever is necessary to protect the City and our corporation from any liability, and will use the utmost safety and caution in Hon. Kenneth Olson August 16, 2006 Page 2 our testing procedures. On behalf of Montana Hydro Electric, Inc., we wish to thank you for your willingness to allow us to run the tests and for your confidence in permitting us to move forward with this worthwhile project. Very truly yours, Montana Hydro Electric, Inc. Paula Saye-Dooper Registered Agent