PA Farm News
April 23, 2008
Fairview Township Saves Over $3.5 Million By Purchase of Nutrient Credits
LANCASTER --Red Barn Trading Company has executed a long-term sales agreement with Fairview Township, York County, for the purchase of 300,000 nutrient credits over a period of fifteen years. This sales contract is the first of its kind in Pennsylvania involving a publicly-owned sewage treatment facility that is required to meet Chesapeake Bay compliance for nitrogen and phosphorous by 2010.
Prior to engaging Red Barn Trading Company, Fairview Township was prepared to spend $4+ million to upgrade the municipality’s one sewage treatment plant. The purchase of the Red Barn nutrient credits represents a cost savings of 68% and eliminates the need for capital upgrades, allowing Fairview Township to avoid a substantial increase in sewer rates and additional bond and other financing debt altogether.
Bob Stanley, Fairview Authority Chairman, repeated the Township and Authority’s objective in executing the credit contract, “To minimize the financial impact on our ratepayers. The purchase of nutrient credits requires a 6% rate increase. Capital improvements to our plant would have required a 16% increase. This is a cost effective solution to our Township’s compliance with the Chesapeake Bay regulations.”
Peter Hughes, President of Red Barn Trading, is excited to be working with Fairview Township and delivering nutrient credits through the long term contract. ”Fairview Township officials should be commended for seeking out the least cost solution for their ratepayers,” Hughes stated today.
The credits sold to Fairview Township are already DEP-certified as saleable nutrient credits listed on the Pa DEP website. As a result of this sale, Red Barn will reduce its number of available credits by 20,000 per year. Currently, Red Barn has more than 480,000 certified nutrient credits on the Pennsylvania market, which represents the majority of credits available for purchase.
LANCASTER --Red Barn Trading Company has executed a long-term sales agreement with Fairview Township, York County, for the purchase of 300,000 nutrient credits over a period of fifteen years. This sales contract is the first of its kind in Pennsylvania involving a publicly-owned sewage treatment facility that is required to meet Chesapeake Bay compliance for nitrogen and phosphorous by 2010.
Prior to engaging Red Barn Trading Company, Fairview Township was prepared to spend $4+ million to upgrade the municipality’s one sewage treatment plant. The purchase of the Red Barn nutrient credits represents a cost savings of 68% and eliminates the need for capital upgrades, allowing Fairview Township to avoid a substantial increase in sewer rates and additional bond and other financing debt altogether.
Bob Stanley, Fairview Authority Chairman, repeated the Township and Authority’s objective in executing the credit contract, “To minimize the financial impact on our ratepayers. The purchase of nutrient credits requires a 6% rate increase. Capital improvements to our plant would have required a 16% increase. This is a cost effective solution to our Township’s compliance with the Chesapeake Bay regulations.”
Peter Hughes, President of Red Barn Trading, is excited to be working with Fairview Township and delivering nutrient credits through the long term contract. ”Fairview Township officials should be commended for seeking out the least cost solution for their ratepayers,” Hughes stated today.
The credits sold to Fairview Township are already DEP-certified as saleable nutrient credits listed on the Pa DEP website. As a result of this sale, Red Barn will reduce its number of available credits by 20,000 per year. Currently, Red Barn has more than 480,000 certified nutrient credits on the Pennsylvania market, which represents the majority of credits available for purchase.
POSTED 080423_0900 ET
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