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[LOGO] ORMAT CHANGE IN WORK ORDER
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PROJECT: Galena (steamboat) - EPC Contract
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CO NO.: 001 DATE: August 9, 2004
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ORIGINATOR: Orni 7 LLC
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DESCRIPTION OF CHANGE:
Modify existing Steam Boat 1-A Plant (mainly the generating Units) and
connect it to the new Galena Project.
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REASONS FOR CHANGE:
1. Following further study it appears that by doing some modification to
the existing generating units in SB-1-A plant ( and some changes in the
geothermal field), an additional power can be produced from the same
geothermal resource, with relatively low capital investment.
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SUPPORTING DOCUMENTS:
1. Memorandum Note Explaining the changes in the Contract documents and
payment source
2. Revised Exhibit A - Scope of work of the Galena EPC contract.
3. Revised Exhibit B - "Contract Price"
4. Revised Exhibit D - Tests Of the Galena EPC Contract.
5. Revised Exhibit C - "Drawings and specifications" list.
6. New set of conceptual design drawings as per Exhibit "C"
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TYPE OF IMPACT:
[X] Change Order [X] Cost Impact
[ ] Deviation [ ] Schedule Impact
[ ] Budget Shift [ ] Other Impact
[ ] Proceed with Work in Parallel
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IMPLICATIONS:
Time schedule - No impact.
Contract Price - Increase Contract Price by $2,000,000
New Contract Price shall be $27,800,000
Payment Terms - The increase in the Contract Price shall be paid out
of the equity distribution per the financing documents.
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APPROVED BY:
Contractor Representative By & signature: Z. Reiss /s/ Z. Reiss Date Aug 9, 04
Owner Representative By & signature R. Raviv /s/ R. Raviv Date 8/9/2004
Independent Engineer By & signature Date
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DISTRIBUTION:
Owner - Rany Raviv
IE - Bradley Barta
Contractor - Zvi Reiss
Zvi Krieger
Reuven Shmucher
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ORMAT
AUG 9, 2004
TO: Orni 7 LLC - Rany Raviv
FROM: Ormat Nevada Inc - Zvi Reiss
SUBJECT: Galena Geothermal Project - EPC contract
CHANGE ORDER (CIW) # 001
Dear Rany,
To reflect the changes agreed for the Galena geothermal project, attached please
find Change in the Work #001.
With its supporting documents.
Please note to the following:
A. Contract documents - There status will be as follows:
o Contract Terms - No Change
o Exhibit A - Revised
o Exhibit B - Revised
o Exhibit C - Revised
o Exhibit D - Revised
o Exhibits E through I - No Change
B. Payment Terms and source of funds for the CIW -
There will be no change in the Milestone Payment Schedule.
Regarding actual payment for the said CIW, payment will be made out of the
Equity distribution as defined in the Financing Documents, in the offering
memorandum Ormat funding, 8 1/4% senior secured notes due 2020. Payment will be
made whenever Restricted Payment as defined therein, are permitted to be made.
Please confirm your acceptance of this change, by executing the attached CIW 001
form..
Best Regards,
Zvi Reiss
/s/ Zvi Reiss
Exc. Vice President
c.c Bradley Barta - S&W
Zvi Krieger - Ormat
Reuven Shmucher - Ormat
EXHIBIT A
SCOPE OF WORK
ENGINEERING, PROCUREMENT AND CONSTRUCTION
1. BASIC INFORMATION AND DATA
1.1 Scope of Work
Contractor will undertake the design, engineering, procurement,
and delivery to the Site, construction, fabrication,
commissioning, start-up and testing of the power plant at the
Site.
The geothermal fluid for the power plant will be supplied by
Company at locations specified in section 1.4.1. Spent fluids will
be provided to the locations specified in section 1.4.2 and will
be disposed of by Company to the reinjection wells.
The design and equipment configuration detailed in this Exhibit A
and the drawings and specifications of Exhibit C are preliminary
and not complete; therefore, the details of the Work, including
flow diagrams, drawings, specifications, data sheets and other
technical documentation, are subject to further revision by
Contractor in its development of the detailed design. Any such
revisions or changes in this preliminary conceptual design shall
not give rise to a Company Default or Change in the Work or to a
change in the Net Deliverable Energy or any other performance,
unless the result of a change in a parameter described in sections
1.4 or 1.5 below.
Terms not specifically defined herein have the meaning described
in the general terms of the Engineering, Procurement and
Construction Contract to which this Exhibit is attached (the
"Contract").
1.2 Site Description and conditions
The site of the Steamboat Project is located at Steamboat Springs,
Washoe County, Nevada and includes the present location of the
Steamboat Project (Steamboat 1, 1A, 2 and 3 Plants (respectively,
"SB1", "SB1A", "SB2", and "SB3")), the geothermal field of SB1,
SB1A, SB2 and SB3, and all other relevant facilities in the area
(such as Company offices, etc). The Steamboat Project site is
being expanded by Company's acquisition of additional lands and
real property rights, to include lands on which the Galena
Facility is to be situated, located approximately 1500 feet South
West of SB 2 & SB 3.
The power plant yard will have the approximate dimensions of
450,000 square feet. An adequate area for soil disposal and for
temporary use shall be provided by Company during the construction
period.
EPC Galena Project
Exhibit A
Execution Copy, Rev 1
PAGE A-1
1.3 The basic Site data is as follows:
Contractor will undertake to design the Facility so as to be
capable of operating within the range of the basic Site conditions
detailed below:
Ambient Air Temperature Minimum -20 F
Maximum 105 F
Altitude 4,400 ft
Wind 80 miles/Hr
Annual Rainfall 10"
Seismic Requirements UBC Zone 4
1.4 Interface Data Summary
PARAMETER Value
--------------------------------- ------------------------------------
1.4.1 Geothermal Fluid Supply
(also termed "Brine")
Chemistry TBD
Location a) At Well H-4 Wellhead flange
b) At Well 2-2 Wellhead flange
c) At a point mutually agreed by
Contractor and Company on SB
1& SB1A existing supply header
d) At a point mutually agreed by
Contractor and Company on SB
2 & SB 3 existing supply header
1.4.2. Brine Injection a) At a point mutually agreed by
Contractor and Company on SB 1
Location & SB 1A existing injection
header
b) At a point chosen by Contractor
on SB 2 & SB 3 existing
injection header
1.4.3. NCG Discharge not applicable
1.4.4. Water Supply At either one of the SB1, SB1A, SB2
and/or SB3 Plants and/or at Site
offices
1.4.5. Electrical a) At the 120 kV SPPC switchyard
b) At the 4.16 kV SB2 & SB3
geothermal field electrical
supply.
c) At the 0.48 kV SB 1 and SB 1A
down hole pumps MCC
1.4.6. Access and Roads At the Facility boundaries.
EPC Galena Project
Exhibit A
Execution Copy, Rev 1
PAGE A-2
1.5 Design Conditions (Design Points at interface points)
Description Design Point-- Design Range
- ------------------------------------- -------- -------------- ----------------------
Ambient temperature Degree F 55 0 - 100
Brine inlet pressure psig 200 120 - 250
Brine outlet pressure psig 175 70 - 220
Brine flow stream 1 Lbs/Hr 5,450,000 80 - 110%
Brine flow stream 2 Lbs/Hr 500,000 80 - 110%
(from well 2-2 to SB1-A Plant
o Stream 1 comes from
existing wells of SB * The Facility can
1& SB 1-A, from portion of SB operate at lower flow
2 & SB3 geothermal brine due to its modular
supply, and new to be configuration
drilled production well.
o Stream 2 comes from
existing (currently
unused) Well 2-2 going
to SB1-A
Brine inlet temperature stream 1 Degree F 306.7 300 - 312
(Galena)
Brine inlet temperature stream 2 Degree F 280 270 - 284
(SB 1-A)
Brine outlet temperature - stream 1 Degree F 182.2 160 - 200
Brine outlet temperature - Stream 2 Degree F 167.6 160 - 200
Net Output (*) @ 55 deg F kW 24,700
(*) The net output is the sum of
the power delivered at the
high side of the main step-up
transformer and the low side of
the geothermal feed step-down
(13.8/4.16KV; 13.8/0.48 kV)
transformers
Voltage at Plant kV 13.8 +/- 5%
Voltage at interface with SPPC kV 120 +/- 5%
Frequency Hz 60 58.5 to 61.5
Power Factor 0.85 0.85 Lag to 0.95 Lead
1.6 Design Life
EPC Galena Project
Exhibit A
Execution Copy, Rev 1
PAGE A-3
The design life of the Facility will be 25 years.
1.7 Availability
The Facility will be designed and constructed so that, with proper
operation and maintenance and an adequate supply of spare parts at
the Site, it will be capable of producing electricity 96% of the
time on an annual basis.
1.8 Design Standards
The design and construction of the Facility will be in accordance
with the following list of standards:
Pipe-work ANSI B31.1 & B31.3;
Pressure vessels & heat exchangers ASME VIII and TEMA
Design loads for buildings UBC; ASCE
Steel structures AISC; AISI; AWS
Concrete construction ACI
Fire protection NFPA
Electrical NEMA; NEC
2. DESCRIPTION OF CONTRACTOR'S SCOPE OF WORK
2.1 INTRODUCTION
The Work to be performed by Contractor includes that described in
Section 2 of the Contract.
The work is defined in three major areas:
a. Build a new 22 MW net plant at a new location and
connect it to the nearby 120 kV SPPC switchyard.
b. Modify (enhance) the existing gathering system so as to
provide to the new Facility 12,000gpm of geothermal
brine (from SB 1 & SB1A, from Well H-4, from Well 2-2
and the balance from the SB 2 & SB3 field gathering
piping). Spent Brine will be injected back to SB 1 &
SB1A injection wells and to SB2 & SB3 injection system.
(Actual
EPC Galena Project
Exhibit A
Execution Copy, Rev 1
PAGE A-4
connection points for both production and injection
lines shall be at any point as Contractor may choose at
its discretion).
c. Install new 13.8/4.16 kV auxiliary step down
transformer and hook power to the SB 2&3 production
down hole pumps.
d. Install new 13.8/0.48 kV auxiliary step down
transformer and hook power to the SB 1&1A production
down hole pumps.
EPC Galena Project
Exhibit A
Execution Copy, Rev 1
PAGE A-5
2.2 ENGINEERING
2.2.1 Conceptual Design
Contractor shall perform the following activities or
prepare the following items:
o Conduct study and review the current geothermal field
performance including the field gathering and
distribution system.
o Piping and instrumentation diagrams (P&ID) with
sufficient connections for testing and recording.
o Control logic.
o Facility Electrical Single Line Diagrams (SLD).
o General Facility layout.
o Building general layout.
o Specifications and data sheet for major items of
equipment.
o Conduct study and conceptual design of the new
substation and the interconnection to SPPC switchyard.
o Identify systems of SB1 & SB1-A that can be utilized
for the new Facility.
2.2.2 Detailed Engineering
o Conduct surveys, geotechnical studies and other
analysis and preparation of drawings, specifications
and instructions for the earthwork and civil
foundations.
o Prepare detail design documents, including drawings and
specifications for the structural foundations of the
OECs, pipe supports and other equipment at the
Facility.
o Prepare detailed design documents, including drawings,
calculations and specifications for the piping and
mechanical
EPC Galena Project
Exhibit A
Execution Copy, Rev 1
PAGE A-6
portion of the Facility.
o Perform detailed design of the modification and
enhancement of the existing field gathering system.
NOTE: It is assumed and agreed that Contractor is free to
use, modify and change any existing field gathering piping
Contractor shall conduct the changes, in a manner to
minimize interference with ongoing operation, to the extend
practical.
o Prepare detailed design documents, including drawings
and specifications for the electrical work within the
Facility boundaries.
o Perform detailed design of the electrical 13.8/120 kV
substations, the 120 kV line to be connected to the
nearby SPPC switchyard (about 2000 feet distance).
o Design the enhancement of the existing 4.16 kV field
distribution system (electrical lines to the SB 2&3
down hole pumps).
NOTE: It is assumed and agreed that Contractor may utilize
any existing breakers, cables, MCC and other electrical
gear and materials as exist and installed in the geothermal
field of SB 1 & SB1A and SB2 & SB3 so long as such
utilization has been confirmed by Company and the
Independent Engineer, which shall not be unreasonably
withheld. Contractor shall conduct its activities in a
manner to minimize interference with ongoing operations, to
the extent practicable.
o Prepare bill of materials for pipes; fittings, and
electrical cables.
2.2.3 Manuals
o Prepare 3 sets of Operation and Maintenance Manuals.
Prepare 3 sets of Job Books, which include drawings
("As Built"), specifications, and vendor's manuals.
Prepare recommended spare parts list (including prices) prior to the Final
Acceptance Date, and procure at Company's request and cost, the spare parts
agreed to by the Company. Actual delivery time of the spare parts is subject to
Company's approval and release of order, and shall not, in any way, be a
condition to Contractor successful achievement of any Project
EPC Galena Project
Exhibit A
Execution Copy, Rev 1
PAGE A-7
milestones including Final Acceptance.
2.3 SUPPLY
The Facility will contain 2 OECs (otherwise termed as "ITLUs")
units, as well as the balance of Plant equipment and materials
detailed herein.
The scope of supply includes the following:
2.3.1 OEC units (New units in Galena)
Two (2) complete OEC units, each OEC unit consists of the
following main components:
o Vaporizers
The vaporizer is a horizontal, shell and tube heat
exchanger, manufactured of carbon steel with a tube
bundle, sheet metal shell and fixed tube sheets.
Heating fluid flows through the tube side and motive
fluid through the shell side. A bellow type expansion
joint is provided to compensate for any differential
thermal expansion of the tubes and shell.
Separator is installed on the top of the vaporizer. The
separator is designed to retain the droplets of liquid
carried over the vapor, thus preventing impinging of
droplets on turbine blades.
o Preheaters
The preheater is a horizontal, shell and tube heat
exchanger manufactured from carbon steel with a tube
bundle, metal shell and fixed tube sheets. Heating
fluid flows through the tube side and motive fluid
through the shell side. A bellow type expansion joint
is provided to compensate for any differential thermal
expansion of the tubes and shell.
o Recuperator
The recuperator is a horizontal, shell and tube heat
exchanger manufactured from carbon steel with a tube
bundle, metal shell and fixed tube sheets. Liquid
motive fluid flows through the tube side and vapor
motive fluid through the shell side.
o Air Cooled condensers
EPC Galena Project
Exhibit A
Execution Copy, Rev 1
PAGE A-8
The condenser is an induced draft, air-cooled heat
exchanger. The tubes are arranged in a one-pass
configuration where motive fluid vapor is fed from the
inlet box to the tubes. The motive fluid is cooled and
condensed inside the tubes by forced air flowing
outside of the finned tubes in a cross-flow pattern.
The condensed motive fluid accumulates in the hot well
collector from where it flows by gravity to the motive
fluid filters and pumps. The condenser tubes are made
of carbon steel tubes with aluminum fins.
o Power skid consists of 2 turbines, one synchronous
generator and one oil system
Each OEC power skid consists of a dual shaft extension
generator, two turbines and associated oil system.
(A) SYNCHRONOUS GENERATOR
The generator is a synchronous type, air-cooled, three
phase machine, brushless and weather protected. It is
built to NEMA II specifications and rated at kW, 0.85
PF, 13.8 kV and 60 Hz. It is cooled by a once-through
air-cooling system with an inlet filter. The generator
and the two turbines are directly coupled.
(B) TURBINE
Each of the two OEC turbines consists of a single
casing, multi-stage axial unit. The turbine is directly
coupled to the end of the generator shaft. No
speed-reducing gearbox is required because the
properties of the organic fluids produce favorable
aerodynamic matching at relatively low blade and
rotational speeds. A double, mechanical shaft seal is
used to prevent leakage of the working fluid into the
atmosphere or lube oil.
(C) TURBINE AND GENERATOR OIL SYSTEM. The oil system
has two functions:
o To supply oil to each turbine bearing for lubrication,
sealing and cooling, and
o To supply oil to the generator bearings for
lubrication.
The oil system is designed to supply each oil consumer
with the proper pressure and flow, and the proper type
of oil. Each system is equipped with an oil pump as
well as oil filters, oil coolers (forced air-cooled
type), solenoid operated control valves and relief
valves. The system is
EPC Galena Project
Exhibit A
Execution Copy, Rev 1
PAGE A-9
equipped with air operated emergency pumps and air
accumulator to supply the lube oil in the event of an
electric power failure.
o Motive feed pump system including motive fluid pumps
and piping.
The feed pump is a motor-driven multi stage vertical
turbine centrifugal pump, which transfers the
condensate motive fluid from the condenser liquid
collector into the heat exchangers. A mechanical seal
separates the high-pressure motive fluid from the
atmosphere.
The pump discharge is connected to the recuperator or
preheater inlet through level control valve and swing
check valve.
A manual valve is installed at the suction strainer
inlet to allow maintenance of the strainer and the
pump.
o Organic Motive Fluid Piping system
The organic motive fluid piping system consists of
piping assemblies, in which the condensed motive fluid
flow from the feed pumps through the recuperator and
preheater to the vaporizer, vapor motive fluid flow
from the vaporizer to the turbine and from the turbine
to the air cooled condenser and in which the condensed
motive fluid return from the condenser hot well to the
feed pumps. A motive fluid strainer is installed
between the hot well collector and the pump inlet.
Expansion joints are installed in the turbine inlet and
outlet pipe assemblies to reduce the force and moments
on the turbine nozzles. Automatic and manual control
valves are supplied as part of the piping system.
o Purge system
The purge system is installed on the upper side of the
condenser outlet boxes. The system is designed to
continuously purge the OEC condenser of non-condensable
gases, predominantly air, that enter the OEC, mostly
during start-up and when the unit is not operating, and
to recover the working fluid.
o Power and control system
EPC Galena Project
Exhibit A
Execution Copy, Rev 1
PAGE A-10
(OEC power and control cabinets may be installed in
either pre-fabricated power shelters (one per each
unit) or inside one main building in the power plant).
The OEC power system contains of: (i) the generator
high voltage breaker, PTs and CTs; (ii) Protection
relays board and (iii) 480 Volt auxiliaries supply
board (MCC).
The control system is based on a programmable logic
controller (PLC). The OEC control incorporates a
turbine control backup relay (TCBU), which disconnect
the OEC from the bus and shut it down safely in event
of a PLC malfunction. The PLC and I/O units with its
accessories, is housed in a control board and fields
junction boxes.
The OEC control and protection system contains the
following items:
(a) PLC: central processing unit with analog and
digital input and output modules, and communication
control units.
(b) PROTECTION RELAYS to provide generator protection
against under/over voltage, reverse power, loss of
excitation, generator differential, phase over current,
ground fault, phase balance, over speed, etc.
(c) SYNCHRONIZER, check synchronizer, voltage
regulator and VAR controller, and
(d) OPERATION MODE SELECTOR switch and reset push
buttons for local operation. Same switch and push
buttons are duplicated by soft switch at the HMI
computer screen for remote operation of the OEC from a
local control room.
The control system automatically accelerates the
generator to synchronous speed and then synchronizes
the generator to the bus. After being linked with the
bus, the control system monitors and controls the
operation of the OEC. Pressures, temperatures,
voltages, speed, kilowatts, kilovars, currents, etc.,
are checked and monitored and compared with preset
values in memory, to detect warning or failure
conditions.
In the event of a failure within the system, the unit
is
EPC Galena Project
Exhibit A
Execution Copy, Rev 1
PAGE A-11
disconnected from the bus and shut down in a
pre-programmed sequence. After a failure condition is
rectified, the generating unit can be automatically
started after a manual reset signal.
o Electro-Pneumatic Control System
The electro-pneumatic control system operates the
control valve actuators and provides air pressure to
pneumatic components, either directly or through
solenoid-operated valves installed on the pneumatic
control panel. The pneumatic control panel is supplied
by air at a nominal pressure of 90 psi, the pressure
required to operate the pneumatic equipment. Pressure
regulation and filtration is also provided.
Electronic control signals for the system are provided
from the central unit control in the form of digital
(ON, OFF) or analog (4 to 20 mA). The analog signals
are converted by current to pressure (I/P) transducers
to a proportional pneumatic output signal.
o Human-Machine Interface (HMI)
The system includes a personal computer with dedicated
software to enable the operator to operate the power
plant and monitor its functions.
o Interface With Local / Remote Station Controls
The control system provides access to all the analog
and digital signals connected to the PLC through a
communication link. Using the communication link,
Company can monitor parameters inside the PLC, send the
OEC Stop Command from another PC with the proper
software. The data inside the PLC is organized in
blocks of accessible registers. Detailed requirements
for the data transfer of information are determined
during detailed design. This includes both
communication and hard-wired interface data.
o Instrumentation
All parameters that are measured to insure proper
control and operation of the OEC, such as pressure,
temperature,
EPC Galena Project
Exhibit A
Execution Copy, Rev 1
PAGE A-12
voltage, current, power, etc., are measured by the
appropriate instruments.
o Special tools, equipment and commissioning spares
for OEC
Supply of special tools for turbine maintenance,
turbine-balancing kit, portable vibration instrument,
including balancing option, and commissioning spares.
2.3.2 Balance of Plant items, consisting of:
a. Motive fluid storage tank in capacity of approximately
7,000 gallons and transfer pump (it is assumed and agreed
that Contractor will be able to utilize the existing SB
1&1A pentane system, including tank, pump and valves.
b. Compressed air system for instrumentation and control - Oil
free compressed system with 100% redundancy in an
approximate capacity of 150scfm.
c. Fire water system - Water tank, fire pump, and fire loop
including valves, hydrants and monitors. It is assumed and
agreed that the Contractor can utilize the existing system,
at his discretion, located in SB-1 & SB 1A, consisting of
diesel driven pump; small jockey pump, water storage tank
and detection system, rather than acquire new equipment.
d. 13.8/0.48kV Step down auxiliary transformers.
e. Main central station control system and field
instrumentation (in addition to the existing ones) and
safety devices.
f. Power and control cables, cable trays and accessories.
g. Main 13.8 kV switchgear.
h. Main 13.8/120 kV sub station including the main step up
transformer and transmission line at a length of about 2000
feet to the nearby SPPC switchyard.
i. 4.16/13.8 kV step down transformer for feeding several SB 2
& SB 3 production down hole pumps. (In addition to the
existing electrical equipment, materials etc that already
exist in the SB 1 & SB 1A and SB 2 & SB 3 field gathering
system.)
j. 25K/13.8KV transformer for the power delivered from
SB 1-A.
k. Pipes and fittings for the Facility.
l. Pipes and fitting for the field gathering system (in
EPC Galena Project
Exhibit A
Execution Copy, Rev 1
PAGE A-13
addition to the existing SB 1 & SB1A and SB 2 & SB3 pipes,
fittings, valves and instrumentation that Contractor is
free to utilize as he wishes).
m. Control and manual valves.
n. Add down hole production pump and its ancillary systems to
the new drilled production well.
o. Electrical lighting and lightning systems.
2.3.3 OEC modification in SB 1-A
Modification of SB1-A equipment consist of the following:
a. Replace existing "Rotoflow" turbine with brand new Ormat
turbine.
b. Change number of passes in existing OEC vaporizers.
c. Change accordingly Brine piping.
d. Change/modify turbine ancillary systems such as oil system,
control etc.
2.4 CONSTRUCTION
Contractor shall undertake the Work as described in Section 4
herein and shall provide construction services, including all
required labor, equipment, materials and consumables necessary for
construction activities, as well as field technical construction
administration and coordination to achieve Final Acceptance.
2.4.1 Construction support activities
2.4.1.1 Working Schedule - Within 45 days after the Notice
to Proceed of the Contract, Contractor shall
submit to Company an updated detailed schedule
(the "Working Schedule") setting forth forecast
dates for performance of the various activities
relating to the Work.
Contractor will attend periodic (but no less
frequently than quarterly) Facility meetings with
Company during the course of the Work until Final
Acceptance in order to review the progress of the
Site construction work, to address any problems
that may have arisen or have been identified,
inspect testing and for general coordination. Such
periodic meetings shall also include the
Independent Engineer as necessary for approvals of
invoices or where any critical issues require
resolution. The time and place for each meeting
will be subject to mutual agreement between
Company and Contractor.
EPC Galena Project
Exhibit A
Execution Copy, Rev 1
PAGE A-14
2.4.1.2 Procurement and expediting - Follow up on all
procurement and deliveries, make local procurement
as required; make inspection visits at
manufacturer's shops and take necessary action to
expedite late arrivals.
2.4.1.3 Transportation receiving and storage services -
assume responsibility for transporting, receiving,
site inspection, unloading and storing of all
equipment and materials.
2.4.1.4 Shutdown of Existing Plants - Use best efforts to
coordinate the shut down or reduction of power at
one or more of the existing plants with Company
for any electrical/control tie in and piping hook
up to minimize the impact of any such shutdown or
reduction on ongoing operations.
2.4.1.5 Field Organization
- Provide a site management team and supervisory
personnel in all trades (civil, electrical and
mechanical) and other special technical
personnel. The personnel will be responsible
for field construction supervision, field
engineering, field inspection, local
procurement, planning and scheduling, cost
control, safety and field administration.
- Provide all construction equipment and tools
required for construction and Site maintenance.
- Provide all direct labor, supplementary labor,
EPC Galena Project
Exhibit A
Execution Copy, Rev 1
PAGE A-15
journeymen, foremen, supervisory and management
personnel to carry out the Work.
- Establish a safety program, which will include
safety procedures, safety training and
contingency plans.
- Establish and implement a quality assurance
program, which will include construction
survey; soil compaction tests; concrete
strength tests; piping hydro tests; x-ray
tests; welder's qualifications; electrical
megger and other tests; equipment calibration
and instrumentation set up.
2.4.2 Construction detailed scope of work
2.4.2.1 Earth Work - Power Plant Site Preparation
o Survey and stake out (initial bench mark to be
provided by Company)
o Excavation and trenching, bedding compaction and
back fill borrowed fill for underground piping,
electrical conduits, and electrical cables.
o Excavation, compaction and back fill for concrete
foundations, concrete supports for building
foundations, slabs or any other concrete work.
o Grading, leveling, sloping, and other earth work
required for the power plant site drainage system.
EPC Galena Project
Exhibit A
Execution Copy, Rev 1
PAGE A-16
o Final grading and gravel of the power plant
surface.
o Install chain link fence around the Power Plant
boundaries, including main double gate entrance
and back single gate.
2.4.2.2 Foundations and structural.
o Concrete foundations and slabs, including supply
and installation of all embedded plates, conduits
and anchor bolts for all the mechanical,
electrical and other equipment in the power plant.
o Concrete slabs and foundations including embedded
plates and anchor bolts for buildings and sheds,
and miscellaneous structures.
o Furnish and install structural steel for pipe
supports and walkways (if required).
o Pipe supports for gathering system piping.
2.4.2.3 Buildings and Sheds
EPC Galena Project
Exhibit A
Execution Copy, Rev 1
PAGE A-17
o Provide and erect a main office/control room
building. The building shall be
pre-engineered metal building, equipped with
air conditioning units. The building will be
divided into the following sections: office
space, with approximate size of 170 square
feet, and control room in an approximate
size of 300 square feet. (Foregoing is based
on assuming no power shelters are provided.
If power shelters are provided the size of
the control room will be reduced to
approximately 150 square feet).
o Utility building for compressed air system
and a closed storage area in approximate
size of 180 square feet. Contractor may
combine the utility building with the
control/office building.
2.4.2.4 Mechanical and piping work
Contractor shall perform the mechanical and piping
Work required in the Facility. Work is divided
into the following areas:
o OEC - Erect, install, assemble heat
exchangers, internal piping, and install and
align turbo-Generator skids, oil system and
other ancillary system.
EPC Galena Project
Exhibit A
Execution Copy, Rev 1
PAGE A-18
o Compressed air system - Install equipment,
piping and hook up to the air consumers.
o Motive fluid system - Install storage tank
(if required in addition to the one exist in
SB 1&1A; transfer pump and piping to the
OEC.
o Install all geothermal piping inside the
Facility.
o Modify the existing geothermal field
gathering piping system and add as required
new piping system, including its supports.
o Install new production pump, its ancillary
system, wellhead piping, valves etc. and
hook it to the existing production pipe
line.
o Fire water system, including underground
piping loop; and all hydrants and monitors.
Work includes also testing of the fire water
system. (Fire pumps and water tank from SB 1
& 1A can be utilized).
o Initial fill up of all oils lubricants as
well as the motive fluid (Pentane).
2.4.2.5 Electrical and control work within the Facility
Contractor shall install as required all
electrical equipment including cable trays,
underground conduit systems, supporting hardware
as follows:
EPC Galena Project
Exhibit A
Execution Copy, Rev 1
PAGE A-19
o Excavation and trenching, bedding compaction
and back fill for underground cables and
conduits.
o Furnish, layout, and install cable tray
systems including all supporting hardware.
o Install cables and terminate all power
cables to the main OEC electrical equipment;
its auxiliary transformers and the main 13.8
kV switchgear.
o Install 4.16/13.8 kV step-down transformer
and connect to SB 2&3 geothermal field
electrical supply system.
o Install 0.48/13.8 kV step-down transformer
and connect to SB 1&1A down hole pump.
o Install field instrumentation devices and
connect to the main control system.
o Install, terminate and test main central
station control system inside control
building.
o Install and test fire detection system.
o Perform all required set up; calibration and
testing.
2.4.2.6 120 kV substation and transmission line
EPC Galena Project
Exhibit A
Execution Copy, Rev 1
PAGE A-20
o Prepare the sub station site and install
foundations.
o Install 13.8/120 kV transformer and erect
substation including main breakers, metering
panels TPP and LPP panels and the related
structure.
o Install 120 kV line between the sub station
and the SPPC switchyard, located at
approximate distance of 2,000 feet.
o Set up, calibration and test the sub station
and protection devices.
EPC Galena Project
Exhibit A
Execution Copy, Rev 1
PAGE A-21
2.4.3 Start up, Commissioning and Testing
Operation and Maintenance Personnel Training
o Contractor will conduct Operation and
Maintenance training course for Company's
personnel. The O&M course will include about
1 week classroom session for the operators
and maintenance staff.
o Commissioning and Testing - Conduct the
tests as defined in Exhibit D of the
Contract. Contractor will be responsible for
plant initial checks, the preparation of the
tests, including instrumentation
calibration, filling all required fluids.
Start-up of the generating units, running
the units as per the test procedures and
test protocols stop and restart.
3. DESCRIPTION OF COMPANY SCOPE OF SUPPLY
Company shall perform the following activities necessary to allow
Contractor perform the Work:
3.1 Equipment
o SB 1 & SB1A fire equipment including pumps, water tank,
alarms.
o All existing geothermal field gathering system (production;
injection. wellheads and electrical distribution system.
o Spare parts.
o Warehouse and storage building.
EPC Galena Project
Exhibit A
Execution Copy, Rev 1
PAGE A-22
o The SB1-A exsiting Plant including the OEC generating
Units.
3.2 Services and Other Responsibilities
o Access roads to the Site, and to and between the production
and injection wells.
o Free access to all portions of the Steamboat Project.
o Provide all required existing technical documentation
regarding the existing plants, electrical distribution
system, field gathering system and wells, available to
Company and Operator. These documents will include
drawings, specifications, data sheets etc.
o Allocate and provide new plant site for the Facility and
the substation and provide at least one survey bench mark
at the Site.
o Allocate adequate temporary lay down and construction area
adjacent to the Site, and provide office space at either
Company's offices in Steamboat or at either one of the SB
1& SB1A and SB 2 & SB3 plant locations.
o Coordinate the shut down or reduction of power at one or
more of the existing plants for any electrical/control tie
in and piping hook up.
o Use best efforts to prepare, submit and obtain the
following permits, licenses and rights of way (ROWs), in an
expedited manner ("Company Permits"):
o Permission for the T-Line from SPPC
o UEPA Permit
o Use best efforts to execute the PPA and obtain necessary
approvals for its affectivity in an expedited manner.
o Facility water supply at the specified interface points.
o Telephone lines to site.
o Provision of the Geothermal Fluid and receipt of the
downstream fluid at the specified interface point(s) in a
timely manner, as requested by Contractor subject to
reasonable advance notice.
EPC Galena Project
Exhibit A
Execution Copy, Rev 1
PAGE A-23
o Provide access to Geothermal field; wells and gathering
system.
o Provision of an adjacent area for disposal of surplus fill
and construction debris.
o Any environmental monitoring or environmental assessment or
reporting as may be required by the Facility permits and
local, state and federal authorities.
o Reasonable assistance as required in importation and
customs clearance.
o Be responsible for handling and/or disposal of any
hazardous material, other than hazardous materials that
were introduced to the Site by Contractor.
o Assist as requested by Contractor in coordination with the
local utility regarding the grid connection.
o Provide operating personnel in time, as requested by
Contractor for training and to assist Contractor with start
up, commissioning and testing under Contractor's
supervision and control.
o Drill new production wells as required ( one at least).
EPC Galena Project
Exhibit A
Execution Copy, Rev 1
PAGE A-24
EXHIBIT B
CONTRACT PRICE AND
MILESTONE PAYMENT SCHEDULE
1. CONTRACT PRICE:
The Contract Price is US$ 27,800,000
(Twenty Seven Million Eight Hundred Thousand US Dollars)
2. MILESTONE PAYMENT SCHEDULE
% OF
CONTRACT
# EVENT PRICE ACCOMPANYING DOCUMENTATION*
- -- ------------------------------ ----------- ------------------------------------
1 Notice To Proceed (NTP) 10.0% COPY OF NOTICE TO PROCEED
2 Upon submittal of conceptual 5.0% SUBMITTAL OF THE DESIGN PACKAGE AS
design package DESCRIBED IN NOTE B-2
3 90 days after NTP 20.0% COPY OF RELEVANT ORDERS (WITHOUT
PRICE INFORMATION) FOR THE ITEMS AS
DESCRIBED IN NOTE B-3
4 180 days after NTP 15.0% SUBMITTAL OF THE DESIGN PACKAGE AND
COPIES OF THE RELEVANT ORDERS
(WITHOUT PRICE INFORMATION) AS
DESCRIBED IN NOTE B-4
5 Commence construction on Site 10.0% INDEPENDENT ENGINEER (IE)
VERIFICATION OF VISUAL INSPECTION AT
THE SITE
6 First OEC arrival at the Site 15.0% IE VERIFICATION OF VISUAL INSPECTION
AT THE SITE
7 Second OEC arrival at the Site 15.0% IE VERIFICATION OF VISUAL INSPECTION
AT THE SITE
8 Energize substation 5.0% IE VERIFICATION OF VISUAL INSPECTION
AT THE SITE
9 Final Acceptance 5.0% FINAL ACCEPTANCE CERTIFICATE
PAGE B-1
NOTES
A. GENERAL
1. In case of partial shipments, proportional payments will apply.
2. Order of payment of the above Milestone Payment events is not
necessarily sequential.
3. *In addition, an invoice is required for each Milestone Payment Event,
and, for each of Events #1-8, an interim lien waiver in the form of
Exhibit H-1 is required, and for Event #9 a final lien waiver in the
form of Exhibit H-2 is required.
4. Under Section 5.1.3 of the Contract, certain of the payments may be
delayed in whole or in part.
B. PAYMENT MILESTONES DEFINITION AND DESCRIPTION:
1. Payment Event # 1 - Upon issuance of Notice to Proceed.
2. Payment Event # 2 - Complete conceptual design package, with status of
"issued for detailed design", consisting of: PFDs; PIDs, SLDs; general
arrangements; major equipment specification; control configuration.
3. Payment Event # 3 - Copy of purchase orders (without price
information) for heat exchangers or heat exchangers materials (tubes
and shell plates in case of manufacturing outside of Contractor
Affiliates were issued.
4. Payment Event # 4 - OEC design is completed; Detailed civil;
mechanical and electrical design is substantially completed; Purchase
orders for the following major items are issued: main transformer,
substation; compressed air system; bulk of piping for gathering
system.
5. Payment Event #5 - Contractor has established offices at the site and
earthwork Contractor commence with the site civil work.
6. Payment Event #6 - The majority of first ITLU items arrived at site.
These consist of the vaporizers, air coolers, internal piping,
generator; ITLU foundation work is substantially completed; mechanical
Subcontractor commences working at the site.
7. Payment Event #7 - Same as for payment # 6 for the second OEC unit;
commence erection of substation.
8. Payment Event #8 - Utility connection completed and main 13.8KV
switchgear energized successfully, all plant equipment arrived at the
site; ITLUs are substantially erected.
9. Payment Event #9 - Final Acceptance certificate issued and
countersigned by Company.
PAGE B-2
EXHIBIT C
GALENA FACILITY - DRAWINGS AND SPECIFICATIONS
DRAWING NUMBER DESCRIPTION REV.
- -------------- ----------- ----
7.063.00.003 OEC Process Flow Diagram 0
7.063.00.001.0 Power Plant - General Arrangement P7
7.063.00.011.0 Plant Process Flow Diagram P1
7.063.00.012.0 Process flow Diagram Production P1
7.063.00.013.0 Process flow Diagram Injection P1
7.063.00.022.0 PID Brine OEC's P2
0.729.95.001.0 Galena Electrical Single Line Diagram (3 sheets ) A/B/C
0.729.90.910.0 OEC (ITLU) General Layout P0
PAGE C-1
[GRAPHIC APPEARS HERE]
[A graphic showing the OEC (Ormat Energy Converter) Process Flow Diagram
(Heat & Mass Balance). The diagram includes the following tables:]
- ----------------------------------------------------------------------------
OPERATING DATA
- ----------------------------------------------------------------------------
BRINE: 5,450,000 M
215 P
306 T
AIR INLET TEMP. 55 T
- ----------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
0 ISSUE FOR DESIGN AUG.04.2004 [Illegible]
- -----------------------------------------------------------------------------------------------------
REV. DESCRIPTION DATE BY CHECK APPR
- -----------------------------------------------------------------------------------------------------
REVISIONS
PAGE C-2
[GRAPHIC APPEARS HERE]
[A graphic showing a Power Plant Process Flow Diagram.
The diagram includes the following table:]
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
[Illegible] [Illegible] [Illegible] [Illegible]
- ----------------------------------------------------------------------------------------------------
[Illegible]
- ----------------------------------------------------------------------------------------------------
REV. DESCRIPTION DATE BY CHECK APPR
- ----------------------------------------------------------------------------------------------------
REVISIONS
PAGE C-3
[GRAPHIC APPEARS HERE]
[A graphic showing a Process Flow Diagram of the Production Wells.
The diagram includes the following tables:]
- ------------------------------------------------------------------------------------------------------------------------------------
DESCRIPTION UNITS 1 3 4 5 6
- ------------------------------------------------------------------------------------------------------------------------------------
FLUID INLET BRINE TO DISCHARGE BRINE TO DISCHARGE BRINE DISCHARGE DISCHARGE BRINE
VAPORIZER LEVEL I PREHEATER LEVEL I FROM PREHEATER BRINE FROM OEC FROM PLANT
LEVEL II
- ------------------------------------------------------------------------------------------------------------------------------------
FLOW GPM 5,940 2,810 2,800 5,600 11,200
- ------------------------------------------------------------------------------------------------------------------------------------
FLOW lb/hr 2,723,000 1,361,500 1,361,500 2,723,000 5,446,000
- ------------------------------------------------------------------------------------------------------------------------------------
PRESSURE psia 215 190 190 190 188
- ------------------------------------------------------------------------------------------------------------------------------------
TEMPERATURE F(degree) 306.7 187 175 181 181
- ------------------------------------------------------------------------------------------------------------------------------------
NOTES
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------
P1 PRELIMINARY O1.MAR.2004 R.TAMAR
- ------------------------------------------------------------------------------------------------------
REV. DESCRIPTION DATE BY CHECK APPR
- ------------------------------------------------------------------------------------------------------
REVISIONS
PAGE C-4
[GRAPHIC APPEARS HERE]
[A graphic showing a Process Flow Diagram of the Production.
The diagram includes the following table:]
- -------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------
P1 PRELIMINARY 03.MAR.2004 R.TAMAR
- -------------------------------------------------------------------------------------------------
REV. DESCRIPTION DATE BY CHECK APPR
- -------------------------------------------------------------------------------------------------
REVISIONS
PAGE C-5
[GRAPHIC APPEARS HERE]
[A graphic showing a Piping and Instrumentation Diagram (PID) of Brine
Ormat Energy Converters. The diagram includes the following table:]
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
P2 HS NAME CHANGED 30.MAR.2004 Z.SHALVA
- -----------------------------------------------------------------------------------------------------
REV. DESCRIPTION DATE BY CHECK APPR
- -----------------------------------------------------------------------------------------------------
REVISIONS
PAGE C-6
[GRAPHIC APPEARS HERE]
[A graphic showing a Galena Electrical Single Line Diagram.
The diagram includes the following table:]
- -------------------------------------------------------------------------------------------------------------------------
C BAY 9 DELETED, T30 & TX1 MODIFIED JUL.20.2004 [Illegible] YE SH
- -------------------------------------------------------------------------------------------------------------------------
B UPDATED JUN.15.2004 [Illegible] YE SH
- -------------------------------------------------------------------------------------------------------------------------
A UPDATED MAR.14.2004 [Illegible] YE SH
- -------------------------------------------------------------------------------------------------------------------------
REV. DESCRIPTION DATE BY CHECK APPR
- -------------------------------------------------------------------------------------------------------------------------
REVISIONS
PAGE C-7
[GRAPHIC APPEARS HERE]
[A graphic showing a Galena Electrical Single Line Diagram.
The diagram includes the following table:]
- --------------------------------------------------------------------------------------------------------
B UPDATED JUN.15.2004 [Illegible] YE SH
- --------------------------------------------------------------------------------------------------------
A UPDATED MAR.14.2004 [Illegible] YE SH
- --------------------------------------------------------------------------------------------------------
REV. DESCRIPTION DATE BY CHECK APPR
- --------------------------------------------------------------------------------------------------------
REVISIONS
PAGE C-8
[GRAPHIC APPEARS HERE]
[A graphic showing a Galena Electrical Single Line Diagram.
The diagram includes the following table:]
- -------------------------------------------------------------------------------------------------------------------------
A CB1 CHANGED TO 750MVA (WAS 500MVA) 1.JANU.04 YE YE SH
- -------------------------------------------------------------------------------------------------------------------------
REV. DESCRIPTION DATE BY CHECK APPR
- -------------------------------------------------------------------------------------------------------------------------
REVISIONS
PAGE C-9
[GRAPHIC APPEARS HERE]
[A graphic showing a diagram of the Ormat Energy Converter Integrated Two
Level Unit (ITLU) General Layout.]
PAGE C-10
EXHIBIT D
TESTS
This Exhibit sets forth the requirements for the conduct of the Facility tests
in accordance with Engineering, Procurement and Construction (EPC) Contract and
the criteria for establishing successful completion of such tests.
1. DEFINITIONS
For purposes of this Exhibit D capitalized terms shall have the meanings
as set forth below or, where not defined below, as defined in the
Contract.
Correction Curves: As defined in Section 8 hereof.
Design Range: The design range as described in Section 6.2 hereof.
Generating Units: The four (4) Ormat Energy Converter (OEC) units, two (2)
units at the New Galena Plant and two (2) units at the Existing 1A Plant.
Net Deliverable Capacity: The actual net power generated by the Facility
as demonstrated in the Performance Test and calculated according to A
attached hereto.
Mechanical Completion Tests: As defined in Section 2 of this Exhibit D.
Performance Test: The test to be conducted over four (4) hours to
demonstrate the Net Deliverable Capacity.
Design Point: The geothermal fluid and ambient temperature conditions as
defined in Exhibit A section 1.2 of the EPC Contract and section 6.2 in
this Exhibit D.
2. MECHANICAL COMPLETION TESTS
The following preliminary tests shall be conducted at the Site during
construction and start up process to ascertain correct execution of the
erection works and tuning of the installed equipment, and to verify
characteristics and performance of such equipment:
a. Radiographic examination of main brine line welding.
b. Hydrostatic tests of pressure parts constructed at the Site.
c. Functional test of main controls and alarms, i.e. control and
protective devices, fire detection and alarm system.
d. Setting and testing of safety valves to be performed by
manufacturer at its facility according to its procedures and
applicable standards. Based on the
aforementioned tests, manufacturer will provide certificates and
documentation.
e. Balancing and vibration tests of main rotating equipment,
including turbines and generators and motors larger then 100 HP.
Balancing checks and certificates will be provided by turbine and
generator manufacturers based on tests performed at manufacturers'
facilities in accordance with their procedures and applicable
standards. Vibration measurements will be performed after
installation in the field.
f. Automatic operation of standby equipment.
g. Load tests of cranes and hoisting equipment to be performed in
accordance with applicable local regulations and manufacturers'
procedures.
h. Operation of fire fighting equipment.
i. Generator short circuit and open circuit characteristic checks.
Checks and certificates in connection with the above will be
provided by generator manufacturer based on tests and checks
performed at manufacturer's facility in accordance with its
procedures and applicable standards.
j. Generator megger tests.
k. Megger tests for power cables.
l. Setting of protective relays. Setting, calibration and testing
(and certificates in connection therewith) will be provided by the
relay manufacturers based on setting and testing performed at
manufacturers' facilities in accordance with their procedures and
applicable standards.
m. Electrical ground and/or insulation tests of equipment.
n. Check out of instrument loops.
3. TESTS REQUIRED FOR FINAL ACCEPTANCE
The following tests are required for Final Acceptance in accordance with
Section 7 of the Contract:
3.1 Generating Unit Test
The purpose of this test is to demonstrate that each Generating Unit
can be operated safely and reliably under the following conditions:
a. Each Generating Unit shall run at stable condition at 100%
(+10% to - 30%) of the unit rated power, conditional upon
adequate heat source supply, for four (4) hours without any
failure or malfunction.
2
b. The Generating Unit shall be tripped manually with the unit
remaining in a safe condition without any damage, and capable
of immediate restart.
c. After the Generating Unit comes to a standstill and after
resetting the same, it shall be started again according to the
normal hot start procedure as described in O&M manuals, and
resume normal operation conditions.
The test will be recorded as per the attached test record of
Individual Generating Units Test.
3.2 Performance Test
Upon completion of the mechanical tests, the Individual Generating
Units test and after being run at full rated load for a sufficient
length of time to ensure thermal saturation, the Facility will be
tested as close as possible to the Design Conditions, for a period
of four (4) hours at full rated load to verify the Plant's capacity.
The ambient temperature and the heat source conditions will be
within the Design Range.
During this test, the performance of the Plant will be monitored,
with manual and automatic recording of readings as specified in
Section 6.4 hereof.
4. TEST PROTOCOLS
The procedures for conducting the tests, including calibration data,
instrumentation data, test records and frequency of measurement will be
detailed in individual test protocols. The individual test protocol will
be drafted by Contractor and submitted for review to Company at least
forty five (45) days prior to the start of any individual test. All
components of the test protocol, including revisions, will be approved at
least fifteen (15) days prior to the commencement of the relevant test.
The test protocols will be consistent with the terms of this Exhibit D.
The test protocols shall explicitly state the industry codes and standards
that will be used, the instrumentation required, the form of the expected
results, the anticipated time duration of the test and the anticipated
number of Company's operating personnel required to assist Contractor in
the conduct of the test.
5. REPEATING AND SUSPENSION OF TEST
If test criteria are not met or problems or deficiencies arise during the
conduct of the tests which require cessation thereof (including due to
Company Default, causes attributable to other entities such as utilities
and Force Majeure), or if Contractor opts to retest to improve test
results, Contractor will establish the actions to be taken to bring about
a successful completion of the tests. Such actions shall be taken by
Contractor and the tests shall be reconducted.
Subject to the provisions of the Contract, Contractor may repeat any of
the tests. In
3
case one or more of the tests are repeated, the latest of the test results
will be utilized to establish the final results of testing. Repeating one
or more of the tests does not require repeating any of the other tests,
unless it affects the results of tests already performed.
Subject to the provisions of the Contract, the tests may be suspended by
Contractor upon each occurrence or circumstance beyond the control of
Contractor which does not reflect equipment failure, design or
construction defects (e.g., a problem with the grid, supply of heat
resource not in accordance with the design range, Force Majeure, etc.),
which make operation of the tests unfeasible. The test period may resume
after the period(s) of suspension, with the test period including
period(s) of Facility test operation both before and after the period(s)
of suspension, if Contractor so desires. Alternatively, at Contractor's
discretion, the tests may be repeated from the beginning following a
suspension.
Adjustments to the Plant during suspension shall not impact on the
availability of the Facility to resume the tests when the causes of
suspension no longer exist unless Contractor elects to repeat the tests
from the beginning.
6. INSTRUMENTATION
Permanent Plant instrumentation shall be utilized for measurement and data
collection. A list of key instruments to be used during the tests will be
specified by Contractor prior to the initiation of the test. The
instruments will be calibrated in accordance with the standards of a
recognized national organization such as the American Society of Testing
and Materials (ASTM), the Instrument Society of America (ISA), etc.
6.1 Instrumentation Uncertainty
Solely for purposes of the tests, the following as installed
Facility instrumentation will be deemed to have the
after-calibration uncertainties below:
Kilowatt meters +/- 1.5 % (of full scale)
Kilowatt-hour meters +/- 1.5 % (of full scale)
Ambient Air temperature meters +/- 1 Degree F
Heat Source flow rate meters +/- 2 % (of full scale)
Heat Source temperature meters +/- 1 Degree F
Heat Source pressure meters +/- 0.5 % (of full scale)
6.2 Ambient Temperature, Heat Source Conditions and Design Range
As conditions for the conduct of the tests, the heat source
conditions and the ambient temperature must be within the
Design Range. All conditions shall be measured at the
interface points or, in the case of the ambient temperature,
at a representative location away from plant influences for
measuring the air inlet
4
temperature to the air cooled condensers.
Heat Source Conditions and Ambient
Temperature for the Plants Design Point Design Range
- -------------------------------------- ---------------- -----------------
Ambient temperature 55 Degree F 0 -100 Degree F
Heat source conditions flow:
- Stream 1 (New Galena Plant) 5,450 kph 80 -110 %
- Stream 2 (Existing 1A Plant) 500 kph 80 -110 %
Heat source temperature:
- Stream 1 306.0 Degree F 300-312 Degree F
- Stream 2 280 Degree F 270-284 Degree F
Heat source pressure 200 Psig 120 - 250 Psig
6.3 Measurement of Ambient Air Temperature, Heat Source Conditions and
Electrical Power
All conditions shall be measured at the points as defined in
the table below.
Measurement Location
- ------------------------------------------- --------------------------------
Heat Source Flow Rates Inlet Brine Lines to each plant
Ambient Air Temperature Inlet to Air Cooled Condensers
Gross Generating Unit Power Generators Breaker Terminals
Generating Unit Auxiliary Power Consumption MCCs Terminals
Heat Source Inlet Temperatures Inlet Brine Lines to each plant
Heat Source Pressure Inlet brine Lines to each plant
6.4 Data Recording
During the Performance Test, the heat source conditions, the ambient
temperature and the Facility gross and net output will be measured
and recorded in time intervals as follows:
Central Station Control Manually by Plant Operator
----------------------- --------------------------
Generating Unit Test 10 minutes 30 minutes
Performance Test 5 minutes 15 minutes
The results of the test shall be adjusted for variations in the heat
source
5
conditions and ambient temperature conditions using the Correction
Curves.
7. PAYMENT OF PERFORMANCE DEFICIENCY
If the Net Deliverable Capacity as determined by the Performance Test
deviates from the Performance Guarantee, Contractor will pay Company
liquidated damages subject to Section 11.2 of the Contract. In such a case
the capacity deficiency will be calculated using the data recorded in the
Test Record of Performance Test.
8. CORRECTION CURVES
Correction Curves for changes in the ambient air temperature and
Correction Curves for changes in the heat source flow rates and
temperatures for each plant are described in Schedule B attached hereto.
In case of deviation of actual conditions from design conditions, the
Correction Curves will be used to determine the correction factors (F1,
F2, etc.) to be applied as defined in Schedule A attached hereto.
CORRECTION FACTORS
F1i Gross power correction factor for stream i heat source flow as
defined by Correction Curves NGAL-101-R0 & SB1A-101-R0.
F2i Gross power correction factor for stream i heat source inlet
temperature as defined by Correction Curves NGAL-102-R0 &
SB1A-102-R0.
F3i Plant i gross power correction factor for ambient temperature
as defined by Correction Curves NGAL-103-R0 & SB1A-103-R0.
9. MEASUREMENT UNCERTAINTIES
Z1i Uncertainty factor of the electrical meter reading of plant i.
Z1i = [1 +/- Umemi/100]
Z2i Uncertainty factor of the gross power measurements
--------------------
Z2i = 1+/- \ | Uli2 + U2i2 + U3i2 / 100
\|
Where:
U1i Effect of stream i heat source flow measurement uncertainty in
percent change in Correction Factor per percent measurement
uncertainty
6
U2i Effect of stream i heat source inlet temperature measurement
uncertainty in percent change in Correction Factor per measurement
uncertainty (in deg. F)
U3i Effect of ambient air inlet temperature measurement uncertainty
in percent change in Correction Factor per measurement
uncertainty (in deg. F)
Note: The (-) sign in the uncertainty calculation will be used for excess
capacity calculation while the (+) sign will be used for deficiency
capacity calculations.
7
SCHEDULE A
FORMULAS
For the purpose of calculations, New Galena Plant is defined as Plant 1 and
Existing 1A Plant is defined as Plant 2.
1. NEPi = "Net Electrical Production of plant i"
NEPi = [GPi - APCi] * Z1i
Where:
GPi = "Gross Electrical Production of Plant i"
------- i=n
\
\
/ gross OECj production
/
------- i=1
= ----------------------------------------
BCFi
APCi = "Auxiliary Power Consumption of plant i"
= Sum of the MCC's power measurement of plant i
------- j=n
\
\
= / MCCj powermeasurement
/
------- j=1
n = Number of OECs in plant i
2. NDCi = "Net Deliverable Capacity of Plant i"
= {NEPi Average per time period * time period (in hours) between
computations} summed over the 4-hour test period
3. BCFi = "Gross Power Correction Factor of plant i"
BCFi = F1i * F2i * F3i * 1
---
Z2i
Where: F1, F2, F3 & Z2 are as defined in Sections 8 and 9 of this
Exhibit D
4. NDC = "Net Deliverable Capacity"
NDC = NDC(1) + NDC(2)
8
5. CD = "Capacity Deficiency"
If NDC < Performance Guarantee
CD = Performance Guarantee - NDC
9
SCHEDULE B
CORRECTION CURVES
10
SCHEDULE C
TEST RECORDS
11
