04-0239R

RESOLUTION AWARDING CONTRACT TO MIDWEST ENERGY RESOURCES COMPANY FOR PROVIDING 2,597.09 TONS OF COAL IN THE AMOUNT OF $58,876.03.

BY COUNCILOR STOVER:

RESOLVED, that Midwest Energy Resources Company be and hereby is awarded a contract for furnishing and delivering 2,597.09 tons of coal at $22.67 per ton for a two-week test burn at the Duluth Steam Cooperative District 1, in accordance with specifications for a total cost of $58,876.03, terms net, FOB destination, payable out of Steam District #1 Fund 0540, Department/Agency 920, Organization 1440, Object 5387.


STATEMENT OF PURPOSE: This resolution will authorize the purchase of 2,597.09 tons of Black Thunder Western coal at $22.67 per ton from Midwest Energy Resources Company for $58,876.03 to be paid from Steam District #1 Fund 0540. The coal will be used for a two-week test burn at the Steam Plant. The cost per ton is the same as our current Venture Fuel Antelope coal. The test burn is so the Utility #1/Cooperative can see how the coal handles and burns in our boilers and allows us to test the fly ash for marketability. The Black Thunder coal comes from a different company and coal mines the test burn would verify another source of low sulphur Western coal for the Utility in the future. Requisition No. 04-0365