the sunny atlin experience generation - gov.mb.ca · pdf filethe sunny atlin experience...

Generation for Generations

Atlin Hydro Project

The Sunny Atlin Experience

Generation

for

Generations

17Jan2017

Peter Kirby

President & CEO

XEITL LIMITED PARTNERSHIP


Atlin Hydro Project

Atlin


Atlin Hydro Project

Combining 3 Important Goals The TRTFN is actively building a working model that

can help sustain our people for many

generations to come.

1. Revival of cultural values and sustenance

2. Responsible management of resources

3. Sustainable economic development

The Atlin Hydro Project is a critical component of

achieving this vision:

Sustainable Development

Resource

Management

Development

Corporations

Cultural

Revival

Taku River Tlingit

First Nation

Xeitl Limited

Partnership

Atlin Hydro Project

TRTFN Development Corporations

Taku Wild

Corporation

Atlin Tlingit

Development

Corporation

TRTFN Shareholders

Taku Wild

Salmon

Products

0.01 %

Class A

Units

99.99 %

Class A

Units

Atlin

Tlingit

Economic

GP

Atlin Tlingit

Economic LP

(ATELP)

(Development

Corporation)

99.99 %

Class A

Units

0.01 %

Class A

Units

Common

Shares

100%

Xeitl Limited

Partnership

(XLP)

(Existing Hydro

Project)

Preferred

Shares

100%

Atlin Power

Ltd

General

Partner

Taku Land

Corp

Common

Shares

100%

2015 ALL TRTFN Corporations and Partnerships

Tlingit

Homeland

Energy

GP

Tlingit Homeland

Energy LP

(THELP)

(Hydro Expansion

Feasibility Study)

99.99 %

Class A

Units

0.01 %

Class A

Units

Common

Shares

100%

Ed Anderson Trustee


Atlin Hydro Project

Economic Development Goals

Create a Source of “Our Own Money”

Create Employment

Training & Capacity Building

Use Local Natural Resources

Environmentally Beneficial

Stop $ Leakage from Community

(this hydro project does all of the above)

TRTFN Shareholders

Atlin Tlingit Development Corporation

Fuel Construction Services

Taku Land

Corporation

Atlin Hydro Project

Atlin Power

General Partner

Xeitl Limited

Partnership

(100% of Hydro

Project)

0.01 % 99.99 %

Equipment,

Manpower,

Smaller

Elements

Transfer

Project

Management,

Hydrology,

Permitting,

Development

Financing

Sell fuel to

Project

Contractors

during

development

24 year Loan

secured by 25

year Electricity

Purchase

Agreement


Atlin Hydro Project

Background – 100 years ago


Atlin Hydro Project

Background – Recent Efforts

1980’s and 90’s – several studies for hydro on

Pine Creek (6-8 MW scenarios)

Late 1990s – TRTFN pre-feasibility study for a

small hydro project on Pine Creek (CESO).

2001 - TRTFN approached BC Hydro

2002 – TRTFN and BC Hydro agree to conduct

CEP together

2003 – Community Energy Plan (CEP) studies

wind energy and hydro on Pine Creek, demand

assessment


Atlin Hydro Project

Community

Energy

Planning


Atlin Hydro Project

The Atlin CEP

(Community Energy Plan)

Electricity Demand Assessment

20-Year Demand Projection

Energy Efficiency Recommendations

Power Supply Options Assessment:

Wind study (wind towers)

Connection to Yukon power grid (YEC)

Hydro (full pre-feasibility study, 3 scenarios)

75% of Atlinites selected small hydro


Atlin Hydro Project

Permitting

and

Licensing


Atlin Hydro Project

Permitting Agencies

1. BC Min Environment Water Stewardship Division

2. BC Ministry of Agriculture and Lands

3. Canadian Environmental Assessment Act (CEAA)

4. Taku River Tlingit First Nation

5. Department of Fisheries and Oceans

6. BC Ministry of Transportation

7. BC Ministry of Forests

8. BC Ministry of Community Services

9. Atlin Advisory Planning Commission

10. Indian & Northern Affairs

11. Transport Canada Navigable Waters

12. Ministry of Energy, Mines and Petroleum Resources

13. Environment Canada

14. Natural Resources Canada


Atlin Hydro Project

Inter-Agency Site Visit at

Surprise Lake Control Site.


Atlin Hydro Project

Environmental Impact Assessment

Project Description

Land requirements

Operation of works

Watershed

characteristics

Water availability

Market for Power

Effects on other

rights

Development

schedule

Impact Assessment

Fisheries, habitat, quality

Hydrology

Wildlife and habitat

Roads, bridges, crown

Navigable waters, forests

Existing rights – mineral

claims and other tenures

First Nation, archeology

Public, recreation, access

Hazards, flood control

Monitoring


Atlin Hydro Project

Public Consultation

AAPC involved in review process and sent all

information and referrals

Assessment Report and Appendices at Atlin

Government Agents Office for public viewing

Open Houses and Community Updates,

Prospector, Atlin Claim…

Advertising for Navigable Waters Application –

public comment

Advertising for Lands Application – public

comment and AAPC input

Ongoing Open door information policy


Atlin Hydro Project

Fisheries Field Assessment


Atlin Hydro Project

Snorkel Fish Survey


Atlin Hydro Project

Hydrology

Assessment


Atlin Hydro Project

Intake

Location

Surprise Lake

Drainage Basin

467 km2 Pine Creek

Drainage Basin

557 km2

Surprise-Pine Drainage Basin


Atlin Hydro Project

Pine Creek Discharge at INTAKE LOCATION ba se d on wa t e r she d a r e a r a t i o of WS C P i ne / S pr uc e Da t a c ol l e c t e d be l ow c onf l ue nc e

(chart ed 2004 S. Simpson)

11.91

1.074.20

0.630.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

01--01

01--13

01--25

02--06

02--18

03--02

03--14

03--26

04--07

04--19

05--01

05--13

05--25

06--06

06--18

06--30

07--12

07--24

08--05

08--17

08--29

09--10

09--22

10--04

10--16

10--28

11--09

11--21

12--03

12--15

12--27

1956 1957 1958 1959 1960 1961 1962 1963

1964 1965 1966 1967 1968 1969 1970 16y Av

1955 MAD 15%MAD

Pine Creek Discharge at Intake


Atlin Hydro Project

Streamflow Measurements near

Intake Location on Pine Creek


Atlin Hydro Project

Project

Description


Atlin Hydro Project

Project Description

Project Elements (moving downstream)

1. Discharge control structure and fish

ladder at Surprise Lake bridge

2. Intake and Weir on Pine Creek

3. 48 inch Penstock-pipeline 3.9 km from

intake to powerhouse

4. Powerhouse and switch-yard near

confluence of Pine and Spruce Creeks

5. 0.8 km Powerline from powerhouse to

interconnection with existing grid


Atlin Hydro Project

Google Looking North

Powerline

Penstock

Powerhouse

Intake

Surprise Lake Control Structure


Atlin Hydro Project

Surprise Lake

Used for seasonal water storage.

Area 31 square km.


Atlin Hydro Project

Surprise Lake Outflow with

remains of historic control works


Atlin Hydro Project

CONSTRUCTION

The Atlin Hydro Project


Atlin Hydro Project

Control Structure and Fish

Ladder

Surprise Lake bridge was replaced

Worked with MoTH on design for hydro

structures within the highway right of way,

adjacent to the new bridge

Optimal that construction coincided with

planned 2007 replacement of the bridge

Flow control gate

Overflow spillway

Fish ladder bypass


Atlin Hydro Project

Improved Channel

Discharge Control

Structure

Overflow Spillway

Fish Passage


Atlin Hydro Project

Intake on Pine Creek

Concrete diversion weir for power flows

into penstock

Headpond for hourly fluctuation in

demand

Low-level weir for in-stream flow release

Overflow bypass

Minimal fisheries impacts


Atlin Hydro Project

Intake

Weir

Intake

Pipe

Intake Location


Atlin Hydro Project

Penstock Pipeline

3.95 km length

105 m gross vertical head

48’ diameter high density polyethylene

Buried 2 m deep, minimal impacts

to wildlife and human movement


Atlin Hydro Project

Powerhouse and Powerline

Located just above confluence of Pine and

Spruce Creeks

2.1 MW pelton turbine generator

Tailrace channel back into Pine Creek

Transformer and Switchyard

0.8 km of 25kV powerline connecting to

existing local grid at Surprise Lake road

Land tenures required

Will cross active mining tenures


Atlin Hydro Project


Atlin Hydro Project Developing Projects

in Small Northern

Aboriginal

Communities


Atlin Hydro Project

Challenges in a Small Northern

Aboriginal Community

Atlin: No municipal or regional

government (unincorporated)

Limited attention from BC government

Limited local services & O/M budgets

Implication: Many community services &

projects must be initiated by TRTFN or

their development corporations, as there

is no other organization who can (ie.

potable water, waste water, land use

planning, community services, renewable

electricity supply…)


Atlin Hydro Project

Challenges in Small a Northern


Limited financial and human resource

capacity

Same people wear many hats

Each new project has it’s own specific

learning curve

Employee & volunteer burn-out is a

concern and affects projects

High costs to bring in technical

expertise


Atlin Hydro Project

Challenges in Small a Northern


Lack of investment equity available

within the First Nation, or in Atlin

Reliance on building “in-kind” equity

to leverage financial resources

Reliance on government assistance

during development of projects

IT DOESN’T MATTER - YOU STILL

CAN DO IT!


Atlin Hydro Project

BENEFITS in Small Northern

Aboriginal Communities

More of a focus regarding climate

change in northern communities

Assistance is available Governments

Human resource capacity is forced

to develop to fill void in manpower

and services

We can learn from each other


Atlin Hydro Project

Project Timeline

Project Milestones Completion date

Public Consultation & Information (ongoing)

Completion of Strategic Plan 2001

Approached BC Hydro to initiate CEP 2002

Community Energy Planning Project 2003

Applied for Water Licence - LWBC 2004

Secure Development Financing 2004-2008

Project Permitting Studies 2005

Developed Proposal to BC Hydro 2005

Negotiated EPA with BC Hydro 2005

Submitted Final Development Plan & EA 2006

Financing 2006/08

Final Design and Tenders 2006

Environmental Approvals, Permitting 2006

Construction 2006-2008

Operation 2009 April 1st


Atlin Hydro Project

Major Tasks

Risk Management

Schedule Updates

Costing and Cost Control

Budget and Cost Management

Insurance

Project Manager Training

Financial Advice

Legal Company Structure

Bridge Financing

Filing and Record Keeping

Tendering and Sourcing

Coordination of Procurement & Construction


Atlin Hydro Project

Lessons Learned

Research the requirements of the entire

development process way ahead of time.

Use all available handbooks, guides, websites

and previous reports.

Talk to regulators early. (Try to) nail them down

regarding your permitting requirements and

process.

Have an Inter-Agency meeting.

Develop a detailed multi year plan, with critical

milestone dates identified.

Talk to others who have done it. Learn from

them. Engage them to help you.


Atlin Hydro Project

Lessons Learned

Even though you think you have hired the

best, get a second opinion occasionally.

Our project design changed a few times as we

eliminated un-necessary features.

We didn’t push hard enough for the technical

support available from NRCan…

Continually double-check your important

assumptions, many of them change as the

project evolves.

Even “good” engineers can miss important

things that can seriously increase costs.


Atlin Hydro Project

Financing the Project

Look past the banks for long term money.

Hire a financial advisor with familiarity negotiating

loans for large projects.

Realize your lender will require ENORMOUS

security and will own your project until the loans

are paid off.

Do not underestimate the legal side of borrowing

large amounts. The paperwork is incredibly

complex and onerous.

Don’t forget about loan conversion and follow-up

Find bridge financing early to cover grants

approved but not yet received


Atlin Hydro Project


We borrowed long term money (1 year less than

EPA = 25 year EPA, 24 year loan)

Financial crash occurred just when we needed

money AND construction prices increased

Shadow bid for one contract was $3.0 - $3.5M

Actual bids next spring were . . . . More,

waaaaayyyy more, things can and do change during

project development (both up and down)

We needed more money and Ecotrust stepped up,

later they were replaced by the Regeneration Fund

That money was expensive! Prime plus a % that

was more than any mortgage in the last 20 years


Atlin Hydro Project


The extra money we needed was very expensive but

we needed it to make the project work and had no

where else to go so we accepted high rates

The First Nations Financial Authority was not

operational at that time

When FNFA came on line TRTFN worked hard to

use FNFA money to buy out the expensive sub debt

We were able to meet FNFA/FMB requirements with

internal forces and then had legal review done

We bought out the expensive sub debt with FNFA

financing

On $2M we saved over $100k per year!!!!

100k annually that now stays in Sunny Atlin!!


Atlin Hydro Project

Lessons Learned

You can do much of the development work in

house (supervised by professionals if needed).

1. TRTFN provided fisheries and wildlife expertise for

the biological impacts assessment.

2. Rather than hire a company to do it all, we hired

them to train our people to do all the hydrology

work.

3. Other areas we did in-house: Project Management,

Administration, Technical Reporting, Field Recon,

Preliminary Mapping, Photography….

This helps increase owner equity, provides local

employment, and builds HR capacity.


Atlin Hydro Project

Lessons Learned

The owner must plan for:

multi-year dedicated commitment of resources.

Continuity of FN Leadership support

Multi year project champion (project team,

coordinator or manager).

Getting community support and involvement.

Appropriate technical support to address

knowledge gaps.

Cost of financing, to get it, and interest rates to be

paid long term, and how those costs marry to

project revenues (PF surcharge)

Need to learn and understand long term financing


Atlin Hydro Project

Contact Information:

Peter Kirby

President & CEO

Phone: 250 651 2221

Email: [email protected]

Xeitl Limited Partnership

Box 408, Atlin BC, V0W1A0

the sunny atlin experience generation - gov.mb.ca · pdf filethe sunny atlin experience...

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