Carbon Offset Certificate Sales Contract Microsoft Word

					ENERGY AREA – CERTEL

MEETING SUMMARY MINUTE – Weekly management board meeting
PARTICIPANTS FROM THE MANAGEMENT GROUP: Júlio, Rosane, Ivo, Erineo, Vatari, Sérgio,
Renato, Ernani, Francisco
Invited: Pepe, Milton, Egon


Number        Date            Local               Time
045-2000GAE   13-11-00        Sala de Reuniões    14h
                              – Área de
                              Energia

1              Topic of the        Definition             Who            Return
               meeting
2              Power plants        Kyoto Protocol –       Erineo/Júlio   16-11-00
               implantation        seek the benefits of
                                   Carbon Certificates
                                   for the Power
                                   Plants
FEDERATION OF ENERGY, TELEPHONING AND RURAL DEVELOPMENT OF THE
STATE OF RIO GRANDE DO SUL
                                                 Porto Alegre, June 20th 2003

OBJECTIVE: -                                                                    01/02
Evaluate FECOERGS’s Strategic Planning
General Subjects: (Carbon Offsets)

LOCAL: Algarves B Room – Continental Hotel – Porto Alegre-RS                    Time: 9:00 to 13:00
                                                                                hs

Name-Presidents          COOPERATIVE            Name-Presidents           COOPERATIVE
Egon Édio Hoerlle        FECOERGS/CERTEL        Frederico Damião A.       CERTAJA
                                                Bavaresco (Vice)
Kurt Grenzel             CERTHIL                Célio M. de Moura         CERMISSOES
                                                (Vice)
Elemar Battisti          CRELUZ                 Renato Martins (Vice)     CERTAJA
Jânio Vital Stefanello   COPREL                 José Benemildo de         CELETRO
                                                Almeida (Vice)
Umberto Toazza           CRERAL
Diamantino Marques       CERMISSOES
dos Santos

SUBJECTS DISCUSSED             ACTION                              DATE
3) Carbon Offsets Contract     a) It was informally presented      Immediate.
                               proposals from two companies
                               that aim at submitting the SHPs’
                               projects, in order to receive
                               benefits from Carbon
                               Certificates, paid by companies
                               that emit dioxide into the
                               atmosphere.
                               b) It was decided to hold a
                               meeting, separately, with these
                               companies in order to know the
                               real benefits and costs that each
                               one offers to the cooperatives.
Minute 701 – 03/03/2005 - CERTEL

Carbon Offsets – The president has informed that FECOERGS is taking part in the Carbon Offset
Project from Kyoto Protocol, which proposes goals for the reduction of gas emission in at least 5% for six
main gases between 2008 and 2012, in comparison with the levels in 1990. The treaty permits that
countries and companies of rich countries obtain credits in their reduction commitment, implementing
projects in developing countries. These credits are obtained through the Clean Development Mechanism,
that is, technologies created not to pollute. The companies that habilitate the carbon credits will be
financially rewarded by foreign companies that endorse the contract. The cooperatives may benefit from
the generation of electric energy and forest reposition.
Meeting Minute – SHP’s Technical Board

Number             Date          Time                Local            Participants
004-               05-12-2006    10h                 Coprel-Ibirubá   CERTEL: Júlio C. Salecker,
2006PCH’s                                                             Marcos Vizzoto, Luís Osório
                                                                      M. Dornelles e Leandro
                                                                      Hoerlle; COPREL – Marlon
                                                                      Anade e Nélio Koch;
                                                                      CERMISSÔES – Laerte G.
                                                                      Moura; COOPERLUZ –
                                                                      Renato Pumpmachal e
                                                                      Vicente Czyza


I                    MEETING’S          DEFINITION            WHO                  RETURN
                     SUBJECTS
Generation of                           COOPERLUZ
CER`s Generation                        COPREL
                                        CERTEL
General Subjects                        4.1 To Send
                                        Websites and
                                        Literatures about
                                        “Carbon Credits”
Minute Nº 738 – 22/01/2007

Carbon Credits: After debates, it was unanimously approved the realization of the hydroelectric use of
SHP Rastro de Auto, located in the state of Rio Grande do Sul, in the municipalities of Putinga and São
José do Herval. The project consists on the implantation of a small hydroelectric power plant in Forqueta
River upstream the lake of the existing SHPP Salto Forqueta. The project includes a 15-meter-high dam,
forming a lake of 30.20 hectares, a 1005-meter-long tunnel excavated on rock, with a diameter of 3,80
meters, forced tubulation of 166 meters long and machinery house with two generator units with 7.02 of
total installed capacity and an average generation of 4,34 MW, totalizing 38,027 MWh/year.
Understanding that the hydroelectrical use of the SHP Rastro de Auto is eligible in the ambit of Kyoto
Protocol Clean Development Mechanism, the Council has decided to initiate the legal channels that allow
the access to the suitable benefits. This way, the revenue for Carbon credits sale originated by the project
will contribute to the viability of the entrepreneurship as a whole, making the generation of revenues in
Dollars or Euros possible, propitiating the mitigation of the associated risks to the variation of electricity
prices in the country.
Minute Nº 741 – 30/05/2007

Carbon Credits: After debates, it was unanimously approved the realization of the hydroelectric use of
SHP Cazuza Ferreira, located in the state of Rio Grande do Sul, in the municipality of São Francisco de
Paula.. The project consists on the implantation of a small hydroelectric power plant in Lajeado Grande
River. The project includes a 8-meter-high dam, forming a lake of 22.1 hectares, forced tubulation of 240
meters long and machinery house with two generator units with 9.10 of total installed capacity and an
average generation of 5 MW, totalizing 43,800 MWh/year. Understanding that the hydroelectrical use of
the SHP Cazuza Ferreira is eligible in the ambit of Kyoto Protocol Clean Development Mechanism, the
Council has decided to initiate the legal channels that allow the access to the suitable benefits. This way,
the revenue for Carbon credits sale originated by the project will contribute to the viability of the
entrepreneurship as a whole, making the generation of revenues in Dollars or Euros possible, propitiating
the mitigation of the associated risks to the variation of electricity prices in the country.
                        PRIVATE CONTRACT FOR SERVICE PROVISION

Private contract for service provision, that between themselves make, on one side, the Federation of
Cooperatives of Rural Electrification - FECOERGS, located on (address), inscribed in CGC/CNPJ
(number) and having the state application (number), in this act presented by its President, Egon Édio
Hoerlle, Brazilian, married, living at (address), inscribed in the CPF under the number (number) and
bearer of the ID (number), issued by (organ), hereafter denominated CONTRACTOR, and, on the other
side, the economist Rudi Braatz, resident at Chácara Ibirubá in Olhos D’Água, Taquari, Brasília/DF,
inscribed under the CPF number of 055122200-04 and bearer of the ID number 20002173371 SSP/RS
and the biologist Maria Cristina Fernandes Braatz, Brazilian, married, CPF 087705268-93 and bearer
of the ID number 2.476474 SSP/DF, hereafter denominated CONTRACTED, in the terms that follow:

1 OBJECT

Service provision in the elaboration of a Project to sell Carbon Offsets Credit Certificates in the
ambit of Kyoto Protocol in hydroelectric and wind generation, direct planting and reforestation.

2 OBLIGATIONS

2.1 Of the contracted

2.1.1 Elaborate a rehabilitation project for the sale of carbon offsets credit certificates, according to a
guideline denominated PIN (Project Idea Note), from the technical data supplied by the CONTRACTOR.
2.1.2 Submit the project to an official Brazilian organ in order to have it approved, making the necessary
adjustments in the documents, if necessary.
2.1.3 Submit the project to the international organism instituted in the ambit of Kyoto Protocol to the
management of Carbon Offsets Credit Certificates in order to have it approved, making the necessary
adjustments in the documents, if necessary.
2.1.4 Calculate the benefits of carbon offsets.
2.1.5 Conduct the negotiations of sales of Carbon Offsets Credit Certificates until the pre-closing phase.
2.1.6 Prepare the annual reports for obtaining the contracted annual credits, based on the technical data
supplied by the CONTRACTOR.
2.1.7 Give the necessary technical support to the international or national inspectors/supervisors for the
verification of the effective fulfillment of the responsibilities assumed in the hydroelectric and wind
generation, in the direct planting in farms and in the reforestation to the carbon offsets and eventually
other gases that contribute the green house effect, mentioned in the Kyoto Protocol.

2.2 OF THE CONTRACTOR

2.2.1 Supply the data on the technical engineering viability, economic-financial and of environmental
impact of the project(s) of hydroelectric and wind generation, direct planting in farms and reforestation,
as well as data on the indirect benefits deriving from the operation of the project according to the
guideline to be supplied by the CONTRACTORS.
2.2.2 Propitiate the contacts with the designers of the projects of hydroelectric and wind generation and
other technicians involved in direct planting and reforesting, in order to obtain fortuitous clarifications
and necessary data to the project.
2.2.3 Effectuate the closure of the transaction of the sale of Carbon Offsets Credit Certificates.
2.2.4 Annually pay the percentage agreed by the services provided by the CONTRACTED, according to
the seventh clause and effectuate the advance payments for the expenses with trips and lodging, in
accordance to the percentage of remuneration agreed between the parties.

3. DEADLINES FOR THE EXECUTION OF THE SERVICES

The CONTRACTED have the deadline of 180 days to the delivery (protocol) of the project to the
Brazilian governmental court of approval, after receiving the last technical data provided by the
CONTRACTOR and the deadline of 60 days to the delivery (protocol) of the project approved by the
Brazilian authority to the international court of evaluation and management of the Carbon Offsets Credit
Certificates.

4. PENALTIES
In case of rescission of the present contract prior to the presentation (protocol) of the document to the
Brazilian governmental court for the approval of the Carbon Offsets Credit Certificates, the
CONTRACTOR will pay to the CONTRACTED the amount of R$100,000.00 (one thousand Reais) as
indemnification. Should the rescission happen after the presentation (protocol) of the document to the
Brazilian governmental court for the approval of the Carbon Offsets Credit Certificates, the
CONTRACTOR will pay to the CONTRACTED, on the date of the rescission, half (50%) of the values
not yet paid, resulting of estimated calculus, based on the project data or on the average of the last 03
(three) years, if such have passed when the fact occurs, applying the percentage indicated on the seventh
clause.
In case of rescission of the present contract from the CONTRACTED, these will have to pay back the
amounts paid in advance, for expenses with trips and lodging.

5. CONTRACT RESCISSION

The present contract can be rescinded at any time, with a previous warning via extrajudicial notification
of 90 (ninety) days, being observed the penalties established in the fourth clause.

6. REMISS CASES

The remiss cases will be solved by common consent through meeting of the parties for such purpose.

7. COST OF SERVICES AND METHOD OF PAYMENT

The services herein hired will be paid through a percentage of 5.5% (five point five liquid percent) on the
value received by the CONTRACTOR with the sale of Carbon Offsets Credit Certificate in the ambit of
Kyoto Protocol, which must always occur three labor days following the effective receipt by the
CONTRACTOR, year after year, throughout the period of the contract, of the payments effectuated by
the purchaser(s) of the Carbon Offsets Credit Certificate, object of this contract, in the whole period of the
contract to sell them. The CONTRACTED or sub-contracted, if that should be the case, will indicate the
bank account(s) to the deposit of the referred payments.
Unique paragraph: Under the pretense of advance payment, due to the owed values, resulting of the
calculus of the percentage above, the CONTRACTOR will pay debts related to trips and lodging of the
CONTRACTED, necessary to the development of the works, object of the present contract, once
previously justified by the CONTRACTED and assented by the CONTRACTOR.

8.1 SUBCONTRACTIONS AND/OR SUBROGATIONS

The contractors and the contracted may effectuate subcontractions and subrogations in the totality or in
part of the services herein contracted as long as the other party receives written notice and endorse the
subcontraction or subrogation effectuated.
First paragraph: in the event of subcontraction or subrogation, the invoice/receipt can be made by the
subcontracted directly against the CONTRACTOR or to its subrogee and the correspondent payments
effectuated directly to the issuer of the invoice/receipt.
Second paragraph: the CONTRACTED and the CONTRACTOR are sympathetic in relation to the
obligations assumed in the ambit of the present contract and of its respective subrogee and subcontracted.

9 CONTRACT DEALINE

The present contract has expires in 15 (fifteen) years, apt to be adjusted due to the contracts that come to
be endorsed between the CONTRACTOR and the purchasers of Carbon Offsets Credit Certificates.

10 FORUM

It is elected the Forum of Brasília, with privilege to no other, to settle any doubts that may arise and that
cannot be solved between the parties, having firstly the option of a mediator hired by common consent
and with a maximum deadline of 30 (thirty) days to the solution of the controversy(ies), before submitting
to judicial court.
And for being just and agreed, the present contract is signed in two copies of same tenor and value so that
the same fulfills its legal effects from the present date onwards.


                                         Brasília, may 20, 2003.




                          Federation of Cooperatives of Rural Electrification




                      Rudi Braatz               Maria Cristina Fernandes Braatz
                                                                                 Proto Alegre, May 05th, 2003.

                    “Contract with Mr. Braatz and FECORERGS about Carbon”

It is hard to have a position in relation to this form of contraction because:

    -    We do not know and do not have a notion of the values effectively involved.
    -    The costs of “trips” can be of national or international level.
    -    Today, we cannot agree with the payment of 5.5% and annually for the receipt of the
         certificates. This value may be great or little.

Solutions:

    1. Propose, initially, only the contraction for research on the “subject” and its viability, without
       penalty clauses, with the indemnification of the expenses on trips and a certain value for the
       work.
    2. We can, as a guarantee to Mr. Braatz, in the initial contraction of market prospection, create a
       commitment clause which states that, if the business is viable, he would be hired.
    3. We can also propose the payment of a “tax of success” and not the annual lease for 15 years. It
       all depends on the values involved and on the methods of payment.
    4. That is, there would be two contracts, (i) for the submission of the certificate and (ii) for the
       initial studies.

Except for better judgment, this is my thought on the matter of Clean Development Mechanism –
Carbon dioxide emission certified reduction, originated in Kyoto Conference, 1997; I have heard of
certificates whose value ranges from U$10 to U$100 per ton of carbon not emitted.

Cooperativist salutations, farewell.

Engineer José Zordan
Superintendent of FECOERGS

P.S.: I have exchanged thoughts with Nélio and his position is not much different from mine.
Dr. Rudi Braatz

                       CASE – CONTRACT DRAFT OF CARBON OFFSETS

In attention to your solicitation on behalf of presidents Egon and Jânio, I present what follows:

1º) According to the contract between the president of FECOERGS/CERTEL – Egon Édio Hoertle - and
the President of INFRACOOP/COPREL – Jânio Vital Stefanello-, it is necessary to gather all the 15
cooperatives in Rio Grande do Sul to endorse the proposed contract, since it will be made on their
behalf.
2º) This meeting will probably be held on June 17th, once there are other subjects to be discussed besides
the “carbon”.
3º) In relation to the contract proposed, the following questions are made:
     - Initially, it would not be a contract of prospection of viability, with the commitment to submit, if
          viable, through your “company”? Without penalties, but with the indemnification of expenses on
          trips and a value for the work.
     - A second specific contract to submit the certifications? Because we do not know and do not have
          a notion of the volumes and values involved. The power plants (SHPs) belong individually to
          each cooperative.
4º) Some cooperatives have already received proposals from other companies; however, at first, it is to
keep the negotiations with your company – BRAATZ -, but we have to listen to the cooperatives.
5º) We need to have some kind of more concrete signalization on the volume necessary and values for the
meeting of June 17th. We have heard of U$10 to U$2 per ton of non-emitted carbon, what has to do with
or what it represents in generated energy (MWh/Carbon ton).

It is fundamental to have a position from Your Honor until June 17th to what we presented and basically
in relation to the contraction (item 3) and the volume and values (item 5).

On your await and at your disposal, farewell.

Engineer José Zordan
Superintendent of FECOERGS
Elaine Costa
From: FECOERGS [fecoergs@terra.com.br]
Sent on: Wednesday, March 3rd, 2004. 02:13 pm
To: comissões; Jânio Stefanello; cosel; coopernorte; cervale; coopersul; cooperluz; certhil; certaja;
celetro; creral; cerfox; coprel; ceriluz; creluz; cartel; João Alderi do Prado; creral
Subject: “Carbon offsets”

         FEDERATION OF ENERGY, TELEPHONING AND RURAL DEVELOPMENT
              COOPERATIVES OF THE STATE OF RIO GRANDE DO SUL

Email 036/2004              Porto Alegre, March 3rd, 2004.

Mister President

“Carbon Offsets”

Following the subject of “Carbon Offsets”, as dealt with in the meeting of February 16th, in Jajeado/RS,
at Weiand Hotel and to answer the solicitation of the consultant Rudi Bratz, we need the cooperatives
interested to inform us the following:

Total area of the direct planting Kind of culture Period of the Year
(area in hectares – kind soy, corn – period beginning month and end month)

In await of this information so that we can send to Dr. Rudi, farewell.

Cooperativist Salutations

Engineer José Zordan
Superintendent of FECOERGS
         FEDERATION OF ENERGY, TELEPHONING AND RURAL DEVELOPMENT
              COOPERATIVES OF THE STATE OF RIO GRANDE DO SUL

Circ. 037/04                                 Porto Alegre, July 14th, 2004.

                                              Mister President

                                 FECOERGS – “Will Offsets Carbon”

                                                                      Seeking to expand the benefits to the
cooperatives’ members and to the environment, and going towards its mission, FECOERGS celebrated on
June 30th, after almost a year of negotiations, the contract with a specialist in the elaboration of projects
for carbon offsets credit certificates, within the Kyoto Protocol.

                                                                       The Kyoto Protocol appeared in a
treaty by ONU, in which the industrialized countries defined that they will have to reduce the emission of
gases, carbon dioxide, in at least 5%, considering the levels of 1990.

                                                                    Facing this, the studies herein hired
by FECOERGS will be developed in the area of hydroelectric and wind generation, direct planting,
reforestation, use of biomass to energetic purposes and solar energy, since these activities are considered
not to pollute and benefit the environment. Companies of the European Union have been purchasing in
advance the surplus of Certified Emission Reductions of companies that have already diminished the
emission of gases above the demanded levels and this is one of the markets that will follow the studies
hired.

                                                                       The six cooperatives that have
already manifested their interest – Coprel, Certhil, Celetro, Cerjata, Cermissões and Ceriluz – will aid in
the survey of the direct planting area of their members, which, according to studies, in all their phases,
reduce at least 8 times the emission of carbon dioxide (CO2) in the atmosphere if compared to the
traditional planting and may be one of the activities to be explored.

                                                                       Therefore, the greenhouse effect is
being diminished as well as the opening of holes in the ozone layer and this is the non-pollution that may
be sold to polluting countries. The studies will show the benefits to the environment and to men, who has
their habitat less attacked.

                                                                         This was what we had to inform,
                                                 farewell.

                                                                              Cooperativist salutations

                                                                              Engineer José Zordan
                                                                                  Superintedent

P.S.: The first meeting of the technicians hired is expected to the beginning of August 2004, at
FECOERGS headquarters.

				
DOCUMENT INFO
Description: Carbon Offset Certificate Sales Contract Microsoft Word document sample