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Technical Discussion Alaska Village Initiatives Proposal To U.S. Department of Energy Page 1 1. Evidence of Technical Understanding & Readiness A. The Problem & Potential Widespread Benefits Cleaning contaminated sites on land often requires extensive labor and equipment costs to haul away the contaminated soil, find a place to dispose of it or a method of cleaning it, and backfill the area with uncontaminated soil. Although there are methods for treating the contaminant in situ, these methods tend to take several years before the site is returned to acceptable condition. The proposed project will test a method for swiftly stabilizing contaminants in situ through full encapsulization of the affected soils. This method will be particularly effective in situations where contaminants have spilled near the foundations of a building or underneath fixed equipment such as holding tanks. This method has great potential for application in rural Alaska, where remote locations reachable only by boat or plane can make it expensive to bring in specialized equipment. There are approximately 100 tank farms in rural Alaska which have been declared out of compliance by the Coast Guard and the vast majority are in villages off the road system. This method could be used to restore many of them to full working condition. The site proposed for testing is a diesel fuel spill near the heavy equipment shop in the Native Village of Tyonek. The spill occurred in April of 1997, is estimated at 500 to 800 gallons of fuel, and created a surface stain 20 feet by 30 feet in area. The general characteristics of this spill are typical to rural Alaska. A treatment technique which could effectively remediate this site would have immediate

BIO CAT Testing

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Page 1: BIO CAT Testing

Technical DiscussionAlaska Village Initiatives ProposalTo U.S. Department of EnergyPage 1

1. Evidence of Technical Understanding & Readiness

A. The Problem & Potential Widespread Benefits

Cleaning contaminated sites on land often requires extensive labor and equipment costs to haul away the contaminated soil, find a place to dispose of it or a method of cleaning it, and backfill the area with uncontaminated soil. Although there are methods for treating the contaminant in situ, these methods tend to take several years before the site is returned to acceptable condition.

The proposed project will test a method for swiftly stabilizing contaminants in situ through full encapsulization of the affected soils. This method will be particularly effective in situations where contaminants have spilled near the foundations of a building or underneath fixed equipment such as holding tanks.

This method has great potential for application in rural Alaska, where remote locations reachable only by boat or plane can make it expensive to bring in specialized equipment. There are approximately 100 tank farms in rural Alaska which have been declared out of compliance by the Coast Guard and the vast majority are in villages off the road system. This method could be used to restore many of them to full working condition.

The site proposed for testing is a diesel fuel spill near the heavy equipment shop in the Native Village of Tyonek. The spill occurred in April of 1997, is estimated at 500 to 800 gallons of fuel, and created a surface stain 20 feet by 30 feet in area. The general characteristics of this spill are typical to rural Alaska. A treatment technique which could effectively remediate this site would have immediate application potential on more than 100 spills found on Native lands in the state.

Several companies have undertaken oil and gas exploration activities in the lands around Tyonek over the past 30 years. Exploration continues today, using new technology to get a better measure of the extent of the oil and gas resources in the region. Due to the proximity of the industry, if this technique proves to be successful in creating a substantial cost savings, further testing and adaptation to different conditions would be undertaken with little delay.

B. Technical Issues That Could Affect Success

The proposed product for this research is BIO CAT™ 300-1 (BIO CAT), produced and marketed by Applied Natural Systems, Inc. of Kensington, Maryland. BIO CAT is a water-soluble soil-stabilizing product which causes soil particles to bind together and retard intrusion of exterior water, creating a cement-like substance. To date, BIO CAT™ 300-1 has been used for road and

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Technical DiscussionAlaska Village Initiatives ProposalTo U.S. Department of EnergyPage 2

embankment construction in over 60 sites throughout the United States as well as Central and South America. The product has been tested in laboratories approved by the EPA for environmental soundness and has been judged nontoxic to man and his environment.

Technical issues that could affect success relate to using BIO CAT™ 300-1 at greater soil depths. In its application for road construction, BIO CAT™ 300-1 is typically used to solidify soils to a depth of 12 inches. In this test, it will be necessary to use BIO CAT down to 35 feet.

BIO CAT™ 300-1 performs best at temperatures above 70 (all temperatures Fahrenheit) and performs adequately at temperatures between 60 and 70, setting within a 6 hour period. Sub-surface temperatures at the proposed site, and in Alaska generally, fall between 40 and 50. Once the product has set, it is impervious to freezing, so Alaska's climatic extremes are not a consideration as long as it is possible to achieve stability within a reasonable length of time.

The standard method of application for road construction or maintenance is to aerate the surface soil so that it becomes extremely dry, then spray a solution of BIO CAT and water on the surface. In this case, BIO CAT will be applied using an infiltration system with well points driven into the ground at several different depths. BIO CAT will be mixed with water and possibly a clay product such as Bentonite, with the exact solution to be determined through testing. This slurry will then be forced through the system at high pressure, creating a matrix of solidified soil to lock in the contaminant. If necessary, the slurry may be mixed using heated water in order to aid penetration and setting of the BIO CAT.

The initial viscosity of the product will be one determinant for how many injection ports and points are needed, what type of slurry to use, what pump methods and pressure sensitivity to use, and whether it is necessary to heat the water prior to mixing.

C. Data Which is Currently Available

EMCON Alaska, Inc. (EMCON) has conducted two studies on the spill site. The first was a Phase I site inspection conducted prior to the spill, in September of 1995, which indicated that there was probably ongoing low-level contamination at the site prior to the actual spill date. The spill occurred April 25, 1997, and EMCON returned to the site in May of 1998 to assess the extent of diesel contamination from the spill.

At this time, EMCON supervised five soil borings and took a total of 9 soil samples from around the spill area. Sample depths range from 3.5 to 50 feet below ground surface. Soil samples were tested for diesel range organics,

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Technical DiscussionAlaska Village Initiatives ProposalTo U.S. Department of EnergyPage 3

gasoline range organics, residual range organics, benzene, toluene, ethylbenzene and total xylenes.

These sampling activities have provided recent data on the estimated area of contamination at ground surface as well as a contamination assessment which includes depths. Testing indicated that there was surprisingly little below-ground expansion, or plume, to the spill. In addition, EMCON's report provides detailed information on soil types found throughout the contaminated area and on existing ppm of diesel range organics in the area adjacent to the impacted area.

EMCON's full report is provided as an attachment to this grant. The fact that the spill itself occurred within the past three years and that recent data on the spill is available were important factors in the selection of this site for testing.

Another important factor in the choice of this site is the depth of groundwater in the area, a nearby well had to go to over 100' below ground surface to reach water. Therefore, this project is highly unlikely to have a negative impact on ground water resources in the area if any unanticipated results should ensue.

2. Technical and Project Management Approach

A. Statement of Work

Phase I: Pre-testingUpon notification of award, the first task will be to purchase materials and equipment needed for all phases of the project. This will include five barrels of BIO CAT at 55 gallons each, 24 stainless steel well points, and metal pipe for use in delivering the slurry to the well points. This may take up to 15 working days due to the length of time for product delivery to Alaska.

Initial mobilization for the project will take up to 3 days and will primarily be the responsibility of Alaska Village Environmental Services (AVES), with some support from the project Chemist and Tyonek Native Corporation. Like most Alaskan villages, Tyonek is not on the road system, so the majority of materials and equipment will be shipped from Anchorage to Tyonek by barge, with some smaller materials accompanying project personnel, who will travel by small plane.

Two pre-tests will be used to determine how BIO CAT behaves under different temperature and pressure conditions. In one, a single well point will be driven to a depth of about 7' on the site itself, although not in the contaminated area. Based on consultation with technical personnel at Applied Natural Systems, a pre-determined pressure, level of solution, and well point screen size will be used for this test. The following day, heavy equipment will be used to dig to the 4' level, followed by manual digging to reach the "plug" created by the BIO CAT and

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Technical DiscussionAlaska Village Initiatives ProposalTo U.S. Department of EnergyPage 4

retrieve it for further testing. Several Tyonek residents are fully Hazwoper certified and will be able to assist in this project. Analysis of this test will determine the application techniques for use in treatment of the full area.

Test two will be conducted during the same week, and using soil from the same area. The heavy equipment shop on site will be used to construct a 4'x4'x4' wood box, lined with plastic and built on pallets for ease of movement. The soil will be compacted to roughly the same levels found in situ. Once the first test has determined a proposed strategy for infiltration, this strategy will be applied to the soil in the box, using the same frequency of well points, the same mixture for the product, and the same size of injection points intended for the main project. The product will be allowed to set for twelve hours, rather than the recommended six, and the box will be opened the following day to study the infiltration pattern of each well point and how the points react with one another to "lock up" the entire contaminated matrix. Extensive documentation will be done on the resulting dirt "cube" for later use in the final report.

The use of these two pre-tests will make it possible to refine plans for the application of BIO CAT in the contaminated area.

The tests will be conducted simultaneously during a 5 day period in order to maximize utilization of local labor and equipment, which will be contracted for the week.

Phase II: Main ProjectA total of approximately one month will be needed to carefully analyze the results of pre-testing, draw up a plan for the main project, and get the plan approved by the Alaska Department of Environmental Conservation. Once this process is completed, the project team will mobilize for travel to Tyonek and treatment of the spill.

Before treatment begins, workers will remove the holding tank which was the source of the spill. It is believed this will not be necessary for future applications. However, during the testing period it will make it easier to apply the product and to conduct thorough post-testing on its effectiveness. Removal of the tank is expected to take one day, followed by two or three days of pre-testing in situ to determine whether there have been substantial changes to the spill data collected by EMCON in 1998.

Treatment of the spill is expected to take 5 days. An approximation of where and how well points will be placed for the treatment is shown in Attachment E. Exact placement of the well points will be determined as a result of pre-testing. The product will be injected using a compressor hooked to a system of pipes which lead to the well points. Well points will be placed at different depths below

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Technical DiscussionAlaska Village Initiatives ProposalTo U.S. Department of EnergyPage 5

surface in order to create a matrix which effectively encapsulizes the contaminant. A slurry of BIO CAT™ 300-1 will be injected through the well points at the greatest depth first, working towards the surface and finishing by spraying the entire area with the chemical in order to solidify the surface soils. If pre-testing indicates in situ indicated that it is necessary, a thin (six to eight inch) layer of uncontaminated soil will be spread over the site prior to spraying the final application of BIO CAT.

Phase III: Post-testingPost-testing will be conducted two times, using identical techniques in both instances. The first test will take place in the summer of 2000, approximately one month after the BIO CAT™ 300-1 was applied. The second will be in the summer of 2001, one year from the date of the first post-test, and will help to determine whether changes in temperature and climatic changes such as Alaska's dramatic spring run-off impact the product itself or cause leaching of the contaminant.

The BIO CAT "plug" will be tested for solidity at surface level and at 10', 20' and 30' below ground surface level by digging a large hole next to the contaminated area, then removing soil from the sides of the plug until it is visible and can be tested. Narrow holes (2 inches in diameter or less) will be drilled into the plug both in order to test for solidity and in order to obtain soil samples from the plug itself for testing. If contaminant leaches into the drill holes, they will be re-filled with a mixture of soil and BIO CAT. AVES will collect and analyze soil samples in and around the contaminated area, working closely with a soils engineer and a chemist certified by the Alaska Department of Conservation.

Numbers obtained during post-testing will be compared with existing data found in the reports from survey work conducted by Emcon Alaska, Inc., and with data collected just prior to the application of BIO CAT™ 300-1 in the summer of 2000.

Phase IV: Write Report & Disseminate ResultsThe report will be written primarily by the CEO of Alaska Village Environmental Services, with extensive input from a Soils Engineer. Report writing will take a total of approximately three weeks.

Alaska Village Initiatives will take responsibility for developing a press release to accompany the report. AVI will distribute the press release to major newspapers throughout the U.S. and will send the press release and a copy of the report to trade publications for both the petroleum industry and the environmental services industry.

Also during this phase, staff from AVI, AVES and Tyonek Native Corporation will hold public meetings in Tyonek to provide an overview of the project for any

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Technical DiscussionAlaska Village Initiatives ProposalTo U.S. Department of EnergyPage 6

residents who may be interested. Staff will stay in Tyonek for a full week in order to meet with staff from Tyonek Contractors, the Tyonek Native Corporation Board, and the Tribal Council to discuss the outcome of the project and future possibilities for the use of BIO CAT in Tyonek and elsewhere.

B. Milestone Schedule w/ Decision Points & Deliverables

Milestone DateComplete Pre-testing 5/12/00Alaska Department of 6/12/00 Environmental Conservation (ADEC) ApprovalComplete Main Project 6/25/00Complete First Post-test 7/31/00Complete Second Post-test 7/31/01Send out copies of press release & report 9/15/01

Decision Point DateInfiltration Pattern for mud-box pre-test determined 4/25/00Infiltration Pattern for main project determined 6/12/00Need for a clean soil "cap" on main project determined 6/25/00Project considered successful 8/10/01

Deliverables DateSite treatment plan to ADEC 5/19/00Analysis of FY2000 post-testing to DOE/NPTO 8/15/00Full Project Report completed, submitted to DOE & trade publications 9/13/01

C. Organizational Chart

C h em is t/O n -s ite S u b ord in a teH ou rs

2 5 6

S o ils E n g in eerH ou rs

1 8 0

A laska V illag e E n viron m en ta l S ervicesK ey P erson n e l/H ou rs

CEO /378 hrsAdm in Ass't/106 hrs

A laska V illag e In it ia t ivesK ey P erson n e l/H ou rs

CEO /114 hrsCFO/90 hrs

Tyon ek C on trac to rs , L L CK ey P erson n e l/H ou rs

Equipm ent O perators/224Laborers/40

Tyon ek N a tive C orp ora tionK ey P erson n e l/H ou rs

CEO /94.8

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Technical DiscussionAlaska Village Initiatives ProposalTo U.S. Department of EnergyPage 7

Tom Harris, President of Alaska Village Initiatives (AVI) and Bart Garber, President of Tyonek Native Corporation (TNC), will have joint oversight of the project. Mr. Harris is a Tlingit Indian from Ketchikan, Alaska, with extensive experience in corporate management, the logging industry, and business start-ups and sales. Mr. Harris holds a degree in Mathematics from Western Christian College and studied Business at Lubbock Christian College. Mr. Garber is an Athabascan Indian from Tyonek, he is a practicing lawyer and has 15 years of commercial and corporate experience. Mr. Harris is also a past President of TNC and Mr. Garber is a current Board member for AVI. The two organizations have a long history of working together on successful projects, including the recent construction of the North Foreland Barge Facility in Tyonek.

Lou Nelson, Alaska Village Initiatives’ Vice President of Finance, will have financial oversight for the project. Mr. Nelson has over 40 years of business development and financial administration experience, divided almost equally between private enterprise, government, and private practice as a Certified Public Accountant. Additionally, Mr. Nelson has over 15 years of fund accounting experience.

On-site management of personnel and activities in Tyonek will be handled by Alaska Village Environmental Services (AVES), an independent subsidiary of AVI. The CEO of AVES, Greg Christensen, will be responsible for hiring of all consultants and sub-contractors. Mr. Christensen has six years of experience in oil and gas extraction and has worked in environmental services and remediation of sites impacted by petroleum products for the past seven years. He has extensive experience with the use of pumps and well points for soil remediation under various conditions, and has consulted on numerous projects in rural Alaska. Mr. Christensen holds the 40 hour Hazwoper certificate and a certificate in Hazwoper supervision.

3. Benefit of the Project

Tyonek Native Corporation (TNC) is well positioned to provide benefits to shareholders both directly and indirectly through this project. TNC has an independent subsidiary, Tyonek Construction, LLC, with access to local labor, including several individuals with Hazwoper training, and several pieces of heavy equipment which are currently based in Tyonek and available for use on this project.

If the project proves successful, Tyonek Construction will be able to mount a highly competitive bid for similar projects in other areas of the state, relying upon experienced staff who are familiar with rural Alaskan conditions as well as with BIO CAT and its application process.

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In addition, it will be possible for Tyonek to address other spills in their own vicinity. Tyonek has 12 sites currently on the State of Alaska Department of Environmental Conservation's contaminated sites list. Among these, a pressing concern is an inactive tank farm adjacent to Tyonek's new barge facility. The size of the spill in this area is not known. However, if this technique can be applied to the tank farm spill, it will be possible to remediate the area without requiring removal of the tanks. This would make it economically feasible to return the tank farm to active use, a substantial benefit to both Tyonek and the petroleum industry, as the combination of the barge facility and the tank farm would make drilling activities in the area more economical.

This technique may require further research for extrapolation to United States oil fields and to larger spills. Remediation in situ in locations where further contamination is likely, such as the Tyonek case, makes it possible to later "cap" the site by simply applying a layer of soil and more BIO CAT to the surface layer. This benefit could also have many applications in United States oil fields.

4. Technology Transfer

Testing results will be incorporated into a report and a press release. The press release will be sent to major urban and regional newspapers nationwide, particularly in areas where the petroleum industry is active. The press release and a copy of the report will be sent to industry specific periodicals and newsletters.