(Copy letter)
ISLAND OF MONTSERRAT
A.D. 2006
In the matter of the application of the Electricity Supply Ordinance
And
In the matter of the application of Montserrat Geothermal Company
(a proposed limited company) for a licence/or sub-licence)
to generate electricity from Geothermal energy and to transmit
distribute and sell the same for commercial and domestic use
____________________________________________________
To: Her Excellency the Governor
And to: Montserrat Electricity Services Ltd.
APPLICATION:
We, Allen Markham & Associates whose address is 100 Banks Estate, Montserrat, have been instructed by a group of Montserratians desirous of incorporating a Company to be named MONTSERRAT GEOTHERMAL COMPANY LIMITED to apply to Her Excellency the Governor in Council pursuant to the Provisions of the Electricity Supply Ordinance for a licence to generate transmit distribute and sell electricity for commercial use from geothermal sources.
We have full instructions to incorporate this Company which will be registered within four days of receiving the commitment that the application will be favourably considered.
The Company will be wholly owned by Montserratians and permanent residents of Montserrat.
The Company understands and accepts that it will immediately become necessary to amend existing legislation or to pass new enabling legislation for this purpose, since MONLEC has the exclusive right to generate electricity for commercial use and is therefore willing and ready to work with MONLEC or to enter into whatever kind of accommodation is considered necessary to ensure that the end results enure to the benefit of Montserratians. For this reason we list hereunder the certain benefits that Montserratians will derive from this venture.
- 1. The provision of electricity for domestic and commercial use at very Low cost.
- 2. Electricity generated from geothermal sources is environmentally friendly and continuously renewable.
- 3. Cheaper electricity will attract a wide range of industries that require low cost electricity in order to be viable.
- 4. The flow of industries into Montserrat will encourage many of our best and brightest people now living and studying abroad to return home. The resulting increase in the island's population to, or close to pre-volcano crisis levels will bring enormous social and economic benefit to the Island.
- 5. Reduced exposure to the fluctuating costs of imported fossil fuels to Montserrat will be of major financial benefit to the entire economy. MONLEC by itself will save not less than $12 million annually in fuel costs and generating expenses.
- 6. With geothermal energy resources at the shallowest depths in the entire OECS and these resources having been already tested at superheated levels between 200 and 250 degrees Centigrade Montserrat has the potential to provide 5 megawatts of electricity within 18 months to meet all its needs and to provide electricity to neighbouring countries soon thereafter.
- 7. Cheap electricity generated from geothermal sources will create major savings for government that can be diverted to critically important areas of the national economy.
- 8. It is the intention of the Company to:
- (a) to make shares available to every household on Montserrat, Montserratians living abroad as well as MONLEC/Government of Montserrat.
- (b) to ensure that the control of the Company remains in Montserratian hands thereby bringing lasting benefits to the Montserrat community for many years to come.
TERMS OF LICENCE
The application is for permission to generate 5 megawatts of electricity in the first instance for a term of 10 years, with provision for renewal, on mutually agreeable terms and conditions.
We hereby give the undertaking on behalf of the said proposed company:
- (i) that the Company is well able to finance the entire venture and to provide whatever resources and expertise are necessary at every stage of development
- (ii) to proceed forthwith (on the granting of the licence, or irrevocable
assurance that the licence will be granted) to expediate whatever agreements are necessary to ensure that cheaper electricity is made available to the people in Montserrat within 24 months of the granting of such licence.
- (iii) To have those members of the group spearheading this venture held in Readiness to appear before Executive Council (if called upon to do so) and make a presentation. We will await your kind reply.
Dated November 20, 2006
(signature)
ALLEN MARKHAM & ASSOCIATES