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R-93-05-27-10A - 5/27/1993THE STATE OF TEXAS COUNTY OF WILLIAMSON . TAX ABATEMENT AGREEMENT R-93-05-.27-1014 This Tax Abatement Agreement ( "Agreement ") is entered into by and between the City of Round Rock, Texas, a home rule city and Municipal Corporation of Williamson County, Texas, duly acting herein by and through its Mayor, hereinafter referred to as "City" and Micro-Bac International, Inc., duly acting by and through its President or any Vice President, hereinafter referred to as "Owner ". WITNESSETH: . WHEREAS, on the 13th day of May, 1993, the City Council of the City of Round Rock, Texas, passed Ordinance No. G- 93- 05- 13 -11A establishing Reinvestment Zone No. 6, City of Round Rock, Texas for commercial /industrial tax abatement, hereinafter referred to as "Ordinance No. G- 93- 05- 13 -11A ", as authorized by Chapter 312, Tax Code, V.A.T.S. as amended, hereinafter referred to as the "Code "; and WHEREAS, City has adopted Ordinance Number 2556, which Ordinance adopted appropriate guidelines and criteria governing reinvestment zones and tax abatement agreements to be entered into by the City as contemplated by the Code; and WHEREAS, in order to maintain and /or enhance the commercial /industrial economic and employment base of City's territorial jurisdiction area, intra and extra, 1 to the long term interest and benefit of City, in accordance with Ordinance No. 2556 and the Code; and WHEREAS, the contemplated use of the Premises, as hereinafter defined, the contemplated improvements to the Premises in the amount as set forth in this Agreement and the other terms hereof are consistent with encouraging development of said Reinvestment Zone No. 6 in accordance with the purposes for its creation and are in compliance with Ordinance No. 2556 and the guidelines and criteria adopted by City and all applicable law; and WHEREAS, the Improvements as defined below constitute a major investment within Reinvestment Zone No. 6 that will substantially increase the appraised value of property within the zone and will contribute to the retention or expansion of primary and secondary employment within City; and WHEREAS, City finds that there will be no substantial adverse affect on the provision of city services or on its tax base and the planned use of the Premises will not constitute a hazard to public safety, health, or welfare, Now Therefore, the parties hereto do mutually agree as follows: 1. The property to be. the "subject of this Agreement shall be that property described by metes and bounds and map attached'hereto as Exhibit "A" and made a part hereof and shall be hereinafter referred to as "Premises ". 2. The Owner shall promptly commence construction of its facility, described in Exhibit "B" on the Premises (hereinafter referred to as "Improvements") with total construction cost of approximately One Million Dollars ($1,000,000.00) and to be substantially complete on or about March 31, 1994; 2 provided, that Owner shall have such additional time to complete the Improvements as may be required in the event of "force majeure" if Owner is diligently and faithfully pursuing completion of the Improvements. For this purpose, "force majeure" shall mean any contingency or cause beyond the reasonable control of Owner including, without limitation, acts of God or the public enemy, war, riot, civil commotion, insurrection, governmental or de facto governmental action (unless caused by acts or omissions of Owner), fires, explosions or floods, and strikes. The date of completion of the Improvements shall be defined as the date a Certificate of Occupancy is issued by the City of Round Rock. 3. Owner agrees and covenants that it will diligently and faithfully in a good and workmanlike manner pursue the completion of the Improvements' as a good and valuable consideration of this Agreement. Owner further covenants and agrees that all construction of the Improvements will be in accordance with all applicable state and local laws and regulations or valid waiver thereof. In further consideration, Owner shall thereafter, from the date a Certificate of Occupancy is issued until the expiration of this Agreement, continuously operate and maintain the Premises as a research and manufacturing plant. 4. Owner agrees and covenants that Improvements shall provide employment according to the following accumulative schedule: Upon completion - 18 jobs By December 31,1995 - 21 jobs By December 31, 1996 - 24 jobs By December 31,1997 - 27 jobs 3 Owner shall provide to City annual manpower reports within thirty (30) days following the end of each calendar year, attached hereto as Exhibit "E ". Regardless of anything contained herein to the contrary, the failure by Owner and Occupant to provide collectively the number of jobs set out in the above schedule shall not be considered an event of default as defined in paragraph 6 below, unless the number of jobs actually provided is less than seventy-five percent (75 %) of the number set out in the schedule. If the actual number of jobs provided at the end of any year is less than the scheduled number, but is seventy-five percent (75 %) or more of such number, then the percentage of tax abatement for the following year as provided in paragraph 11 below shall be reduced. The percentage of tax abatement shall be reduced by subtracting the percentage that the actual number of jobs are less than the scheduled number of jobs. By way of illustration, the schedule requires 21 jobs by December 31, 1995, but if only 17 jobs are provided, then the tax abatement for 1995 shall be reduced from 90% to 71% (i.e. 17 /21 = 81 %, thus 90% less 19 %). Similarly, the schedule requires 24 jobs by December 31,1996, but if only 20 jobs are provided, then the tax abatement for 1995 shall be reduced from 60% to 40% (i.e. 20 /24 = 80%, thus 60% less 20%). Failure to provide at least seventy percent (75 %) of the number of jobs in any one year shown on the above schedule shall be considered an event of default of this Agreement. By way of clarification, failure to provide at least seventy percent (75 %) of the number of jobs shown on the above schedule shall be considered an event of default of this Agreement. 4 5. Owner agrees and covenants that the Premises shall contain taxable personal property and equipment with an assessed value of not less than that shown on the following cumulative schedule:" - Upon completion: $100,000.00' . Dec. 31, 1995 $110,000.00 Dec. 31,1996 $120,000.00 Dec 31,1997 $130,000.00 Owner shall provide to City a statement of the value of taxable personal property and equipment within thirty (30) days following completion of the facility. City shall have the option of conducting an appraisal by an appraiser acceptable to City to verify the value of said property and equipment. If the value determined is one hundred and five percent (105 %) or more of the value certified by the Owner, then the Owner shall bear the cost of the appraisal; otherwise the cost shall be born by City. 6. In the event that (1) the Improvements for which an abatement has been granted are not completed in accordance with this Agreement or (2) Owner allows its ad valorem taxes owed to City to become delinquent and fails to timely and properly follow the legal procedures for protest and /or contest of any such ad valorem taxes; or (3) Owner breaches any of the terms or conditions of this Agreement, then this Agreement shall be in default. In the event that Owner defaults in its performance of (1), (2), or (3) above, then City shall give Owner written notice of such default and if Owner has not cured such default within thirty (30) days of said written notice, or, if such default cannot be cured by the payment of money and cannot with due diligence be cured within a 90 -day period owing to causes beyond the control of Owner, this Agreement may be terminated by City. Notice shall be in writing and shall be delivered by personal delivery or certified mail to: Micro -Bac International, Inc 9607 Gray Blvd. Austin, Texas 78758 As liquidated damages in the event of default and in accordance -with Section 312.205, Tax Code, V.A.T.S., as amended, all taxes which otherwise would have been • paid to the City without the benefit of abatement (but without the addition of • i• penalty; interest will be charged at the statutory rate for delinquent taxes as determined by Section 33.01 of the Tax Code) will become a debt to City and shall be due, owing and paid to City within thirty (30) days of the expiration of the above mentioned applicable cure period as the sole remedy of City. City shall have all remedies for the collection of the recaptured tax revenue as provided generally in the Tax Code for the collection of delinquent property taxes. The parties acknowledge that actual damages in the event of default and termination would be speculative and impossible to determine. 7. City and Owner each represent and warrant that the Premises does not indude any property that is owned by a member of their respective councils or boards, agencies, commissions, or other governmental bodies approving, or having responsibility for the approval of, this Agreement. 8. The terms and conditions of this Agreement are binding upon the successors and assigns of all parties hereto. Except as provided below, this Agreement cannot be assigned by Owner unless written permission is first granted by City, which permission shall not be unreasonably withheld. Any assignment shall provide that the assignee shall irrevocably and unconditionally assume all duties and obligations of Owner as set out in this Agreement. No assignment shall be approved if the assignor or assignee is indebted to City for ad valorem taxes or other obligations. 9. It is understood and agreed between the parties that Owner, in performing its obligations hereunder, is acting independently, and City assumes no responsibilities or liabilities in connection therewith to third parties. Owner agrees to indemnify and hold City harmless from any and all kinds of claims, losses, damages, injuries, suits, or judgments. 10. The Owner further agrees that City, its agents and employees, shall have reasonable right of access to the Premises to inspect the Improvements in order to insure that the construction of the Improvements are in accordance with this Agreement and all applicable state and local laws and regulations or valid waiver thereof. After completion of the Improvements, City shall have the continuing right to inspect the Premises to insure that the Premises are thereafter maintained and operated in accordance with this Agreement. 11. Subject to the terms and conditions of this Agreement, and subject to the rights and holders of any outstanding bonds of the City, a portion of ad valorem real property taxes from the Property otherwise owed to the City shall be abated. City 7 hereby acknowledges that it is not aware of any terms or conditions of any outstanding bonds which would invalidate this Agreement. Said abatement shall be an amount equal to the below- stated percentages assessed upon the increased value of the Property and Improvements over the value of Property and Improvments in the year in which this Agreement is executed, in accordance with ' the terms of this Agreement and all applicable state and local regulations. The, percentage of abatements are as follows: Year 1995: 90% abatement Year 1996: 60% abatement Year 1997: 30% abatement These abatements shall be for three (3) years beginning January 1, 1995. 12. Owner agrees and covenants that the attached application for tax abatement (Exhibit "C ") is a part of this agreement, and Owner further warrants that the information provided in that application is true and correct and that any materially false or misleading information that is provided to the taxing jurisdictions may be grounds for termination of the agreement with possible liability for recovery of abated taxes. 13. It is understood and agreed by City and Owner that if the Premises has been designated and taxed as agricultural land pursuant to Chapter 23, Subchapter C, Tax Code, V.A.T.S., that this Agreement shall not be effective and no abatement granted until Owner has removed the agricultural use designation and all taxes due pursuant to Section 23.55, Tax Code, V.A.T.S.; as amended, (roll back taxes) have been paid. 8 14. This Agreement was authorized by Resolution of the City Council at its Council meeting on the Ov - day of , 1993, authorizing the Mayor to execute the Agreement on behalf of City. 15. This Agreement was entered into by Micro -Bac International, Inc. pursuant to authority granted by its Board of Directors on the 25th day of February, 1993, whereby the President was authorized to execute this Agreement on behalf of Micro -Bac International, Inc., a copy of which authorization is attached hereto as Exhibit "D ". 18. This shall constitute a valid and binding Agreement between City and Micro -Bac International, Inc. when executed in accordance herewith. 19. This Agreement is performable in Williamson County, Texas. Witness our hands this Gt day of 19 93 . ATTEST: e Land, City Secretary APP O D AS TO .ORM: Steph•° L. Sheets, City Attorney 9 APPROVED AS TO FORM: Attorney for Micro-Bac International, Inc By Micro -Bac International, Inc. N\Ku\ (A-- orales, President 10 t EXHIBIT "A" Property Description OF A 9.663 ACRE PARCEL OF LAND OUT OF THE DAVID CURRY SURVEY, ABSTRACT NO. 130, CITY OF ROUND ROCK, WILLIAMSON COUNTY, TEXAS; BEING THE SAME PARCEL DESCRIBED IN SUBSTITUTE TRUSTEE'S DEED RECORDED IN VOLUME 1669, PAGE 957, DEED RECORDS OF WILLIAMSON COUNTY, TEXAS; SAID 9.663 ACRE PARCEL BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: Beginning at 1/2" iron rod found on the easterly right -of -way line of Chisholm Trail (an apparent 80 foot R.O.W.) at the southwesterly corner of this parcel; THENCE NO2 °03'01 "E 249.38 feet with said right -of -way line to a 1/2" iron rod set; THENCE the following three (3) consecutive courses with the fenced perimeter of a City of Round Rock well site (0.115 acre) as described in Volume 792, page 510 Deed Records of Williamson County, Texas: (1) 587°58'04 "E 49.99 feet to a 1/2" iron rod found; (2) NO2 °01' 56 "E 100.04 feet to a 1/2" iron rod found; (3) N87°58' 04 "W 49.96 feet to a 1/2" iron rod set on the easterly right of way line of Chisholm Trail; THENCE NO2 °03'01 "E 548.53 feet with said right -of -way line to a 1/2" iron rod set at the northwesterly corner of this parcel; THENCE S89 °33'27 "E 362.85 feet with the southerly right -of -way line of Chisholm Trail (an apparent 40 foot R.O.W.) to a 1/2" iron rod set; THENCE the following three (3) consecutive courses with the perimeter of a City of Round Rock well site (0.020 acre) as described in Volume 855, Page 512, Deed Records of Williamson County, Texas: (1) S00 °52'33 "W 24.48 feet to a 60d nail found; (2) S89 °07'27 "E 34.98 feet to a 60d nail found; (3) N00 °52'33 "E 24.74 feet to a 1/2" iron rod set on the southerly right -of- way line of Chisholm Trail; THENCE S89 °33'27 "E 34.79 feet with said right-of-way line to a concrete monument found; 11 THENCE the following three (3) consecutive courses with the westerly right -of -way line of Interstate Highway No 35: (1) S26 °46'46 "E 112.70 feet to a 1/2" iron set; (2) S00 °27'51 "E 297.64 feet to a concrete monument found; (3) S02 ° 40'21 "E 402.89 feet to a 7/8" iron rod found; THENCE S80 °08'00 "W 544.76 feet with the common line between this parcel and Lot 1, Burnette Business Park, Section One, a subdivision recorded in Cabinet E, Slide 362, Plat Records of Williamson County, Texas to the POINT OF BEGINNING, containing 9.663 acres of land. This parcel is subject to the following easements of record: (1) A 15 foot public utility easement recorded in Volume 811, Page 119, Deed Records of Williamson County, Texas. (2) A 15 foot public utility easement recorded in Volume 855, Page 517, Deed Records of Williamson County, Texas. 12 . t. EXHIBIT "B" Description of Improvements To Be Constructed A two- story, research and manufacturing facility, including office and warehouse, of approximately 25,000 square feet. 13 A I. APPLICANT INFORMATION: DATE A. Company Name: MICRO -BAC INTERNATIONAL, INC. B. Address: 9607 Gray Blvd., Austin, TX 78758 IL PROJECT INFORMATION: EXHIBIT "C" APPLICATION FOR TAX ABATEMENT This is to certify that the statements contained herein are true and correct. The signers hereof are authorized to make these statements on behalf of the applicant. The filing of this document acknowledges familiarity and conformance with guidelines and criteria for granting tax abatement. This application will become part of the agreement which shall be enforceable and binding on the applicant. False representations will be grounds for terminating the agreement. Any such false statements shall be considered a default which renders the agreement void. This application should be filed with the City Manager of the City of Round Rock, 221 East Main Street, Round Rock, Texas 78664. A. Description of area to be designated as reinvestment zone: (attach map) A 9.663 acre parcel of land out of the David Curry Survey, Abstract No. 130, City of Round Rock,Williamson County, Texas; being the same parcel described in Substitute Trustee's Deed Recorded in Volume 1669, Page 957, Deed Records of Williamson County, Texas. B. Description of eligible improvements (real property) to be constructed: A two -story research and manufacturing facility of approximately 25,000 square feet. C. Current assessed value: 1993: $420,790.00 D. Estimated value of eligible improvements: $1,000,000.00 14 E. Description of ineligible (taxable) property to be included in project: None F. Estimated value of ineligible property: Not applicable G. Estimated value of site as of January 1 preceding abatement agreement (1) Land: $200,000.00 (2) Improvements: -0- (3) Personal Property -0- H. This project is: ( ) A New Plant ( ) An Expansion ( ) A Modernization If Modernization: Estimated economic life of existing plant . Added economic life from modernization: I. Tax abatement requested: 1 90% of eligible property for year 1. 60% of eligible property for year 2. 30% of eligible property for year 3. Ell ECONOMIC INFORMATION: A. Construction Estimates: (1) Commencement Date June 1, 1993 (2) Completion Date: March 31, 1994 (3) Number of Construction Jobs: Not applicable Not applicable B. Estimated number of jobs to be created: . - Local Transfer . Total Est. Salaries 1. December 31,1994 0 18 18 $1,070,000.00 2. December 31,1995 3 0 21 $1,150,000.00 3. December 31,1996 3 0 24 $1,200,000.00 4. December 31,1997 3 0 27 $1,260,000.00 15 C. Other estimated taxes generated by project: (1) Sales Taxes: $35,000.00 on new plant (2) Other (Identify): D. The proposed reinvestment zone is located in: (1) City: Round Rock, Texas ' = (2) County: Williamson County (3) School District Round Rock Independent School District (4) Other Taxing Jurisdiction: Water Control and Improvement District County Education District " N\MAL, J cai Signature f Authorized Company Official J.M. Morales. President Name and Title of Authorized Company Official Company Representative to be contacted: Larry Hill, Controller Micro -Bac International, Inc. 9607 Gray Blvd. Austin, Texas 78758 (512) 837 -1145 Upon receipt of the application, the City of Round Rock may also require copies of the latest annual stockholders report, audited financial statements, bank references, and any other information required to evaluate the application. 16 STATE OF TEXAS COUNTY OF WILLIAMSON . BEFORE ME, the undersigned Notary Public, on this day personally appeared J.M. Morales, President of Micro -Bac International, Inc. (Owner), being by me duly sworn on his oath deposed and said that he is duly qualified and authorized in all respects to make this affidavit; that he has read the above and foregoing Application For Tax Abatement; and that every statement contained in the Application is within his knowledge and true and correct. SUBSCRIBED AND SWORN TO BEFORE ME on the 2 day of May 19 93 to certify which witness my hand and official seal. JULIE A. MURRAY Notary Public, State of Texas MY Commission Expires MARCH 25, 1997 VERIFICATION 17 Notar/ ublic, State of Texa Printe. Name: Julie A. Murra My Commission Expires:Jlarch 25 1997 EXHIBIT "D" Resolution or Other Authorization Of Owner's Board of Directors SPECIAL MEETING OF BOARD OF DIRECTORS A special meeting of the Board of Directors of Micro -Bac International, Inc., a Texas Corporation, was held at Austin, Texas on February 25, 1993, having been called by the President, Juan Morales. Present at the meeting and acting as Chairman was Juan Morales, whose attendance at the meeting constituted a waiver of notice of such meeting. A quorum was dedared to be present. Mr. Morales noted that the purpose of the meeting was to authorize the purchase of property suitable for new company headquarters. The reason for this resolution is that we have outgrown our present facility. Thereon, the following resolution was duly adopted: The company is hereby authorized to purchase property suitable for new company headquarters. t < Resolved that the proper officers of the Corporation are, and each of them is, hereby authorized and directed, in the name of and on behalf of the Corporation, to execute and deliver this resolution, and to do all other things, including the execution of any documents, which they deem necessary or appropriate to implement the foregoing resolution. 18 Title: President EXHIBIT "E" MANPOWER REPORT I, of Micro -Bac International, Inc. (Owner) do certify that on December 31, 19_ there • were - individuals actively employed at Micro -Bac International, Inc. STATE OF TEXAS COUNTY OF WILLIAMSON . 19 • Date: Signature: Title: BEFORE ME, the undersigned Notary Public, on this day personally appeared , of Micro-Bac International, Inc. (Owner), being by me duly sworn on his oath deposed and said that he is duly qualified and authorized in all respects to make this affidavit; and that every statement contained in the Manpower Report is within his knowledge and true and correct. SUBSCRIBED AND SWORN TO BEFORE ME on the day of .19 , to certify which witness my hand and official seal. Notary Public, State of Texas Printed Name: My Commission Expires: RESOLUTION NO. 2-93-05 - l -O/ ) WHEREAS, the City Council of Round Rock, Texas, on the 13th day of May, 1993 in Ordinance No. G- 93- 05- 13 -11A created the Reinvestment Zone No. Six, City of Round Rock, Texas, and WHEREAS, in accordance with the Property Redevelopment Tax Abatement Act, Chapter 312, Tax Code of the State of Texas, as amended, the City desires to enter into a tax abatement agreement with Micro Bac International regarding property located in said Reinvestment Zone, Now Therefore, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, That the Mayor is hereby authorized to sign on behalf of the City the Tax Abatement Agreement rattta{ched hereto and incorporated herein for all purposes. RESOLVED this oc I = day of 1993. i ATTEST: CHARLES CUL R, Mayor City of Round Rock, Texas THE STATE OF TEXAS COUNTY OF WILLIAMSON . TAX ABATEMENT AGREEMENT This Tax Abatement Agreement ( "Agreement ") is entered into by and between the City of Round Rock, Texas, a home rule city and Municipal Corporation of Williamson County, Texas, duly acting herein by and through its Mayor, hereinafter referred to as "City" and Micro-Bac International, Inc., duly acting by and through its President or any Vice President, hereinafter referred to as "Owner ". WITNESSETH: WHEREAS, on the 13th day of May, 1993, the City Council of the City of Round Rock, Texas, passed Ordinance No. G- 93- 05- 13 -11A establishing Reinvestment Zone No. 6, City of Round Rock, Texas for commercial /industrial tax abatement, hereinafter referred to as "Ordinance No. G- 93- 05- 13 -11A ", as authorized by Chapter 312, Tax Code, V.A.T.S. as amended, hereinafter referred to as the "Code "; and WHEREAS, City has adopted Ordinance Number 2556, which Ordinance adopted appropriate guidelines and criteria governing reinvestment zones and tax abatement agreements to be entered into by the City as contemplated by the Code; and WHEREAS, in order to maintain and /or enhance the commercial /industrial economic and employment base of City's territorial jurisdiction area, intra and extra, 1 to the long term interest and benefit of City, in accordance with Ordinance No. 2556 and the Code; and WHEREAS, the contemplated use of the Premises, as hereinafter defined, the contemplated improvements to the Premises in the amount as set forth in this Agreement and the other terms hereof are consistent with encouraging development of said Reinvestment Zone No. 6 in accordance with the purposes for its creation and are in compliance with Ordinance No. 2556 and the guidelines and criteria adopted by City and all applicable law; and WHEREAS, the Improvements as defined below constitute a major investment within Reinvestment Zone No. 6 that will substantially increase the appraised value of property within the zone and will contribute to the retention or expansion of primary and secondary employment within City; and WHEREAS, City finds that there will be no substantial adverse affect on the provision of city services or on its tax base and the planned use of the Premises will not constitute a hazard to public safety, health, or welfare, Now Therefore, the parties hereto do mutually agree as follows: 1. The property to be the subject of this Agreement shall be that property described by metes and bounds and map attached hereto as Exhibit "A" and made a part hereof and shall be hereinafter referred to as "Premises ". 2. The Owner shall promptly commence construction of its facility, described in Exhibit "B" on the Premises (hereinafter referred to as "Improvements ") with total construction cost of approximately One Million Dollars ($1,000,000.00) and to be substantially complete on or about March 31, 1994; 2 provided, that Owner shall have such additional time to complete the Improvements as may be required in the event of "force majeure" if Owner is diligently and faithfully pursuing completion of the Improvements. For this purpose, "force majeure" shall mean any contingency or cause beyond the reasonable control of Owner including, without limitation, acts of God or the public enemy, war, riot, civil commotion, insurrection, governmental or de facto governmental action (unless caused by acts or omissions of Owner), fires, explosions or floods, and strikes. The date of completion of the Improvements shall be defined as the date a Certificate of Occupancy is issued by the City of Round Rock. 3. Owner agrees and covenants that it will diligently and faithfully in a good and workmanlike manner pursue the completion of the Improvements as a good and valuable consideration of this Agreement. Owner further covenants and agrees that all construction of the Improvements will be in accordance with all applicable state and local laws and regulations or valid waiver thereof. In further consideration, Owner shall thereafter, from the date a Certificate of Occupancy is issued until the expiration of this Agreement, continuously operate and maintain the Premises as a research and manufacturing plant. 4. Owner agrees and covenants that Improvements shall provide employment according to the following accumulative schedule: Upon completion - 18 jobs By December 31, 1995 - 21 jobs By December 31, 1996 - 24 jobs By December 31, 1997 - 27 jobs 3 Owner shall provide to City annual manpower reports within thirty (30) days following the end of each calendar year, attached hereto as Exhibit "E ". Regardless of anything contained herein to the contrary, the failure by Owner and Occupant to provide collectively the number of jobs set out in the above schedule shall not be considered an event of default as defined in paragraph 6 below, unless the number of jobs actually provided is less than seventy-five percent (75 %) of the number set out in the schedule. If the actual number of jobs provided at the end of any year is less than the scheduled number, but is seventy percent (75 %) or more of such number, then the percentage of tax abatement for the following year as provided in paragraph 11 below shall be reduced. The percentage of tax abatement shall be reduced by subtracting the percentage that the actual number of jobs are less than the scheduled number of jobs. By way of illustration, the schedule requires 21 jobs by December 31, 1995, but if only 17 jobs are provided, then the tax abatement for 1995 shall be reduced from 90% to 71% (i.e. 17 /21 = 81 %, thus 90% less 19 %). Similarly, the schedule requires 24 jobs by December 31,1996, but if only 20 jobs are provided, then the tax abatement for 1995 shall be reduced from 60% to 40% (i.e. 20 /24 = 80 %, thus 60% less 20 %). Failure to provide at least seventy-five percent (75 %) of the number of jobs in any one year shown on the above schedule shall be considered an event of default of this Agreement. By way of clarification, failure to provide at least seventy-five percent (75 %) of the number of jobs shown on the above schedule shall be considered an event of default of this Agreement. 4 5. Owner agrees and covenants that the Premises shall contain taxable personal property and equipment with an assessed value of not less than that shown on the following cumulative schedule: Upon completion: $100,000.00. Dec. 31, 1995 $110,000.00 Dec. 31, 1996 $120,000.00 Dec. 31,1997 $130,000.00 Owner shall provide to City a statement of the value of taxable personal property and equipment within thirty (30) days following completion of the facility. City shall have the option of conducting an appraisal by an appraiser acceptable to City to verify the value of said property and equipment. If the value determined is one hundred and five percent (105 %) or more of the value certified by the Owner, then the Owner shall bear the cost of the appraisal; otherwise the cost shall be born by City. 6. In the event that (1) the Improvements for which an abatement has been granted are not completed in accordance with this Agreement or (2) Owner allows its ad valorem taxes owed to City to become delinquent and fails to timely and properly follow the legal procedures for protest and /or contest of any such ad valorem taxes; or (3) Owner breaches any of the terms or conditions of this Agreement, then this Agreement shall be in default. In the event that Owner defaults in its performance of (1), (2), or (3) above, then City shall give Owner written notice of such default and if Owner has not cured such default within thirty (30) days of said written notice, or, if such default cannot be cured by the payment of 5 money and cannot with due diligence be cured within a 90 -day period owing to causes beyond the control of Owner, this Agreement may be terminated by City. Notice shall be in writing and shall be delivered by personal delivery or certified mail to: Micro - Bac International, Inc. 9607 Gray Blvd. Austin, Texas 78758 As liquidated damages in the event of default and in accordance with Section 312.205, Tax Code, V.A.T.S., as amended, all taxes which otherwise would have been paid to the City without the benefit of abatement (but without the addition of penalty; interest will be charged at the statutory rate for delinquent taxes as determined by Section 33.01 of the Tax Code) will become a debt to City and shall be due, owing and paid to City within thirty (30) days of the expiration of the above mentioned applicable cure period as the sole remedy of City. City shall have all remedies for the collection of the recaptured tax revenue as provided generally in the Tax Code for the collection of delinquent property taxes. The parties acknowledge that actual damages in the event of default and termination would be speculative and impossible to determine. 7. City and Owner each represent and warrant that the Premises does not include any property that is owned by a member of their respective councils or boards, agencies, commissions, or other governmental bodies approving, or having responsibility for the approval of, this Agreement. 6 8. The terms and conditions of this Agreement are binding upon the successors and assigns of all parties hereto. Except as provided below, this Agreement cannot be assigned by Owner unless written permission is first granted by City, which permission shall not be unreasonably withheld. Any assignment shall provide that the assignee shall irrevocably and unconditionally assume all duties and obligations of Owner as set out in this Agreement. No assignment shall be approved if the assignor or assignee is indebted to City for ad valorem taxes or other obligations. 9. It is understood and agreed between the parties that Owner, in performing its obligations hereunder, is acting independently, and City assumes no responsibilities or liabilities in connection therewith to third parties. Owner agrees to indemnify and hold City harmless from any and all kinds of claims, losses, damages, injuries, suits, or judgments. 10. The Owner further agrees that City, its agents and employees, shall have reasonable right of access to the Premises to inspect the Improvements in order to insure that the construction of the Improvements are in accordance with this Agreement and all applicable state and local laws and regulations or valid waiver thereof. After completion of the Improvements, City shall have the continuing right to inspect the Premises to insure that the Premises are thereafter maintained and operated in accordance with this Agreement. 11. Subject to the terms and conditions of this Agreement, and subject to the rights and holders of any outstanding bonds of the City, a portion of ad valorem real property taxes from the Property otherwise owed to the City shall be abated. City 7 hereby acknowledges that it is not aware of any terms or conditions of any outstanding bonds which would invalidate this Agreement. Said abatement shall be an amount equal to the below- stated percentages assessed upon the increased value of the Property and Improvements over the value of Property and Improvments in the year in which this Agreement is executed, in accordance with the terms of this Agreement and all applicable state and local regulations. The percentage of abatements are as follows: Year 1995: 90% abatement Year 1996: 60% abatement Year 1997: 30% abatement These abatements shall be for three (3) years beginning January 1, 1995. 12. Owner agrees and covenants that the attached application for tax abatement (Exhibit "C ") is a part of this agreement, and Owner further warrants that the information provided in that application is true and correct and that any materially false or misleading information that is provided to the taxing jurisdictions may be grounds for termination of the agreement with possible liability for recovery of abated taxes. 13. It is understood and agreed by City and Owner that if the Premises has been designated and taxed as agricultural land pursuant to Chapter 23, Subchapter C, Tax Code, V.A.T.S., that this Agreement shall not be effective and no abatement granted until Owner has removed the agricultural use designation and all taxes due pursuant to Section 23.55, Tax Code, V.A.T.S., as amended, (roll back taxes) have been paid. 8 14. This Agreement was authorized by Resolution of the City Council at its Council meeting on the day of , 1993, authorizing the Mayor to execute the Agreement on behalf of City. 15. This Agreement was entered into by Micro -Bac International, Inc. pursuant to authority granted by its Board of Directors on the 25th day of February, 1993, whereby the President was authorized to execute this Agreement on behalf of Micro -Bac International, Inc., a copy of which authorization is attached hereto as Exhibit "D ". 18. This shall constitute a valid and binding Agreement between City and Micro-Bac International, Inc. when executed in accordance herewith. 19. This Agreement is performable in Williamson County, Texas. Witness our hands this day of , 19 . ATTEST: CITY OF ROUND ROCK, TEXAS By: Joanne Land, City Secretary Mike Robinson, Mayor APPROVED AS TO FORM: Stephan L. Sheets, City Attorney 9 APPROVED AS TO FORM: Attorney for Micro -Bac International, Inc. Micro -Bac International, Inc. By: J.M. Morales, President 10 EXHIBIT "A" Property Description OF A 9.663 ACRE PARCEL OF LAND OUT OF THE DAVID CURRY SURVEY, ABSTRACT NO. 130, CITY OF ROUND ROCK, WILLIAMSON COUNTY, TEXAS; BEING THE SAME PARCEL DESCRIBED IN SUBSTITUTE TRUSTEE'S DEED RECORDED IN VOLUME 1669, PAGE 957, DEED RECORDS OF WILLIAMSON COUNTY, TEXAS; SAID 9.663 ACRE PARCEL BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: Beginning at 1/2" iron rod found on the easterly right -of -way line of Chisholm Trail (an apparent 80 foot R.O.W.) at the southwesterly corner of this parcel; THENCE NO2 °03'01 "E 249.38 feet with said right -of -way line to a 1/2" iron rod set; THENCE the following three (3) consecutive courses with the fenced perimeter of a City of Round Rock well site (0.115 acre) as described in Volume 792, page 510 Deed Records of Williamson County, Texas: (1) S87 ° 58'04 "E 49.99 feet to a 1/2" iron rod found; (2) NO2 °01' 56 "E 100.04 feet to a 1/2" iron rod found; (3) N87°58' 04 "W 49.96 feet to a 1/2" iron rod set on the easterly right of way line of Chisholm Trail; THENCE NO2 °03'01 "E 548.53 feet with said right -of -way line to a 1/2" iron rod set at the northwesterly corner of this parcel; THENCE S89 ° 33'27 "E 362.85 feet with the southerly right -of -way line of Chisholm Trail (an apparent 40 foot R.O.W.) to a 1/2" iron rod set; THENCE the following three (3) consecutive courses with the perimeter of a City of Round Rock well site (0.020 acre) as described in Volume 855, Page 512, Deed Records of Williamson County, Texas: (1) S00 °52'33 "W 24.48 feet to a 60d nail found; (2) S89 ° 07'27 "E 34.98 feet to a 60d nail found; (3) N00 °52'33 "E 24.74 feet to a 1/2" iron rod set on the southerly right -of- way line of Chisholm Trail; THENCE S89 °33'27 "E 34.79 feet with said right -of -way line to a concrete monument found; 11 THENCE the following three (3) consecutive courses with the westerly right -of -way line of Interstate Highway No 35: (1) S26 °46'46 "E 112.70 feet to a 1/2" iron set; (2) S00 °27'51 "E 297.64 feet to a concrete monument found; (3) S02 °40'21 "E 402.89 feet to a 7/8" iron rod found; THENCE S80 °08'00 "W 544.76 feet with the common line between this parcel and Lot 1, Burnette Business Park, Section One, a subdivision recorded in Cabinet E, Slide 362, Plat Records of Williamson County, Texas to the POINT OF BEGINNING, containing 9.663 acres of land. This parcel is subject to the following easements of record: (1) A 15 foot public utility easement recorded in Volume 811, Page 119, Deed Records of Williamson County, Texas. (2) A 15 foot public utility easement recorded in Volume 855, Page 517, Deed Records of Williamson County, Texas. 12 EXHIBIT "B" Description of Improvements To Be Constructed A two - story, research and manufacturing facility, including office and warehouse, of approximately 25,000 square feet. 13 EXHIBIT "C" APPLICATION FOR TAX ABATEMENT This is to certify that the statements contained herein are true and correct. The signers hereof are authorized to make these statements on behalf of the applicant. The filing of this document acknowledges familiarity and conformance with guidelines and criteria for granting tax abatement. This application will become part of the agreement which shall be enforceable and binding on the applicant. False representations will be grounds for terminating the agreement. Any such false statements shall be considered a default which renders the agreement void. This application should be filed with the City Manager of the City of Round Rock, 221 East Main Street, Round Rock, Texas 78664. I. APPLICANT INFORMATION: DATE A. Company Name: MICRO -BAC INTERNATIONAL, INC. B. Address: 9607 Gray Blvd., Austin, TX 78758 IL PROTECT INFORMATION: A. Description of area to be designated as reinvestment zone: (attach map) A 9.663 acre parcel of land out of the David Curry Survey, Abstract No. 130, City of Round Rock,Williamson County, Texas; being the same parcel described in Substitute Trustee's Deed Recorded in Volume 1669, Page 957, Deed Records of Williamson County, Texas. B. Description of eligible improvements (real property) to be constructed: A two -story research and manufacturing facility of approximately 25,000 square feet. C. Current assessed value: 1993: $420,790.00 D. Estimated value of eligible improvements: $1,000,000.00 14 E. Description of ineligible (taxable) property to be included in project: None F. Estimated value of ineligible property: Not applicable G. Estimated value of site as of January 1 preceding abatement agreement: (1) Land: $200,000.00 (2) Improvements: -0- (3) Personal Property -0- H. This project is: ( '1) A New Plant ( ) An Expansion ( ) A Modernization If Modernization: Estimated economic life of existing plant: Added economic life from modernization: I. Tax abatement requested: 90% of eligible property for year 1. 60% of eligible property for year 2. 30% of eligible property for year 3. III. ECONOMIC INFORMATION: A. Construction Estimates: (1) Commencement Date: June 1, 1993 (2) Completion Date: March 31, 1994 (3) Number of Construction Jobs: Not applicable Not applicable B. Estimated number of jobs to be created: Local Transfer Total Est. Salaries 1. December 31, 1994 0 18 18 $1,070,000.00 2. December 31, 1995 3 0 21 $1,150,000.00 3. December 31, 1996 3 0 24 $1,200,000.00 4. December 31,1997 3 0 27 $1,260,000.00 15 C. Other estimated taxes generated by project: (1) Sales Taxes: $35,000.00 on new plant (2) Other (Identify): D. The proposed reinvestment zone is located in: (1) City: Round Rock, Texas (2) County: Williamson County (3) School District: Round Rock Independent School District (4) Other Taxing Jurisdiction: Water Control and Improvement District County Education District Signature of Authorized Company Official Name and Title of Authorized Company Official Company Representative to be contacted: Larry Hill, Controller Micro -Bac International, Inc. 9607 Gray Blvd. Austin, Texas 78758 (512) 837 -1145 Upon receipt of the application, the City of Round Rock may also require copies of the latest annual stockholders report, audited financial statements, bank references, and any other information required to evaluate the application. 16 STATE OF TEXAS COUNTY OF WILLIAMSON . VERIFICATION BEFORE ME, the undersigned Notary Public, on this day personally appeared J.M. Morales, President of Micro -Bac International, Inc. (Owner), being by me duly sworn on his oath deposed and said that he is duly qualified and authorized in all respects to make this affidavit; that he has read the above and foregoing Application For Tax Abatement; and that every statement contained in the Application is within his knowledge and true and correct. SUBSCRIBED AND SWORN TO BEFORE ME on the _ day of 19 , to certify which witness my hand and official seal. 17 Notary Public, State of Texas Printed Name: My Commission Expires: EXHIBIT "D" Resolution or Other Authorization Of Owner's Board of Directors SPECIAL MEETING OF BOARD OF DIRECTORS A special meeting of the Board of Directors of Micro -Bac International, Inc., a Texas Corporation, was held at Austin, Texas on February 25, 1993, having been called by the President, Juan Morales. Present at the meeting and acting as Chairman was Juan Morales, whose attendance at the meeting constituted a waiver of notice of such meeting. A quorum was dedared to be present. Mr. Morales noted that the purpose of the meeting was to authorize the purchase of property suitable for new company headquarters. The reason for this resolution is that we have outgrown our present facility. Thereon, the following resolution was duly adopted: The company is hereby authorized to purchase property suitable for new company headquarters. Resolved that the proper officers of the Corporation are, and each of them is, hereby authorized and directed, in the name of and on behalf of the Corporation, to execute and deliver this resolution, and to do all other things, including the execution of any documents, which they deem necessary or appropriate to implement the foregoing resolution. Date: - Signature: J.M. Morales 18 Title: President EXHIBIT "E" MANPOWER REPORT I, of Micro -Bac International, Inc. (Owner) do certify that on December 31, 19_ there were individuals actively employed at Micro -Bac International, Inc. Date: Signature: STATE OF TEXAS COUNTY OF WILLIAMSON . BEFORE ME, the undersigned Notary Public, on this day personally appeared , of Micro -Bac International, Inc. (Owner), being by me duly sworn on his oath deposed and said that he is duly qualified and authorized in all respects to make this affidavit; and that every statement contained in the Manpower Report is within his knowledge and true and correct. SUBSCRIBED AND SWORN TO BEFORE ME on the _ day of .19 to certify which witness my hand and official seal. 19 Title: Notary Public, State of Texas Printed Name: My Commission Expires: TS EDGAR HOPPE ° ° �� WU 929/ 741 21.534 AC """ 300 600 SCALL Or MR -~ ` ` • ~~ `` SECT | , ,^ 1672 /819 = Yeae -' " )~mployees ;a Real .' ;.;'.'.:• PTtY Prof a ' Abatement Percentage .•. S city Abatement Ad Valorem 062479 1995 21 1,000,000.00 90% 5,623.11 1996 24 1,000,000.00 60% 3,748.74 1997 27 1,000,000.00 30% 1,874.37 DATE: May 25, 1993 SUBJECT: City Council Meeting, May 27, 1993 ITEM: 10.A. Consider a resolution authorizing the Mayor to enter into a tax abatement agreement with Micro-Bac International. STAFF RESOURCE PERSON: Joe Vining STAFF RECOMMENDATION: Approval The attached agreement will provide a phased three year tax abatement to Micro Bac International who is relocating to Round Rock. This abatement agreement is between Micro -Bac and the City of Round Rock only. Micro -Bac International will be constructing a new two -story research and manufacturing facility of approximately 25,000 sq.ft. at 3200 N. IH 35. These improvements are estimated at $1,000,000. Total abatement over 3 years: 11,246.22 Biological products for a clean, safe environment. Micro -Bac International, Inc. • 9607 Gray Blvd. • Austin, TX • Phone (512) 837 -1145 • Fax (512) 837 -5968 30 00b 0 • • M Company History and Description Micro -Bac International, Inc. is a privately -owned research, development, and manufacturing facility that supplies bacterial products to a number of industries for a variety of purposes. To appreciate why these bacterial products are important, one must first understand the basic processes of nature. �c e Biological products for a clean, safe environment. Plants, insects, fish, man. Everything that lives will eventually die. During this cycle, each living thing consumes food and produces waste. And without the planet's smallest animals (bacteria), the rest of the world would have smothered long ago, buried in their own wastes. Bacteria — nature's house- keepers — have existed since life began, working silently and diligently at a microscopic level to degrade organic matter (leftover food, dead creatures, animal wastes) into usable substances like water, soil, and nutrients. As the population increased, man began to farm, form cities, and develop industries, but the accumulations of waste became too great for the indig- enous (local) bacteria to handle. Man also created new substances that further • polluted the environment. The natural process of biodegradation was over- whelmed. While man was creating this additional waste, he was also learning how to take control of certain natural processes. Man could turn grapes into wine, milk into cheese, flour and water into bread. It was not until more recent history that the key to each of these transformations was discovered — the unseen bacteria. Once the power of bacteria was appreciated, a whole new field of biotechnology arose, most of which centers on pharmaceuticals. Then an ecology - minded world focused on bacteria's ability to degrade the un- • wanted substances that were plaguing the environment. The result was the emergence of a burgeoning "bioremediation" industry. The idea is a simple one: use natural processes to give nature a hand. But the technology necessary to produce a viable product to augment natural biological degradation is complex. Nature has thousands of different species • MICRO -BAC INTERNATIONAL, INC • 9607 GRAY BLVD • AUSTIN, TEXAS 78758 • (512) 837 -1145 • FAX (512) 837 -5968 Micro -Bac International, Int. Company History and Description Page 2 of bacteria. They do not all eat the same things. The need for oxygen, certain temperature ranges, and moisture can vary from one type of bacteria to another. Finding the ones that do exactly what one wants, is like finding the proverbial needle in a haystack. Safe bacteria must be isolated from nature and evaluated to determine what substances they can degrade. They must be given the right food and a proper environment. Then they must be grown in mass quantities. The newly "manufactured" bacteria can then be returned to nature where the problems are greatest. Because of their increased numbers, specific diets, and hearty constitution, they can now tackle the big jobs. Since 1979, Micro -Bac® International, Inc. has focused its efforts on developing products to accomplish environmentally -sound bioremediation activities. With more than a decade of hard work and backed by a substantial monetary investment, Micro -Bac's dedicated team of scientists has developed proprietary methods and technology to isolate, identify, and reproduce safe, natural bacteria to remediate various industrial and municipal problems. Micro -Bac's research and development laboratory continually produces specialized products as new bioremediation needs are defined. Each of the product lines manufactured by Micro -Bac contains different strains of bacteria specifically selected for their appetite. Numerous strains can be combined for their ability to establish synergistic ecosystems that enhance their remediation capabilities. Through its own research and development facilities, and by working with universities and other industrial concerns, Micro -Bac has developed a large (and growing) collection of microbial strains. Micro -Bac manufactures individual product lines specially designed for applications related to petroleum production, food processing, agriculture, wastewater, and hazardous waste problems. Importantly, each of Micro - Bac's microbial strains meet three basic product standards: they are non - pathogenic; they are not derived by recombinant DNA technology (genetically engineered); and above all, they are physically and environmentally safe for use. Although the first use of Micro -Bac products was for the biotreatment of municipal sludge, one of the most significant accomplishments of the company has been in petroleum production. Para -BacTM products for the oil field, which were introduced commercially in 1986, were the first microbial Micro -Bac International, Inc. Company History and Description Page 3 products to provide successful, long -term control of paraffin, corrosion, and scale downhole and in subsequent oil field equipment. These products were honored in 1991 with a Special Meritorious Award for Engineering Innovation by Petroleum Engineer International magazine. From its earliest beginnings, Micro -Bac's continuing dedication to research and development has led to a broad range of microbiological products including: • Oil Production The Para -BacTM family of bacterial products is used to control paraffin, corrosion, and scale in producing oil wells. These oil field products include Para -Bac +, Litho -Bac, Corroso -Bac, and Sulfo -Bac. Para -Bac products are also used in above - ground production facilities to keep tanks, separators, and flow lines clean. • Food Processing and Restaurant Operations The Mega -BacTM family of bacterial products is used in the treatment of wastes from food processing plants, and in restaurant grease traps and drain pipes. These products are used to degrade grease, fats, oils and other organic substances to control waste and grease accumulations and to reduce the need for pumping and disposal. Other products in the Mega -Bac line are targeted at specific food manufacturing industries. • Wastewater Treatment Facilities Micro -Bac®, the namesake original Micro -Bac International product line, is used for the treatment of municipal wastewater systems and septic systems. Micro -Bac products can control odor, reduce contaminant levels such as BOD, COD, and TSS, and improve sludge dewatering capabilities. • Hazardous and Contaminated Waste Micro -Bac's most recent biological products, the M- 1000H* product line is used for the biodegradation of a variety of hazardous and contaminated substances. Among the numerous constituents that can be biodegraded are acetone, benzene, ethanol, ethylene glycol, Micro -Bac International, Inc. Company History and Description Page4 pentachlorophenol, polychlorinated biphenyls, phenol, octane, nonane, toluene, and xylene. • Agriculture and Livestock Micro -Bac products are also used to successfully control odors and reduce operating costs in a variety of agricultural, slurry, and livestock settings. Micro -Bac helps to control offensive odors that contribute to respiratory disease, poor working conditions, and higher mortality among newborn animals. One of the keys to success for Micro -Bac International is exceptional technical support. Micro -Bac provides sophisticated in -house laboratory testing for its customers. In fact, prior to most field applications of Micro -Bac products, pre- treatment evaluations are required to accurately determine the treatability of the substance. Another major asset is comprehensive manufacturing control. All Micro - Bac products are manufactured in the company's own facilities around the world. And quality control procedures have been developed and implemented by individuals trained in Food and Drug Administration quality control procedures and Current Good Manufacturing Practices (CGMPs). After more than a decade of development work, Micro -Bac has earned an excellent reputation for its products throughout much of the world. Large and small oil companies use Para -Bac products internationally to control paraffin and scale. Food processing plants and restaurants from South America to Europe to Australia use Mega - Bac products for grease and food waste control. Waterworks in North America, South America and Europe use Micro -Bac. And companies on four continents use M- 1000H* products for the biotreatment of hazardous wastes. Micro-Bac International, Inc. — biological products for a dean, safe environment. io ogica pro • uc s or a c ean, sa e envir Effective control of paraffin. Prevention of scale and corrosion. Safe to handle — no environmental hassles. Microbial enhanced oil recovery. Laboratory analysis and technical support. Microscopic view (above) and rod photos (below) of Para -Bacr. in action depicting reduction of paraffin over time IRO R "IMP/ oos, Bro Tech, Inc. — h cro -Ba Distnbutor PARAFFIN CONTROL PARA OIL FIELD PRODUCTS For half a century, researchers have pursued the improvement of petroleum production through microbiology. But not until the introduction in 1986 of Para -BacTM by Micro -Bac® International, Inc., has there been a commercial biological product that offers successful long term control of paraffin, scale, and corrosion. Various Para -Bac products also treat emulsion, basic sedi- ment and water (BS &W), hydrogen sulfide (H2S), and sulfate - reducing bacteria (SRBs). In recent years, Para -Bac has advanced into the field of microbial enhanced oil recovery. Products in the Para -Bac line have been used in many types of reservoirs with differing characteristics such as carbonate and sandstone rock, and water driven, solution gas driven, or reservoirs under secondary recovery. Para -Bac products contribute to the successful operation of thousands of oil wells worldwide, helping oil pro- ducers reduce operating costs, improve oil production, and increase profits. PARA BACTERIA Para -Bac products are comprised of 100% natural (not genetically engi- neered), non - pathogenic, live bacteria that have been specifically se- lected and adapted for petroleum production problems. Although these products represent a new era in oil field treatment methodology, the Para -Bac process is based on scientifically established principles. Para - Bac's microorganisms use paraffin in their metabolic activity. In the digestion process, Para -Bac bacteria control paraffin accumulations and produce by- products that act as surfactants and paraffin solvents. The proprietary knowledge used to develop and manufacture Para -Bac involves isolating and adapting specific strains of bacteria. And because the principal strains in Para -Bac are facultative anaerobic bacteria, they are able to work in the presence or the absence of oxygen. Conventional methods for treating paraffin can be costly, damaging, and dangerous. Hot oiling results in lost production time, is potentially explosive, and may damage the formation; chemical paraffin sol- vents and dispersants may be toxic; and mechanical removal of paraffin requires production downtime and is limited to accessible areas. Above all, each of these methods is only partially effective. By intro- ducing Para -Bac bacteria, customary treatment methods can be eliminated or greatly reduced. This directly impacts oil production and equipment repairs or replacement — all of which can lower lease operating costs. z 50 40 30 `5 20 10 0 C15 -C20 C21 C25 C26 C30 C30+ N- Alkane Distrib ton The chart above compares changes in n- alkane chstnbution after treatment with Para -Bac"' as determined by gas chromatography ■ ❑ July 92 (untreated) ■ Oct 92 (Treated) I ■ 111 Nov 92 (treated) • D ec 92 (treated) I II II II � ■ I 1 Microscopic view (above) and rod photos (below) of Para -Bacr. in action depicting reduction of paraffin over time IRO R "IMP/ oos, Bro Tech, Inc. — h cro -Ba Distnbutor PARAFFIN CONTROL PARA OIL FIELD PRODUCTS For half a century, researchers have pursued the improvement of petroleum production through microbiology. But not until the introduction in 1986 of Para -BacTM by Micro -Bac® International, Inc., has there been a commercial biological product that offers successful long term control of paraffin, scale, and corrosion. Various Para -Bac products also treat emulsion, basic sedi- ment and water (BS &W), hydrogen sulfide (H2S), and sulfate - reducing bacteria (SRBs). In recent years, Para -Bac has advanced into the field of microbial enhanced oil recovery. Products in the Para -Bac line have been used in many types of reservoirs with differing characteristics such as carbonate and sandstone rock, and water driven, solution gas driven, or reservoirs under secondary recovery. Para -Bac products contribute to the successful operation of thousands of oil wells worldwide, helping oil pro- ducers reduce operating costs, improve oil production, and increase profits. PARA BACTERIA Para -Bac products are comprised of 100% natural (not genetically engi- neered), non - pathogenic, live bacteria that have been specifically se- lected and adapted for petroleum production problems. Although these products represent a new era in oil field treatment methodology, the Para -Bac process is based on scientifically established principles. Para - Bac's microorganisms use paraffin in their metabolic activity. In the digestion process, Para -Bac bacteria control paraffin accumulations and produce by- products that act as surfactants and paraffin solvents. The proprietary knowledge used to develop and manufacture Para -Bac involves isolating and adapting specific strains of bacteria. And because the principal strains in Para -Bac are facultative anaerobic bacteria, they are able to work in the presence or the absence of oxygen. Conventional methods for treating paraffin can be costly, damaging, and dangerous. Hot oiling results in lost production time, is potentially explosive, and may damage the formation; chemical paraffin sol- vents and dispersants may be toxic; and mechanical removal of paraffin requires production downtime and is limited to accessible areas. Above all, each of these methods is only partially effective. By intro- ducing Para -Bac bacteria, customary treatment methods can be eliminated or greatly reduced. This directly impacts oil production and equipment repairs or replacement — all of which can lower lease operating costs. z 50 40 30 `5 20 10 0 C15 -C20 C21 C25 C26 C30 C30+ N- Alkane Distrib ton The chart above compares changes in n- alkane chstnbution after treatment with Para -Bac"' as determined by gas chromatography 1 000 000 e 8 7 6 5 4 3 100 000 BOPM Wnh MEOR MEOR Project Field Total Altamont/Bluebell Field Incremental Reserves BOPM Oil — 4,380,000 BBLs Prior to MEOR Mir Gas — 15,476,000 MCF S • e • Ir •` MCFPM Pnor to MEOR • ,. MCFPM With MEOR 12 MONTHS MONTHS PRIOR 1 -12 MONTHS MONTHS MONTHS 13-24 25 -36 37 -48 MONTHS 49 -61 Problems arising from scale formation and corro- sion are traditionally treated with methods that can be expensive and dangerous. With Para -Bac, though, microbial metabolism produces several substances that have chelating, anti- precipitation, filming or bio- surfactant activities — the same • properties of conventional products used as scale and corrosion inhibitors. And the filming activity of Micro -Bac International products fights corrosion by coating metallic surfaces. H2S of microbial origin is usually generated by a group of obligate anaerobic bacteria known as sulfate reducing bacteria (SRBs). Para -Bac products will not cause or aggravate problems related to Untreated barium sulfate SRBs. In fact, Para -Bac bacteria are competitors for scale Notice large crystals. • the organic nutrients found in oil, and thus are able to control the growth of SRBs by reducing the food sources available to them. Furthermore, certain products in the Para -Bac line are specifically directed at wells where SRBs pose a serious problem. Para -Bac products not only improve operations and reduce costs, they can also increase oil production. Increases from ten to fifty percent are not unusual. Some of the reasons are opera- tional, some are scientific. Oil producers experience decreased downtime with Para -Bac because production is not interrupted for treatment with hot oil or chemicals. And with Para -Bac, well • bores are cleaned — Para -Bac removes paraffin -based skin damage that restricts perforations, pump operation, or tubing. • CORROSION, SCALE, H2S, AND SRBs ENHANCED OIL RECOVERY /INCREASED PRODUCTION • MEOR Project, National Parakleen Company — Micro-Bace Distributor Untreated calcium sulfate scale Notice large crystals. C alcmm sulfate olution tr with Corrosso -Bac • M t r A ? Barium sulfate solution treated with Corroso -Bac Para -Bac treatments can also enhance oil field recovery, im- prove recovery efficiency, and in- crease recoverable reserves by introduc- ing the microorgan- isms directly into the formation. Paraffin deposits are removed from the formation itself, thus allowing oil to move to the well bore. TANK CLEANING, EMULSION BREAKING, AND PIPELINES Stable emulsions, sediments and precipitates in tank bottoms, and accumulations of paraffin in pipelines are a frequent problem in oil production. Para -Bac products have been very successful in improving oil /water breakout and in solubilizing precipitates. Various products of Para -Bac s bacterial metabolism, such as biosurfactants, organic acids, and alcohols, may amplify the process of breaking the emulsion; and the bacteria also degrade solids that contribute to accumulations in tank bottoms and pipelines. By taking advantage of the natural biological activity of Para -Bac products, costs are reduced for conven- tional heat treatments, chemicals, centrifuges, and ultra - filtration. FIELD APPLICATIONS When a field is identified as a potential candidate for microbial treatment, samples are submitted to Micro -Bac International's laboratory. Information is gathered on the history of the targeted wells and on the problems that need to be treated. Following analysis of the fluids, specific dosages of products or blends are recommended. Para -Bac products are usually introduced into the well bore annulus by batch - treatment. Periodic retreatment is required to maintain the bacterial colony. In most cases, little or no modification of wellhead plumbing is required, and daily production is not adversely affected. Control with water and carrier or! before Incubation. Control after 60 hours incubation. Sample after 60 hours icubatron with Para -BacJS at 25,000 ppm PIPELINE CLEANING with PARA -BACTM MICROBES A section of an actual pipeline with approximately one centimeter of paraffin on the inside surfaces was tested to determine the effect of Para- BacTA/ on paraffin accumulation. Segments were cut, immersed in water, and amended with 50 ml of pipeline oil. Following 60 hours of incubation at 35 °C, excess water was removed. The remaining paraffin was weighed. The pipe segment treated with 25,000 ppm of Para -Bac /S showed a 36% reduction in paraffin accumulation. ENVIRONMENTALLY SAFE, EASY TO USE Because Para -Bac products are natural and non- pathogenic, they will not harm people, equipment, or the oil. Since their introduction in 1986, Para -Bac products have shown no discernable negative effect on wells, refineries, transport facilities, or the actual oil sold. Para -Bac is also environmentally safe and displays minimal toxicity in standard fish toxicity tests. Because Para -Bac bacteria are naturally occur- ring and non - pathogenic, there are no EPA restric- tions regarding their use or transport. STRONG SERVICE AND SUPPORT Micro -Bac International, Inc. has been specializing in bacteria for over a decade. As a leader in the micro- biology industry, Micro -Bac supports its products with sophisticated lab facilities, an ongoing commit- ment to research and development, and proprietary technology for in -house production and quality control. Micro -Bac products are utilized worldwide to provide quality biological products for cost - effective solutions to oil field production problems. ©1993 MICRO -BAC® INTERNATIONAL, INC. • 9607 GRAY BLVD. • AUSTIN, TEXAS 78758 PHONE (512) 837 -1145 • FAX (512) 837 -5968 Specifications subject to change Tank Cleaning Applications PARA -BAC TM TANK CLEANING PRODUCTS Tank cleaning applications vary in complexity and type, depending on a number of differ - • ent parameters. Most tank cleaning applications, however, involve BS &W or tank bottom accumulations that have paraffin, emulsion, or other hydrocarbon and sediment - related problems. Conventional methods for cleaning tanks can be costly, damaging to equipment, and dan- gerous for personnel. Para -Bac products offer an alternative technology that can signifi- cantly reduce problems associated with tank cleaning. Para -Bac Technology • Para -Bac treatments accomplish their tasks by utilizing two basic scientific principles: microbial paraffin processing and emulsion- breaking capabilities. The Para -Bac microorganisms use their natural metabolic activities to partially degrade the paraffin accumulations and to produce important by- products that further treat the mate- rial. These by products promote solubilization and transport of compounds across the cell membrane. Because the cell surface of many of the bacteria are hydrophobic and actively adhere to hydrophobic surfaces, this also enhances the demulsification properties of the bacterial suspensions. • Another problem in oil storage facilities is the formation of stable emulsions between crude oil and produced water. Para -Bac microorganisms can demulsify many of these emulsions. This is accomplished by bacterial cells acting as wetting bridges between droplets in the continuous phase. Contact of an emulsion droplet with the bacterial surface causes a spreading of the droplet across the surface and eventual contact and coalescence with other droplets contacting that surface. This result can be amplified by the contribution of the various by- products of the Para -Bac bacteria's metabolic digestion activities. Discontinuous Phase (droplet) hose ldaclenum Coalesced Discontinuous Phase — Emulsion breaking by the Para -Bac bacteria— Para -Bac'M Tank Cleaning Products Page 2 Para -Sac's emulsion breaking capabilities have proved successful in reducing the level of basic sediment and water (BS &W). This material, which is composed of a mixture of crude oil, water, mineral particles and other impurities and foreign matter, frequently accumulate • in large volumes at the bottom of tanks. Most frequently these are water -in -oil emulsions, and are the result of the mineral particles which stabilize these emulsions. The microbial effect on this material is a break -out of the oil fraction to a surface phase and release of mineral materials and insoluble crude fractions to the bottom of the tank. • • • Testing Once a tank or storage facility is identified as a potential candidate for microbial treatment, samples are submitted to Micro -Bat's laboratory for testing. Concurrently, information is gathered on the history of the tank and the problems that need to be treated. If tank clean- ing is required, tank bottom materials are tested for treatability. If paraffin is part of the problem, lab tests can also be performed to determine if oil recovery benefits are possible. Special testing is available to provide characterization of the sample by solvent fraction- ation, hydrocarbon composition as to molecular weight ranges, and paraffin content by gas chromatograph analysis. If applicable, viscosity measurements of recovered oil can also be conducted. Field Application As with most microbial applications, each site is unique and proper planning is required prior to treatment in order to ensure optimal results. Once a treatment regimen is estab- lished, Para -Bac products can be introduced directly into the tank through one of a variety of different methods, including batch- treatment, gravity feeding, or pumping. Treatments may require one or more product applications and can be applied all at once or by continu- ous feed. In most applications, material in the tank should be agitated, or circulated peri- odically. In some cases, blending additional oil can also help in the oil recovery aspects of the treatment. Conclusions The result of these microscopic activities can be the reduction of paraffin and various emul- sions which can enhance the cleaning process, improve the material's flow characteristics, and increase the amount of oil that can be recovered from the tank. These same product benefits can also help oil operators reduce their field operating costs by eliminating or reducing the need to treat stock tanks prior to the selling of their oil. • • i• so . 0 0 0 0 Environmental Solutionslrorn Micro-Bae International, Inc. 0 0 MEGA-I&€' BiologicalcWaste Digestant for Food: Processing 0 Co 0 0 MEGA -BAC= BIOLOGICAL —WASTE DIGESTANT- FOR - FOOD - PROCESSING As a food processing expert, you're probably aware of the increasing costs associated with factory waste. Chemical solutions are expensive, filtration systems are a burden, and disposal fees and wastewater fines are skyrocketing. But now there is Mega - Bac''"', a 100% natural biological solution from Micro -Bac® International, Inc. With Mega -Bac, you'll not only reduce your operating costs, you'll also help protect the environment. Fega Bac Rroductl Mega -Bac products are highly concentrated, naturally- occurring marine microorganisms that rapidly biodegrade wastes, turning them into harmless water and carbon dioxide. Because Mega - Bac bacteria are facultative anaerobes, they can work with or without oxygen in the environment. And Mega -Bac products handle wastewater problems in a safe, environmentally appropriate manner. Mega -Bac products work, and Micro -Bac's growing list of satisfied users proves it. Today, Mega -Bac can be found in numerous food processing opera- tions throughout the world, including bakeries, snack food makers, meat packers, poultry proces- sors, soft drink bottlers, candy makers, fruit and vegetable canners, and many others. Improved Operations /Lower - Cost i Mega -Bac products are the environmentally -sound way to improve plant operations and dramatically reduce your operating costs. • Waste Control — Mega -Bac prevents the accumulation of grease and other food wastes in pipes, traps, and tanks. This can mean lower operating costs, less disruptions in work flow, lower labor costs, and fewer mechanical routing and cleaning services. • Odor Control — Mega -Bac tackles tough odors by degrading wastes and controlling H that "rotten egg" smell. Odor reduction occurs rapidly with Mega -Bac, and that can mean an improved working environment for plant employees. • Lower Chemical Costs — Mega - Bac elimi- nates the need for expensive chemical treat- ments. This is good for the environment and it can also save you thousands of dollars a year. • Lower Pumping /Disposal Costs — Less accumulated waste means lower pumping, storage, and waste disposal costs for you. Mega -Bac usage can also mean better utiliza- tion of landfill space. Lower Energy & Equipment Costs — Mega - Bac reduces the need for aeration and other filtering techniques in tanks and lagoons. This can mean lower energy and equipment costs. And Mega -Bac can also save you money by eliminating hot water flushing. Reduced - Wastewater - Charge l Mega -Bac products help the environment by digest- ing organic wastes and reducing contaminant levels in the water. This can mean great savings to you in monthly surcharges and fines levied by wastewater authorities for high BOD, COD, and TSS levels. In field applications, Mega -Bac has been known to reduce these levels by 50% and more. 3500 3000 2500 2000 1500 1000 500 mg/L #Wks 1 TYPICAL' BOD" REDUCTIONS 2 3 4 6 7 8 9 10 11 12 13 • • • •,I • Actual results depend on circumstances. Note expected increase at first and downward trend (with occasional spikes) thereafter. Ali, e , be Y TV - BOD ead ngs ... Trend line MEGA -BAC= BIOLOGICAL —WASTE DIGESTANT- FOR - FOOD - PROCESSING As a food processing expert, you're probably aware of the increasing costs associated with factory waste. Chemical solutions are expensive, filtration systems are a burden, and disposal fees and wastewater fines are skyrocketing. But now there is Mega - Bac''"', a 100% natural biological solution from Micro -Bac® International, Inc. With Mega -Bac, you'll not only reduce your operating costs, you'll also help protect the environment. Fega Bac Rroductl Mega -Bac products are highly concentrated, naturally- occurring marine microorganisms that rapidly biodegrade wastes, turning them into harmless water and carbon dioxide. Because Mega - Bac bacteria are facultative anaerobes, they can work with or without oxygen in the environment. And Mega -Bac products handle wastewater problems in a safe, environmentally appropriate manner. Mega -Bac products work, and Micro -Bac's growing list of satisfied users proves it. Today, Mega -Bac can be found in numerous food processing opera- tions throughout the world, including bakeries, snack food makers, meat packers, poultry proces- sors, soft drink bottlers, candy makers, fruit and vegetable canners, and many others. Improved Operations /Lower - Cost i Mega -Bac products are the environmentally -sound way to improve plant operations and dramatically reduce your operating costs. • Waste Control — Mega -Bac prevents the accumulation of grease and other food wastes in pipes, traps, and tanks. This can mean lower operating costs, less disruptions in work flow, lower labor costs, and fewer mechanical routing and cleaning services. • Odor Control — Mega -Bac tackles tough odors by degrading wastes and controlling H that "rotten egg" smell. Odor reduction occurs rapidly with Mega -Bac, and that can mean an improved working environment for plant employees. • Lower Chemical Costs — Mega - Bac elimi- nates the need for expensive chemical treat- ments. This is good for the environment and it can also save you thousands of dollars a year. • Lower Pumping /Disposal Costs — Less accumulated waste means lower pumping, storage, and waste disposal costs for you. Mega -Bac usage can also mean better utiliza- tion of landfill space. Lower Energy & Equipment Costs — Mega - Bac reduces the need for aeration and other filtering techniques in tanks and lagoons. This can mean lower energy and equipment costs. And Mega -Bac can also save you money by eliminating hot water flushing. Reduced - Wastewater - Charge l Mega -Bac products help the environment by digest- ing organic wastes and reducing contaminant levels in the water. This can mean great savings to you in monthly surcharges and fines levied by wastewater authorities for high BOD, COD, and TSS levels. In field applications, Mega -Bac has been known to reduce these levels by 50% and more. 3500 3000 2500 2000 1500 1000 500 mg/L #Wks 1 TYPICAL' BOD" REDUCTIONS 2 3 4 6 7 8 9 10 11 12 13 • • • •,I • • • Mega -Bac- Bacterial- Digestion/Time -L -apse Activity Mega -Bac bacteria biodegrade waste materials through a complex metabolic process. This process is depicted above Field- Applications Mega -Bac products are easy to use. You can apply Mega -Bac manually or use simple automatic pumps at designated points throughout the facility. A repre- sentative food processing plant is shown below. 00 FOOD PROCESSING PLANT • • 1 TO CITY SEWER WAREHOUSE PACKAGING OFFICES 1 HOLDING TANK • 0 • PRODUCTION / 0* • • • • • • • INDICATES OPTIMUM TREATMENT POINTS, LOCATED AS FAR UPSTREAM AS POSSIBLE PLUMBING WATER FLOW ill► DRAINS 0 Food processing operations with high daily water flows sometimes have low residence time for the microorganisms. When this occurs, adding holding tanks or ponds and lagoons can often maximize treatment results. A study of the wastewater system at each plant should be conducted prior to any Mega -Bac treatment. Technical- Support Ser -vices Whenever the use of Mega -Bac is indicated, special attention is given to the individual biodegradation needs of each food processing application. Micro -Bac International is dedicated to making the use of Mega - Bac an easy, economical process. As part of the treatment program, Micro -Bac provides extensive technical support services for its Mega -Bac users. These services include: • Problem Identification — Micro -Bac consults with operations personnel and analyzes applica- tions right in the field. • Treatability Testing — Once treatment goals are identified, the viability of a biological solution is tested. • Treatment Recommendations — Based on test results, a program is developed, including dosage determination, dispensing schedules, and additional retention requirements (if any). • Implementation — Once a treatment program is established, Micro -Bac can also provide technical implementation assistance, when required. Technical support for your treatment program also includes environmental and regulatory assistance. In many cases, Micro -Bac experts can help you deal with local environmental rules and regulations. tint eated grease pictured at left. Grease sample under Mega -Bac treatment on right. Environmental- Protection 1 The 1990s will be a decade of change. Govern- ments and businesses will be looking for cost - effective, environmentally -safe ways to handle processing waste. Mega -Bac can help in many different applications. Mega -Bac eliminates the need to pump and haul grease and other food wastes (which take years to degrade) to land- fills. It replaces surfactant, enzyme, and deter- gent products that move problems downstream. And with Mega -Bac, there is no need to use toxic chemicals that compound already serious environmental problems. Safe — Natural - Product i Mega -Bac products are non- pathogenic, non- toxic, and environmentally safe — so safe, the EPA has chosen not to regulate them at all. Mega -Bac products pose no hazard to production equipment, downline systems, or city wastewater plants. Mega -Bac products are not harmful to animals, plants, or humans. And Mega -Bac products have received ap- proval for use by the USDA, and comply with all applicable federal safety regulations. ® 1991. Micro -Bac® International, Inc. Strong-Company-Behind-the-Products Mega -Bac and its family of proprietary biological products effectively treat wastewater problems in a variety of food processing applications. And Micro -Bac International, a leader in the microbiological industry, stands firmly behind these products with sophisticated lab facilities, an ongoing commitment to research and devel- opment, and the worldwide resources of an organization with operations in the United States, Europe, South America, Canada, and Australia. Today, Micro -Bac International offers a broad range of microbiological products and services for municipal wastewater systems, the petro- leum, food, and agricul- tural industries, and numerous hazardous waste applications. With over a decade of successful experience, you can count on Micro - Bac for the quality biological products you need to save you money, improve your operations, and solve the serious waste - related problems facing the food process- ing industry. Biological products for a dean and safe environment! Specifications subject to change. MICRO -BAC® INTERNATIONAL, INC. • 9607 GRAY BLVD. • AUSTIN, TEXAS • (512) 837 -1145 • FAX (512) 837 -5968 0 • • • Mega-Bac Biological Grease Digestant Mega -Bac Biological Grease Digestant Bacterial-Digestion Most restaurant owners, facility managers, and plant engineers know more about grease than they care to know. Plumbing solutions are costly, time - consuming, and environmentally ineffective. And chemical solutions are even worse, compounding the environmental prob- lems associated with cleanups. The answer ... biological solutions using live bacteria. Microor- ganisms have always played a key role in the natural recycling process. Taking this lead, Micro -Bac® International and its family of Mega - BacT^' products offer a 100`Y natural biological treatment to correct and control grease re- lated problems in a wide variety of wastewater applications. The - Products Mega -Bac Biological Grease Digestant, a highly concentrated liquid bacterial product, Is used in the grease traps and drainpipes of restaurants, septic tanks, and industrial /food processing plants. Its specific strains of naturally- occurring bacteria degrade and digest grease, fats, oils and a host of other proteins, starches, and detergents. Restaurants, supermarkets, schools, and a variety of food processing settings, including bakeries, milk, meat, and poultry plants, and bottling and canning operations throughout the world enjoy the benefits of choosing Mega -Bac to solve their grease problems. Bacteria digest and continuously reduce mass Mega -Bac products are not magic: they are highly conce occurring, non - genetically engineered microorganisms. In grease while outperforming surfactants (soaps) and enzyme which makes them invisible, but do not solve the problem. cannot reproduce, and do nothing to reduce BOD levels. Grease- and - Odor - Control Mega -Bac products digest grease on contact and eliminate offensive odors. With regular use, Mega -Bac prevents buildup of grease deposits in pipes and grease traps. In fact, national aver- ages show dramatic grease reductions. And with Mega -Bac, problems associated with treatments involving caustic chemicals or mechanical rout- ing can be eliminated. Drain- Maintenance Liquid caustics, solvents, and acids open only a small channel which is easily plugged again. Mechanical routing punches a small diam- eter hole that is suscep- tible to plugging. Mega -Bac digests the grease, leaving a thin bacterial layer that continues to control grease with regular treatment. 0 0 0 1 • • • • itrated, active liquid cultures, all containing naturally - Jse, Mega -Bac products effectively control fats, oils, and products. Surfactants only liquefy fats and greases, Enzyme products, which only partially degrade wastes, rue bacterial products like Mega -Bac do it all. • • • Time - Lapse- Activity Harmless water and ca bon dioxide remain. Unt Bated grease pictured at left. Grease sample under Mega -Bac treatment on right. F ime- and - Money - Savings Mega -Bac products save time — disrup- tions in work flow from slow drains, floods, and clogged pipes can be elimi- nated. And Mega -Bac saves money — mechanical routing of pipes and sewers, • as well as the cost of chemical cleaners and deodorants, can be eliminated. With Mega -Bac, plumbing life may be extended and energy saved because hot water flushing is no longer necessary. For grease traps, pumping is greatly reduced. And potentially large fines or surcharges from municipalities can also decrease with regular use of Mega -Bac bacterial products. C ontaminant Reduction Mega -Bac products help the environment by significantly reducing not only the fats and greases being flushed into wastewater streams, but also the BOD (Biochemical Oxygen Demand) and TSS (Total Sus- pended Solids) levels in the waste effluent. Typical reductions of 25 -50% can be achieved. And data from one national restaurant chain show a 75% reduction in both the BOD and TSS levels. BOD Reductions 1 1 Eas Applicatio In restaurants and other food preparation sites, Mega -Bac products are applied upstream from the grease trap in sinks, pipes, or floor drains. This can be accomplished either manually or mechanically with a simple metering pump. And for food processing, several methods are available, including direct application into holding tanks, manual or automatic dispensing into the plumbing, and custom applications to integrate directly into actual production flows. ` Environmental- P-rotectio>n� Over and above compelling cost benefits, Mega -Bac is also good for the environment. Mega -Bac eliminates the need to pump and haul grease to landfills (grease takes years to degrade by itself). It replaces surfactant, enzyme, or detergent products that merely move the problem down- stream. And with Mega -Bac, there is no reason for using chemicals and other toxic substances, all of which compound already serious pollution problems. Safe - Natural- Products Mega -Bac products are non - pathogenic, non - toxic, and environmentally safe; in fact, these naturally- occurring, non - genetically engineered microor- ganisms are so safe, the EPA has chosen not to regulate them at all. Mega -Bac products pose no hazard to downline systems, equipment, or city wastewater plants. And Mega -Bac products have received approval for use by the USDA, and comply with all applicable federal safety regulations. ® 1991. Micro-Boca International, Inc. trong- Service- and- Suppor Mega -Bac, and its family of biological products, effectively correct grease and related problems in a variety of wastewa- ter systems. And Micro-Bac International, a leader in the microbiological industry, stands behind these products with sophisti- cated lab facilities, an ongoing commit- ment to research and development, proprietary technology for in -house pro- duction and quality control, a top -notch network of national distributors for in -field service, and the worldwide resources of an organization with operations in Europe, South America, Canada and Australia. Today, Micro -Bac International offers a broad range of microbiological products and services for municipal wastewater systems, the petro- leum, food, and agricultural industries, and a host of hazard- ous waste applica- tions. With over a decade of experience, you can count on Micro- Bac for the qualify biological products you need to solve your grease, odor, and maintenance problems in the kitchen, on the lot, and in the factory. Mega -Bac ... good for your business ... and good for the environment. Specifications subject to change. MEGA - BACK. PRODUCTS, A DIVISION OF MICRO -BAC® INTERNATIONAL, INC. • AUSTIN, TEXAS • • • • BIOREMEDIAIION M-1000 BIOREMEDIATION SERIES For thousands of years, bacteria have been used to make fine wine, cheese, and bread. Different raw materials — grapes, milk, flour — are combined with specific bacteria to produce foods with distinct flavors, textures, and colors. These foods are the result of microbial metabolic activity that degrades certain parts of the raw materials and pro- duces beneficial byproducts. At a certain stage • of the degradation process, the foods are packaged to prevent or hamper further bacte- rial activity. The same basic principles that are seen in the use of bacteria for food production apply to the reduction of all biodegradable wastes. Taking this concept a step further, Micro-Bac International, Inc. has developed proprietary technology to isolate bacteria and to determine their capabilities to degrade certain substances. • Different strains are combined to form an ecosystem in which each type of bacteria augments the capabilities of the others to promote various levels of degradation. The result is Micro-Bac's M -1000 series of bioremediation products. Because of variable site conditions and the • broad spectrum of contaminants, Micro-Bac's research and development laboratories fo- cused on developing bacterial products that could function in unusually difficult situations. M -1000 products have been formulated using facultative anaerobes that can work in aerobic or non - aerobic conditions. They can tolerate compounds normally toxic to bacteria and are resistant to high concentrations of contami- BIOLOGICAL PRODUCTS NATURAL ENVIRONMENTAL CLEAN -UP nants. The bacteria in M -1000 also produce very little biomass, do not include spores, slime formers, or algae, and require no activation time prior to use. And because the bacteria have been selected to target contaminants, they are able to accelerate natural processes and degrade more extensively than indigenous strains. Pre - treatment Analysis Review Alternative Technologies BIOREMEDIATION PROJECT SIMPLIFIED FLOW CHART Problem Identification 1 Waste Characterization 1 Determine Clean -up Standards Field Studies Process ' Evaluation 1 / Engineering Pilot Study Study Evaluation 1 Full -Scale Treatment 4. Retreatment Program (If needed) 1 Final Analysis PRE - TREATMENT ANALYSIS AND TECHNICAL COORDINATION M -1000 products should not be considered an instant cure -all for the treatment of hazardous wastes. The successful use of the product requires close collaboration between professionals in the areas of bioremediation, engineering, and environmental waste manage- ment. Careful analysis of the site and determination of the treatment goal is necessary before a project begins. Micro-Bac International, Inc. can provide extensive pre - treatment testing, biodegradation studies, and monitoring after the project has been initiated. Because research and development is a continuous focus for Micro-Bac, new products can be investigated and produced when warranted. SAFE TO HANDLE, ENVIRONMENTALLY SOUND Like all Micro-Bac International, Inc. products, the M -1000 series contains only naturally - occurring, non - pathogenic bacteria — no genetic engineering is invo ved. M -1000 products meet Environmen- tal Protection Agency specifications for bio- logical products that can be released into the environment without regulation. No special clothing or equipment for treatment personnel is necessary to handle M -1000 products, and there is no ecological impact if the products are spilled. BIOREMEDIATION FACTORS IN SOLID MATRICES Nutrients & Electron Acceptors in Solution x x x x x xx x x Soil or Rock Matrix Bacteria Sequestered Pollutant Adsorbed Pollutant in Pollutant Solution STRONG SERVICE AND SUPPORT Micro-Bac International, Inc. has been specializing in proprietary bacterial products for over a decade. As a leader in the microbiology industry, Micro-Bac stands behind its products with an ongoing commitment to research and development, strenuous quality control measures, and extensive technical support. BIODEGRADABLE ORGANIC COMPOUNDS ACETIC ACID ALCOHOL BENZENE CHLORINATED HYDROCARBON CRESOL DIESEL ETHYL ALCOHOL GASOLINE HYDROCARBONS JET FUEL KEROSENE METHYL ALCOHOL METHYLENE CHLORIDE MINERAL SPIRITS NAPHTHA DISTILLATE OIL/GREASE WASTE PAINT THINNER PENTACHLOROPHENOL PERCHLOROETHYLENE PHENOL POLYCHLORINATED BIPHENYLS (PCBs) SOLVENTS TOLUENE TRICHLOROETHYLENE WASTE OIL WATER/WASTE OIL MIX XYLENE *Treatability with M -1000 products is determined through laboratory testing based on samples from the site to be remediated. © 1993 MICRO -BAc® INTERNATIONAL, INC. 9607 GRAY BLVD • AUSTIN, TEXAS 78758 PHONE (512) 837 -1145 • FAX (512) 837 -5968 MICRO -BAC WASTEWATER TREATMENT THE PRODUCTS SLUDGE REDUCTIONS ©1991 Micro - Bac International, Inc. MICRO-BAC WASTEWATER TREATMENT Nature's own intricate recycling system relies on bacteria that are naturally present in the environment to degrade wastes. Most wastewater facilities, as well as ponds, lagoons, and surface impoundments, depend on this natural process to handle waste influent. But when disruptions occur to change the balance of nature, treatment specialists turn to Micro -Bac International, Inc., and its family of microbial products. MICRO -BAC WASTEWATER TREATMENT, a highly concentrated liquid bacterial prod- uct (and the namesake of Micro -Bac International, Inc.) is a biological prepa- ration of microorganisms selected for their superior ability to degrade materi- als in wastewater influent. The product, which is proprietary to Micro -Bac International, consists of 100% naturally occurring, non - pathogenic bacteria that are safe even in environmentally sensitive areas. In municipal wastewater systems, MICRO WASTEWATER TREATMENT can reduce sludge, decrease accumulations of grease, fats, and oils, and reduce problem odors. Micao-BAc products can also lower BOD, COD, and TSS contaminant levels, improve operating efficiencies, and reduce operating costs. Ponds, lagoons, and surface impoundments can also benefit from MICRO -BAC. Companies that use ponds to treat wastewater must closely monitor their effluent discharges. This means that BOD, TOC, pH, oil and grease, nutrient level, and temperature are regularly measured. A change in any one of these conditions can literally stop the activity in the pond. But MICRO - BAC WASTEWA TER TREATMENT products can effectively handle these sudden shocks. MICRO - BAC WASTEWATER TREATMENT reduces sludge in a variety of wastewater applications. In fact, Micro -Bac International's first commercial application in 1981 was the successful bio- treatment of a 75 -acre municipal sludge oxidation pond (see photos on next page). For most ponds and lagoons, this can mean lower operating costs and expanded volume capacity. In municipal wastewa- ter systems, Micro -Bac's sludge- reducing capabilities also promote improved flocculation and settling performance. And MIcRo-BAc helps control the growth of filamentous bacteria, thus eliminating bulking in clarifiers. MICRO-BAC WASTEWATER TREATMENT 01991 Micro -Bac International, Inc. CONTAMINANT REDUCTION BEFORE TREATMENT AFTER TREATMENT Accumulated wastes had reduced the pond's volume by more than half. Over the 5 month treatment period, MICRO -BAC WASTE TREATMENT reduced the sludge content by more than 50% and returned the pond to full active use. DECREASED ACCUMULATION OF GREASE, FATS, AND OILS MICRO-BAC reduces accumulations of grease, fats, and oils in wastewater systems by digesting and converting them to fatty acids, glycerols, carbon dioxide, and water, thus eliminating the need for chemical emulsification agents and other expensive removal techniques. With MIcPo-BAc, scum formation is reduced and algae control is increased. And because of the reduced FOG content, there can be appreciable reductions in system line blockages. ODOR CONTROL Odor problems often plague ponds, lagoons, and wastewater facilities be- cause bacterial digestion normally produces the unpleasant odors of hydro- gen sulfide, ammonia, amines, and mercaptan. With the use of MICRo-BAC, these odors are easily controlled — usually within 72 hours of the initial innoculation. MICRO -BAC products help the environment by significantly reducing not only the fats and greases, but also the water's BOD, COD, and TSS levels. And these are benefits we can all live with. Page 2 MIcRo - BAC ° WASTEWATER TREATMENT COST SAVINGS Mlcao saves water system operators significant amounts of money by solving expensive operating problems. As FOG problems are brought under control, so are those of BOD, COD, and TSS. As a result, water systems can effectively expand their capacity without actual modification or addition to the physical plant. And equipment should last longer under the lighter loads. Because Mlcao-BAC bacteria reduce sludge and function in lower than normal dissolved oxygen (DO) levels, and because they reduce oxygen - blocking surface greases and oils, most facility users can reduce aerator time and power by using MicRo-BAc. And that means daily savings to the bottom line. SLUDGE & SEDIMENT ARE REDUCED WITH MICRO -BAC ®1991 Micro -Bac International, Inc. And when overloads, organic or chemical shocks occur, MICRO -BAC can also help to control problems associated with increased accumulated solids, higher contamination levels, and noncompliance with effluent standards. MICRo bacteria are resistant to toxic compounds; and MICRO - BAc can handle organic shock loads better than conventional methods by reducing the concentration of organic wastes in a shorter period of time. EASY APPLICATION When MICRO -BAC is added to the wastewater, the bacteria begin working immediately to accelerate the natural bacterial recycling process. And be- cause MICRO -BAC bacteria are "facultative ", they can function with or without oxygen. Due to its broad application characteristics, Mlcao-BAc can be used in numerous types of wastewater treatment systems without requiring re- design or modification. Page 3 MICRO-BAC WASTEWATER TREATMENT ©1991 Micro -Bac International, Inc. ENVIRONMENTAL PROTECTION Over and above the compelling cost benefits, MICRO WASTEWATER TREATMENT is also environmentally safe. With MICRO -BAC, wastewater systems, ponds, lagoons, and surface impoundments can be treated without chemicals. And this means no added contaminants to pollute our natural resources. MICRo-BAC products are non - pathogenic, non - toxic, and environmentally safe; in fact, these naturally- occurring, non - genetically engineered microorganisms are so safe, the EPA has chosen not to regulate them at all. MIcRo-BAc prod- ucts pose no hazard to people, downline systems, equipment, or city waste- water plants. And MICRo-BAC products comply with all applicable federal • safety regulations. STRONG SERVICE AND SUPPORT Unlike most other companies, Micro-Bac International, Inc. has been specializing in bacteria for over a decade. As a leader in the microbiology industry, Micro-Bac stands behind these products with sophisticated lab facilities, an ongoing commitment to research and development, proprietary technology for in -house produc- tion and quality control, a top notch network of national dis- tributors for in -field service, and the worldwide resources of an organization with operations in the United States, Europe, South America, Australia, and Canada. Today, Micro -Bac offers a broad range of microbiological products and ser- vices for the petroleum industry, municipal wastewater systems, food prepa- ration and food processing facilities, agricultural industries, and a host of hazardous waste applications. With over a decade of experience, you can count on Micro -Bac for the quality biological products you need to solve your wastewater problems. Specifications subject to change. Page 4 WHEREAS, in accordance with Chapter 312, Tax Code, V.A.T.S., as amended, and as authorized by Resolution No.,R- 93- 05- 27_10A, dated May 27, 1993, the City entered into a tax abatement agreement with Micro -Bac International, Inc., regarding property in Reinvestment Zone No. Six; and WHEREAS, the City and Micro -Bac International, Inc., intended for the agreement to include the abatement of personal property taxes; and WHEREAS, the parties desire to amend the agreement to include language evidencing their intentions; Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS That the Mayor is hereby authorized and directed to execute on behalf of the City that certain Amendment No. 1 to the Tax Abatement Agreement with Micro -Bac International, Inc. RESOLVED this 14th day of August, 1997. ATTEST: E LAND, City Secretary K: \NPWCS \ACSOWl2 \M1570S14I.KPO /k.b RESOLUTION NO. R- 97- 08- 14 -13I HARLES CULPEPPER, MAYOR CITY OF ROUND ROCK, TEXAS THE STATE OF TEXAS COUNTY OF WILLIAMSON AMENDMENT NO.1 TO TAX ABATEMENT AGREEMENT WITH MICRO -BAC INTERNATIONAL. INC. This Amendment No. 1 is entered into this the 1* day o, 1997 to amend that certain agreement authorized by City of Round Rock Resol on No. R -95- 05-27-10A on May 13, 1995, to abate certain property taxes of Micro -Bac International, Inc., for the Tax Years 1995 - 1997, inclusive. WHEREAS, it was the intention of all parties that said above referenced Tax Abatement Agreement was to include the abatement of personal property taxes; and WHEREAS, the parties desire to include language in said Agreement evidencing their intentions; NOW THEREFORE, the parties hereby do mutually agree to amend said Agreement as follows: 1. Paragraph 6. is amended to read as follows: 6. In the event that (1) the Improvements for which an abatement has been granted are not completed in accordance with this Agreement or (2) Owner allows its ad valorem or personal property taxes owed the City to become delinquent and fails to timely and properly follow the legal procedures for protest and /or contest of any such ad valorem or personal property taxes; or (3) Owner breaches any of the terms or conditions of this Agreement, then this Agreement shall be in default. In the event that the Owner defaults in its performance of (1), (2), or (3) • above, then the City shall give the Owner written notice of such default and if Owner has not cured such default within thirty (30) days of said written notice, or, if such default cannot be cured by the payment of money and cannot with due diligence be cured within a 90 -day period owing to causes beyond the control of the Owner, this Agreement may be terminated by the City by written notice to Owner. Such notice shall be in writing and shall be delivered by personal delivery or certified mail to: Micro -Bac, International, Inc. 9607 Gray Blvd. Austin, Texas 78758 As liquidated damages in the event of default and in accordance with Section 312.205, Tax Code, V.A.T.S., as amended, all taxes which otherwise would have been paid to the City and County without the benefit I:\ TEXT\ CITY PWtNPOC \TNNBAIYUN]HICRO.BAC /kM of abatement (without the addition of penalty, but interest will be charged at the statutory rate for delinquent taxes as determined by Section 33.01 of the Tax Code) shall become a debt owed by Owner to the City and County and shall be due, owing and paid to the City and County within sixty (60) days of the expiration of the above mentioned applicable cure. period. The City and County shall have all remedies for the collection of the recaptured tax revenue as provided generally in the Tax Code for the collection of delinquent property taxes. The parties acknowledge that actual damages in the event of default and termination would be speculative and impossible to determine. ' 2. That Paragraph 11 is amended to read as follows: 11. Subject to the terms and conditions of the Agreement, and subject to the rights of the holders of any outstanding bonds of the City, a portion of ad valorem real property taxes and personal property taxes assessed against the Premises otherwise owed to the City and County shall be abated. City hereby acknowledges that it is not aware of any terms or conditions of any outstanding bonds which would invalidate this Agreement. Said abatement shall be an amount equal to the below- stated percentages assessed upon the increased value of the Premises and Improvements over the value in the year in which this Agreement is executed, in accordance with the terms of this Agreement and all applicable state and local regulations. The percentage of abatements are as follows: Tax Year 1995 Tax Year 1996 Tax Year 1997 90% abatement 60% abatement 30% abatement These abatements shall be for three (3) tax years beginning January 1, 1995. 3. Retroactive application. It is the intentions of the parties that this Amendment No. 1, shall be effective as of the effective date of the original Tax Abatement Agreement, as if this amendment was fully written therein at such time. Witness our hands this /I day of 1997. CI OF ROUND ROCK, TEXAS CHARLES U EPPER, MAYOR ATTEST: MICRO -BAC INTE ATIONAL, INC. CA/ , IT DATE: August 12,1997 SUBJECT: City Council Meeting, August 14,1997 Item: 13.I. Consider resolution authorizing the Mayor to execute Amendment No. 1 to the Tax Abatement Agreement with Micro -Bac International, Inc. Staff Resource Person: Joe Vining Staff Recommendation: Approval The attached Amendment No. 1 with Micro -Bac International, Inc. clarifies for the Williamson County Appraisal District our intention to include personal property in this agreement.