Cruzan Rum Evaporative Waste Water Treatment Plant St. Croix, USVI Construction Management Plan Progress Report #16 July 31, 2011 Submitted to

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1 Cruzan Rum Evaporative Waste Water Treatment Plant St. Croix, USVI Construction Management Plan Progress Report #16 July 31, 2011 Submitted to DPNR-DEP/EPA

2 I. Overall Project Schedule Status Contract As explained in Cruzan s Construction Management Plan, the Project is being executed based on an Engineer/Procure/Construct ( EPC ) contracting strategy. Cruzan Rum ( Cruzan ) is the project Owner and it has engaged FTI Consulting ( FTI ) to provide owner s construction management services during the course of the project design and construction. Cruzan contracted with Excel Contractors, Inc. and Sun Constructors, Inc. ( Sun ) its St. Croix construction division, to act as the EPC Contractor. Excel Contractors, Inc. is providing the design services through its affiliate company, Davies Engineering ( Davies ). Davies has been provided with the engineering information developed by the evaporator and other equipment suppliers in order to develop the overall project construction design. Davies is being assisted in the site specific structural engineering and permitting by the Maguire Group. Vitok Engineers has been engaged to provide design services related to the connection of the Waste Water Treatment Plant ( WWTP ) to the existing distillery. Vitok began its work in early The design of these connections is now completed. Sun has been hired to construct the pipe rack and mechanical connections. GEC has been hired to construct the ancillary structures. Merit Electrical, USVI has been contracted to install the electrical infrastructure necessary to distribute electricity throughout the plant. Engineering, Design and Procurement As previously indicated, design activities have been ongoing since January The design for the WWTP and its connections to the existing distillery is essentially complete. All civil, structural, mechanical, and electrical designs have been issued for construction. Piping fabrication drawings are also complete. The instrumentation and electrical drawings have also been issued for construction. The status of the overall plant engineering design drawings is summarized in the table on the following page: 2

3 Drawings Evaporator Foundations Evaporator GA's Evaporator Equipment Dwgs Evaporator P&ID's Evaporator Duct Drawings Evaporator Pipe Isometrics Evaporator Structural Evaporator Electrical WWTP Sitework WWTP Foundations WWTP GA's WWTP Equipment Drawings WWTP P&ID's WWTP Structural WWTP Piping WWTP Electrical Pier Sitework Pier Foundations Pier P&ID's Pier GA's Pier Piping Pier Electrical Status COMPLETE With respect to procurement progress, the status of the procurement for all major pieces of equipment (excluding the evaporator, which is already at site), is summarized in the table on the following page. 3

4 Equip # Description PO Date Delivery A-102 Vinasse Tank Agitator 11/22/10 06/15/11 A-103 CMS Tank Agitator 11/22/10 06/15/11 A-106 3% Caustic Tank Agitator 11/22/10 06/15/11 A-107 Waste Caustic Tank Agitator 11/22/10 06/15/11 CT- 100/101 Cooling Tower (Cells) 08/30/10 02/04/11 EC-100 Alpina Cooler 09/23/10 03/15/11 LM-108 Sulfamic Flake Liquifier- 30 Gal. 11/22/10 03/15/11 P-103 CMS Truck Loading Pump 08/30/10 02/04/11 P-105 Untreated Process Condensate Pump 08/30/10 02/04/11 P-106 Treated Process Condensate Pump 08/30/10 02/04/11 P-107 Acid Pump 08/30/10 02/04/11 P-108B 3% Caustic Pump 08/30/10 02/04/11 P-109 Waste Caustic Pump 08/30/10 02/04/11 P-118 CMS Ship Un-Loading Pump 08/30/10 02/04/11 P-118B CMS Ship Loading Pump 08/30/10 02/04/11 P-C100 Cooling Tower Pump 08/30/10 02/04/11 P-C200 Cooling Tower Pump 08/30/10 02/04/11 P-S100 Sump Pump 08/30/10 02/04/11 P % Caustic Pump 09/15/10 03/11/11 P % Caustic Pump 09/15/10 03/11/11 P-C100 Evaporative Cooler Pump 09/15/10 03/11/11 P-C200 Evaporative Cooler Pump 09/15/10 03/11/11 T-102 Vinasse Tank Resubmittal 09/02/10 03/01/11 T-103 CMS Tank (Site) Revised Submittal 09/02/10 03/01/11 T-105A Untreated Process Condensate Tank Revised Submittal 09/02/10 04/01/11 T-105B Treated Process Condensate Tank Revised Submittal 09/02/10 03/01/11 T % Caustic Tank 09/17/10 08/12/11 T-107 Waste Caustic Tank 09/17/10 05/18/11 T-108 Sulfamic Tank 09/17/10 05/11/11 T % Caustic Tank 09/17/10 05/18/11 T-118 CMS Tank (Dock) 09/02/10 04/06/11 TBD Evaporator R.O. System 09/02/10 07/22/11 TBD Cooling Tower R.O. System 09/02/10 07/22/11 AC-1000 Air Compressor 08/30/10 02/21/11 TBD Air Receiver Tank 08/30/10 02/21/11 TBD Air Filter 08/30/10 02/21/11 TBD Instrument Air Dryer Package 08/30/10 02/21/11 TL-103 CMS Truck Loading Rack 08/30/10 03/01/11 Sulfamic Static Mixer 09/15/10 04/01/11 E100 SWITCHBOARD E100 02/28/11 05/08/11 E101 MCC E101 03/09/11 07/15/11 E102 MCC E102 03/09/11 07/15/11 E103 15KVA TRANSFORMER 06/08/11 4

5 E104 30KVA TRANSFORMER 06/08/11 E105 POWER PANEL E105 03/28/11 06/08/11 E106 POWER PANEL E106 03/28/11 06/08/11 E107 LIGHTING PANEL E107 03/01/11 05/04/11 PLC PLC E101,E102,E103 01/16/11 06/01/11 G KVA GENERATOR 11/21/10 08/04/11 Construction and Site Activity The site preparation effectively began in March 2010 with the removal of mounds of material by the VI Government for use in the landfill. The removal of the initial excess material was completed in April Site grading is complete with the exception of post construction fine grading and restoration. The new roads on site have been completed. The storm water management pond and associated drainage structures have been completed, pending final clean out and seeding. All building pads have been graded and all structures are under construction. Structural concrete operations are nearing completion. The foundations for all of the on-site storage tanks and transfer pumps have been installed. The foundations and area paving for the cooling tower are complete. The foundations for the WWTP pipe rack and CMS truck loading station are complete. The foundations for the evaporative cooler are complete. The foundations, drainage trench and slab on grade for the RO building are complete. The foundations for the plant connection pipe rack are complete. The foundations for the boiler and control building were placed in June. Foundations for the electrical distribution equipment and generator were started in July. The concrete work will is nearly complete. The only significant foundations that remain are the transformer foundations, for the site electrical distribution equipment, and the distillery side power distribution building. The foundations at the CMS tank area are also in progress to be complete by mid-august. The site erected tanks are substantially complete. The tanks have been inspected and the tank erection contractor will return to the site in August to correct the items found during the inspections. The on-site tanks will also be water tested in August. The 5

6 erection contractor will also begin the installation of the condensed molasses soluble tank at the molasses pier by the middle of August. Mechanical construction continued in July. All process pumps, except P106, have now been set. All shop fabricated tanks have been set in the CIP area, except for the 3% caustic tank which has been delayed in shipping. Piping connections between the evaporator equipment and the process pumps continued in July. The installation of the evaporator vapor ducting was finished in July. The vapor ducting for the finishers was started in July. The contractor continued installation of the process piping in the pipe rack and HPD area. Mechanical work will continue through the remainder of the schedule until mechanical completion. Structural steel installation work was substantially completed in July. The structural steel for the pipe rack and in the evaporator area is erected and detailed. The contractor has completed most of the pipe supports, handrails and gratings. These areas will be inspected in August in preparation for turnover to the Owner s startup team. The RO building is now complete to the point where equipment erection can begin. Steel erection work is complete. The RO building erector is now finishing the roof sheathing and is installing the building doors and trim. RO equipment setting started in July and will continue through August. The electrical installation work continued in July. Conduit, lighting and cable tray work continued in the WWTP area. The electrical distribution contractor installed electrical duct banks in the electrical equipment area. The foundations were also installed for the back-up generator and WWTP power distribution building so that this equipment can be set in early August. Electrical installation will continue until mechanical completion. Equipment deliveries to the project site are nearing completion. The only major equipment yet to be delivered is the back-up diesel generator. This equipment is in transit and should be delivered to the island in the first week of August. Work on the CMS tank at the Molasses pier continues. The precast pile foundations were completed at the beginning of July. The stone working surface was completed in the second week of July and reinforcing installation is on-going. The contractor anticipates placing the concrete for this foundation at the end of the first week of 6

7 August. Tank erection will begin in the second week of August and will continue until mid-september. Piping and electrical work will also begin in late August and will continue through mechanical completion. II. Significant changes to the project construction schedule and execution plan and measures implemented to mitigate issues There were no significant changes to the project schedule during this period. The mechanical completion date for the WWTP remains October 1, III. Possible violations that occurred and/or corrections that needed to be done to resolve the issues DPNR s inspector, Benjamin Keularts, inspected the WWTP site on July 14, He suggested that silt build-up be removed from the super-silt fence at the northern boundary of the site and that a containment area be constructed for washout of concrete trucks. These suggestions were implemented on the afternoon of July 14, IV. Issues relating to the currently issued coverage under the Storm water General Permit There are no issues relating to the currently issued coverage under the Storm water General Permit at this time. V. Site progress photographs The following pictures are representative of status of the work at the end of the period: 7

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12 VI. Summary Planned versus Actual Milestone Status Report The schedule for the execution of the project is based on a combination of the needs for the distillery and on the agreement with the United States Environmental Protection ( EPA ) agency to reduce the effluent flow from the Distillery. The baseline schedule indicated mechanical completion of the project by September 1, The original mechanical completion date has been extended to October 1, 2011 because of the deferral in the start of site work. However, the work will be approximately 90 percent complete in September allowing systems turnovers to proceed near the originally schedule dates. After allowance for the extended mechanical completion date, the project team will still have approximately 5 months to startup and test the plant before the date agreed with the EPA. The project schedule to meet these goals is summarized below. The site preparation effectively began in March 2010 with the removal of mounds of material by the VI Government for use at the landfill. The site clearing and excavation work, which began in October 2010, was followed by foundations. The critical WWTP foundation work was be complete in June, with the remaining foundations complete in July The major Evaporator equipment was set in January. Major equipment deliveries are nearing completion with the last equipment being delivered to the site in early August. Steel erection for the pipe rack began in April and was completed in May. Steel erection around the HPD equipment began in May and was completed in June. Handrails and grating work in the HPD area was substantially complete in July. Piping interconnections between the equipment began in May and will continue through the summer of 2011 ending at mechanical completion. The electrical installation work began in May. Electrical work will continue through mechanical completion. Startup and testing planning is underway. Systems testing will begin in September and integrated startup work for process systems will begin in October. 12

13 The following summary schedule reflects these project milestones: Current Status (July 31, 2011) 13