Document:

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                                                                   EXHIBIT 10.19

                                                                  Execution Copy

RECORDING REQUESTED BY
AND WHEN RECORDED RETURN TO:

Davis Polk & Wardwell
450 Lexington Avenue
New York, New York 10017
Attention: Bernadette M. Sullivan
           Legal Assistant

                             CONSENT AND AGREEMENT

     1.   (a)  Reference is made to that certain Payment in Lieu of Tax
Agreement dated April 5, 1991 among the City of Syracuse (the "Municipality"),
the City of Syracuse Industrial Development Agency (the "Agency") and Project
Orange Associates, L.P. (the "Company"), not recorded in the Office of the Clerk
of Onondaga County, New York (as amended and in effect from time to time, the
"PILOT Agreement".

     (b)  Reference is also made to (i) that certain Indenture dated as of
December 6, 1999 (the "Financing Agreement") between the Company and U.S. Bank
Trust National Association, as trustee for the holders of the Company's _%
Senior Secured Notes due 2007 (the "Trustee"; together with the holders of such
Senior Secured Notes, the "Secured Parties"), (ii) that certain Mortgage and
Assignment of Rents (First Mortgage) dated as of December 6, 1999 from the
Company, as mortgagor, to U.S. Bank Trust National Association, as collateral
agent, as mortgagee (the "First Mortgage"), and the other Collateral Documents
and the other Financing Documents (as such terms are defined in the Financing
Agreement). References herein to the "Agent" shall mean U.S. Bank Trust,
National Association in its capacity as collateral agent under the Collateral
Documents and its successors and assigns in such capacity. References herein to
the Financing Agreement, First Mortgage, other Collateral Documents and other
Financing Documents shall refer to the same as amended and in effect from time
to time. Capitalized terms used herein without definition shall have the
meanings given such terms in the Financing Agreement.

     (c)  The PILOT Agreement and First Mortgage relate to certain real property
in Onondaga County, New York described on Exhibit A, attached hereto and
incorporated herein.

     Anything in the PILOT Agreement to the contrary notwithstanding, the
parties agree as follows:

     2.   Each of the Municipality and the Agency hereby certifies that (i) the
PILOT Agreement contains the entire agreement of the parties thereto with
respect to payments in lieu of taxes with respect to the Facility (except to the
extent of references in the Master Lease obligating Guarantor to make PILOT
payments); (ii) the PILOT Agreement is in full force and
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effect; (iii) the PILOT Agreement has not been amended, supplemented or
otherwise modified or assigned; (iv) all conditions for the commencement and
continuing effectiveness of the PILOT Agreement and the rights and obligations
of the parties thereto thereunder have been and remain satisfied as of the date
hereof; (v) the PILOT Term commenced on April 5, 1991 and is scheduled to end on
July __, 2012; (vi) all payments required to be made by the Company under the
PILOT Agreement as of the date hereof have been made; (vii) there are no
Deferred Obligations, Subordinated PILOT Amounts or Subordinated PILOT
Obligations (as such terms are defined in the PILOT Agreement) outstanding as of
the date hereof; (viii) each of the Municipality and the Agency have duly
complied with all agreements, conditions and provisions contained in the PILOT
Agreement required to be performed by it prior to the date hereof; and (ix) to
the knowledge of the Municipality and the Agency, no Default or Event of Default
(as such terms are defined in the PILOT Agreement) by the Company (or event
which with notice or lapse of time or both would become such a Default or Event
of Default) is continuing under the PILOT Agreement.

     3.   Each of the Municipality and the Agency acknowledges notice and
receipt of the Financing Agreement, First Mortgage and other Collateral
Documents (other than the Consents). The Municipality also acknowledges notice
and receipt of the Consent and Agreement dated as of the date hereof by the
Agency (the "Agency Consent"), relating to (among other things) the Facility
Agreement (as defined in the PILOT Agreement) (defined in the Agency Consent as
the Master Lease).

     4.   Each of the Municipality and the Agency agrees that, as long as the
Financing Agreement, First Mortgage and other Collateral Documents remain
outstanding, notwithstanding anything to the contrary in the PILOT Agreement:
(i) all references in the PILOT Agreement to "Senior Debt" and "Construction
Loan" shall be deemed to refer to the Senior Secured Notes issued under the
Financing Agreement and secured by the First Mortgage and other Collateral
Documents; (ii) all references in the PILOT Agreement to the "Agent" shall be
deemed to refer to the Agent described in paragraph 1(b) above; (iii) all
references in the PILOT Agreement to the "Banks" shall be deemed to refer to the
Secured Parties described in paragraph 1(b) above, and all references to a
"Bank" shall be deemed to refer to a "Secured Party"; (iv) the last sentence of
Section 6.03 of the PILOT Agreement shall be deemed deleted from said Section;
(v) the phrase "The Municipality" in line 1 of Section 8.01(a) of the PILOT
Agreement is deemed amended to read "Each of the Municipality and the Agency;
(vi) the phrase "(including, without limitation, the rights under Sections 6.03
and 9.01)" is deemed added in line 3 of Section 8.01(a) of the PILOT Agreement
after the word "remedies"; (vii) the reference in line 4 of Section 8.01(a) of
the PILOT Agreement to "Section 6.01(a), (b), (c) or (e)" shall be deemed
changed to read "Section 6.01(a), (b), (c), (d), (e) or (f)"; (viii) the
following sentences shall be deemed added to the end of Section 8.01(a):

     "If the Event of Default is curable by the Agent or the Banks but cannot
     reasonably be cured by them within said 30-day (or 15-day) period, so long
     as the Agent, the Banks or their designee(s) shall promptly commence and
     diligently prosecute the curing of such Event of Default, the Agent, the
     Banks or their designee(s) shall have a period of 120

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     days from the date of notice to the Agent of such Event of Default within
     which to cure the same. If the Event of Default is curable by the Agent or
     the Banks but cannot reasonably be cured without obtaining possession of
     the Facility, or if such event of Default is not susceptible of being cured
     by the Agent or the Banks (i.e., an Event of Default under Section 6.01(d)
     or (f)), then the Municipality and the Agency shall not be entitled to
     terminate this Agreement or exercise such other remedies so long as the
     Agent, the Banks or their designee(s) shall proceed diligently to obtain
     possession of or entry to the Facility pursuant to the rights of the Agent
     or the Banks under their mortgage(s) and other security documents, and upon
     obtaining such possession shall proceed diligently to cure such Event of
     Default, if it is susceptible of being cured by the Agent or the Banks. If
     an Event of Default is not susceptible of being cured by the Agent or the
     Banks, the Agent, the Banks and their designee(s) shall not be required to
     cure the same upon obtaining such possession or otherwise.";

(ix) lines 2 through 5 of Section 8.02(b) of the PILOT Agreement are hereby
amended to read as follows:

     "* * * trustee or debtor-in-possession in any bankruptcy or insolvency
     proceeding or terminates prior to the date it would otherwise expire for
     any reason other than with the consent of the Banks (or such member or
     percentage of the Banks as may be required under the terms of the relevant
     agreements governing Senior Debt), and if, within 90 days after the Agent
     receives notice of such rejection or termination, the Agent, the Banks,
     their designee(s) or their successors or assigns shall so request, the
     Municipality and the Agency will execute and deliver to the Agent, the
     Banks, their designee(s) or their successors or assigns, a new agreement
     which shall be on the same terms and conditions as this * * *";

(x)  all rights provided under the PILOT Agreement (as amended as provided
above) to the Agent and the Banks shall hereafter inure to the benefit of the
Agent and the Secured Parties described in paragraph 1(b) above; (xi) all rights
provided under the PILOT Agreement (as so amended) to the Senior Debt and the
holders of the Senior Debt shall hereafter inure to the benefit of the Senior
Secured Notes described in paragraph 1(b) above and the holders thereof; (xii)
all references in the PILOT Agreement to the "Facility Agreement" (referred to
in the Agency Consent as the Master Lease) shall be deemed to include any new
Facility Agreement (referred to in the Agency Consent as a new Master Lease)
granted to the Agent, the Secured Parties or their designee pursuant to
paragraph 7(f) of the Agency Consent; (xiii) the Municipality consents to, and
shall be bound by, the provisions of paragraph 7(h) of the Agency Consent; (xiv)
without limiting the foregoing, (A) each of the Municipality and the Agency
shall give a copy of each notice that it gives to the Company to the Agent at
its address provided in or pursuant to paragraph 6 below simultaneously with the
giving thereof to the Company; (B) each of the Municipality and the Agency shall
exercise its right to terminate the PILOT Agreement and its other remedies
thereunder (including, without limitation, its rights under Section 6.03) only
as provided in Section 8.01(a) of the PILOT Agreement (as so amended); (C) each
of the Municipality and the Agency shall exercise its rights under Section 6.03
of the PILOT

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Agreement only in accordance with paragraph 7(h) of the Agency Consent; (D) each
of the Municipality and the Agency shall enter a new PILOT Agreement with the
Agent, the Secured Parties, their designee(s) or their successors or assigns
pursuant to Section 8.02(b) of the PILOT Agreement (as so amended) in the event
of a termination of the PILOT Agreement as provided therein; and (E) the
Municipality and the Agency shall accept performance of the Company's
obligations under the PILOT Agreement by the Agent, the Secured Parties or their
designee(s) in lieu of the Company's performing such obligations.

     5.   Each of the Municipality and the Agency agrees that from the date
hereof and throughout the term of that certain ISDA Master Agreement between
Electric Energy Purchaser (as defined under the PILOT Agreement) and the Company
dated as of June 30, 1998 (the "Indexed Swap Agreement"), the definition of
"Electric Tariff Rate" under Section 3.01 of the PILOT Agreement shall be deemed
to refer to the "Indexed Contract Price" as calculated for any calendar year
pursuant to Schedule 1 to the Confirmation dated June 30, 1998 to the Indexed
Swap Agreement which forms a part thereof. The Municipality and the Agency each
acknowledge receipt of a copy of said Schedule 1.

     6.   (a)  All notices and other communications hereunder and under the
PILOT Agreement by or to the Agent or the Secured Parties shall be in writing
and shall be addressed to the Agent, the Secured Parties, Agency, the City or
the Company, as the case may be, shall be delivered personally, or mailed by
United States first class mail (registered or certified, return receipt
requested, postage paid by the sender), or sent by overnight courier
guaranteeing next Business Day delivery (courier charge paid by the sender), or
sent by facsimile (answerback confirmation received), addressed as follows:

     (i)  if to the Agent or Secured Parties:

          U.S. Bank Trust National Association
          100 Wall Street, Suite 1600
          New York, New York 10005
          Attention: Corporate Trust Administration
          Facsimile:     (212) 809-5459

     (ii) if to the Municipality:

          City of Syracuse
          301 City Hall
          Syracuse, New York 13202
          Attention: Corporation Counsel
          Telephone:     (315) 448-8400
          Facsimile:     (315) 448-8381

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     (iii)  if to the Agency:

            City of Syracuse Industrial Development Agency
            233 Washington Street
            Syracuse, New York 13202
            Attention: Chairman
            Telephone:    (315) 448-8100
            Facsimile:    (315) 448-8036

     (iv)   if to the Company:

            Project Orange Associates, L.P.
            c/o G.A.S. Orange Associates, L.L.C.
            90 Presidential Plaza
            Syracuse, New York 13202-2200
            Attention: President
            Telephone:     (315) 471-8111
            Facsimile:     (315) 471-1355

     (b)  A duplicate copy of each notice or other communication given hereunder
or under the PILOT Agreement by the Agency, the City or the Company shall be
simultaneously given to the Agent. Any party may, by notice to the other parties
designate additional or different addresses for subsequent notices or
communications. All notices and communications shall be deemed to have been
given when received or, if delivery is refused, when delivery is refused. If a
notice or communication is mailed or sent in the manner provided above within
the time prescribed, it is deemed duly given whether or not the addressee
receives it within such time.

     7.   In the event of a conflict between the terms of this Consent and
Agreement and the terms of the PILOT Agreement, the terms of this Consent and
Agreement govern.

     8.   This Consent and Agreement shall be binding upon, and shall inure to
the benefit of, the parties hereto and the Secured Parties and their respective
successors and assigns. No other party shall derive any rights by reason of this
Consent and Agreement.

     9.   This Consent and Agreement shall be governed by and construed in
accordance with the laws of the State of New York.

     10.  This Consent and Agreement may be signed in any number of
counterparts, each of which shall be an original and all of which together shall
constitute but one and the same instrument.

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          This Consent and Agreement is dated as of December 6, 1999.

                              Municipality

                                    CITY OF SYRACUSE

                                    By:  /s/ Roy A. Bernardi
                                         _________________________
                                         Name: Roy A. Bernardi
                                         Title: Mayor

                              Agency

                                    CITY OF SYRACUSE INDUSTRIAL
                                       DEVELOPMENT AGENCY

                                    By:  /s/ Vito Sciscioli
                                         _________________________
                                         Name: Vito Sciscioli
                                         Title: Vice Chairman

                              Company

                                    PROJECT ORANGE ASSOCIATES, L.P.

                                    By:  G.A.S. Orange Associates, LLC
                                         general partner

                                    By:  /s/ Douglas Corbett
                                         _________________________
                                         Name: Douglas Corbett
                                         Title: Vice President

                              Agent

                                    U.S. BANK TRUST NATIONAL
                                       ASSOCIATION, as Collateral Agent

                                    By:  /s/ Ward A. Spooner
                                         _________________________
                                         Name: Ward A. Spooner
                                         Title: Vice President

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                                                             Acknowledgment for:
                                                                    Municipality

                  UNIFORM FORM CERTIFICATE OF ACKNOWLEDGMENT
                            (Within New York State)

STATE OF NEW YORK  )
COUNTY OF ONONDAGA ) ss.:

     On this 2nd day of December, in the year 1999, before me, the
undersigned, personally appeared Roy A. Bernardi, personally known to me or
proved to me on the basis of satisfactory evidence to be the individual(s) whose
name(s) is (are) subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their capacity(ies), and that by
his/her/their signature(s) on the instrument, the individual(s), or the person
upon behalf of which the individual(s) acted, executed the instrument.

                                    /s/ Jean K. Sehl
                                    ___________________________
                                          Notary Public

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                                                             Acknowledgment for:
                                                                          Agency

                  UNIFORM FORM CERTIFICATE OF ACKNOWLEDGMENT
                            (Within New York State)

STATE OF NEW YORK  )
COUNTY OF ONONDAGA ) ss.:

     On this 2nd day of December, in the year 1999, before me, the
undersigned, personally appeared Vito Sciscioli, personally known to me or
proved to me on the basis of satisfactory evidence to be the individual(s) whose
name(s) is (are) subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their capacity(ies), and that by
his/her/their signature(s) on the instrument, the individual(s), or the person
upon behalf of which the individual(s) acted, executed the instrument.

                                    /s/ Jean K. Sehl
                                    ___________________________
                                          Notary Public

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<PAGE>

                                                             Acknowledgment for:
                                                                         Company

                  UNIFORM FORM CERTIFICATE OF ACKNOWLEDGMENT
                            (Within New York State)

STATE OF NEW YORK  )
COUNTY OF NEW YORK ) ss.:

     On this 3rd day of December, in the year 1999, before me, the
undersigned, personally appeared Douglas Corbett, personally known to me or
proved to me on the basis of satisfactory evidence to be the individual(s) whose
name(s) is (are) subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their capacity(ies), and that by
his/her/their signature(s) on the instrument, the individual(s), or the person
upon behalf of which the individual(s) acted, executed the instrument.

                                    /s/ Bernadette M. Sullivan
                                    ___________________________
                                           Notary Public

[Notary Seal]

                                      -9-
<PAGE>

                                                             Acknowledgment for:
                                                                           Agent

                  UNIFORM FORM CERTIFICATE OF ACKNOWLEDGMENT
                            (Within New York State)

STATE OF NEW YORK     )
COUNTY OF NEW YORK    ) ss.:

     On this 3rd day of December, in the year 1999, before me, the
undersigned, personally appeared Ward A. Spooner, personally known to me or
proved to me on the basis of satisfactory evidence to be the individual(s) whose
name(s) is (are) subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their capacity(ies), and that by
his/her/their signature(s) on the instrument, the individual(s), or the person
upon behalf of which the individual(s) acted, executed the instrument.

                                    /s/ Bernadette M. Sullivan
                                    ___________________________
                                            Notary Public

[Notary Seal]

                                      -10-
<PAGE>

                                   Exhibit A
                                   ---------

                                    Part 1
                                    ------

                             Property Description
                             --------------------

                                  Leased Site
                                  -----------

                                      -11-
<PAGE>

                                    Part 2
                                    ------

                             Property Description
                             --------------------

                             City Easement Parcels
                             ---------------------

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<PAGE>

                                    Part 3
                                    ------

                       List of City Easement Agreements
                       --------------------------------

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<PAGE>

                                    Part 4
                                    ------

                             Property Description
                             --------------------

                           Outside Easement Parcels
                           ------------------------

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<PAGE>

                                    Part 5
                                    ------

                      List of Outside Easement Agreements
                      -----------------------------------

                                      -15-<PAGE>

                                                                   EXHIBIT 10.20

                                    CONSENT
                                    -------

     Niagara Mohawk Power Corporation (the "Undersigned"), acknowledges that
nothing contained in the Power Put Agreement (as amended, the "Power Put
Agreement") dated as of September 19, 1986 between the Undersigned and Project
Orange Associates, L.P., a Delaware limited partnership (the "Company") or the
agreement consisting of the ISDA Master Agreement and the related Confirmation,
each dated as of June 30, 1998 (the "Indexed Swap Agreement" and collectively
with the Power Put Agreement, the "Amended Power Purchase Agreement") between
the Undersigned and the Company which were entered into pursuant to the Master
Restructuring Agreement, dated as of July 9, 1997 among the Undersigned and the
independent power producers party thereto, to replace and amend and restate the
Power Purchase Agreement dated September 19, 1989 between the Undersigned and
the Company precludes assignment of the Amended Power Purchase Agreement from
the Company to U.S. Bank Trust National Association, as collateral agent (the
"Agent") on behalf of certain financing parties and further acknowledges that
the Amended Power Purchase Agreement has been assigned by the Company to the
Agent pursuant to a Security Agreement, dated as of December 6, 1999, between
the Company and the Agent, the foregoing assignment being hereby consented to by
the Undersigned.

     The Undersigned further agrees as follows:

       1.   The Undersigned will not terminate the Amended Power Purchase
Agreement by reason of any default or breach of the Company thereunder without
written notice to the Agent, and first providing to the Agent (i) thirty (30)
days from the date on which notice of default or breach is delivered to Agent to
cure such default if such default is the failure to pay amounts to the
Undersigned which are due and payable under the Amended Power Purchase Agreement
or (ii) a reasonable time as is necessary to cure such default if the breach or
default cannot be cured by the payment of money to the Undersigned so long as
the Company or the Agent has commenced to cure the default within a sixty (60)
day period from the date on which notice of default or breach is delivered to
Agent and thereafter diligently pursue such cure to completion and continue to
perform any monetary obligations under the Amended Power Purchase Agreement and
all other obligations under the Amended Power Purchase Agreement are performed
by the Company or the Agent. If possession of the cogeneration facility to which
the Amended Power Purchase Agreement relates is necessary to cure such breach or
default, and the Agent declares the Company in default and commences foreclosure
proceedings, the Agent will be allowed a reasonable period to complete such
proceedings. If the Agent is prohibited by any court order or bankruptcy or
insolvency proceedings from curing the default or from commencing or prosecuting
foreclosure proceedings, the foregoing time periods shall be extended by the
period of such prohibition.

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<PAGE>

       2.  The Undersigned will accept performance by Agent or its designee or
assignee, in lieu of the Company's performance of such obligations.

       3.  Upon written notice from the Agent and so long as the Amended Power
Purchase Agreement has been assigned to the Agent or has been assumed by the
Agent, its designee(s) or assignee(s), the Undersigned, if requested by the
Agent, shall make all payments due under the Amended Power Purchase Agreement to
such account as the Agent may designate in writing to the Undersigned.

       4.  The Undersigned hereby represents and warrants to the Agent that (i)
the Amended Power Purchase Agreement is a valid and enforceable agreement, (ii)
there has been no prior assignment of the Amended Power Purchase Agreement of
which the Undersigned has notice or is aware other than the assignments
described herein, (iii)  neither the Undersigned, nor to the Undersigned's best
knowledge, without investigation, the Company is in default under the Amended
Power Purchase Agreement, and (iv) to the Undersigned's best knowledge, without
investigation, all covenants, conditions and agreements have been performed as
required in the Amended Power Purchase Agreement except those not due to be
performed until after the date hereof.

       5.  The Undersigned acknowledges and agrees that as of the date hereof
the Undersigned has no existing cause to terminate the Amended Power Purchase
Agreement and the merger of Project Orange Funding, L.P. with and into the
Company and the Company's assumption of the obligations of Project Orange
Funding, L.P. as a consequence thereof does not constitute a "Credit Event Upon
Merger" within the meaning of such term under the Indexed Swap Agreement.

       6.  The address where the Undersigned may send notices to Agent is as
follows:

     U.S. Bank Trust National Association
     100 Wall Street, Suite 1600
     New York, New York 10005
     Attention: Corporate Trust Administration
     Fax: (212) 809-5459

Dated as of 12/2/99

                         NIAGARA MOHAWK POWER CORPORATION,
                            a New York corporation

                         By: /s/ Clement E. Nadeau
                            __________________________
                            Clement E. Nadeau
                            Vice President - Electric Delivery

                                      -2-

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