EXHIBIT
10.11


	
  Tower One, Suite 580

  1515 Arapahoe Street

  Denver, CO 80202

  	
  NATURAL

  RESOURCE

  GROUP,

  INC.

  	
  telephone (720)
  956-5300

  facsimile (720) 956-5310

  www.NRGINC.com

  



 


August 24, 2006


Mr. Bart R. McCormack


Tennessee Valley Agri-Energy LLC


540 Little Dry Creek Road


Pulaski, Tennessee 
38478


931.424.0653


Re:                               Exhibit A.  Air Permit and Environmental Services

Proposed Alabama Ethanol Plant


Dear Mr. McCormack:


Natural Resource Group, Inc. (NRG) appreciates the
opportunity to provide an environmental services cost estimate for a proposed
ethanol plant near Decatur, Alabama.  NRG
understands the proposed permitted production capacity of the facility will be
60 million gallons of undenatured ethanol per year from a 50 MMgal/year
designed facility.  As such, this
estimate has been divided into air pollution control permit application and
other permitting services, and as per recent discussions, public affairs.


	
  Part 1 - Air Pollution Control Permit
  Application

  	
  $

  	
  8,800

  	
   

  



 


NRG will complete the Alabama Department of
Environmental Management (ADEM) required construction air permit application
for the proposed ethanol plant assuming that the total facility emissions will
be below the Prevention of Significant Deterioration (PSD) and Part 70 major
source thresholds (100 tons per year).


NRG will calculate emissions
for a projected maximum ethanol production of 60 million-gallons/year using
corn as the primary feedstock.  The
application will be completed on a mutually agreed upon schedule after
receiving the necessary facility information. 
NRG will supply an information questionnaire concerning site-specific
issues within one week of project authorization.  NRG understands that the proposed facility
may acquire the necessary steam from the neighboring chemical plant Solutia.  If this is the case, NRG will review the ADEM
regulations and Solutia’s existing permit to determine if any modifications are
needed for Solutia’s permit.  NRG will
provide an additional cost estimate if a modification is necessary.


MINNEAPOLIS – HOUSTON – DENVER –
PROVIDENCE – ANCHORAGE - CHARLOTTE



   
 









Tennessee Valley Agri-Energy LLC will benefit from NRG’s
experience and expertise providing air permitting services for over 70 ethanol
plants.  NRG has complete knowledge of
dry mill ethanol plants, associated emission units and appropriate emission
rates.


The scope of work, including the required information
for preparing the air permit application is as follows:


(a)                                  Project Location and Description.  NRG will require a project location map with
a site layout diagram; preferably an electronic version.


(b)                                 Air Emission Source Descriptions &
Emission Rates:  All applicable emission
unit specifications will be verified with the design engineering firm.


(c)                                  PSD Avoidance and Applicability Review:  NRG will keep the facility minor with respect
to PSD and Part 70.  This proposal
assumes emissions less than 99 tons per year for all the criteria pollutants
and less than 10 tons per year of individual hazardous air pollutants (HAPs) or
25 tons per year HAPs in aggregate through the control equipment specified.


(d)                                 Non-PSD Air Permit Application:  The application will review all the
applicable regulatory requirements, including NSPS Subparts Dc/Db for boilers,
Kb for tanks and VV for leak detection in the fermentation and distillation
areas.  NRG will prepare the application
and all required forms.  Compliance plan
elements for emission units with monitoring, record-keeping and reporting
requirements will be included.


(e)                                  Review of the Draft Permit and
negotiation of permit terms:  There will
likely be some follow-up response required to technical questions on the permit
application.  We have not included any
follow-up costs beyond submittal of administratively complete air application.


Part
2 - Other Permitting Work 


	
  ADEM Construction Notice of
  Intent and Storm Water Pollution Prevention Plan

  	
  $

  	
  5,500

  	
   

  



 


Since the disturbed site areas will be greater than 1
acre, the proposed projects require National Pollution Discharge Elimination
System (NPDES) Construction Site Notice of Intent (NOI) submittals, and
Stormwater Pollution Prevention Plans (SWPPP). 
Permits are obtained by submitting a construction site NOI form and
sign-off letters for threatened and endangered species from the ADEM and
cultural resources from the Alabama Historical Commission.  The cost of preparing these letters is
included in the permit cost.  The Phase
II Storm Water rules that regulate construction projects greater than one acre
also apply to the projects.



 2
 









 


	
  Wastewater Discharge Permit (NPDES) Application

  	
   

  	
  $6,500

  



 


The project will likely require an NPDES permit for
some wastewater streams.  NRG understands
these water streams consist of non-process cooling water, such as cooling tower
blow-down, boiler blow-down, and possibly reverse osmosis reject or iron filter
backwash, etc.  These water streams are
often of sufficient quality to be discharged to a surface water stream or river.  NRG has secured these permits for similar
facilities in Minnesota, Iowa, Wisconsin and South Dakota.  NRG has existing chemical use information
from US Water Chemicals and other suppliers that typically treat these water
streams.  A non-degradation review of the
receiving stream may also be required depending on the characteristics of the
wastewater and the discharge location.  Costs
associated with a non-degradation review are not included in this proposal.


Part
3 - Public Affairs Support


NRG will provide public affairs support on as needed
basis, and bill on a time and materials fashion.  Initially, this work will involve strategy
discussions on initial reaction to media accounts, as well as longer term
discussion re:  a more public face for
the project (which may include open houses cost TBD), development of basic
project fact sheet, and initial coordination and participation in meetings with
a range of elected and public officials to provide project background and
uncover local issues and concerns.


Table 1 Proposed Decatur Alabama Ethanol
Facility

Environmental Permitting Work


	
  Task Description

  	
   

  	
  Cost

  	
   

  	
  Completion

  Date

  	
   

  	
  Authorization

  Initials

  	
   

  
	
  Air Permit
  Application

  	
   

  	
   

  	
  $

  	
  8,800

  	
   

  	
  5
  weeks*

  	
   

  	
   

  	
   

  
	
  NPDES
  Construction Permit Applications

  	
   

  	
   

  	
  $

  	
  5,500

  	
   

  	
  5
  weeks*

  	
   

  	
   

  	
   

  
	
  NPDES Wastewater
  Permit Applications

  	
   

  	
   

  	
  $

  	
  6,500

  	
   

  	
  TBD

  	
   

  	
   

  	
   

  
	
  Public Affairs
  Support

  	
   

  	
   

  	
  $

  	
  10,000

  	
   

  	
  TBD

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
  $

  	
  30,800

  	
   

  	
  —

  	
   

  	
   

  	
   

  



 






*            Completion dates are from project
authorization and receiving site layout and property information for each site.


Please note that this proposal does not include
follow-up correspondence beyond minor clarification with the ADEM after
submission of each application/document. 
Significant technical follow-up and meetings with the ADEM are not
included in these costs.  We do recommend
a meeting with ADEM to discuss the environmental permitting requirements.  This meeting will be beneficial to Tennessee
Valley Agri-Energy permit review time as well as starting out on a good note
with ADEM with a demonstration of attention to environmental compliance.  Travel costs and meeting time is not included
in this proposal.  A cost estimate will
be provided upon request or billed on a time and materials basis as authorized.



 3
 









NRG will complete the application as thoroughly as
possible, with the available information, in order to minimize agency follow-up.  To perform follow-up work for the approved
tasks, NRG will notify you and use any remaining budget from the initial task,
if available.  If additional budget is
necessary to complete follow-up work with an agency, NRG will submit a change
order request to you for approval of the additional expense.  NRG will not exceed the budgeted costs or
initiate any of the proposed tasks without prior authorization.  All work will be completed on a time and
materials basis using NRG’s current rates and assumes the two projects will
proceed in the near future.


If authorized to complete the work, NRG could start
the project within 3 weeks of approval.  We
look forward to working with you on this project.  Please indicate your acceptance of this
proposal by signing the authorization below and initialing each of the projects
in the table that you wish to have NRG complete at this time.  Initialing is not required if all tasks are
authorized.  Please forward a copy of the
signed proposal to our office.


Sincerely,


	
  Natural Resource Group, Inc.

  	
   

  	
  Authorized By:

  	
   

  	
    /s/ Bartt R. McCormackl

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
    Mr. Bart R. McCormack, President

  	
   

  	
   

  
	
  /s/ Paul R. Book

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Paul R. Book, PhD, PG

  	
   

  	
   

  	
   

  	
  Date:

  	
    8/24/06

  	
   

  
	
  Principal

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (612) 339-4779

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
									



 


CC:          Boyd Ruppelt, BBI



 4