Exhibit 10.20


 


Natural
Gas Supply Agreement


 


 


1.                                       This
Natural Gas Supply Agreement (“Agreement”) is made and entered into by and
between NorthWestern Services Corporation (“NSC”), a South Dakota corporation
and Dakota Ethanol, LLC (“Customer”) this 23rd day of October, 2003.  This Agreement shall become effective on
November 1, 2003.  Delivery of natural
gas under this Agreement will be to the facilities owned by NorthWestern Energy,
which are located near Madison, South Dakota.


 


2.                                       Delivery
Quantities:


 


	
  Maximum
  Daily Quantity*

  	
  6,000 MMBtu
  per day

  
	
   

  	
   

  
	
  Average
  Minimum Daily Quantity*

  	
  4,500 MMBtu
  per day

  



 












* NSC and
Customer agree that the above stated volumes are estimates.  Plant volumes may change from time to time
and future expansion may occur prior to the end of this contract term. NSC will
have a maximum capacity of 6,000 MMBtu per day available at the Dakota Ethanol
site for their use throughout the term of this Agreement.


 


3.                                       Gas
Supply Charge: Per MMBtu equivalent price as reported in the first of the month
issue of Inside F.E.R.C. Gas Market Report for NNG-Ventura published for the
month of use.  Gas supply charge can be
converted to a fixed price for any month, at desired quantity of MMBtu’s, at
any time during the contract term.


 


4.                                       Term:  This agreement shall be in effect from
November 1, 2003 and shall continue until October 31, 2004.  There after agreement shall continue in
effect year to year.  Either party may
terminate the Agreement, with or without cause, upon at least forty-five (45)
days written notice prior to the end of any applicable termination period.  If notice of termination is made, the
obligations of the parties will continue during such notice period, and for
such additional periods of time for performance of obligations in place at the
termination date.


 


5.                                       Billing
and Payment: NSC shall use reasonable efforts to render invoices on or before
the 10th day of each month for all gas delivery commodity and monthly customer
charges applicable to gas deliveries to the Customer in the preceding
month.  Customer shall pay NSC on or
before the 25th day of each month for all charges reflected on the invoice
rendered by NSC in the current month.


 


	
  Dakota Ethanol, LLC

  	
  NorthWestern Services Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Dean
  Frederickson

  	
   

  	
  By:

  	
  /s/ Jeff
  McKinney

  	
   

  
	
   

  	
   

  
	
  Title:

  	
  General
  Manager

  	
   

  	
  Title:

  	
  NSC

  	
   

  
										



 

















 


Natural
Gas Interstate Pipeline Transportation Agreement


 


This Natural
Gas Interstate Pipeline Transportation Agreement (“Agreement”), for the
interstate transportation of natural gas on the Northern Natural Gas Pipeline
System (NNG), is made and entered into by and between NorthWestern Services
Corporation (“NSC”), a South Dakota corporation and Dakota Ethanol, LLC
(“Customer”) this 23rd day of October 2003. 
This Agreement shall become effective on November 1, 2003.  Delivery of natural gas will be to the
NorthWestern Energy interconnection located near Madison, South Dakota.


 


 


1.                           Pipeline
Transportation Services:


 


a)              NNG
Firm Reservation:


 


NSC shall
provide 100% firm transportation capacity to Customer on NNG’s interstate
pipeline system at 55% of NNG’s maximum TFX reservation rate applicable for the
month.  Such rate is inclusive of all
reservation charge surcharges imposed by NNG. 
The above rate will be converted to a 100% load factor rate and charged
on a volumetric basis.


 


b) Delivery Quantities:


 


	
  Maximum
  Daily Quantity*

  	
  6,000 MMBtu
  per day

  
	
   

  	
   

  
	
  Average
  Minimum Daily Quantity*

  	
  4,200 MMBtu
  per day

  



 












* NSC and
Customer agree that the above stated volumes are estimates.  Plant volumes may change from time to time
and future expansion may occur prior to the end of this contract term. NSC will
maintain a maximum firm capacity of 4,500 MMBtu per day available at the Dakota
Ethanol site for Customer’s use throughout the term of this agreement. Nonetheless,
NSC agrees to offer the same prices as stated herein, so long as additional
significant NSC capital improvements are not required to enable service under
this Agreement.


 


	
  c)

  	
  NNG Firm
  Commodity:

  	
   

  	
  Per MMBtu
  equivalent charge in NNG’s tariff.

  
	
   

  	
   

  	
   

  	
   

  
	
  d)

  	
  Carlton
  Surcharge:

  	
   

  	
  Per MMBtu
  equivalent charge in NNG’s tariff.

  



 

















 


	
  e) NNG Fuel
  Retention: Gross-up for pipeline fuel based on the percentage for mainline
  fuel in NNG’s tariff.

  
	
   

  	
   

  	
   

  	
   

  
	
  f)

  	
  Receipt/Delivery
  Points:

  	
   

  	
  Firm Primary
  Receipt points into NNG’s Market Area shall be Ventura.

  
	
   

  	
   

  	
   

  	
   

  
	
  g)

  	
  Balancing
  Service

  	
   

  	
  Customer
  will provide nominations to NSC and pay a rate of $0.001 per therm of
  volumetric usage.

  
	
   

  	
   

  	
   

  	
   

  
	
  Plus
  applicable sales taxes

  



 


2)              Term:  This contract shall be in effect until
10-31-13, however if customer feels that NSC can not provide the level of
service that they require customer may cancel this contract with 45 days
written notice prior to the contract anniversary date.  If at the time of termination there exists a
firm capacity contract with NNG that is assigned to the Customer, that firm
capacity contract will be reassigned in the Customer’s name.


 


3)              Billing
and Payment: NSC shall use reasonable efforts to render invoices on or before
the 10th day of each month for all gas delivery commodity and monthly customer
charges applicable to gas deliveries to the Customer in the preceding
month.  Customer shall pay NSC on or
before the 25th day of each month for all charges reflected on the invoice
rendered by NSC in the current month.


 


 


	
  Dakota Ethanol, LLC

  	
  NorthWestern Services Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Dean
  Frederickson

  	
   

  	
  By:

  	
  /s/ Jeff
  McKinney

  	
   

  
	
   

  	
   

  
	
  Title:

  	
  General
  Manager

  	
   

  	
  Title:

  	
  NSC

  	
   

  
										



 


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