EXHIBIT 10.15


 


	
  [FAGEN ENGINEERING LETTERHEAD]

  	
   

  	
   

  
	
   

  	
  March 12, 2007

  	
   

  



 


Mr. Robert Ferguson 

President 

Heron Lake Bio Energy, LLC 

P.O. Box 198 

Heron Lake, Minnesota 56137-0198


 


	
  RE:

  	
  Environmental Compliance Support

  
	
   

  	
  Heron Lake, Minnesota

  



 


Dear Bob:


 


As per our agreement at Friday’s board meeting, Fagen Engineering, LLC
will proceed with the following tasks as outlined in our proposal dated February 19,
2007. Fagen will perform the listed tasks on a time and material basis. Our
estimated cost to complete each task is listed below, but actual costs will be
tracked and can be reported on a monthly or task by task basis. Fagen agrees
not to exceed the budget without prior approval from the Heron Lake Bio Energy.


 


APPROVED TASKS


 


	
  New Source Performance Standard
  (NSPS) Notifications

  	
  $1,000
  to $1,500

  	
   

  



 


Fagen will prepare all required NSPS notifications and submit to the
MPCA on behalf of HLBE. The required reporting timeframe for commencement of
construction of the tanks and piping in light liquid service and the BFB Coal
Combustor expired prior to execution of this agreement, but after-the-fact
notifications have been submitted.


 


	
  Industrial Storm Water
  Pollution Prevention Plan

  	
  $2,500
  to $5,000

  	
   

  



 


Fagen will develop a site specific Industrial Storm Water Pollution Prevention
Plan for HLBE and deliver a final copy prior to facility start-up. Fagen can
also provide the initial training associated with SWPPP implementation, if
requested. SWPPP implementation and performance of the required onsite
inspections and filing of incidence reports are considered outside of this
scope.


 


	
  Risk Management Plan

  	
  $1,500
  to $2,500

  	
   

  



 


Section 112 ( r ) of the Clean Air Act requires that facilities
storing regulated toxic or flammable materials above a certain threshold
quantities prepare and submit a Risk Management Plan (RMP) to the Federal
Government and State and local emergency responders. Fagen will prepare a Risk
Management Plan for the HLBE facility and assist with submittal to the
appropriate agencies prior to plant start-up. Fagen will also work with plant
management to facilitate coordination with local emergency response officials.


 

















 


	
  Spill Prevention. Control. and
  Countermeasure Plan

  	
  $6,000
  to $10,000

  	
   

  



 


Fagen will prepare the HLBE Spill Prevention Control and Countermeasure
(SPCC) Plan in accordance with EP A 40 CFR Part 11 0 and evaluate the need
for a Facility Response Plan (FRP). If it is determined that an FRP is
required, Fagen will develop the Plan and incorporate it into the SPCC Plan
accordingly. The SPCC Plan and FRP will be prepared under the direction of a
licensed professional engineer (PE), as per Federal regulations. Fagen will
also provide assistance to HLBE with SPCC/FRP Plan implementation.


 


	
  Alcohol and Tobacco Tax and
  Trade Bureau Permit

  	
  $750
  to $1,000

  	
   

  



 


The Department of the Treasury, Alcohol and Tobacco Tax and Trade
Bureau (TTB), requires that ethanol plants obtain an Alcohol Fuel Producer
permit prior to commencing operations. Fagen will assist HLBE in preparing this
application and submitting to the TTB in order to secure the permit in advance
of anticipated facility start-up.


 


Where appropriate, Fagen is willing to assist with additional
activities or provide any services not specifically included in this scope of
work and will gladly provide an amendment to this proposal and a revised cost
estimate.


 


Please sign below and return an executed copy to my attention. Thank
you again for this opportunity to assist you.


 


Sincerely, 

FAGEN ENGINEERING, LLC


 


 


	
  /s/ M Rutledge

  	
   

  
	
  Michael Rutledge

  
	
  Department Head

  
	
  Environmental Services

  



 


AUTHORIZATION TO PROCEED:


 


	
  By:

  	
  Robert J. Ferguson

  	
   

  
	
   

  	
  /s/ Robert J. Ferguson

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature
  of authorized representative

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  President
  Board of Governors

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  3/14/07

  	
   

  



 


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