November
      28, 2007

    


    


    Prairie
      Creek Ethanol, LLC

    Attention:
      Brad Davis

    c/o
      Corn
      LP

    1303
      Highway 3 East

    Goldfield,
      IA 50542

    


    
      	
            	Re:	
              Prairie
                Creek Ethanol, LLC Ethanol Project

            


    

    


    Dear
      Brad:

    


    This
      letter of intent will confirm our discussions regarding the proposed terms
      and
      conditions under which Fagen, Inc. (“Fagen”)
      will
      enter into exclusive negotiations with Prairie Creek Ethanol, LLC (“Owner”)
      to
      implement the transaction described in Paragraph 1 below (the “Transaction”).
      (Fagen and Owner are referred to herein individually as a “Party”
and
      collectively as the “Parties”).
      This
      letter will constitute a letter of intent between us (the “Letter
      of Intent”)
      if
      this letter is executed and returned by you within forty-five (45) days of
      the
      date hereof. Upon execution by both Parties, this letter shall supercede and
      replace in all respects any and all prior letters of intent entered into by
      Fagen with, or for the benefit of, Owner. 

    


    The
      Parties agree to effect the Transaction subject only to the execution and
      delivery (in each case in a form satisfactory to Fagen) of a definitive
      Design-Build Agreement and other ancillary instruments and agreements (the
      “Transaction
      Documents”).
      The
      Parties agree that the Transaction Documents must be executed and delivered
      by
      the parties thereto no later than November 30, 2008 (the “Closing
      Date”)
      or
      this Letter of Intent will terminate in accordance with Paragraph 10(a) hereof.
      

    


    
      	
              1.

            	
              The
                Transaction.
                The Parties agree that the Transaction will consist of the
                following:

            


    

    


    
      	 	
              (a)

            	
              Fagen
                agrees to provide Owner with those services as described in this
                Letter of
                Intent which are necessary for Owner to develop a detailed description
                of
                a fifty-five (55) million gallons per year (“MGY”)
                dry grind ethanol production facility located at Wesley, Iowa (the
                “Plant”)
                and to establish a price for which Fagen would provide design,
                engineering, procurement of equipment and construction services for
                the
                Plant. The description of the Plant will be sufficiently detailed
                to
                permit an analysis of the Owner’s lump-sum cost to develop the Plant and
                to develop an economic pro forma sufficient to determine if the Plant
                can
                be financed. 

            


    

    


    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        Prairie
          Creek Ethanol, LLC 

        Letter
          of
          Intent

        November
          28, 2007

        Page
          2
of
          19

      

       

    

    
      	 	
              (b)

            	
              Fagen
                will also provide Owner with assistance in evaluating, from both
                a
                technical and business perspective, the appropriate location of the
                Plant
                and business plan development. Fagen will assume no risk or liability
                of
                representation or advice to Owner by assisting in evaluating the
                above and
                all decisions made regarding feasibility, financing, and business
                risks
                are the Owner’s sole responsibility and liability. Owner acknowledges that
                Fagen has no control over cost of labor, materials, equipment, or
                services
                furnished by others, over other contractors’ methods of determining
                prices, or other competitive bidding or market conditions. Fagen’s
                estimates of project construction cost will be made on the basis
                of its
                experience and qualifications and will represent Fagen’s best judgment as
                experienced and qualified professionals familiar with the construction
                industry. Fagen does not guarantee that proposals, bids, or actual
                construction cost will not vary from its estimates of project cost
                and
                Owner acknowledges the same. 

            


    

    


    
      	 	
              (c)

            	
              Fagen
                will also provide Owner with conceptual design and technical information
                required to support Owner’s application for a construction air permit
                prior to the commencement of Plant Construction.
                

            


    

    


    
      	 	
              (d)

            	
              If
                Owner determines that the Plant is economically feasible and desires
                to
                proceed with the development of the Plant, then Owner agrees to enter
                into
                a Lump Sum Design-Build contract with Fagen for the design, procurement
                of
                equipment and construction of the Plant (the “Design-Build
                Agreement”).
                

            


    

    
      	 	 	 


    

    
      	 	
              (e)

            	
              Owner
                shall offer Fagen the right to invest in the project an amount up
                to $5.0
                million as decided by Fagen. Such investment shall entitle Fagen
                to one
                seat on the board of directors. Except as set forth above, and unless
                otherwise specifically agreed between Fagen and Owner, such investment
                shall be offered on the same terms and conditions as all other
                investors.

            


    

    


    
      	 	
              (f)

            	
              Owner
                agrees that the Design-Build Agreement will be Fagen’s chosen form of
                Design-Build Agreement and will contain among other things, those
                terms
                and conditions set forth in the General Terms and Conditions section
                of
                this Letter of Intent.

            


    

    


    
      	
              2.

            	
              Contract
                Price.
                Owner shall pay Fagen Eighty-one Million Nine Hundred Thousand Dollars
                ($81,900,000) (the “Contract
                Price”)
                as full consideration to Fagen for complete performance of the services
                described in the Design-Build Agreement and all costs incurred in
                connection therewith. The Contract Price is based upon Fagen’s standard
                plant design, attached hereto as Exhibit A, and shall be subject
                to
                adjustments to reflect any deviations from standard design requested
                by
                Owner; provided, however, that all requested deviations from Fagen’s
                standard design must be submitted to Fagen by Owner no later than
                the
                earlier of: (a) the date upon which the Phase I engineering is scheduled
                to be delivered to Owner pursuant to the Phase I and Phase II Engineering
                Services Agreement (as such term is defined herein); or (b) the date
                upon
                which the Design-Build Agreement is executed. The Contract Price
                shall be
                subject to the following:

            


    

    


    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        Prairie
          Creek Ethanol, LLC 

        Letter
          of
          Intent

        November
          28, 2007

        Page
          3
of
          19

      

       

    

    
      	 	
              (a)

            	
              The
                Contract Price shall not include any costs related to union labor
                or
                prevailing wage requirements. If any action by Owner, a change in
                applicable law, or a governmental authority (as those terms are defined
                in
                the Design-Build Agreement) acting pursuant to a change in applicable
                law,
                shall require Fagen to employ union labor or compensate labor at
                prevailing wages, the Contract Price shall be adjusted upwards to
                include
                any increased costs, of any kind or nature, associated with such
                labor or
                wages including but not limited to site security and personnel costs.
                Such
                adjustment shall include, but not be limited to, increased labor,
                subcontractor, and material and equipment costs resulting from any
                union
                or prevailing wage requirement; provided, however, that if an option
                is
                made available to either employ union labor, or to compensate labor
                at
                prevailing wages, such option shall be at Fagen’s sole discretion and that
                if such option is executed by Owner without Fagen’s agreement, Fagen shall
                have the right to terminate this Letter of Intent or the Design-Build
                Agreement, as applicable, and receive compensation pursuant to Paragraph
                4(c) hereof or the terms of the Design-Build Agreement, whichever
                is
                applicable.

            


    

    


    
      	 	
              (b)

            	
              If
                the Construction Cost Index published by Engineering News-Record
                Magazine
                (“CCI”)
                for the month in which a Notice to Proceed is given to Fagen is greater
                than 7879.54 (February 2007), the Contract Price shall be increased
                by a
                percentage amount equal to the percentage increase in
                CCI.

            


    

    


    
      	 	
              (c)

            	
              Due
                to rapidly accelerating costs of certain specialty materials required
                for
                Plant Construction, in addition to any adjustment provided for in
                Paragraph 2(b) hereof, Fagen shall also add a surcharge to the Contract
                Price of one half of one percent (0.50%) for each calendar month
                that has
                passed between February 2007 and the month in which a valid Notice
                to
                Proceed is given to Fagen. By way of example, if a valid Notice to
                Proceed
                is given one year after February 2007 and the CCI has increased two
                percent (2%) over such period of time, the total adjustment to the
                Contract Price shall be two percent (2%) in accordance with Paragraph
                2(b)
                plus one half of one percent (0.50%) for each of the twelve months
                from
                February 2007 to the delivery of a valid Notice to Proceed in accordance
                with this paragraph, for a total adjustment of eight percent
                (8%).

            


    

    


    
      	
              3.

            	
              General
                Terms and Conditions.
                The consummation of the Transaction will be subject to the Design-Build
                Agreement containing the following
                conditions:

            


    

    


    
      	 	
              (a)

            	
              Fagen
                will have no responsibility for and will not perform any site preparation
                work. Owner’s site responsibilities, in each instance in accordance with
                applicable specifications provided by Fagen, will include, but will
                not be
                limited to:

            


    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        Prairie
          Creek Ethanol, LLC 

        Letter
          of
          Intent

        November
          28, 2007

        Page
          4
of
          19

      

       

    

    
      	 	
              i. 
                

            	
              Obtaining
                land and legal authority to use the site for its intended
                purpose;

            


    

    
      	 	
              ii. 
                

            	
              site
                grading including soil stabilization and the costs connected
                therewith;

            


    

    
      	 	
              iii. 
                

            	
              final
                grading, seeding, and mulching;

            


    

    
      	 	
              iv. 
                

            	
              site
                security, including any site
                fencing;

            


    

    
      	 	
              v. 
                

            	
              procuring
                boundary and topographic surveys;

            


    

    
      	 	
              vi. 
                

            	
              procuring
                soil borings and geotechnical
                reports;

            


    

    
      	 	
              vii. 
                

            	
              obtaining
                all operating permits, including any fees, bonding, and required
                testing;

            


    

    
      	 	
              viii. 
                

            	
              obtaining
                storm water runoff permit and erosion control/land disturbance
                permit;

            


    

    
      	 	
              ix. 
                

            	
              obtaining
                any necessary pollutant elimination discharge
                permit;

            


    

    
      	 	
              x. 
                

            	
              obtaining
                a natural gas supply and service agreement and providing all gas
                piping to
                the use points, providing burner tip pressures as specified by Fagen,
                and
                supplying a digital flowmeter; 

            


    

    
      	 	
              xi. 
                

            	
              securing
                temporary utilities for the duration of construction and permanent
                electrical service, including all infrastructure design and installation
                for any line/service extensions, substation, primary feed and metering
                system, and on-site electrical distribution system up to and including
                the
                service transformers;

            


    

    
      	 	
              xii. 
                

            	
              supplying
                a water source, storage, and water supply lines of appropriate quality
                and
                quantity;

            


    

    
      	 	
              xiii. 

            	
              paying
                for a water pre-treatment system, including any building or structure
                required to house such system and other equipment, the cost of which
                is
                not included in the Contract Price, which shall be provided by a
                vendor
                selected by Fagen and designed and constructed by Fagen pursuant
                to a
                separate side-letter agreement executed by Owner and Fagen at Fagen’s
                standard time plus material rates during the relevant time period
                and at
                the relevant locale (the “Water
                Pre-Treatment System Agreement”),
                and maintaining and using such system, including the use of all chemicals
                specified for the operation of such water pre-treatment system, for
                the
                entirety of the warranty period, it being agreed that failure by
                Owner to
                maintain and properly use the water pre-treatment system for the
                duration
                of the warranty period shall void any and all warranties affected
                by such
                failure;

            


    

    
      	 	
              xiv. 
                

            	
              providing
                wastewater discharge piping, septic tank and drainfield or connect
                to a
                municipal system as required for the sanitary sewer requirements
                of the
                Plant;

            


    

    
      	 	
              xv. 
                

            	
              providing
                and maintain required ditches and permanent
                roads;

            


    

    
      	 	
              xvi. 
                

            	
              constructing,
                furnishing, and equipping the administration
                building;

            


    

    
      	 	
              xvii. 
                

            	
              providing
                maintenance and power equipment and spare
                parts;

            


    

    
      	 	
              xviii. 
                

            	
              providing
                all rail design, engineering, and construction, including any railroad
                permits or approvals;

            


    

    
      	 	
              xix. 
                

            	
              supplying
                drawings of rail system and administration building to Fagen;
                and

            


    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        Prairie
          Creek Ethanol, LLC 

        Letter
          of
          Intent

        November
          28, 2007

        Page
          5
of
          19

      

       

    

    
      	 	
              xx. 
                

            	
              paying
                for the required fire protection system for the Plant, including
                any
                building or structure required to house such system, the cost of
                which is
                not included in the Contract Price, and which shall be provided by
                Fagen
                pursuant to a separate side-letter agreement executed by Owner and
                Fagen
                at Fagen’s standard time plus material rates during the relevant time
                period and at the relevant locale (the “Fire
                Protection System Agreement”).

            


    

    


    
      	 	
              (b)

            	
              Owner
                will enter into a Phase I and Phase II Engineering Services Agreement
                with
                Fagen Engineering, LLC (“Phase
                I and Phase II Engineering Services Agreement”).
                The Phase I and Phase II Engineering Services Agreement will provide
                for
                commencement of work on the Phase I and Phase II engineering for
                the
                project as set forth therein. The Phase I engineering shall consist
                of
                engineering and design of the Plant site and shall include: property
                layout; grading, drainage and erosion control plan drawings; roadway
                alignment drawings; culvert cross sections and details; and seeding
                and
                landscaping, if required. The Phase II engineering shall consist
                of
                engineering and design of site work and utilities for the Plant,
                all
                within the property line of the Plant, including: property layout;
                site
                grading and drainage drawings; roadway alignment; all utility layout
                including fire loop, potable water, well water if applicable, sanitary
                sewer, utility water blowdown, and natural gas; geometric layout;
                site
                utility piping tables; tank farm layout; tank farm details; sections
                and
                details drawing, if required, and miscellaneous details drawing,
                if
                required. Owner will pay Fagen Engineering, LLC One Hundred Ten Thousand
                Dollars ($110,000.00) for such engineering services pursuant to the
                terms
                of that agreement, the full amount of which, upon payment in full,
                shall
                be included in and credited to the Contract Price. Notwithstanding
                the
                foregoing sentence, if a Notice to Proceed is not issued pursuant
                to the
                terms of the Design-Build Agreement, or Financial Closing is not
                obtained,
                then Fagen Engineering, LLC shall keep the full amount paid under
                the
                Phase I and Phase II Engineering Services Agreement as compensation
                for
                the services provided thereunder.

            


    

    


    
      	 	
              (c)

            	
              Fagen
                will provide reasonable assistance to Owner in obtaining Owner’s permits,
                approvals and licenses. Notwithstanding the foregoing, Owner shall
                hold
                harmless Fagen, its officers, directors, employees, and agents, for
                Owner's failure to comply with applicable laws in obtaining or maintaining
                the required permits. The denial or revocation of any Owner-obtained
                permit as a result of Owner's failure to comply with applicable laws
                shall
                entitle Fagen to an extension of contract times and an adjustment
                of
                Contract Price to the extent affected by such denial or revocation
                and to
                any and all other remedies available pursuant to the Design-Build
                Agreement and applicable law.

            


    

    


    
      	 	
              (d)

            	
              Owner
                will provide: surveys describing the property’s boundaries; geotechnical
                studies describing subsurface conditions; temporary and permanent
                easements, zoning and other requirements and encumbrances to enable
                Fagen
                to perform the work; a legal description of the site; as-built and record
                drawings of any existing structures; environmental studies, reports,
                and
                statements describing the environmental conditions, including hazardous
                conditions at the site.

            


    

    


    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        Prairie
          Creek Ethanol, LLC 

        Letter
          of
          Intent

        November
          28, 2007

        Page
          6
of
          19

      

       

    

    
      	 	
              (e)

            	
              Owner
                will be responsible for securing and executing all necessary real
                estate
                agreements to secure the site and is responsible for all costs incurred
                in
                obtaining those agreements. 

            


    

    


    
      	 	
              (f)

            	
              Fagen
                may subcontract portions of the
                work.

            


    

    


    
      	 	
              (g)

            	
              Fagen
                will provide up to two (2) weeks of training for Owner’s employees and, if
                applicable, Owner’s Operator’s employees required for the operation and
                maintenance of the Plant.

            


    

    


    
      	 	
              (h)

            	
              Owner
                must obtain Financial Closing prior to the issuance of a Notice to
                Proceed, or if agreeable to Fagen, in its sole discretion, provide
                Fagen
                an acceptable Owner’s certificate containing terms and conditions
                satisfactory to Fagen.

            


    

    


    
      	 	
              (i)

            	
              Owner
                will pay, at Fagen’s standard time plus material rates during the relevant
                time period and at the relevant locale, all reasonable costs incurred
                by
                Fagen for frost removal so that winter construction can proceed.
                Such
                costs will be in addition to, and not included in, the Contract
                Price.

            


    

    


    
      	 	
              (j)

            	
              Fagen
                will utilize certain proprietary property and information of ICM,
                Inc., a
                Kansas corporation (“ICM”),
                in the design and construction of the project, and may incorporate
                proprietary property and information of ICM into the project. Owner’s use
                of the proprietary property and information of ICM shall be governed
                by
                the terms and provisions of a license agreement between Owner and
                ICM
                which shall be attached as an exhibit to the Design-Build Agreement.
                Owner
                will be responsible for negotiating any requested changes to the
                ICM
                license directly with ICM, not
                Fagen.

            


    

    


    
      	 	
              (k)

            	
              All
                drawings, specifications, calculations, data, notes and other materials
                and documents, including electronic data furnished by Fagen to Owner
                under
                the Design-Build Agreement (“Work
                Product”)
                will be instruments of service and Fagen will retain the ownership
                and
                property interests therein, including copyrights
                thereto.

            


    

    


    
      	 	
              (l)

            	
              Upon
                payment in full under the Design-Build Agreement, Fagen will grant
                Owner a
                limited license to the Work Product for use solely in connection
                with the
                operation, maintenance, and repair of the Plant. The limited license
                will
                not permit Owner to use the Work Product in connection with any expansion
                or enlargement of the Plant, however, nothing in the limited license
                granted to Owner is intended to limit Owner’s use of the Plant’s actual
                production capability as built.

            


    

    


    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        Prairie
          Creek Ethanol, LLC 

        Letter
          of
          Intent

        November
          28, 2007

        Page
          7
of
          19

      

       

    

    
      	 	
              (m)

            	
              Work
                will commence following receipt of Owner’s written valid notice to proceed
                (“Notice
                to Proceed”).
                At least twenty (20) days, but no more than thirty (30) days prior
                to
                Owner’s anticipated delivery of Notice to Proceed, Owner must deliver
                notice to Fagen specifying the anticipated delivery date for Notice
                to
                Proceed (“Pre-NTP Notice”). The Notice to Proceed cannot be given until
                (1)
                Owner has title to the real estate on which the project will be
                constructed; (2) the site work required of Owner is completed; (3)
                Owner
                has executed the Water Pre-Treatment System Agreement and the Fire
                Protection System Agreement; (4) the air permit(s) and/or other applicable
                local, state or federal permits necessary so that construction can
                begin
                have been obtained; (5) Owner has obtained Financial Closing and
                delivered
                a certificate of financial closing executed by Owner and Lenders
                in a form
                acceptable to Fagen; (6) if applicable, Owner has executed a sales
                tax
                exemption certificate and provided the same to Fagen; (7) Owner has
                provided the name of its property/all-risk insurance carrier and
                the
                specific requirements for fire protection; (8) Owner has provided
                insurance certificates or copies of insurance policies demonstrating
                that
                Owner has obtained the insurance policies required pursuant to the
                Design-Build Agreement and naming additional insureds and protecting
                other
                interests as prescribed therein, and (9)  Fagen
                has provided Owner written notification of its acceptance of the
                Notice to
                Proceed,
                provided that Fagen shall not be required to accept the Notice to
                Proceed
                earlier than twenty (20) days after receipt of the Pre-NTP Notice.
                Owner
                must deliver the Pre-NTP Notice, complete the prerequisites to the
                issuance of a valid Notice to Proceed, as listed in items number
                (1)
                through (8) of this Paragraph, and submitted a Notice to Proceed,
                to Fagen
                for Fagen’s acceptance by the earlier of the date that is one hundred and
                eighty (180) days after the effective date of the Design-Build Agreement
                or November 30, 2008; otherwise, the Design-Build Agreement may be
                terminated, at Fagen’s sole option,
                thus releasing Fagen of all
                obligations.

            


    

    


    
      	 	
              (n)

            	
              “Substantial
                Completion”
                will be the date on which the Plant construction has been completed
                to a
                point that the Plant is ready to grind the first batch of corn for
                producing ethanol and begin operation for its intended use as a fifty-five
                (55) MGY dry grind ethanol production facility. No production capacity
                is
                guaranteed on the Substantial Completion date, but the Plant is largely
                completed as of that date. 

            


    

    


    
      	 	
              (o)

            	
              Substantial
                Completion will occur within Four Hundred and Fifty-Five (455) days
                after
                the date of the Notice to Proceed; provided, however, that, in addition
                to
                other adjustments to this date as may be available pursuant to the
                Design-Build Agreement, Design-Builder shall be entitled to a day-for-day
                extension of time for attaining Substantial Completion for each day
                in
                excess of thirty (30) days that the Pre-NTP Notice was delivered
                prior to
                Owner’s delivery of a valid Notice to Proceed.


            


    

    


    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        Prairie
          Creek Ethanol, LLC 

        Letter
          of
          Intent

        November
          28, 2007

        Page
          8
of
          19

      

       

    

    
      	 	
              (p)

            	
              Fagen
                will be entitled to an early completion bonus of Ten Thousand Dollars
                ($10,000) per day for each day that Substantial Completion occurs
                in
                advance of Four Hundred and Twenty-five (425) Days (“Early
                Completion Bonus”).
                The Early Completion Bonus shall be capped and shall not exceed One
                Million Dollars ($1,000,000). The Early Completion Bonus is earned
                for
                achieving Substantial Completion early, but is not due until the
                final
                payment.

            


    

    


    
      	 	
              (q)

            	
              “Final
                Completion”
                will be achieved once Owner reasonably determines that: Substantial
                Completion has been achieved; any outstanding amounts owed by Fagen
                to
                Owner have been paid; remaining items of work have been completed;
                clean-up of the site has been completed; all permits required to
                have been
                obtained by Fagen have been obtained; certain information including
                an
                affidavit stating that there are no outstanding liens, a release
                from
                further compensation, consent to final payment, and a hard copy of
                the
                as-built plans (which will remain Work Product) has been provided
                to
                Owner; releases and waivers of all claims and liens from Fagen and
                subcontractors have been provided; and the Performance Tests have
                been
                successfully completed. Final Completion will occur no more than
                ninety
                (90) days after the actual Substantial Completion date. The 90-day
                period
                between Substantial Completion and Final Completion will be tied
                directly
                to actual Substantial Completion. By way of example, if Substantial
                Completion is achieved 10 days early, then the 90-day period to Final
                Completion would begin on that earlier
                date.

            


    

    


    
      	 	
              (r)

            	
              Fagen
                will demonstrate certain performance guarantee criteria through
                performance testing performed following Substantial Completion but
                prior
                to Final Completion (“Performance
                Tests”).
                Air permit testing shall be done by a third party contractor retained
                by
                Owner.

            


    

    


    
      	 	
              (s)

            	
              Owner
                will take control of the Plant after completion and acceptance of
                the
                Performance Tests. The Performance Tests will be completed by Owner’s
                personnel under Fagen’s direction. 

            


    

    


    
      	 	
              (t)

            	
              Fagen
                will pay liquidated damages at a daily amount equal to the daily
                Early
                Completion Bonus amount for each day past ninety (90) days after
                Substantial Completion that Final Completion is not attained. Fagen’s
                liability for liquidated damages shall be capped at and shall not
                exceed
                One Million Dollars
                ($1,000,000.00).

            


    

    


    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        Prairie
          Creek Ethanol, LLC 

        Letter
          of
          Intent

        November
          28, 2007

        Page
          9
of
          19

      

       

    

    
      	 	
              (u)

            	
              The
                aggregate liability of Fagen, its Subcontractors, vendors, suppliers,
                agents and employees, to Owner (or any successor thereto or assignee
                thereof) for any and all claims and/or liabilities arising out of
                or
                relating in any manner to the work or to Fagen’s performance or
                non-performance of its obligations under the Design-Build Agreement,
                whether based on contract, tort (including negligence), strict liability,
                or otherwise, shall not exceed in the aggregate, the Contract Price
                and
                shall be reduced, upon the issuance of each Application for Payment,
                by
                the total value of such Application for Payment; provided, however,
                that
                upon the earlier of Substantial Completion or such point in time
                that
                requests for payment pursuant to the Design-Build Agreement have
                been made
                for ninety percent (90%) of the Contract Price, Fagen's aggregate
                liability shall be limited to the greater of (1) Ten Percent (10%)
                of the
                Contract Price or (2) the amount of insurance coverage available
                to
                respond to the claim or liability under any policy of insurance provided
                by Fagen under the Design-Build
                Agreement.

            


    

    


    
      	 	
              (v)

            	
              The
                warranty period for work completed pursuant to the Design-Build Agreement
                will extend for one year past Substantial Completion. The Warranty
                will
                not apply to defects caused by abuse, alterations, or failure to
                maintain
                the work by persons other than Fagen or anyone for whose acts Fagen
                may be
                liable. The warranty period will be extended one day for each day
                that
                such part of the work repaired under such warranty is malfunctioning
                or
                not in conformance with project requirements provided that Owner
                must
                report such non-conformance or malfunction within seven (7) days
                of the
                appearance of such non-conformance or malfunction.
                

            


    

    


    
      	 	
              (w)

            	
              Owner
                will pay Fagen a mobilization fee in the amount of Ten Million Dollars
                ($10,000,000.00) as soon as possible following the execution of the
                Design-Build Agreement, and at the latest, at the earlier to occur
                of
                financial closing or the issuance of a Notice to
                Proceed.

            


    

    


    
      	 	
              (x)

            	
              Fagen
                will request payment and Owner will pay Fagen in accordance with
                the
                following procedures:

            


    

    


    
      	 	
              i. 
                

            	
              On
                or before the twenty-fifth (25th) day of each month following the
                acceptance of Notice to Proceed Fagen will submit to Owner a request
                for
                payment (an “Application
                for Payment”).
                Along with each Application for Payment, except with respect to the
                first
                Application for Payment, Fagen will submit to Owner, via hardcopy
                or by
                electronic means including facsimile or portable document format,
                signed
                lien waivers for the work included in the Application for Payment
                submitted for the immediately preceding pay period and for which
                payment
                has been received. 

            


    

    
      	 	
              ii. 
                

            	
              The
                Application for Payment will constitute Fagen’s representation that the
                work has been performed consistent with the Transaction Documents
                and has
                progressed to the point indicated in the Application for Payment.
                No
                additional documentation will be provided to Owner in support of
                the
                Application for Payment. The work completed at the site and the comparison
                of the Application for Payment against the Schedule of Values shall
                provide sufficient substantiation to Owner of the accuracy of the
                Application for Payment. The Schedule of Values subdivides the work
                into
                its respective parts, includes values for all items comprising the
                work,
                and serves as the basis for the monthly progress
                payments.

            


    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
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          Creek Ethanol, LLC 

        Letter
          of
          Intent

        November
          28, 2007

        Page
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              iii. 
                

            	
              The
                Application for Payment may request payment for (i) completed work;
                (ii)
                prepayments for materials or equipment for the project when prepayment
                is
                required by the manufacturer or supplier of such materials or equipment;
                or (iii) equipment and materials not yet incorporated into the
                project
                provided that (x) the materials and equipment are suitably stored
                at the
                site or elsewhere, (y) the equipment and materials are protected
                by
                suitable insurance, and (z) upon payment, Owner will receive title
                to such
                equipment and materials.

            


    

    
      	 	
              iv. 
                

            	
              Owner
                shall make payment within ten (10) days of receipt of the Application
                for
                Payment. Failure to make such payment will result in the accrual
                of
                interest at a rate of eighteen percent (18%) per annum commencing
                five (5)
                days after the payment is due. Failure to make such payment, except
                if due
                to appropriate withholding of payment due to a good faith dispute,
                entitles Fagen to stop work.

            


    

    
      	 	
              v. 
                

            	
              If
                Owner wishes to dispute any portion of the Application for Payment,
                Owner
                must notify Fagen in writing within five (5) days of receipt of the
                Application for Payment. Such notice must state the specific amounts
                Owner
                intends to withhold, the reasons and contractual basis for withholding,
                and the specific measures Fagen must take to rectify Owner’s concerns.
                Regardless of a dispute as to a portion of the Application for Payment,
                Owner must pay all undisputed amounts by the payment due
                date.

            


    

    
      	 	
              vi. 
                

            	
              Retainage
                on progress payments made pursuant to the Design-Build Agreement
                will be
                capped at five percent (5%) of the total price. Owner will retain
                ten
                percent (10%) of each payment up to a maximum of five percent (5%)
                of the
                total Contract Price. Once five percent (5%) of the total price has
                been
                retained, Owner will not retain any additional amounts from subsequent
                payments. Owner will release retainage, less the amount equal to
                the value
                of subcontractor lien waivers not yet obtained, upon completion of
                the
                Performance Tests.

            


    

    
      	 	
              vii. 
                

            	
              Upon
                Final Completion, Fagen will deliver to Owner a request for final
                payment.
                Owner will make the final payment within thirty (30) days after the
                receipt of such request. Owner’s failure to make Final Payment will void
                any and all warranties, whether express or implied, provided by Fagen
                pursuant to the Design-Build
                Agreement.

            


    

    


    
      	 	
              (y)

            	
              Fagen
                will not be responsible for any hazardous condition encountered at
                the
                site and may stop work in an affected area until such hazardous condition
                is removed by Owner.

            


    

    


    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
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          Creek Ethanol, LLC 

        Letter
          of
          Intent

        November
          28, 2007

        Page
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of
          19

      

       

    

    
      	 	
              (z)

            	
              Fagen
                will not be responsible for differing site conditions including concealed
                or latent physical conditions or subsurface conditions and will be
                entitled to a price adjustment to the Contract Price to the extent
                that
                its cost and/or time of performance is adversely impacted by the
                differing
                site conditions. 

            


    

    


    
      	 	
              (aa)

            	
              “Force
                Majeure Events”
                shall mean any cause or event beyond the reasonable control of, and
                without the fault or negligence of a Party claiming Force Majeure,
                including, without limitation, an emergency, floods, earthquakes,
                hurricanes, tornadoes, adverse weather conditions not reasonably
                anticipated or acts of God; sabotage; vandalism beyond that which
                could
                reasonably be prevented by a Party claiming Force Majeure; terrorism;
                war;
                riots; fire; explosion; blockades; insurrection; strike; slow down
                or
                labor disruptions (even if such difficulties could be resolved by
                conceding to the demands of a labor group); economic hardship or
                delay in
                the delivery of materials or equipment that is beyond the control
                of a
                Party claiming Force Majeure, and action or failure to take action
                by any
                governmental authority after the effective date of the Design-Build
                Agreement (including the adoption or change in any rule or regulation
                or
                environmental constraints lawfully imposed by such governmental
                authority), but only if such requirements, actions, or failures to
                act
                prevent or delay performance; and inability, despite due diligence,
                to
                obtain any licenses, permits, or approvals required by any governmental
                authority.

            


    

    


    
      	 	
              (bb)

            	
              If
                Fagen is delayed at any time in the commencement or progress of the
                work
                due to a delay in the delivery of, or unavailability of, essential
                materials or labor to the project as a result of a significant
                industry-wide economic fluctuation or disruption beyond the control
                of and
                without the fault of Fagen or its subcontractors which is experienced
                or
                expected to be experienced by certain markets providing essential
                materials, equipment or labor to the project during the performance
                of the
                work and such economic fluctuation or disruption adversely impacts
                the
                price, availability, and delivery timeframes of essential materials
                and
                equipment (such event an “Industry-Wide
                Disruption”),
                Fagen shall be entitled to an equitable extension of the Contract
                Time on
                a day-for-day basis equal to such delay and an equitable adjustment
                to the
                Contract Price. The Owner and Fagen shall undertake reasonable steps
                to
                mitigate the effect of such delays. Notwithstanding any other provision
                to
                the contrary, Fagen shall not be liable to the Owner for any expenses,
                losses or damages arising from a delay, or unavailability of, essential
                materials or labor to the project as a result of an Industry-Wide
                Disruption.

            


    

    


    
      	
              4.

            	
              Exclusivity,
                No Solicitation or Negotiations.
                

            


    

    


    
      	 	
              (a)

            	
              Neither
                Owner, nor its affiliates, shareholders, members or other equity
                owners,
                or their officers, representatives, agents or employees will solicit
                or
                negotiate, directly or indirectly, with any third party to obtain
                the
                services contemplated by this Letter of
                Intent.

            


    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
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          Creek Ethanol, LLC 

        Letter
          of
          Intent

        November
          28, 2007

        Page
          12
of
          19

      

       

    

    
      	 	
              (b)

            	
              During
                the term of this Letter of Intent the Owner agrees that Fagen will
                have
                the exclusive right to provide to Owner the services contemplated
                by the
                Letter of Intent. Owner will not disclose any information related
                to this
                Letter of Intent to a competitor or prospective competitor of
                Fagen.

            


    

    


    
      	 	
              (c)

            	
              Should
                Owner choose not to develop the project or to develop or pursue a
                relationship with a company other than Fagen to provide the preliminary
                engineering or design-build services for the project, then Owner
                will
                reimburse Fagen for all expenses Fagen has incurred in connection
                with the
                project
                based upon Fagen’s standard rate schedule plus all third party costs
                incurred from the date of this Letter of Intent. Such expenses include,
                but are not limited to, labor rates and reimbursable expenses such
                as
                legal charges for document review and preparation, travel expenses,
                reproduction costs, long distance phone costs, and postage.
                

            


    

    


    
      	 	
              (d)

            	
              In
                the event Fagen’s services are terminated by Owner, title to the technical
                data, which may include preliminary engineering drawings and layouts
                and
                proprietary process related information, will remain with Fagen and
                any
                copies thereof will be returned to
                Fagen.

            


    

    


    
      	 	
              (e)

            	
              Owner
                acknowledges that the technical data provided by Fagen under this
                Letter
                of Intent is preliminary and may not be suitable for construction.
                Owner
                agrees that any use of such technical data following termination
                of
                Fagen’s services will be at Owner’s sole
                risk.

            


    

    


    
      	
              5.

            	
              Confidentiality.
                Owner and
                Fagen have entered into that certain Confidentiality and Non-Circumvention
                Agreement dated November 28, 2007 (“Confidentiality
                Agreement”),
                which agreement is incorporated herein by reference hereto. Owner
                hereby
                acknowledges and agrees that any Confidential Information, as such
                term is
                defined in the Confidentiality Agreement, disclosed to Owner pursuant
                to
                or in advancement of this Letter of Intent shall be subject to the
                terms
                and conditions of the Confidentiality Agreement. Notwithstanding
                anything
                herein to the contrary, the Parties hereto shall, with respect to
                information disclosed pursuant to or in advancement of this Letter
                of
                Intent, have all rights and obligations as set forth in the
                Confidentiality Agreement.

            


    

    


    
      	
              6.

            	
              Publicity.
                Neither Owner nor any of its affiliates, shareholders, subcontractors,
                or
                vendors or their officers, representatives, agents and employees
                will
                issue any press or publicity release or otherwise release, distribute,
                announce, or disseminate any information for publication concerning
                the
                Transaction, the existence of the negotiations among Fagen and Owner,
                the
                participation of Fagen in the Transaction, or any other matter affecting
                Fagen hereunder, without the prior written consent of Fagen, which
                consent
                may be withheld for any reason, except where such press or publicity
                release is required by order of a court or necessary or appropriate
                under
                the rules or regulations of any governmental
                agency.

            


    

    


    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
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          Creek Ethanol, LLC 

        Letter
          of
          Intent

        November
          28, 2007

        Page
          13
of
          19

      

       

    

    The
      Parties will jointly agree on the timing and content of any public disclosure
      by
      Owner, including but not limited to, press releases, relating to Fagen’s
      involvement in Owner’s project,
      and no
      such disclosure will be made without Fagen’s consent and approval, except as may
      be required by applicable law.

     

    
      	
              7.

            	
              Disclaimer
                of Consequential Damages.
                In no event will either Fagen or Owner be liable to the other pursuant
                to
                this Letter of Intent, or for activities conducted under this Letter
                of
                Intent, under any theory of recovery for any indirect, special, incidental
                or consequential damages (including, without limitation, loss of
                revenues
                or profits, loss of use, cost of replacement, cost of capital and
                claims
                of customers, interest charges, or increased costs of nature
                whatsoever).

            


    

    


    
      	
              8.

            	
              Legal
                Effect. Although
                this Letter of Intent does not contain all matters upon which agreement
                must be reached in order for the Transaction to be consummated, Fagen
                and
                Owner wish to set forth, prior to the execution of the Transaction
                Documents, their mutual agreement as to the material terms and conditions
                of the Transaction. Each Party agrees to negotiate in good faith
                towards
                entering into the written, definitive and legally binding Transaction
                Documents containing, among other terms and conditions, those terms
                and
                conditions set forth in this Letter of Intent including, without
                limitation, those terms set forth in Paragraphs 2 and 3 hereof;
                provided, however, that except as specifically identified and set
                forth
                herein, nothing in this Agreement shall be read to promise, guarantee,
                or
                otherwise secure on Owner’s behalf any specific construction start date
                with respect to the Plant including but not limited to any pour concrete
                date, scheduling slots or dates for the delivery of design packages
                or to
                entitle Owner to any rights, privileges, or claims with respect thereto
                or
                any right, privilege, or claim to any place on Fagen’s construction
                schedule.
                Notwithstanding the foregoing, the provisions of this Paragraph and
                of
                Paragraphs 1, 4, 5, 6, 7, 10, 11, 13, 16, 17, and 20 hereof are agreed
                to
                be legally binding obligations of the Parties upon the execution
                and
                acceptance of this Letter of Intent.


            


    

    


    
      	
              9.

            	
              Negotiation
                of Definitive Agreements.
                The Transaction Documents will contain reasonable terms and conditions
                regarding releases, payment obligations, cooperation as to tax planning
                and structuring, other financial matters, legal opinions, confidentiality,
                limitations of liability, assignment, breach, dispute resolution,
                events
                of default, remedies, representations, warranties, indemnifications
                and
                other provisions customary for similar transactions. Time is of the
                essence in the performance of this Letter of Intent in all
                respects.

            


    

    


    
      	
              10.

            	
              Termination.
                This Letter of Intent will terminate on November 30, 2008 unless
                the basic
                size and design of the Plant have been determined and mutually agreed
                upon, a specific site or sites have been determined and mutually
                agreed
                upon, and at least 10% of the necessary equity has been raised. This
                date
                may be extended upon mutual written agreement of the Parties. Furthermore,
                unless otherwise agreed to by the Parties, this Letter of Intent
                will
                terminate:

            


    

    


    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
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          Creek Ethanol, LLC 

        Letter
          of
          Intent

        November
          28, 2007

        Page
          14
of
          19

      

       

    

    
      	 	
              (a)

            	
              at
                the option of either Fagen or Owner if the Design-Build Agreement
                is not
                completed and executed by the Closing Date;
                or

            


    

    


    
      	 	
              (b)

            	
              upon
                the execution and delivery of the Transaction
                Documents.

            


    

    


    11. Governing
      Law. This
      Letter of Intent is governed by, and the Transaction shall be governed by,
      and
      will be construed and interpreted in accordance with the laws of the State
      of
      Minnesota, without regard to any conflicts of law or choice of law
      rules.

    


    
      	
              12.

            	
              Expenses.
                Except as set forth in Paragraph 4(c) above, unless otherwise agreed
                by
                Fagen and Owner, each Party will bear its own expenses in connection
                with
                the negotiation and execution of definitive documentation for the
                transactions contemplated herein. 

            


    

    


    
      	
              13.

            	
              Indemnification.
                Each Party will indemnify, defend and hold harmless the other Party
                and
                its respective agents, servants, officers, directors, employees and
                affiliates from and against any loss, cost, liability, claim, damage,
                expense (including reasonable attorneys’ and consultants’ fees and
                disbursements), penalty or fine incurred in connection with any claim
                or
                cause of action arising from or in connection with this Letter of
                Intent
                to the extent caused by the negligence, misrepresentation, fraud,
                fault or
                misconduct of the indemnifying Party.


            


    

    


    
      	
              14.

            	
              Assignability;
                Binding Effect; Benefit. This
                Letter of Intent will inure to the benefit of and be binding upon
                the
                Parties and their respective successors and assigns. Nothing in this
                Letter of Intent, either expressed or implied, is intended to confer
                on
                any person other than the Parties and their respective successors
                and
                permitted assigns, any rights, remedies, obligations or liabilities
                under
                or by reason of this Letter of Intent. Neither Fagen nor Owner shall,
                without the written consent of the other, assign or transfer this
                Letter
                of Intent. Any sale, transfer, or disposition by Owner of over fifty
                percent (50%) of its assets or any sale, transfer, or disposition
                of more
                than fifty percent (50%) of Owner to any single entity by one or
                more
                entities holding interest in Owner shall be deemed an assignment
                subject
                to this paragraph. Notwithstanding any consent granted by Fagen to
                any
                assignment, Owner shall remain jointly liable for any failure of
                any
                assignee to fulfill its obligations under this Letter of Intent,
                including
                but not limited to any payment and confidentiality obligations established
                hereunder.

            


    

    


    
      	
              15.

            	
              Further
                Action.
                Each Party agrees to execute and deliver all further instruments,
                legal
                opinions and documents, and take all further action not inconsistent
                with
                the provisions of this Letter of Intent that may be reasonably necessary
                to complete performance of the Parties’ obligations hereunder and to
                effectuate the purposes and intent of this Letter of
                Intent.

            


    

    


    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
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          Creek Ethanol, LLC 

        Letter
          of
          Intent

        November
          28, 2007

        Page
          15
of
          19

      

       

    

    
      	
              16.

            	
              Amendments.
                The Parties agree that this Letter of Intent may be modified only
                by
                written agreement by the Parties.

            


    

    


    
      	
              17.

            	
              Integration;
                Letter of Intent.
                This Letter of Intent represents the entire understanding between
                the
                Parties in relation to the subject matter hereof, and supersedes
                any and
                all previous agreements, arrangements or discussions between the
                Parties
                (whether written or oral) in respect of the subject matter hereof.
                No
                change, amendment or modification of this Letter of Intent will be
                valid
                or binding upon the Parties unless such change, amendment or modification
                will be in writing and duly executed by both
                Parties.

            


    

    


    
      	
              18.

            	
              No
                Representation, Warranties 
                or Covenants. Notwithstanding
                anything contained herein to the contrary, Fagen is not making any
                representation, warranty or covenant of any kind with respect to
                any
                design, engineering or construction scheduling, or with respect to
                projections, estimates or budgets heretofore delivered to or made
                available to Owner of future revenues, expenses or expenditures,
                future
                results of operations (or any component thereof) or the future business
                and operations of the Owner, nor any other commitments or assurances
                except as may be provided in the Transaction
                Documents.

            


    

    


    
      	
              19.

            	
              Other
                Contractual Obligations. Owner
                represents and warrants that it has not entered into any contracts
                with,
                and has no other contractual obligations or prospective contractual
                obligations or relations with, any project design/build firm or technology
                provider for any work contemplated in this Letter of Intent. Owner
                will
                indemnify, defend, and hold harmless Fagen, its officers, directors,
                shareholders, and employees from and against any and all liabilities,
                claims, losses, suits, liabilities, damages, penalties, fines, and
                expenses (including reasonable attorneys’ and consultants’ fees and
                disbursements, and costs of settlement, defense, and investigation
                of any
                claim or suit) which Fagen, its officers, directors, shareholders,
                or
                employees may hereafter incur, become responsible for, or pay out
                as a
                result of the breach of the representation and warranty made pursuant
                to
                this Paragraph 19.

            


    

    


    
      	
              20.

            	
              Counterparts.
                This
                Letter of Intent may be executed in one or more counterpart, each
                of which
                when so executed and delivered will be deemed an original, but all
                of
                which taken together constitute one and the same instrument. Signatures
                which have been affixed and transmitted by facsimile or other electronic
                means will be binding to the same extent as an original signature,
                although the Parties contemplate that a fully executed counterpart
                with
                original signatures will be delivered to each Party.
                

            


    

    


    
      	
              21.

            	
              Owner
                will market its ethanol through US BioEnergy Corporation (“USBio”) for a
                period of two (2) years from the date of Final Completion, provided
                that
                such obligation is contingent on Owner obtaining competitive (though
                not
                necessarily superior) rates and services from
                USBio.

            


    

    


    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        Prairie
          Creek Ethanol, LLC 

        Letter
          of
          Intent

        November
          28, 2007

        Page
          16
of
          19

      

    

    


    If
      the
      foregoing terms accurately reflect your understanding of our discussions and
      are
      acceptable to you, please sign and return the enclosed counterpart of this
      Letter of Intent to Fagen to the attention of Becky Dahl. 

     

     

    
      	 	
              Yours
                sincerely,

               

              Fagen,
                Inc.

              


              


              /s/
                Roland
                Fagen                                         
                

              By:    
                Roland
                “Ron” Fagen

              Title: 
                President
                and CEO

            


    

    



    Accepted
      and agreed to this 31st

    day
      of
      December, 2007.

    


    Prairie
      Creek Ethanol, LLC

    


    /s/
      Clay
      Hansen                                             


    By:    
      Clay Hansen

    Title: 
      President

    
       

      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Prairie
      Creek Ethanol, LLC 

    Letter
      of
      Intent

    November
      28, 2007

    Page
      17
of
      19




    EXHIBIT
      A

    


    Standard
      Scope of Work

    


    Construct
      a 55 MGY dry mill fuel ethanol plant near Wesley, Iowa. The plant will grind
      approximately 19.7 million bushels of corn per year to produce approximately
      55
      MGY of denatured fuel ethanol. The plant will also produce approximately 176,800
      tons per year of 11% moisture dried distillers grains with solubles (DDGS),
      and
      approximately 166,400 tons per year of raw carbon dioxide (CO2)
      gas.

    


    Delivered
      corn will be dumped in the receiving building. The receiving building will
      have
      two truck grain receiving bays and a rail receiving bay, including an
      underground conveyor from the rail pit to the second truck receiving bay both
      of
      which share a common receiving leg. The truck driver will drive onto one of
      two
      pitless scales located near the administration building, be weighed and sampled,
      then drive to the receiving building, dump the grain, then proceed back to
      one
      of two pitless scales and obtain a final weight ticket. Two independent 15,000
      -bu/hr legs will lift the corn to storage bins with a total capacity of 500,000
      bushels. A dust collection system will be installed on the grain receiving
      system to limit particulate emissions as described in the Air Quality Permit
      application. 

    


    Corn
      is
      cleaned in a rotary scalper before being milled in two parallel hammermills.
      Ground corn will be mixed in a slurry tank, passed through a second, and then
      routed through a hydroheater and cook tube following which steam is flashed
      off
      in a flash vessel. Cooked mash will continue through liquefaction tanks and
      into
      one of the four fermenters. Simultaneously, propagated yeast will be added
      to
      the mash as the fermenter is filling. After batch fermentation is complete,
      the
      beer will be pumped to the beer well and then to the beer column to vaporize
      the
      alcohol from the mash. CO2 from the fermentation process is vented to atmosphere
      through a scrubber for reducing emissions.

    


    Alcohol
      streams are dehydrated in the rectifier column, the side stripper and the
      molecular sieve system. Two hundred proof alcohol is pumped to the tank farm
      day
      tank and blended with five percent natural gasoline as the product is being
      pumped into one of two 750,000 gallon final storage tanks. A single 600 gpm
      truck and single 1,000 gpm rail load out station will be provided. Tank farm
      tanks include: one tank for 190 proof storage, one tank for 200 proof storage,
      one tank for denaturant storage and two 750,000 gallon tanks for denatured
      ethanol storage. Concrete truck loading secondary containment is by the
      Design-Builder. Track pan secondary containment is by the Owner. Pipe connecting
      both to the tank farm basin are by the Owner. The tank farm liner and tank
      foundations are provided by the Design-Builder.

    


    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        Prairie
          Creek Ethanol, LLC 

        Letter
          of
          Intent

        November
          28, 2007

        Page
          18
of
          19

      

    

    


    Corn
      mash
      from the beer stripper is dewatered in the parallel centrifuges. Wet cake is
      conveyed from the centrifuges to the dryer(s) where the water is removed from
      the cake and the product is dried to 11% moisture. A wet cake pad is located
      along side the DDGS dryer building to divert wet cake to the pad when necessary
      or for limited production of wet cake for sales. Water in the thin stillage
      is
      evaporated and recycled by the Bio-Methanation system. Syrup is added to the
      wet
      cake entering the dryer(s). DDGS is cooled through pneumatic conveying to flat
      storage in the DDGS storage building. Shipping is accomplished by scooping
      and
      pushing the product with a front-end loader into an in-floor conveyor system.
      The DDGS load out pit has capacity for approximately one semi-trailer load.
      DDGS
      is weighed as it is loaded for shipment through a 15,000 bph bulk-weigh system.
      A truck or rail car can be loaded without repositioning.

    


    Fresh
      water for the boilers, cooking, cooling tower and other processes will be
      obtained from the Owner supplied water pretreatment system. Boiler water will
      be
      pumped through a deaerator scrubber and into a deaerator tank. Appropriate
      boiler chemicals will be added as preheated water is sent to the
      HRSG.

    


    Steam
      energy will be provided by a heat recovery steam generator (HRSG) recovering
      heat from a thermal oxidizer (TO) and utilizing a high percentage of condensate
      return.

    


    The
      TO is
      a process used to thermally oxidize the exhaust gasses from the Dryers. This
      process will be used to reduce VOCs and particulates that are in the dryer
      exhaust and ensure compliance with environmental regulations. The energy
      required to complete thermal oxidization will then be ducted to a heat recovery
      steam generator that will produce 100% of the steam requirements of the ethanol
      plant. The exhaust gasses after passing through the HRSG will be ducted through
      stack gas economizer(s) to recover the majority of energy possible from the
      exhaust gas stream. After the economizer(s), the gas stream will be vented
      to
      atmosphere through a stack.

    


    The
      process will be cooled by circulating water through heat exchangers, a chiller,
      and a cooling tower.

    


    The
      design includes a compressed air system consisting of air compressor(s), a
      receiver tank, pre-filter, coalescing filter, and double air
      dryer(s).

    


    The
      design also incorporates the use of a clean-in-place (CIP) system for cleaning
      cook, fermentation, evaporation, centrifuges, and other systems. Fifty percent
      caustic soda is received by truck and stored in a tank. 

    


    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        Prairie
          Creek Ethanol, LLC 

        Letter
          of
          Intent

        November
          28, 2007

        Page
          19
of
          19

      

    

    


    Under
      normal operating circumstances, the plant will not have any wastewater
      discharges that have been in contact with corn, corn mash, cleaning system,
      or
      contact process water. An ICM/Phoenix Bio-Methanator will reduce the BOD in
      process water allowing complete reuse within the plant. The plant will have
      blowdown discharges from the cooling tower, RO reject, softener reject, and
      may
      have water discharge from any water pre-treatment processes. Owner shall provide
      on-site connection to sanitary sewer or septic system.

    


    Most
      plant processes are computer controlled by a distributed control system with
      graphical user interface and three workstations. The control room control
      console will have dual monitors to facilitate operator interface between two
      graphics screens at the same time. Additional programmable logic controllers
      (PLCs) will control certain process equipment. Design-Builder provides lab
      equipment. 

    


    The
      cooking system requires the use of anhydrous ammonia, and other systems require
      the use of sulfuric acid. Therefore, a storage tank for ammonia and a storage
      tank for acid will be on site to store reasonable quantities. The ammonia
      storage requires that plant management implement and enforce a Process Safety
      Management (PSM) program. The plant design may require additional programs
      to
      ensure safety and to satisfy regulatory authorities. 

    


    A
      50’x75’
pre-engineered metal building is provided for plant maintenance operations.
      The
      building is detached from the process building. Entrance is through an overhead
      door. A trench drain is routed to a sump basin. The interior office and restroom
      are heated and cooled by a package heating/cooling unit. Ventilation and heat
      are also provided for the main shop area by fans, louvers, and electric unit
      heaters. A 480V, 3-phase, 400A electrical service is provided. The 480V service
      feeds a 208/120V, 3-phase, 225A panelboard via a 75kVA step-down transformer.
      Interior fluorescent lighting and general receptacles are provided in the office
      and restroom area. HID lighting and general receptacles are provided in the
      main
      shop area. A welder receptacle is located adjacent to the 480V panelboard.
      Electrical distribution and equipment required for owner supplied equipment
      shall be provided by the Owner.

    


    NOTE:
      This Exhibit A is a general description of the Plant’s basic design and
      operation only. It is not intended to be the final Project scope or to establish
      the final specifications. The final design of the Plant, including equipment
      incorporated, and equipment specifications will be reflected in the As Built
      Plans.