##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 þ
    
    Quarterly report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
 For the quarterly period ended September 30, 2010   OR
 o
    
    Transition report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
 For the transition period from  to    Commission file number 000-52617
 WESTERN DUBUQUE BIODIESEL, LLC
  Iowa
(State or other jurisdiction of organization)
    
    20-3857933
(I.R.S. Employer Identification No.)
 904 Jamesmeier Rd.
P.O. Box 82
Farley, IA 52046
 (563) 744-3554
 þ o
 o o
  Large Accelerated Filer o
    
    Accelerated Filer o
    
    Non-Accelerated Filer o
    
    Smaller Reporting Company þ
 o þ




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##### 



INDEX
 Page No.PART I. FINANCIAL INFORMATION
    
    
    1Item 1. Financial Statements
    
    
    1Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    14Item 3. Quantitative and Qualitative Disclosures about Market Risks
    
    
    21Item 4. Controls and Procedures
    
    
    22PART II. OTHER INFORMATION
    
    
    22Item 1. Legal Proceedings
    
    
    22Item 1A. Risk Factors
    
    
    22Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    23Item 3. Defaults Upon Senior Securities
    
    
    23Item 4. (Removed and Reserved)
    
    
    23Item 5. Other Information
    
    
    23Item 6. Exhibits
    
    
    23SIGNATURES
    
    
    24Exhibit 10.1Exhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2
   ii




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PART I. FINANCIAL INFORMATION
 
 Item 1. Financial Statements
 WESTERN DUBUQUE BIODIESEL, LLC
BALANCE SHEETS
 (UNAUDITED)September 30,
    
    
    December 31,2010
    
    
    2009ASSETSCURRENT ASSETSCash and cash equivalents
    
    $
    1,621,604
    
    
    $
    3,379,382Margin deposits
    
    
    70,416
    
    
    
    13,890Accounts receivable:Trade
    
    
    
    
    
    
    55,090Related party
    
    
    
    
    
    
    143,059Other receivables
    
    
    94,823
    
    
    
    12,000Incentive receivables
    
    
    
    
    
    
    3,494,322Inventory
    
    
    7,414,041
    
    
    
    313,929Utility deposits
    
    
    87,099
    
    
    
    Prepaid feedstocks and expenses
    
    
    134,351
    
    
    
    93,829Total current assets
    
    
    9,422,334
    
    
    
    7,505,501PROPERTY, PLANT AND EQUIPMENTLand and land improvements
    
    
    3,091,093
    
    
    
    3,091,093Office building and equipment
    
    
    417,392
    
    
    
    407,203Plant and process equipment
    
    
    37,848,001
    
    
    
    37,799,987Vehicles
    
    
    42,537
    
    
    
    42,537Total, at cost
    
    
    41,399,023
    
    
    
    41,340,820Less accumulated depreciation
    
    
    6,937,219
    
    
    
    5,294,490Total property, plant and equipment
    
    
    34,461,804
    
    
    
    36,046,330OTHER ASSETSRestricted cash
    
    
    406,929
    
    
    
    406,929Loan origination fees, net of amortization
    
    
    214,108
    
    
    
    285,477Total other assets
    
    
    621,037
    
    
    
    692,406TOTAL ASSETS
    
    $
    44,505,175
    
    
    $
    44,244,237LIABILITIES AND MEMBERS EQUITYCURRENT LIABILITIESAccounts payable:Trade
    
    $
    33,246
    
    
    $
    390,791Related party
    
    
    
    
    
    
    1,047,081Short-term borrowings  related party
    
    
    5,672,128
    
    
    
    Current portion of long-term debt
    
    
    24,694,040
    
    
    
    25,435,486Derivative instruments
    
    
    41,561
    
    
    
    5,737Accrued liabilities
    
    
    72,849
    
    
    
    63,138Deferred rent
    
    
    15,450
    
    
    
    17,400Total current liabilities
    
    
    30,529,274
    
    
    
    26,959,633MEMBERS EQUITYContributed capital
    
    
    26,230,096
    
    
    
    26,230,096Accumulated deficit
    
    
    (12,254,195
    )
    
    
    (8,945,492
    )Total members equity
    
    
    13,975,901
    
    
    
    17,284,604TOTAL LIABILITIES AND MEMBERS EQUITY
    
    $
    44,505,175
    
    
    $
    44,244,237
   1




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WESTERN DUBUQUE BIODIESEL, LLC
STATEMENTS OF OPERATIONS
 Three Months Ended
    
    
    Three Months Ended
    
    
    Nine Months Ended
    
    
    Nine Months EndedSeptember 30, 2010
    
    
    September 30, 2009
    
    
    September 30, 2010
    
    
    September 30, 2009REVENUESBiodiesel and by product sales  related parties
    
    $
    10,099
    
    
    $
    4,666,250
    
    
    $
    225,012
    
    
    $
    7,076,150Tolling services  related party
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,030,385Incentive funds
    
    
    67,146
    
    
    
    351,407
    
    
    
    67,146
    
    
    
    777,659Total revenues
    
    
    77,245
    
    
    
    5,017,657
    
    
    
    292,158
    
    
    
    8,884,194COST OF SALESMaterials, labor and overhead
    
    
    915,747
    
    
    
    5,921,850
    
    
    
    2,435,597
    
    
    
    9,611,424Net losses (gains) on derivative instruments
    
    
    189,989
    
    
    
    (177,812
    )
    
    
    (165,703
    )
    
    
    242,691Total cost of sales
    
    
    1,105,736
    
    
    
    5,744,038
    
    
    
    2,269,894
    
    
    
    9,854,115Gross profit (loss)
    
    
    (1,028,491
    )
    
    
    (726,381
    )
    
    
    (1,977,736
    )
    
    
    (969,921
    )OPERATING EXPENSESConsulting and professional fees
    
    
    41,054
    
    
    
    63,228
    
    
    
    160,577
    
    
    
    207,409Office and administrative expenses
    
    
    89,049
    
    
    
    62,534
    
    
    
    233,008
    
    
    
    213,730Total operating expenses
    
    
    130,103
    
    
    
    125,762
    
    
    
    393,585
    
    
    
    421,139OTHER INCOME (EXPENSE)Other income
    
    
    1,463
    
    
    
    650
    
    
    
    2,763
    
    
    
    1,950Interest income
    
    
    4,797
    
    
    
    6,684
    
    
    
    22,311
    
    
    
    49,268Interest expense
    
    
    (346,748
    )
    
    
    (256,087
    )
    
    
    (962,456
    )
    
    
    (780,321
    )Total other expense
    
    
    (340,488
    )
    
    
    (248,753
    )
    
    
    (937,382
    )
    
    
    (729,103
    )NET INCOME LOSS
    
    $
    (1,499,082
    )
    
    $
    (1,100,896
    )
    
    $
    (3,308,703
    )
    
    $
    (2,120,163
    )BASIC AND DILUTED LOSS PER UNIT
    
    $
    (50.34
    )
    
    $
    (36.97
    )
    
    $
    (111.11
    )
    
    $
    (71.20
    )WEIGHTED AVERAGE UNITS OUTSTANDING,
BASIC AND DILUTED
    
    $
    29,779
    
    
    
    29,779
    
    
    
    29,779
    
    
    
    29,779
   2




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WESTERN DUBUQUE BIODIESEL, LLC
STATEMENTS OF CASH FLOWS
 Nine Months Ended
    
    
    Nine Months EndedSeptember 30, 2010
    
    
    September 30, 2009CASH FLOWS FROM OPERATING ACTIVITIESNet loss
    
    $
    (3,308,703
    )
    
    $
    (2,120,163
    )Adjustments to reconcile net loss to net cash
used in operating activitiesDepreciation
    
    
    1,642,729
    
    
    
    1,642,081Amortization
    
    
    71,369
    
    
    
    71,370Effects of changes in operating assets and liabilitiesMargin deposits
    
    
    (56,526
    )
    
    
    (221,150
    )Accounts receivable
    
    
    198,149
    
    
    
    1,073,119Other receivables
    
    
    (82,823
    )
    
    
    (47,444
    )Incentive receivables
    
    
    3,494,322
    
    
    
    (222,948
    )Inventory
    
    
    (7,100,112
    )
    
    
    (1,268,605
    )Utility deposits
    
    
    (87,099
    )
    
    
    Prepaid feedstocks and expenses
    
    
    (40,522
    )
    
    
    (31,194
    )Derivative instruments
    
    
    35,824
    
    
    
    (85,159
    )Accounts payable
    
    
    (1,404,626
    )
    
    
    (520,165
    )Accrued liabilities
    
    
    9,711
    
    
    
    (88,450
    )Deferred rent
    
    
    (1,950
    )
    
    
    8,050Net cash used in operating activities
    
    
    (6,630,257
    )
    
    
    (1,810,658
    )CASH FLOWS FROM INVESTING ACTIVITIESPayments for property, plant and equipment,
including construction in progress
    
    
    (58,203
    )
    
    
    (41,387
    )Increase in restricted cash
    
    
    
    
    
    
    (69,592
    )Net cash used in investing activities
    
    
    (58,203
    )
    
    
    (110,979
    )CASH FLOWS FROM FINANCING ACTIVITIESNet borrowings under short-term financing with related party
    
    
    5,672,128
    
    
    
    Payments on long-term debt
    
    
    (741,446
    )
    
    
    (2,421,140
    )Net cash provided by (used in) financing activities
    
    
    4,930,682
    
    
    
    (2,421,140
    )NET DECREASE IN CASH AND CASH EQUIVALENTS
    
    
    (1,757,778
    )
    
    
    (4,342,777
    )CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
    
    
    3,379,382
    
    
    
    7,553,554CASH AND CASH EQUIVALENTS, END OF PERIOD
    
    $
    1,621,604
    
    
    $
    3,210,777
   3




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WESTERN DUBUQUE BIODIESEL, LLC
NOTES TO UNAUDITED FINANCIAL STATEMENTS
September 30, 2010
 NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
  Use of Estimates in Preparing Financial Statements
  Basis of Accounting
    Revenue Recognition
  Cash and Cash Equivalents
   Restricted Cash
  Accounts Receivable
    4




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WESTERN DUBUQUE BIODIESEL, LLC
NOTES TO UNAUDITED FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
 Derivative Instruments and Hedging Activities
 Derivatives and Hedging
 Inventories
  Property and Equipment
   YearsLand improvements
    
    
    2040Office equipment
    
    
    5 10Office building
    
    
    30Plant and process equipment
    
    
    1040Vehicles
    
    
    57
  Loan Origination Fees
  Income Taxes
   5




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WESTERN DUBUQUE BIODIESEL, LLC
NOTES TO UNAUDITED FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
 Loss Per Unit
  Cost of Sales
   Shipping and Handling Costs
  Environmental Liabilities
  Fair Value of Financial Instruments
  Current assets and current liabilities
 Long-term debt
 New Accounting Standards
 Subsequent Events
 Fair Value Measurements and Disclosures
  6




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WESTERN DUBUQUE BIODIESEL, LLC
NOTES TO UNAUDITED FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
 Disclosures about the Credit Quality of Financing
Receivables and the Allowance for Credit Losses
 NOTE 2  INCENTIVE PAYMENTS AND RECEIVABLE
   NOTE 3  INVENTORY
  September 30,
    
    
    December 31,2010
    
    
    2009(UNAUDITED)Raw material
    
    $
    763,882
    
    
    $
    161,471Work in progress
    
    
    364,599
    
    
    
    72,996Finished goods
    
    
    6,285,560
    
    
    
    79,462Total
    
    $
    7,414,041
    
    
    $
    313,929
  7




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WESTERN DUBUQUE BIODIESEL, LLC
NOTES TO UNAUDITED FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
 NOTE 4  LONG-TERM DEBT AND FINANCING
  September 30,
    
    
    December 31,2010
    
    
    2009(UNAUDITED)Note payable to Beal Bank  see details below
    
    $
    24,499,040
    
    
    $
    25,188,855Note payable to the Iowa Department of Economic
Development  see details below
    
    
    195,000
    
    
    
    240,000Note payable to Hodge Material Handling  see
details below
    
    
    
    
    
    
    6,631Total
    
    
    24,694,040
    
    
    
    25,435,486Less current portion
    
    
    24,694,040
    
    
    
    25,435,486Long-term portion
    
    $
    
    
    
    $
    
      8




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WESTERN DUBUQUE BIODIESEL, LLC
NOTES TO UNAUDITED FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
    NOTE 5  MEMBERS EQUITY
  NOTE 6  CASH FLOW DISCLOSURES
  Nine Months Ended
    
    
    Nine Months EndedSeptember 30, 2010
    
    
    September 30, 2009Cash paid for interest
    
    $
    891,087
    
    
    $
    725,298
 NOTE 7  RELATED PARTY TRANSACTIONS
     9




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WESTERN DUBUQUE BIODIESEL, LLC
NOTES TO UNAUDITED FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
      NOTE 8  COMMITMENTS AND CONTINGENCIES
   NOTE 9  FAIR VALUE OF FINANCIAL INSTRUMENTS
  
    
    Level 1  Unadjusted quoted prices for identical assets and liabilities in active
markets;
    
    Level 2  Quoted prices for similar assets and liabilities in active markets (other
than those included in Level 1) which are observable for the asset or liability, either
directly or indirectly; and
    
    Level 3  Valuations derived from valuation techniques in which one or more
significant inputs or significant value drivers are unobservable.
  10




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WESTERN DUBUQUE BIODIESEL, LLC
NOTES TO UNAUDITED FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
  September 30, 2010 (UNAUDITED)SignificantQuoted Prices in
    
    
    Other
    
    
    SignificantCarrying Amount
    
    
    Active Markets for
    
    
    Observable
    
    
    Unobservableon
    
    
    Identical Assets
    
    
    Inputs
    
    
    InputsBalance Sheet
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Financial liabilities:Commodity derivatives
    
    $
    (41,561
    )
    
    $
    (41,561
    )
    
    $
    
    
    
    $
    December 31, 2009SignificantQuoted Prices in
    
    
    Other
    
    
    SignificantCarrying Amount
    
    
    Active Markets for
    
    
    Observable
    
    
    Unobservableon
    
    
    Identical Assets
    
    
    Inputs
    
    
    InputsBalance Sheet
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Financial liabilities:Commodity derivatives
    
    $
    (5,737
    )
    
    $
    (5,737
    )
    
    $
    
    
    
    $
    
  NOTE 10  DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
 Derivatives and Hedging,
 Objectives and Strategies for Holding Derivative Instruments
  Commodity Risk Management
   11




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WESTERN DUBUQUE BIODIESEL, LLC
NOTES TO UNAUDITED FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
 Accounting for Derivative Instruments and Hedging Activities
   Liability Derivatives
    
    
    Liability DerivativesSeptember 30, 2010 (UNAUDITED)
    
    
    December 31, 2009Balance Sheet
    
    
    
    
    
    
    Balance SheetLocation
    
    
    Fair Value
    
    
    Location
    
    
    Fair ValueCommodity contracts 
Heat oil swaps
    
    Current liabilities
    
    
    $
    (41,561
    )
    
    Current liabilities
    
    $
    (5,737
    )
  Derivative (Gain) Loss
    
    
    Derivative (Gain) LossThree Months Ended
    
    
    Three Months EndedSeptember 30, 2010
    
    
    September 30, 2009Statement of
    
    
    
    
    
    
    Statement ofOperations Location
    
    
    (Gain) Loss
    
    
    Operations Location
    
    
    (Gain) LossCommodity contracts 
Heat oil swaps
    
    Cost of sales
    
    $
    189,989
    
    
    Cost of sales
    
    $
    (177,812
    )
 Derivative (Gain) Loss
    
    
    Derivative (Gain) LossNine Months Ended
    
    
    Nine Months EndedSeptember 30, 2010
    
    
    September 30, 2009Statement of
    
    
    
    
    
    
    Statement ofOperations Location
    
    
    (Gain) Loss
    
    
    Operations Location
    
    
    (Gain) LossCommodity contracts 
Heat oil swaps
    
    Cost of sales
    
    $
    (165,703
    )
    
    Cost of sales
    
    $
    242,691
 NOTE 11  UNCERTAINTY
   12




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WESTERN DUBUQUE BIODIESEL, LLC
NOTES TO UNAUDITED FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
   NOTE 12  SUBSEQUENT EVENTS
    13




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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
  Cautionary Statements Regarding Forward-Looking Statements
  
    
    The federal governments failure to reinstate the $1.00 per gallon biodiesel blenders
credit (which expired December 31, 2009) or extend the small agri-biodiesel producers
credit (set to expire December 31, 2010);
 
    
    Our ability to secure and retain service providers to replace Renewable Energy Group,
Inc. (REG) after our Management and Operational Services Agreement (MOSA) terminated on
August 1, 2010;
 
    
    The availability and terms of credit or equity financing needed to continue operations
if our income from operations is insufficient for us to continue producing biodiesel;
 
    
    Our ability to generate free cash flow to invest in our business and service our debt;
 
    
    Our ability to comply with our loan covenants and our lenders response to our
noncompliance with such covenants;
 
    
    Our ability to market our products and our reliance on others to market our products;
 
    
    Fuel prices, diesel and biodiesel consumption and consumer attitudes regarding biodiesel
use;
 
    
    Prices of vegetable oils (particularly soybean oil), animal fats and other feedstock;
 
    
    Our ability to enter into toll manufacturing agreements or other arrangements that shift
responsibility for feedstock procurement and costs to other parties;
 
    
    The continued imposition of tariffs or other duties on biodiesel exported to Europe;
 
    
    Overcapacity within the biodiesel industry resulting in increased competition and costs
for feedstock and/or decreased prices for our biodiesel and glycerin;
 
    
    Changes in soy-based biodiesels qualification under the Renewable Fuel Standard (RFS)
and similar legislation;
 
    
    Decreased availability of soybean oil, animal fat or other feedstock;
 
    
    Our ability to locate alternative feedstock to respond to market conditions,
particularly since we lack the capability to pre-treat and process raw animal fats and
other crude vegetable oils at our plant;
 
    
    Laws, tariffs, trade or other controls or enforcement practices such as: national, state
and local energy policy; federal biodiesel tax incentives; and environmental laws and
regulations;
 
    
    The biodiesel industrys ability to successfully lobby for legislation beneficial to the
biodiesel industry;
  14




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
    
    Changes in plant production capacity or technical difficulties in operating the plant,
including changes due
to events beyond our control or due to intentional reductions or shutdowns;
 
    
    Changes and advances in biodiesel production technology, including our competitors
ability to process raw animal fats or other feedstock which we cannot process;
 
    
    Competition from alternative fuels; and
 
    
    Other factors described in this report.
  Overview
    Results of Operations for the Three Months Ended September 30, 2010
  Three Months Ended
    
    
    Three Months EndedSeptember 30, 2010
    
    
    September 30, 2009(Unaudited)
    
    
    (Unaudited)Income Statement Data
    
    Amount
    
    
    Percent
    
    
    Amount
    
    
    PercentRevenues
    
    $
    77,245
    
    
    
    100.00
    %
    
    $
    5,017,657
    
    
    
    100.00
    %Cost of Sales
    
    
    1,105,736
    
    
    
    1,431.37
    %
    
    
    5,744,038
    
    
    
    114.48
    %Gross Profit (loss)
    
    
    (1,028,491
    )
    
    
    (1,331.47
    )%
    
    
    (726,381
    )
    
    
    (14.48
    )%Operating Expenses
    
    
    130,103
    
    
    
    168.43
    %
    
    
    125,762
    
    
    
    2.50
    %Other Income (Expense)
    
    
    (340,488
    )
    
    
    (440.79
    )%
    
    
    (248,753
    )
    
    
    (4.96
    )%Net Income (Loss)
    
    $
    (1,499,082
    )
    
    
    (1,940.68
    )%
    
    $
    (1,100,896
    )
    
    
    (2.19
    )%
  15




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Revenues
    Cost of Sales
   Operating Expenses
   16




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Other Income (Expenses)
  Results of Operations for the Nine Months Ended September 30, 2010
  Nine Months Ended
    
    
    Nine Months EndedSeptember 30, 2010
    
    
    September 30, 2009(Unaudited)
    
    
    (Unaudited)Income Statement Data
    
    Amount
    
    
    Percent
    
    
    Amount
    
    
    PercentRevenues
    
    $
    292,158
    
    
    
    100.00
    %
    
    $
    8,884,194
    
    
    
    100.00
    %Cost of Sales
    
    
    2,269,894
    
    
    
    776.94
    %
    
    
    9,854,115
    
    
    
    110.92
    %Gross Profit (Loss)
    
    
    (1,977,736
    )
    
    
    (676.94
    )%
    
    
    (969,921
    )
    
    
    (10.92
    )%Operating Expenses
    
    
    393,585
    
    
    
    134.72
    %
    
    
    421,139
    
    
    
    4.74
    %Other Income (Expense)
    
    
    (937,382
    )
    
    
    (320.85
    )%
    
    
    (729,103
    )
    
    
    (8.21
    )%Net Income (Loss)
    
    $
    (3,308,703
    )
    
    
    (1132.50
    )%
    
    $
    (2,120,163
    )
    
    
    (23.87
    )%
 Revenues
  Cost of Sales
  Operating Expenses
  Other Income (Expenses)
   17




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Changes in Financial Condition for the Nine Months Ended September 30, 2010
  September 30, 2010
    
    
    December 31, 2009Current Assets
    
    $
    9,422,334
    
    
    $
    7,505,501Current Liabilities
    
    $
    30,529,274
    
    
    $
    26,959,633Total Members Equity
    
    $
    13,975,901
    
    
    $
    17,284,604
 Current Assets
  Current Liabilities
   Members Equity
  Plan of Operations for the Next 12 Months
 Plant Operations
   Operating Budget and Financing of Plant Operations
   18




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##### Table of Contents



Critical Accounting Estimates
  Liquidity and Capital Resources
 Cash Flows
 Cash Flow from Operating Activities.
 Cash Flow from Investing Activities.
 Cash Flow from Financing Activities.
 Sources of Funds
 Equity Financing.
 Debt Financing
   19




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##### Table of Contents



Government Programs and Grants
  Distribution to Unit Holders
  Off-Balance Sheet Arrangements
   20




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##### Table of Contents



Item 3. Quantitative and Qualitative Disclosures about Market Risks
  Interest Rate Risk
  Outstanding Variable Rate Debt
    
    
    Interest Rate at
    
    
    Adverse 10% Change
    
    
    Annual Adverseat September 30, 2010
    
    
    September 30, 2010
    
    
    in Interest Rates
    
    
    Change to Income$
    
    24,499,040
    
    
    
    3.50
    %
    
    
    3.850
    %
    
    $
    (82,643
    )$
    
    5,672,128
    
    
    
    7.25
    %
    
    
    7.975
    %
    
    $
    (4,301
    )
 Commodity Price Risk
 Derivatives and Hedging
    Effect ofFair Value
    
    
    Adverse ChangeSeptember 30, 2010
    
    $
    (41,561
    )
    
    $
    (47,930
    )December 31, 2009
    
    $
    (5,737
    )
    
    $
    (23,098
    )
  21




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##### Table of Contents



Item 4. Controls and Procedures
    
 PART II. OTHER INFORMATION
 
 Item 1. Legal Proceedings
  
 Item 1A. Risk Factors
  There are doubts about our ability to continue as a going concern and if we cannot continue
our business, our units may have little or no value.
 Loss of or ineligibility for favorable tax benefits for biodiesel production could result in
the permanent shutdown of our plant.
  22




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##### Table of Contents



Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
  
 Item 3. Defaults upon Senior Securities
  
 Item 4. (Removed and Reserved)
 
 Item 5. Other Information
  
 Item 6. Exhibits
  Exhibit
    
    
    
    Method ofNo.
    
    Description
    
    Filing10.1
    
    
    Fourth Amendment to Loan Agreement
    
    *31.1
    
    
    Certificate pursuant to 17 CFR 240 13a-14(a)
    
    *31.2
    
    
    Certificate pursuant to 17 CFR 240 13a-14(a)
    
    *32.1
    
    
    Certificate pursuant to 18 U.S.C. Section 1350
    
    *32.2
    
    
    Certificate pursuant to 18 U.S.C. Section 1350
    
    *
 
 (*)
    
    Filed herewith.  23




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##### Table of Contents



SIGNATURES
  WESTERN DUBUQUE BIODIESEL, LLCDate: November 15, 2010
    /s/ Bruce KlostermannBruce KlostermannVice Chairman and Director
(Principal Executive Officer)Date: November 15, 2010
    /s/ George DavisGeorge DavisTreasurer and Director
(Principal Financial and Accounting Officer)  24