##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-KSB
 þ
    
    Annual report under Section 13 or 15(d) of the Securities Exchange Act of 1934.
 For the fiscal year ended September 30, 2006
 o
    
    Transition report under Section 13 or 15(d) of the Exchange Act.
 For the transition period from  to
 Commission file number 333-130663
 FIRST UNITED ETHANOL, LLC
  Georgia
    
    20-2497196(State or other jurisdiction of 
incorporation or organization)
    
    (I.R.S. Employer Identification No.)West Broad Street, Camilla, GA
    
    31730(Address of principal executive offices)
    
    (Zip Code)
 (229) 522-2822
  None
  None
 þ o
 þ
 o þ
 None
   o þ




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##### 



INDEX
 PagePART I
    
    
    3ITEM 1. DESCRIPTION OF BUSINESS
    
    
    3ITEM 1A. RISK FACTORS
    
    
    17ITEM 2. DESCRIPTION OF PROPERTY
    
    
    22ITEM 3. LEGAL PROCEEDINGS
    
    
    22ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
    
    
    22PART II
    
    
    22ITEM 5. MARKET FOR COMMON EQUITY AND RELATED MEMBER MATTERS
    
    
    22ITEM 6. MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS
    
    
    23ITEM 7. FINANCIAL STATEMENTS
    
    
    32ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
    
    
    43ITEM 8A. CONTROLS AND PROCEDURES
    
    
    43ITEM 8B. OTHER INFORMATION
    
    
    43PART III
    
    
    43ITEM 9. DIRECTORS;
EXECUTIVE OFFICERS AND CONTROL PERSONS; COMPLIANCE WITH SECTION 16(a) OF
THE EXCHANGE ACT
    
    
    43ITEM 10. EXECUTIVE COMPENSATION
    
    
    45ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED MEMBER
MATTERS
    
    
    46ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
    
    
    47ITEM 13. EXHIBITS
    
    
    48ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
    
    
    50SIGNATURES
    
    
    51Environment Assessment AgreementLump Sum Design-Build AgreementCommitment LetterWater Services AgreementLoan AgreementPromissory NoteTrust IndentureReimbursement AgreementConfirmation AgreementLetter of CreditConfirming Letter of CreditRemarketing AgreementBond Purchase AgreementTax Regulatory AgreementLoan AgreementPromissory NoteTrust IndentureConfirmation AgreementLetter of CreditConfirming Letter of CreditRemarketing AgreementBond Purchase AgreementRevolving Credit NoteLoan AgreementSecurity AgreementOption to Purchase Real PropertyCode of EthicsCertificate Pursuant to 17 CFR 240 15d-14(a)Certificate Pursuant to 17 CFR 240 15d-14(a)Certificate Pursuant to 18 U.S.C. Section 1350Certificate Pursuant to 18 U.S.C. Section 1350
  2




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PART I
 
 Item 1. DESCRIPTION OF BUSINESS.
 Business Development
      Principal Products and Markets
  3




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##### Table of Contents



Ethanol
    Distillers Grains
  Local Ethanol and Distillers Grains Markets
 Distribution of Principal Products
 Regional Ethanol Markets
  4




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##### Table of Contents



National Ethanol Markets
    Distribution of Principal Products
  Ethanol Distribution
  Distillers Grains Distribution
  5




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New Products and Services
  Governmental Regulation and Federal Ethanol Supports
 Federal Ethanol Supports
 National Ethanol Markets
    6




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Effect of Governmental Regulation
   7




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Competition
   most
 U.S. FUEL ETHANOL BIOREFINERIES AND PRODUCTION CAPACITY
million gallons per year (mmgy)
 Current
    
    UnderCapacity
    
    Construction/COMPANY
    
    LOCATION
    
    FEEDSTOCK
    
    (mgy)
    
    Expansions (mgy)Abengoa Bioenergy Corp.
    
    York, NE
    
    Corn/milo
    
    
    55Colwich, KS
    
    
    
    
    
    
    25Portales, NM
    
    
    
    
    
    
    30Ravenna, NE
    
    
    
    
    
    
    
    
    
    
    88Aberdeen Energy*
    
    Mina, SD
    
    Corn
    
    
    
    
    
    
    100Absolute Energy, LLC
    
    St. Ansgar, IA
    
    Corn
    
    
    
    
    
    
    100ACE Ethanol, LLC
    
    Stanley, WI
    
    Corn
    
    
    41Adkins Energy, LLC*
    
    Lena, IL
    
    Corn
    
    
    40Advanced Bioenergy
    
    Fairmont, NE
    
    Corn
    
    
    
    
    
    
    100AGP*
    
    Hastings, NE
    
    Corn
    
    
    52Agra Resources Coop. d.b.a EXOL*
    
    Albert Lea, MN
    
    Corn
    
    
    40
    
    
    
    8Agri-Energy, LLC*
    
    Luverne, MN
    
    Corn
    
    
    21Alchem Ltd. LLLP
    
    Grafton, ND
    
    Corn
    
    
    10.5Al-Corn Clean Fuel*
    
    Claremont, MN
    
    Corn
    
    
    35
    
    
    
    15Amaizing Energy, LLC*
    
    Denison, IA
    
    Corn
    
    
    40Archer Daniels Midland
    
    Decatur, IL
    
    Corn
    
    
    1070Cedar Rapids, IA
    
    CornClinton, IA
    
    CornColumbus, NE
    
    CornMarshall, MN
    
    CornPeoria, IL
    
    CornWallhalla, ND
    
    Corn/barleyASAlliances Biofuels, LLC
    
    Albion, NE
    
    Corn
    
    
    
    
    
    
    100Linden, IN
    
    Corn
    
    
    
    
    
    
    100Bloomingburg, OH
    
    Corn
    
    
    
    
    
    
    100
 8




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Current
    
    UnderCapacity
    
    Construction/COMPANY
    
    LOCATION
    
    FEEDSTOCK
    
    (mgy)
    
    Expansions (mgy)Aventine Renewable Energy, Inc.
    
    Pekin, IL
    
    Corn
    
    
    100
    
    
    
    57Aurora, NE
    
    Corn
    
    
    50Badger State Ethanol, LLC*
    
    Monroe, WI
    
    Corn
    
    
    48Big River Resources, LLC *
    
    West Burlington, IA
    
    Corn
    
    
    52Blue Flint Ethanol
    
    Underwood, ND
    
    Corn
    
    
    
    
    
    
    50Broin Enterprises, Inc.*
    
    Scotland, SD
    
    Corn
    
    
    1Bushmills Ethanol, Inc.*
    
    Atwater, MN
    
    Corn
    
    
    40Cardinal Ethanol
    
    Harrisville, IN
    
    Corn
    
    
    
    
    
    
    100Cargill, Inc.
    
    Blair, NE
    
    Corn
    
    
    85Eddyville, IA
    
    Corn
    
    
    35Cascade Grain
    
    Clatskanie, OR
    
    Corn
    
    
    
    
    
    
    108Center Ethanol Company
    
    Sauget, IL
    
    Corn
    
    
    
    
    
    
    54Central Indiana Ethanol, LLC
    
    Marion, IN
    
    Corn
    
    
    
    
    
    
    40Central MN Ethanol Coop*
    
    Little Falls, MN
    
    Corn
    
    
    21.5Central Wisconsin Alcohol
    
    Plover, WI
    
    Seed corn
    
    
    4Chief Ethanol
    
    Hastings, NE
    
    Corn
    
    
    62Chippewa Valley Ethanol Co.*
    
    Benson, MN
    
    Corn
    
    
    45Commonwealth Agri-Energy, LLC*
    
    Hopkinsville, KY
    
    Corn
    
    
    33Conestoga Energy Partners
    
    Garden City, KS
    
    Corn/milo
    
    
    
    
    
    
    55Corn, LP*
    
    Goldfield, IA
    
    Corn
    
    
    50Cornhusker Energy Lexington, LLC
    
    Lexington, NE
    
    Corn
    
    
    40Corn Plus, LLP*
    
    Winnebago, MN
    
    Corn
    
    
    44Dakota Ethanol, LLC*
    
    Wentworth, SD
    
    Corn
    
    
    50DENCO, LLC*
    
    Morris, MN
    
    Corn
    
    
    21.5E3 Biofuels
    
    Mead, NE
    
    Corn
    
    
    
    
    
    
    24East Kansas Agri-Energy, LLC*
    
    Garnett, KS
    
    Corn
    
    
    35ESE Alcohol Inc.
    
    Leoti, KS
    
    Seed corn
    
    
    1.5Ethanol 2000, LLP*
    
    Bingham Lake, MN
    
    Corn
    
    
    32Frontier Ethanol, LLC
    
    Gowrie, IA
    
    Corn
    
    
    60Front Range Energy, LLC
    
    Windsor, CO
    
    Corn
    
    
    40Glacial Lakes Energy, LLC*
    
    Watertown, SD
    
    Corn
    
    
    50
    
    
    
    50Global Ethanol/Midwest Grain Processors
    
    Lakota, IA
    
    Corn
    
    
    95Riga, MI
    
    Corn
    
    
    
    
    
    
    57Golden Cheese Company of California*
    
    Corona, CA
    
    Cheese whey
    
    
    5Golden Grain Energy LLC*
    
    Mason City, IA
    
    Corn
    
    
    60
    
    
    
    50Golden Triangle Energy, LLC*
    
    Craig, MO
    
    Corn
    
    
    20Grain Processing Corp.
    
    Muscatine, IA
    
    Corn
    
    
    20Granite Falls Energy, LLC
    
    Granite Falls, MN
    
    Corn
    
    
    52Great Plains Ethanol, LLC*
    
    Chancellor, SD
    
    Corn
    
    
    50Green Plains Renewable Energy
    
    Shenandoah, IA
    
    Corn
    
    
    
    
    
    
    50Superior, IA
    
    Corn
    
    
    
    
    
    
    50Hawkeye Renewables, LLC
    
    Iowa Falls, IA
    
    Corn
    
    
    105Fairbank, IA
    
    Corn
    
    
    115Heartland Corn Products*
    
    Winthrop, MN
    
    Corn
    
    
    35Heartland Grain Fuels, LP*
    
    Aberdeen, SD
    
    Corn
    
    
    9Huron, SD
    
    Corn
    
    
    12
    
    
    
    18Heron Lake BioEnergy, LLC
    
    Heron Lake, MN
    
    Corn
    
    
    
    
    
    
    50Holt County Ethanol
    
    ONeill, NE
    
    Corn
    
    
    
    
    
    
    100
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Current
    
    UnderCapacity
    
    Construction/COMPANY
    
    LOCATION
    
    FEEDSTOCK
    
    (mgy)
    
    Expansions (mgy)Horizon Ethanol, LLC
    
    Jewell, IA
    
    Corn
    
    
    60Husker Ag, LLC*
    
    Plainview, NE
    
    Corn
    
    
    26.5Illinois River Energy, LLC
    
    Rochelle, IL
    
    Corn
    
    
    
    
    
    
    50Indiana Bio-Energy
    
    Bluffton, IN
    
    Corn
    
    
    
    
    
    
    101Iowa Ethanol, LLC*
    
    Hanlontown, IA
    
    Corn
    
    
    50Iroquois Bio-Energy Company, LLC
    
    Rensselaer, IN
    
    Corn
    
    
    
    
    
    
    40James Valley Ethanol, LLC
    
    Groton, SD
    
    Corn
    
    
    50KAAPA Ethanol, LLC*
    
    Minden, NE
    
    Corn
    
    
    40Land O Lakes*
    
    Melrose, MN
    
    Cheese whey
    
    
    2.6Levelland/Hockley County Ethanol, LLC
    
    Levelland, TX
    
    Corn
    
    
    
    
    
    
    40Lincolnland Agri-Energy, LLC*
    
    Palestine, IL
    
    Corn
    
    
    48Lincolnway Energy, LLC*
    
    Nevada, IA
    
    Corn
    
    
    50Liquid Resources of Ohio
    
    Medina, OH
    
    Waste beverage
    
    
    3Little Sioux Corn Processors, LP*
    
    Marcus, IA
    
    Corn
    
    
    52Merrick & Company
    
    Golden, CO
    
    Waste beer
    
    
    3MGP Ingredients, Inc.
    
    Pekin, IL
    
    Corn/wheat starch
    
    
    78Atchison, KSMichigan Ethanol, LLC
    
    Caro, MI
    
    Corn
    
    
    50Mid American Agri Products/Wheatland
    
    Madrid, NE
    
    Corn
    
    
    
    
    
    
    44Mid-Missouri Energy, Inc.*
    
    Malta Bend, MO
    
    Corn
    
    
    45Midwest Renewable Energy, LLC
    
    Sutherland, NE
    
    Corn
    
    
    25Millennium Ethanol
    
    Marion, SD
    
    Corn
    
    
    
    
    
    
    100Minnesota Energy*
    
    Buffalo Lake, MN
    
    Corn
    
    
    18Missouri Ethanol
    
    Laddonia, MO
    
    Corn
    
    
    45Missouri Valley Renewable Energy, LLC
    
    Meckling, SD
    
    Corn
    
    
    
    
    
    
    60NEDAK Ethanol
    
    Atkinson, NE
    
    Corn
    
    
    
    
    
    
    44New Energy Corp.
    
    South Bend, IN
    
    Corn
    
    
    102North Country Ethanol, LLC*
    
    Rosholt, SD
    
    Corn
    
    
    20Northeast Biofuels
    
    Voley, NY
    
    Corn
    
    
    
    
    
    
    114Northeast Missouri Grain, LLC*
    
    Macon, MO
    
    Corn
    
    
    45Northern Lights Ethanol, LLC*
    
    Big Stone City, SD
    
    Corn
    
    
    50Northstar Ethanol, LLC
    
    Lake Crystal, MN
    
    Corn
    
    
    52Northwest Renewable, LLC
    
    Longview, WA
    
    Corn
    
    
    
    
    
    
    55Otter Creek Ethanol, LLC*
    
    Ashton, IA
    
    Corn
    
    
    55Pacific Ethanol
    
    Madera, CA
    
    Corn
    
    
    35Boardman, OR
    
    Corn
    
    
    
    
    
    
    35Panda Energy
    
    Hereford, TX
    
    Corn/milo
    
    
    
    
    
    
    100Panhandle Energies of Dumas, LP
    
    Dumas, TX
    
    Corn/Grain Sorghum
    
    
    
    
    
    
    30Parallel Products
    
    Louisville, KY
    
    Beverage Waste
    
    
    5.4R. Cucamonga, CAPatriot Renewable Fuels, LLC
    
    Annawan, IL
    
    Corn
    
    
    
    
    
    
    100Permeate Refining
    
    Hopkinton, IA
    
    Sugars & starches
    
    
    1.5Phoenix Biofuels
    
    Goshen, CA
    
    Corn
    
    
    25Pinal Energy, LLC
    
    Maricopa, AZ
    
    Corn
    
    
    
    
    
    
    55Pine Lake Corn Processors, LLC*
    
    Steamboat Rock, IA
    
    Corn
    
    
    20
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Current
    
    UnderCapacity
    
    Construction/COMPANY
    
    LOCATION
    
    FEEDSTOCK
    
    (mgy)
    
    Expansions (mgy)Pinnacle Ethanol, LLC
    
    Corning, IA
    
    Corn
    
    
    
    
    
    
    60Prairie Ethanol, LLC
    
    Loomis, SD
    
    Corn
    
    
    
    
    
    
    60Prairie Horizon Agri-Energy, LLC
    
    Phillipsburg, KS
    
    Corn
    
    
    40Premier Ethanol
    
    Portland, IN
    
    Corn
    
    
    
    
    
    
    60Pro-Corn, LLC*
    
    Preston, MN
    
    Corn
    
    
    42Quad-County Corn Processors*
    
    Galva, IA
    
    Corn
    
    
    27Red Trail Energy, LLC
    
    Richardton, ND
    
    Corn
    
    
    
    
    
    
    50Redfield Energy, LLC
    
    Redfield, SD
    
    Corn
    
    
    
    
    
    
    50Reeve Agri-Energy
    
    Garden City, KS
    
    Corn/milo
    
    
    12Renew Energy
    
    Jefferson Junction, WI
    
    Corn
    
    
    
    
    
    
    130Siouxland Energy & Livestock Coop*
    
    Sioux Center, IA
    
    Corn
    
    
    25
    
    
    
    10Siouxland Ethanol, LLC
    
    Jackson, NE
    
    Corn
    
    
    
    
    
    
    50Sioux River Ethanol, LLC*
    
    Hudson, SD
    
    Corn
    
    
    50Southwest Iowa Renewable Energy, LLC
    
    Council Bluffs, IA
    
    Corn
    
    
    
    
    
    
    110Sterling Ethanol, LLC
    
    Sterling, CO
    
    Corn
    
    
    42Summit Ethanol
    
    Leipsic, OH
    
    Corn
    
    
    
    
    
    
    60Tall Corn Ethanol, LLC*
    
    Coon Rapids, IA
    
    Corn
    
    
    49Tate & Lyle
    
    Loudon, TN
    
    Corn
    
    
    67
    
    
    
    38Ft. Dodge, IA
    
    Corn
    
    
    
    
    
    
    105The Anderson Albion Ethanol LLC
    
    Albion, MI
    
    Corn
    
    
    55The Andersons Clymers Ethanol, LLC
    
    Clymers, IN
    
    Corn
    
    
    
    
    
    
    110The Andersons Marathon Ethanol, LLC
    
    Greenville, OH
    
    Corn
    
    
    
    
    
    
    110Trenton Agri Products, LLC
    
    Trenton, NE
    
    Corn
    
    
    40United WI Grain Producers, LLC*
    
    Friesland, WI
    
    Corn
    
    
    49US Bio Albert City
    
    Albert City, IA
    
    Corn
    
    
    
    
    
    
    100US Bio Woodbury
    
    Woodbury, MI
    
    Corn
    
    
    45US Bio Hankinson
    
    Hankinson, ND
    
    Corn
    
    
    
    
    
    
    100US Bio Ord
    
    Ord, NE
    
    Corn
    
    
    
    
    
    
    50US Bio Platte Valley
    
    Central City, NE
    
    Corn
    
    
    100US Bio Dyersville
    
    Dyersville, IA
    
    Corn
    
    
    
    
    
    
    100U.S. Energy Partners, LLC (White Energy)
    
    Russell, KS
    
    Milo/wheat starch
    
    
    48Utica Energy, LLC
    
    Oshkosh, WI
    
    Corn
    
    
    48VeraSun Energy Corporation
    
    Aurora, SD
    
    Corn
    
    
    230
    
    
    
    330Ft. Dodge, IA
    
    CornCharles City, IA
    
    CornWelcome, MN
    
    CornHartely, IA
    
    CornVoyager Ethanol, LLC*
    
    Emmetsburg, IA
    
    Corn
    
    
    52
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Current
    
    UnderCapacity
    
    Construction/COMPANY
    
    LOCATION
    
    FEEDSTOCK
    
    (mgy)
    
    Expansions (mgy)Western Plains Energy, LLC*
    
    Campus, KS
    
    Corn
    
    
    45Western Wisconsin Renewable Energy, LLC*
    
    Boyceville, WI
    
    Corn
    
    
    40White Energy
    
    Hereford, TX
    
    Corn/Milo
    
    
    
    
    
    
    100Wind Gap Farms
    
    Baconton, GA
    
    Brewery Waste
    
    
    0.4
    
    
    
    38Renova Ethanol
    
    Torrington, WY
    
    Corn
    
    
    5Xethanol BioFuels, LLC
    
    Blairstown, IA
    
    Corn
    
    
    5
    
    
    
    35Yuma Ethanol
    
    Yuma, CO
    
    Corn
    
    
    
    
    
    
    40Total Current Capacity at 109 ethanol
biorefineries
    
    
    
    
    
    
    
    
    5,281.4Total Under Construction (55)/ Expansions
(7)
    
    
    
    
    
    
    
    
    
    
    
    
    4,347.0Total Capacity
    
    
    
    
    
    
    
    
    9,628.4
 
 *
    
    locally-owned 
   Competition from Alternative Fuels
    12




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Distillers Grains Competition
  Sources and Availability of Raw Materials
 Corn Supply
      13




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Utilities
 Natural Gas.
 Electricity.
 Water
  Research and Development
  Dependence on One or a Few Major Customers
  14




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Costs and Effects of Compliance with Environmental Laws
  Alcohol Fuel Producers Permit.
 SPCC and RMP.
  Air Permits.
 15




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Water Permits.
    Employees
  16




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# Full-TimePosition
    
    PersonnelProduction Supervisors
    
    
    4Operating Workers
    
    
    12Compliance Officers
    
    
    3Maintenance/Repair Workers
    
    
    3Welders
    
    
    3Electrical/Electronic Engineering Technicians
    
    
    2Lab Manager
    
    
    1Lab Assistant
    
    
    2Laborers
    
    
    10General Manager
    
    
    1Plant/Commodity Managers
    
    
    2Accounting
    
    
    1Office Clerk
    
    
    1TOTAL
    
    
    45
 
 ITEM 1A. RISK FACTORS.
 You should carefully read and consider the risks and uncertainties below and the other information
contained in this report. The risks and uncertainties described below are not the only ones we may
face. The following risks, together with additional risks and uncertainties not currently known to
us or that we currently deem immaterial could impair our financial condition and results of
operation.
 Risks Relating to Our Business
 We have no operating history and our business may not be as successful as we anticipate.
 Our business is not diversified.
 Our financial performance will be significantly dependent on corn and natural gas prices and
generally we will not be able to pass on increases in input prices to our customers.
  17




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Risks Relating to Our Business  We expect to engage in hedging transactions which
involve risks that can harm our business
 The spread between ethanol and corn prices can vary significantly and we do not expect the
spread to remain at the high levels recently experienced by the ethanol industry.
 Our exclusive reliance on Palmetto to coordinate the supply of corn to our plant could damage
our profitability if Palmetto is unable to locate a sufficient corn supply and we have to find an
alternative method of sourcing corn.
 Our revenues will be greatly affected by the price at which we can sell our ethanol and
distillers grains.
  18




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We expect to sell all of the ethanol we produce to EcoEnergy, however we have not entered into
an exclusive ethanol marketing agreement with EcoEnergy or any other ethanol marketer.
 We expect to engage in hedging transactions which involve risks that can harm our business.
  Changes and advances in ethanol production technology could require us to incur costs to
update our plant or could otherwise hinder our ability to compete in the ethanol industry or
operate profitably.
 Risks Related to Ethanol Industry
 Overcapacity within the ethanol industry could cause an oversupply of ethanol and a decline in
ethanol prices.
 We expect to operate in a competitive industry and compete with larger, better financed
entities which could impact our ability to operate profitably.
 19




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Competition from the advancement of alternative fuels may lessen the demand for ethanol.
 Corn-based ethanol may compete with cellulose-based ethanol in the future, which could make it
more difficult for us to produce ethanol on a cost-effective basis .
 Competition from ethanol imported from Caribbean basin countries may be a less expensive
alternative to our ethanol.
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Competition from ethanol imported from Brazil may be a less expensive alternative to our
ethanol.
 Consumer resistance to the use of ethanol based on the belief that ethanol is expensive, adds
to air pollution, harms engines and takes more energy to produce that it contributes may reduce the
demand for ethanol.
 Risks
Related to Construction of the Ethanol Plant
 We
will depend on Fagen, Inc. and ICM, Inc. to design and build our ethanol plant and their failure to perform could force us to abandon our business, hinder our ability to operate profitably or decrease the value of your investment.
  Construction delays could result in delays in our ability to generate profits if our production and sale of ethanol and its co-products are similarly delayed.
 Defects in plant construction could result in delays in our ability to generate revenues if our plant does not produce ethanol and its co-products as anticipated.
 Risks Related to Regulation and Governmental Action
 A change in government policies favorable to ethanol may cause demand for ethanol to decline.
 Government incentives for ethanol production, including federal tax incentives, may be
eliminated in the future, which could hinder our ability to operate at a profit.
   Changes in environmental regulations or violations of the regulations could be expensive and
reduce our profitability.
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Item 2. DESCRIPTION OF PROPERTY.
  Item 6 
Managements Discussion and Analysis of Financial Condition and Plan of Operation
 
 Item 3. LEGAL PROCEEDINGS.
  
 Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
  
 PART II
 
 Item 5. MARKET FOR COMMON EQUITY AND RELATED MEMBER MATTERS.
     22




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Item 6  Managements Discussion and Analysis or Plan of
Operations.
 
 Item 6. MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS.
 Cautionary Statements Regarding Forward Looking Statements
  
    
    Changes in our business strategy, capital improvement or development plans;
    
    Changes in plant production capacity or technical difficulties in operating the plant;
    
    Overcapacity within the ethanol industry leading to a decline in ethanol prices;
    
    Changes in the availability and price of corn;
    
    Increases or decreases in the supply and demand for ethanol, including anticipated
significant increases in supply from new ethanol plants and expansions of existing
ethanol plants;
    
    Changes in the environmental regulations that apply to our plant operations;
    
    Changes in general economic conditions or the occurrence of certain events causing
an economic impact in the agriculture, oil or automobile industries;
    
    Changes in the availability and price of natural gas;
    
    Increases or decreases in the supply and demand for distiller grains; and
    
    Changes and advances in ethanol production technology.
  Overview
  23




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Plan of Operations for the Next 12 Months
  Project Capitalization
   24




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##### Table of Contents



Plant construction and start-up of plant operations
    25




---



##### Table of Contents



Permitting and Regulatory Activities
   Trends and Uncertainties Impacting the Ethanol Industry and Our Future Operations
     26




---



##### Table of Contents



Technology Developments
  Trends and Uncertainties Impacting the Corn and Natural Gas Markets and Our Future Cost of Goods
Sold
  27




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##### Table of Contents



Liquidity and Capital Resources
 Estimated Sources of Funds
  Sources of Funds(1)
    
    
    
    
    PercentOffering Proceeds (2)
    
    $
    67,300,000
    
    
    
    39.13
    %Seed Capital Proceeds (3)
    
    $
    1,200,000
    
    
    
    0.70
    %Senior Debt Financing (4)
    
    $
    92,500,000
    
    
    
    53.78
    %Revolving Line of Credit (5)
    
    $
    11,000,000
    
    
    
    6.39
    %Total Sources of Funds
    
    $
    172,000,000
    
    
    
    100.00
    %
 
 (1)
    
    The amount of equity offering proceeds and senior debt financing.(2)
    
    At November 30, 2006, we had subscriptions from investors for approximately
$67,300,000. On November 30, 2006, the offering proceeds of approximately $67,300,000
were released from escrow. 28




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##### Table of Contents



(3)
    
    We have issued a total of 2,000 units to our seed capital investors at a price of
$500.00 per unit. In addition, we have issued 600 units to our founders at a price of
$333.33 per unit. We have issued a total of 2,600 units in our two private placements in
exchange for proceeds of $1,200,000.(4)
    
    On November 30, 2006, we closed our debt financing arrangement with Southwest
Georgia Farm Credit as the lead lender. Southwest Georgia Farm Credit provided the
security for the Mitchell County Development Authority to issue $53,500,000 of taxable
bonds, $29,000,000 of tax exempt bonds and $10,000,000 of revenue bonds, the proceeds of
which were loaned to First United Ethanol.(5)
    
    We currently have an agreement from Southwest Georgia Farm Credit for a revolving
letter of credit in the amount of $11,000,000.  Estimated Uses of Proceeds
    Percent ofUse of Proceeds
    
    Amount
    
    
    TotalPlant construction
    
    $
    125,903,700
    
    
    
    74.06
    %Dryer
    
    
    1,000,000
    
    
    
    0.59
    %CCI Contingencies
    
    
    6,000,000
    
    
    
    3.53
    %Land cost
    
    
    750,000
    
    
    
    0.44
    %Site development costs
    
    
    4,298,424
    
    
    
    2.53
    %Construction contingency
    
    
    2,012,876
    
    
    
    1.18
    %Construction performance bond
    
    
    375,000
    
    
    
    0.22
    %
 29




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##### Table of Contents



Percent ofUse of Proceeds
    
    Amount
    
    
    TotalConstruction insurance costs
    
    
    200,000
    
    
    
    0.12
    %Administrative building
    
    
    500,000
    
    
    
    0.29
    %Office equipment
    
    
    100,000
    
    
    
    0.06
    %Computers, Software, Network
    
    
    180,000
    
    
    
    0.11
    %Railroad
    
    
    4,000,000
    
    
    
    2.35
    %Rolling stock
    
    
    460,000
    
    
    
    0.27
    %Fire Protection
    
    
    950,000
    
    
    
    0.56
    %Water treatment system
    
    
    930,000
    
    
    
    0.55
    %Capitalized interest
    
    
    1,150,000
    
    
    
    0.68
    %Start up costs:Financing costs
    
    
    840,000
    
    
    
    0.49
    %Debt Service Reserve
    
    
    7,000,000
    
    
    
    4.12
    %Organization costs
    
    
    1,500,000
    
    
    
    0.88
    %Pre production period costs
    
    
    850,000
    
    
    
    0.50
    %Inventory  working capital
    
    
    3,880,000
    
    
    
    2.28
    %Inventory  corn
    
    
    3,200,000
    
    
    
    1.88
    %Inventory  chemicals and ingredients
    
    
    420,000
    
    
    
    0.25
    %Inventory  Ethanol
    
    
    2,500,000
    
    
    
    1.47
    %Inventory  DDGS
    
    
    500,000
    
    
    
    0.29
    %Spare parts  process equipment
    
    
    500,000
    
    
    
    0.29
    %Total
    
    $
    170,000,000
    
    
    
    100.00
    %
  Financial Results
   Critical Accounting Estimates
   30




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##### Table of Contents



Employees
   # Full-TimePosition
    
    PersonnelProduction Supervisors
    
    
    4Operating Workers
    
    
    12Compliance Officers
    
    
    3Maintenance/Repair Workers
    
    
    3Welders
    
    
    3Electrical/Electronic Engineering Technicians
    
    
    2Lab Manager
    
    
    1Lab Assistant
    
    
    2Laborers
    
    
    10General Manager
    
    
    1Plant/Commodity Managers
    
    
    2Accounting
    
    
    1Office Clerk
    
    
    1TOTAL
    
    
    45
 Off-Balance Sheet Arrangements
  Employees
 DESCRIPTION OF BUSINESS  Employees.
 31




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##### Table of Contents



Item 7. FINANCIAL STATEMENTS.
  
    
 32




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##### Table of Contents



FIRST UNITED ETHANOL, LLC   BALANCE SHEETS
 September 30, 2006ASSETSCURRENT ASSETSCash and cash equivalents
    
    $
    304,748Subscriptions receivable
    
    
    66,812,000Accrued interest receivable
    
    
    224,432Total current assets
    
    
    67,341,180PROPERTY AND EQUIPMENT, at costOffice furniture and equipment
    
    
    14,962Construction in progress (Note 3)
    
    
    154,371Less accumulated depreciation
    
    
    (2,876
    )166,457OTHER ASSETS
    
    
    5,000DEFERRED OFFERING COSTS
    
    
    246,726$
    67,759,363LIABILITIES AND MEMBERS EQUITYCURRENT LIABILITIESAccounts payable and accrued expenses
    
    $
    131,256Total current liabilities
    
    
    131,256DEFERRED GRANT PROCEEDS
    
    
    50,000COMMITMENTS AND CONTINGENCIESMEMBERS EQUITYMembership contributions, 2,600 units issued and outstanding
    
    
    1,195,308Subscribed units, 66,810 units subscribed, not issued
    
    
    66,812,000Deficit accumulated during the development stage
    
    
    (429,201
    )67,578,107$
    67,759,363
 See Notes to Financial Statements.
 33




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##### Table of Contents



FIRST UNITED ETHANOL, LLC   STATEMENTS OF OPERATIONS
 For the period fromMarch 9, 2005
    
    
    For the period from(inception) through
    
    
    March 9, 2005Year ending
    
    
    September 30,
    
    
    (inception) throughSeptember 30, 2006
    
    
    2005
    
    
    September 30, 2006Revenues
    
    $
    
    
    
    $
    
    
    
    $
    Operating expensesOrganizational expenses
    
    
    
    
    
    
    25,145
    
    
    
    25,145Start-up expenses
    
    
    109,398
    
    
    
    130,568
    
    
    
    239,966General and administrative expenses
    
    
    410,294
    
    
    
    3,453
    
    
    
    413,747Total
    
    
    519,692
    
    
    
    159,166
    
    
    
    678,858Operating loss
    
    
    (519,692
    )
    
    
    (159,166
    )
    
    
    (678,858
    )Other income (expense)Other income
    
    
    16,000
    
    
    
    
    
    
    
    16,000Interest income
    
    
    233,657
    
    
    
    
    
    
    
    233,657249,657
    
    
    
    
    
    
    
    249,657Net loss
    
    $
    (270,035
    )
    
    $
    (159,166
    )
    
    $
    (429,201
    )Net loss per unit (Basic and Diluted)
    
    $
    (103.86
    )
    
    $
    (260.93
    )
    
    $
    (227.81
    )Weighted average units outstanding
    
    
    2,600
    
    
    
    610
    
    
    
    1,884
 See Notes to Financial Statements.
 34




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##### Table of Contents



FIRST UNITED ETHANOL, LLC
 STATEMENTS OF CHANGES IN MEMBERS EQUITY
 Units
    
    
    Members EquityBalance, March 9, 2005
    
    
    
    
    
    $
    Contributed capital for 600 units
at $333.33 per unit, March 2005
    
    
    600
    
    
    
    200,000Contributed capital for 2000 units at $500.00 per unit, September 2005
    
    
    2,000
    
    
    
    1,000,000Cost related to contributed capital
    
    
    
    
    
    
    (13,692
    )Net loss for the period ending September 30, 2005
    
    
    
    
    
    
    (159,166
    )Members equity at September 30, 2005
    
    
    2,600
    
    
    $
    1,027,142Contribution of services from Directors
    
    
    
    
    
    
    9,000Subscribed units, 66,810 units
    
    
    
    
    
    
    66,812,000Net loss for the year ending September 30, 2006
    
    
    
    
    
    
    (270,035
    )Members equity at September 30, 2006
    
    
    2,600
    
    
    $
    67,578,107
 See Notes to Financial Statements.
 35




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##### Table of Contents



FIRST UNITED ETHANOL, LLC
 STATEMENTS OF CASH FLOWS
 For the period fromMarch 9, 2005
    
    
    For the period from MarchYear ending
    
    
    (inception) through
    
    
    9, 2005 (inception) throughSeptember 30, 2006
    
    
    September 30, 2005
    
    
    September 30, 2006CASH FLOWS FROM OPERATING ACTIVITIESNet loss
    
    $
    (270,035
    )
    
    $
    (159,166
    )
    
    $
    (429,201
    )Adjustments to reconcile net loss to net
cash used in operating activities:Contribution of services
    
    
    9,000
    
    
    
    
    
    
    
    9,000Depreciation expense
    
    
    2,876
    
    
    
    
    
    
    
    2,876Changes in assets and liabilities:Increase in accrued interest receivable
    
    
    (224,432
    )
    
    
    
    
    
    
    (224,432
    )Increase in accounts payable and
accrued expenses
    
    
    97,830
    
    
    
    33,426
    
    
    
    131,256Increase in deferred grant proceeds
    
    
    20,000
    
    
    
    30,000
    
    
    
    50,000Net cash used in operating activities
    
    
    (364,761
    )
    
    
    (95,740
    )
    
    
    (460,501
    )CASH FLOWS FROM INVESTING ACTIVITIESPurchase of property and equipment
    
    
    (167,399
    )
    
    
    (6,934
    )
    
    
    (174,333
    )Net cash used in investing activities
    
    
    (167,399
    )
    
    
    (6,934
    )
    
    
    (174,333
    )CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issuance of members equity
    
    
    
    
    
    
    1,200,000
    
    
    
    1,200,000Expenditures for offering costs
    
    
    (241,738
    )
    
    
    (18,680
    )
    
    
    (260,418
    )Net cash provided by (used in) financing activities
    
    
    (241,738
    )
    
    
    1,181,320
    
    
    
    939,582Increase (decrease) in cash
    
    
    (773,898
    )
    
    
    1,078,646
    
    
    
    304,748Cash, beginning of period
    
    
    1,078,646
    
    
    
    
    
    
    
    Cash, end of period
    
    $
    304,748
    
    
    $
    1,078,646
    
    
    $
    304,748Non-cash investing and financing activitiesContribution of services from Directors
    
    $
    9,000
    
    
    
    
    
    
    
    9,000
 See Notes to Financial Statements.
 36




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##### Table of Contents



FIRST UNITED ETHANOL, LLC
 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Nature of Business
   Use of Estimates
  Revenue Recognition
  Deferred Offering Costs
  Property and Equipment
   Grant Proceeds
  37




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##### Table of Contents



FIRST UNITED ETHANOL, LLC
  Organization and Start-up Costs
  Income Taxes
  Concentration of Credit Risk
  Net Loss per membership unit
  Recently issued accounting pronouncements
  retrospective application restatement
 Accounting for Certain Hybrid Financial
Instruments Accounting for Derivative Instruments and
Hedging Activities Accounting for Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities
 38




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##### Table of Contents



FIRST UNITED ETHANOL, LLC
  Accounting for Uncertainty in Income
Taxesan interpretation of FASB Statement No. 109 (FIN 48).
   NOTE 2. MEMBERSHIP EQUITY
      39




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##### Table of Contents



FIRST UNITED ETHANOL, LLC
  NOTE 3. COMMITMENTS AND CONTINGENCIES
 Development Stage Operations and Liquidity
  Consulting Agreements
 Transaction with BioEnergy Capital Consultants
  
    
    a one time commitment fee of $50,000;
    
    $1,500 per week during the period commencing upon the effective
date and continuing through the equity drive closing week for
each week or partial week that BioEnergy personnel assist,
through personal attendance in Camilla and the surrounding
communities, with the preparation of equity drive meetings;
    
    $375 per day (not to exceed $1,500 per week) after the equity
drive closing date and continuing through the first date after
the Company closes a loan transaction to finance construction of
the Project; and
    
    a one-time conditional bonus of $650,000 on the loan closing date.
 Transaction with Thompson, Hoffman & Company
  
    
    $5,000 per month for 11 months;
    
    $100 per hour after the date which is twelve months from the date of the agreement;
    
    $25,000 upon the earlier of: (a) completion of the equity drive, or (b) the
beginning of construction of the ethanol plant;
 40




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##### Table of Contents



FIRST UNITED ETHANOL, LLC
 
    
    $25,000 upon completion of the ethanol plants construction;
    
    within 30 days after the ethanol plants second year of production, an amount
equal to one percent of EBITDA; and
    
    within 30 days after the ethanol plants third full year of production, an amount
equal to .5% of EBITDA generated by the ethanol plant.
  Design Build Agreements
  Permits
  Land Option
  Agreement with Director
  Agreement with Officer
  41




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##### Table of Contents



FIRST UNITED ETHANOL, LLC
 NOTE 4. RELATED PARTIES
   NOTE 5. SUBSEQUENT EVENT
    42




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##### Table of Contents



Item 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.
  
 Item 8A. CONTROLS AND PROCEDURES.
   
 Item 8B. OTHER INFORMATION.
  
 PART III.
 
 ITEM 9. DIRECTORS; EXECUTIVE OFFICERS AND CONTROL PERSONS; COMPLIANCE WITH SECTION 16(a) OF THE
EXCHANGE ACT
 Identification of Directors, Executive Officers and Significant Employees
 Murray Campbell, Chairman and Director.
 Tommy L. Hilliard, Vice Chairman and Director.
 Steve Collins, Chief Financial Officer and Director.
 43




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##### Table of Contents



Terry Hart, Secretary and Director.
 Miley Adams, Vice President of Marketing and Director.
 Bryant Campbell, Assistant Treasurer and Director.
 Thomas H. Dollar, II, Vice President of Operations and Director.
 John B. Bubba Johnson, Director.
 J. Harris Morgan, Jr., Director.
 Donald Shirah, Director.
 Kenneth J. Hunnicutt, Director.
 44




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##### Table of Contents



Robert L. Holden, Sr., Director.
 Michael W. Harrell, Director.
 Anthony J. Flagg, Chief Executive Officer.
 Adoption of Code of Ethics
   
 ITEM 10. EXECUTIVE COMPENSATION
   45




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##### Table of Contents



Name and
    
    
    
    
    
    
    
    
    
    
    
    
    
    All OtherPrincipal Position
    
    Year
    
    Salary
    
    Bonus
    
    Compensation
    
    TotalAnthony J. Flagg,
Chief Executive
Officer
    
    Fiscal Year 2006
    
    $
    5,833
    (1)
    
    $
    0
    
    
    $
    0
    
    
    $
    5,833
    (1)Fiscal Year 2005
    
    $
    0
    
    
    $
    0
    
    
    $
    0
    
    
    $
    0Fiscal Year 2004
    
    $
    0
    
    
    $
    0
    
    
    $
    0
    
    
    $
    0
 
 (1)
    
    Includes all compensation paid to Mr. Flagg between September 25, 2006, the date he signed
an employment agreement with First United, and September 30, 2006, the end of the fiscal year.   Employment Agreements
  Reimbursement of Expenses
  
 ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED MEMBER
MATTERS
  UNITS BENEFICIALLY OWNED BY DIRECTORS AND OFFICERS
 Name and Address of
    
    Amount and Nature
    
    Percent of ClassTitle of Class
    
    Beneficial Owner(1)
    
    of Beneficial Owner
    
    at Debt ClosingMembership Units
    
    Murray Campbell
    
    380 units
    
    
    0.54
    %Membership Units
    
    Tommy L. Hilliard
    
    250 units
    
    
    0.36
    %Membership Units
    
    Steve Collins
    
    155 units
    
    
    0.22
    %Membership Units
    
    Terry Hart
    
    40 units
    
    
    0.06
    %Membership Units
    
    Miley Adams
    
    200 units
    
    
    0.29
    %Membership Units
    
    Bryant Campbell
    
    250 units
    
    
    0.36
    %
 46




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##### Table of Contents



Name and Address of
    
    Amount and Nature
    
    Percent of ClassTitle of Class
    
    Beneficial Owner(1)
    
    of Beneficial Owner
    
    at Debt ClosingMembership Units
    
    John B. Johnson
    
    180 units
    
    
    0.26
    %Membership Units
    
    J. Harris Morgan
    
    400 units
    
    
    0.57
    %Membership Units
    
    Donald Shirah
    
    150 units
    
    
    0.21
    %Membership Units
    
    Kenneth J. Hunnicutt
    
    100 units
    
    
    0.14
    %Membership Units
    
    Robert L. Holden, Sr.
    
    250 units
    
    
    0.36
    %Membership Units
    
    Thomas H. Dollar, II (2)
    
    1,300 units
    
    
    1.86
    %Membership Units
    
    Michael W. Harrell (3)
    
    600 units
    
    
    0.86
    %Totals:
    
    4,255 Units
    
    
    6.09
    %
 
 (1)
    
    Except where otherwise indicated, the address of the beneficial owner is deemed to be the
same address as the Company.(2)
    
    Units beneficially owned by the Thomas H. Dollar Marital Trust of which our director Thomas
H. Dollar, II is the trustee and by Dollar Farm Products of which our director Thomas H.
Dollar, II is the president.(3)
    
    Units beneficially owned by Southwest Georgia Oil Company Inc. Our director Michael W.
Harrell is the president.  
 ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
     47




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##### Table of Contents



ITEM 13. EXHIBITS
  Exhibit
    
    
    
    Method ofNo.
    
    Description
    
    Filing3.1
    
    Articles of Organization
    
    
    13.2
    
    Certificate of Name Change and Amendment to Articles of Organization
    
    
    13.2
    
    Amended and Restated Operating Agreement
    
    
    13.3
    
    Second Amended and Restated Operating Agreement
    
    
    34.1
    
    Form of membership unit certificate
    
    
    14.3
    
    Escrow Agreement with AMERIS dated May 1, 2006
    
    
    310.1
    
    Memorandum of Understanding with Thompson, Hoffman & Associates
    
    
    110.2
    
    Letter of Intent with Fagen, Inc. dated July 22, 2005
    
    
    110.3
    
    Consulting Agreement with BioEnergy Capital Consultants, LLC
    
    
    110.4
    
    Real Estate Option with Mitchell County Development Authority
    
    
    110.5
    
    Letter of Intent with Fagen, Inc. dated March 10, 2006
    
    
    210.6
    
    Phase I and Phase II Engineering Services Agreement with Fagen
Engineering, LLC dated January 10, 2006
    
    
    210.7
    
    Services Agreement with ICM, Inc.
    
    
    210.8
    
    Project Development and Consulting Agreement with Murray Campbell dated
April 28, 2006
    
    
    310.9
    
    Employment Agreement with Anthony Flagg dated September 25, 2006
    
    
    410.10
    
    Grain Procurement Agreement with Palmetto Grain Brokerage, LLC
    
    
    510.11
    
    Environmental Assessment Agreement
with CDG Engineers dated September
28,2006
    
    
    *10.12
    
    Lump Sum Design-Build Agreement with Fagen, Inc. dated November 16, 2006+
    
    
    *10.13
    
    Commitment Letter with Southwest Georgia Farm Credit dated October 4,2006
    
    
    *10.14
    
    Water Services Agreement with U.S. Water Services dated October 10, 2006
    
    
    *10.15
    
    Loan Agreement with Mitchell County
Development Authority dated November
30, 2006 ($29,000,000 Tax-Exempt Bond)
    
    
    *
 48




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##### Table of Contents



Exhibit
    
    
    
    Method ofNo.
    
    Description
    
    Filing10.16
    
    Promissory Note with Mitchell County Development Authority dated
November 30, 2006 ($29,000,000 Tax-Exempt Bond)
    
    
    *10.17
    
    Trust Indenture with Mitchell County Development Authority dated
November 30, 2006 ($29,000,000 Tax-Exempt Bond)
    
    
    *10.18
    
    Reimbursement Agreement with Mitchell County Development Authority dated
November 30, 2006 ($29,000,000 Tax-Exempt Bond)
    
    
    *10.19
    
    Confirmation Agreement with Mitchell County Development Authority dated
November 30, 2006 ($29,000,000 Tax-Exempt Bond)
    
    
    *10.20
    
    Letter of Credit with Mitchell County Development Authority dated
November 30, 2006 ($29,000,000 Tax-Exempt Bond)
    
    
    *10.21
    
    Confirming Letter of Credit with Mitchell County Development Authority
dated November 30, 2006 ($29,000,000 Tax-Exempt Bond)
    
    
    *10.22
    
    Remarketing Agreement with Mitchell County Development Authority dated
November 30, 2006 ($29,000,000 Tax-Exempt Bond)
    
    
    *10.23
    
    Bond Purchase Agreement with Mitchell County Development Authority dated
November 30, 2006 ($29,000,000 Tax-Exempt Bond)
    
    
    *10.24
    
    Tax Regulatory Agreement with Mitchell County Development Authority
dated November 30, 2006 ($29,000,000 Tax-Exempt Bond)
    
    
    *10.25
    
    Loan Agreement with Mitchell County
Development Authority dated November
30, 2006 ($53,500,000 Taxable Bond)
    
    
    *10.26
    
    Promissory Note with Mitchell County Development Authority dated
November 30, 2006 ($53,500,000 Taxable Bond)
    
    
    *10.27
    
    Trust Indenture with Mitchell County Development Authority dated
November 30, 2006 ($53,500,000 Taxable Bond)
    
    
    *10.28
    
    Confirmation Agreement with Mitchell County Development Authority dated
November 30, 2006 ($53,500,000 Taxable Bond)
    
    
    *10.29
    
    Letter of Credit with Mitchell County Development Authority dated
November 30, 2006 ($53,500,000 Taxable Bond)
    
    
    *10.30
    
    Confirming Letter of Credit with Mitchell County Development Authority
dated November 30, 2006 ($53,500,000 Taxable Bond)
    
    
    *10.31
    
    Remarketing Agreement with Mitchell County Development Authority dated
November 30, 2006 ($53,500,000 Taxable Bond)
    
    
    *10.32
    
    Bond Purchase Agreement with Mitchell County Development Authority dated
November 30, 2006 ($53,500,000 Taxable Bond)
    
    
    *10.33
    
    Revolving Credit Note with
Southwest Georgia Farm Credit dated November
30, 2006
    
    
    *10.34
    
    Loan Agreement with Mitchell County
Development Authority dated November
1, 2006
    
    
    *
 49




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##### Table of Contents



Exhibit
    
    
    
    Method ofNo.
    
    Description
    
    Filing10.35
    
    Security Agreement with Mitchell County Development Authority dated
November 1, 2006
    
    
    *10.36
    
    Option to Purchase Real Property with Mitchell County Development
Authority dated December 6, 2006
    
    
    *14.1
    
    Code of Ethics
    
    
    *31.1
    
    Certificate pursuant to 17 CFR 240 15d-14(a)
    
    
    *31.2
    
    Certificate pursuant to 17 CFR 240 15d-14(a)
    
    
    *32.1
    
    Certificate pursuant to 18 U.S.C. Section 1350
    
    
    *32.2
    
    Certificate pursuant to 18 U.S.C. Section 1350
    
    
    *
 
 (1)
    
    Incorporated by reference to the exhibit of the same number on our Registration Statement on
Form SB-2, No. 333-130663, originally filed on December 23, 2005.(2)
    
    Incorporated by reference to the exhibit of the same number in Pre-Effective Amendment No. 1
filed on March 13, 2006 to our Registration Statement on Form SB-2, No. 333-130663, originally
filed on December 23, 2005.(3)
    
    Incorporated by reference to the exhibit of the same number in Pre-Effective Amendment No. 2
filed May 3, 2006 to our Registration Statement on Form SB-2, No. 333-130663, originally filed
on December 23, 2005.(4)
    
    Incorporated by reference to Exhibit 99.1 in our Form 8-K filed on September 29, 2006.(5)
    
    Incorporated by reference to Exhibit 99.1 in our Form 8-K filed on November 13, 2006.(*)
    
    Filed herewith.(+)
    
    Material has been omitted pursuant to a request for confidential treatment and such materials
have been filed separately with the Securities and Exchange Commission. 
 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
  Category
    
    Year
    
    FeesAudit Fees
    
    
    2006
    
    
    $
    39,4552005
    
    
    $
    30,000Audit-Related Fees
    
    
    2006
    
    
    $
    11,9602005
    
    
    $
    0Tax Fees
    
    
    2006
    
    
    $
    02005
    
    
    $
    0All Other Fees
    
    
    2006
    
    
    $
    02005
    
    
    $
    0
   50




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##### Table of Contents



SIGNATURES
  FIRST UNITED ETHANOL, LLCDate:      December 22, 2006
    /s/ Anthony J. FlaggAnthony J. FlaggChief Executive OfficerDate:      December 22, 2006
    /s/ Steve CollinsSteve CollinsTreasurer
(Principal Financial and Accounting Officer)  Date: December 22, 2006
    /s/ Anthony J. FlaggAnthony J. FlaggChief Executive OfficerDate: December 22, 2006
    /s/ Steve CollinsSteve CollinsTreasurer  (Principal Financial and Accounting Officer)

DirectorDate: December 22, 2006
    /s/ Murray CampbellMurray Campbell, Chairman and DirectorDate: December 22, 2006
    /s/ Miley AdamsMiley Adams, VP of Marketing and DirectorDate: December 22, 2006
    /s/ Bryant CampbellBryant Campbell, Assistant Treasurer and DirectorDate: December 22, 2006
    /s/ Donald ShirahDonald Shirah, DirectorDate: December 22, 2006
    /s/ J. Harris Morgan, Jr.J. Harris Morgan, Jr., DirectorDate: December 22, 2006
    /s/ Tommy HilliardTommy Hilliard, Vice Chairman and DirectorDate: December 22, 2006
    /s/ John B. JohnsonJohn B. Johnson, DirectorDate: December 22, 2006
    /s/ Thomas H. Dollar, IIThomas H. Dollar, II, VP of Operations and Director 51




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##### Table of Contents



Date: December 22, 2006
    /s/ Mike HarrellMike Harrell, DirectorDate: December 22, 2006
    /s/ Terry HartTerry Hart, Secretary and DirectorDate: December 22, 2006
    /s/ Robert L. Holden, Sr.Robert L. Holden, Sr., DirectorDate: December 22, 2006
    /s/ Kenneth Jack HunnicuttKenneth Jack Hunnicutt, Director 52