Exhibit
10.10


 


GAS
FACILITIES EXTENSION AGREEMENT (ADVANCE)


INTERSTATE
POWER AND LIGHT COMPANY


Applicable
to the service Area of


the
former Interstate Power Company


 


THIS
AGREEMENT, made this 23rd day of October, 2003, between INTERSTATE POWER AND LIGHT COMPANY, (a
wholly-owned subsidiary of Alliant Energy Corporation), an Iowa corporation
with offices at 200 First Street SE, Cedar Rapids, Iowa 52401 (“Company”), and GOLDEN GRAIN ENERGY LLC a limited liability
company of the state of Iowa with offices located at 951 North Linn Avenue, New
Hampton, Iowa (“Customer”).


 


WHEREAS,
the Company is engaged in the distribution of gas in the City of Mason City,
Iowa;


WHEREAS,
the Customer is the owner of the following legally described premises: Real
estate being a part of Section 20, Township 96 North, Range 20 West of the 5`h
P.M., Cerro Gordo County, Iowa, as shown on the map attached hereto (marked
Exhibit A) and made a part hereof; and


 


WHEREAS,
the Company desires to sell natural gas and/or natural gas transportation
service to the buildings -being built or installed on said premises, and the
Customer desires to have natural gas available for such buildings to be used
for heating, water heating, processing or other uses (the “Gas Service”);


 


NOW,
THEREFORE, in consideration of the following terms and
conditions, Company and Customer mutually agree as follows:


 


1.             The Company agrees to
construct, install, maintain and operate natural Gas Facilities to the outlet
of Company’s gas meters at Customer’s premises.  Installation of the facilities is scheduled for completion on
November 1, 2004.  Company shall not be
liable for any loss or damage of any nature whatsoever incurred or suffered as
a result of any failures or delays in the performance of its obligations under
this Agreement due to any cause or circumstance beyond its control, including
but not limited to strikes, riots, acts of God, or accidents; provided,
however, that Company shall in good faith use such effort as is reasonable
under all the circumstances known to Company at the time to remove or remedy
the cause and mitigate the damages. Delays solely caused by Company may
constitute a breach of this Agreement.


 


2.             The Customer agrees
to advance to the Company the estimated cost of construction of Gas Facilities,
and the income tax applicable to such advance, and the Company agrees to refund
to the Customer the advance, as set forth in Paragraph 3 below.


 

















 


3.             The Customer agrees
to advance one million three hundred sixty-four thousand four hundred seventy
($1,364,470) dollars to Company prior to the completion of construction in the
form of cash, surety bond or letter of credit. 
Customer shall provide the advance as follows: five hundred thousand
($500,000) dollars on the later of June 1, 2004, or the start date of facility
installation planning and construction, five hundred thousand ($500,000)
dollars on August 1, 2004 and three hundred sixty-four thousand four hundred
seventy ($364,470) dollars on November 1, 2004.  Company will provide Customer a construction schedule within
sixty (60) days of the date the first payment is made to Company.  Upon the initial billing pursuant to this
Agreement and pursuant to the Firm Transportation Agreement executed by and
between the parties on October 23 , 2003, the Company shall refund one hundred
(100%) percent of Customer’s advance as set forth herein.  (In the event Customer chooses natural gas
service instead of Transportation Service (as defined in the Firm
Transportation Agreement) for some interim period after completion of Company
facilities, and prior to moving to transport service, Customer’s monthly
billings under natural gas service shall be increased, as necessary, to provide
Company with minimum non-gas cost recovery (fixed or variable) equivalent to
the monthly charges for transport service as defined in the Firm Transportation
Agreement by and between the parties dated the 23rd day of October. 2003.) The
Company shall not be obligated to refund more than the original amount advanced
and the refund shall be without interest.


 


4.             The obligation of the
Company to make refund to the Customer shall be null and void after the
expiration of ten (10) years from the date of this Agreement, and any and all
monies remaining unrefunded and in the hands of the Company shall then become
the sole property of the Company.


 


5.             The Customer agrees
to furnish all necessary easements and permits required for the installation of
Company Gas Facilities located on Customer’s premises, and the Customer and the
Company will use their best efforts to cooperate so that said construction and
installation can be accomplished in the most economical manner.


 


6.             Each party agrees to
assume risk of loss and to defend, indemnify and hold the other, its officers,
directors, employees and agents harmless against claims, liabilities, damages,
losses, costs or


expenses of whatever
nature or character for all injuries or damage of any type to any person or
property, including injuries or damage of third parties or employees of both
parties and employees of Subcontractors, to the extent caused by the negligent
acts or omissions of that party or its Subcontractors or of anyone directly or
indirectly employed by any of them or for whose acts any of them may be liable,
resulting from or arising out of this Agreement.


 


Nothing in this indemnity
shall require Company to take ownership of or be responsible for hazardous
materials which exist on Customer’s premises.


 


2

















 


It is the intent of the
parties hereto that, where fault, acts or omissions are determined to be
contributory, principles of comparative negligence will be followed and each
party shall bear the proportionate cost of any loss, damage, expense and
liability attributable to that party’s negligence, acts or omissions.


 


6.             Title to all Gas
Facilities installed by Company, up to and including Company’s metering
equipment, shall be in the Company.


 


 


IN WITNESS WHEREOF, the
parties hereto have executed this Agreement the day and year first above written.


 


 


	
   

  	
  INTERSTATE POWER AND LIGHT COMPANY

  
	
   

  	
  By

  	
  /s/ E. Protsch

  
	
   

  	
  Title

  	
  VP of Energy Delivery

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GOLDEN GRAIN ENERGY,
  LLC

  
	
   

  	
  By

  	
  /s/ Walter Wendland

  
	
   

  	
  Title

  	
  President

  
						



 


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