Document:

Exhibit 10.31

AMENDMENT A

TO

ELECTRIC SERVICE AGREEMENT, DATED AUGUST 6, 2002,

BETWEEN

GREAT PLAINS ETHANOL

AND

SOUTHEASTERN ELECTRIC COOPERATIVE, INC.

 

This
Amendment made and entered into July 23, 2007, by and between
Southeastern Electric Cooperative, Inc., Marion, South Dakota (hereinafter
called the Cooperative), and Great Plains Ethanol, L.L.C., dba POET
Biorefining-Chancellor, South Dakota (hereinafter called the Customer).

 

WITNESSETH:

 

WHEREAS,
the parties have executed an Electric Service Agreement (Agreement) dated August 6,
2002, which prescribes the terms and conditions by which the Customer will
purchase electric service from the Cooperative for its ethanol plant near
Chancellor, South Dakota, and

 

WHEREAS,
the parties desire to modify said terms and conditions and to incorporate
additional electric facilities into said Agreement;

 

NOW,
THEREFORE, in consideration of the mutual promises, covenants and conditions
contained herein, the Cooperative and the Customer agree to modify said
Agreement as follows:

 

1.                                       In the first
paragraph, ‘Great Plains Ethanol, L.L,C.’ shall be modified to state: ‘Great
Plains Ethanol, L.L.C., dba POET Biorefining—Chancellor’.

 

2.                                       Paragraph 3. a.
Service Delivery shall be modified to state:

 

Service
hereunder shall be provided at multiple locations at the Customer’s facility
consisting of the following which the Cooperative shall install or cause to be
installed, operated, and maintained:

 

                                                                i.                                          On-Site
Distribution Facilities: one (1) control building enclosure to house a
lineup of 15 kV indoor metalclad switchgear with (2) main breakers, (1) bus
tie breaker, (6) outgoing feeder breakers, (2) generation tie
breakers with related controls and accessories, one (1) three phase, 60
hertz, 4,160 volt, 5,000 kVA transformer, one (1) three phase, 60 hertz,
4,160 volt, 2,500 kVA transformer, eleven 

 

 

(11) three-phase, 60 hertz, 480 volt, 2,500 kVA transformers and one (1) single-phase,
60 hertz, 240 volt, 100 1CVA transformer. The Cooperative shall also install or
cause to be installed, approximately 60,000 feet of 15.5 kV underground
distribution line, switchgear and associated equipment.

 

                                                                ii.                                       69 kV
Transmission Feed: 3.5 miles of 69 kV transmission line and a 69/12.47 kV
10/13.3/16.7 MVA substation.

 

                                                                iii.                                    115 kV
Transmission Feed: 9 miles of 115 kV transmission line and a 115/12.47 kV
15/20/25 MVA substation.

 

The
additional on-site distribution facilities are scheduled to be in service in
two stages with some as early September 15, 2007 and the remaining in
service by December 15, 2007. The existing 69 kV substation is scheduled
to be upgraded by December 1, 2007. The new second substation is scheduled
to be in service and operating at 69 kV by June 1, 2008. The new 115 kV
transmission line from Virgil Fodness to the Customer’s facility is scheduled
to be in service and the second substation operating at 115 kV by June 1,
2009.

 

3.                                       Paragraph 3. b.
Capacity, shall be modified to state:

 

Electrical
service to the Facility under this Amendment shall be limited to the following
capacities. Service to additional load above these capacities shall require
additional changes to this Amendment and the Agreement.

 

                                                                i.                                          With 69 kV
transmission feed from Virgil Fodness substation and existing 69 kV substation
(600 amp low side switchgear and 437 amp regulators): 9 MVA

 

                                                                ii.                                       With 69 kV
transmission feed from Virgil Fodness substation and 69 kV substation upgraded
(1200 amp low side switchgear and 656 amp regulators): 14 MVA

 

                                                                iii.                                    With 69 kV
backup transmission feed from V. T. Hanlon substation and 69 kV substation
upgraded (1200 amp low side switchgear and 656 amp regulators): 10 MVA

 

                                                                iv.                                   With 69 kV
transmission feed from Virgil Fodness substation and second substation in
service and operated at 69 kV: 16 MVA

 

 

                                                                v.                                      With 115 kV
transmission feed from Virgil Fodness substation and second substation operated
at 115 kV: 20 MVA

 

4.                                       Paragraph 5. a.
Point of Metering, shall be modified to state:

 

Metering
will measure the demand and energy of the Customer’s total facility and will be
located on the 7,200/12,470 volt secondary busses of the 115/12.47 kV and
69/12,47 kV substations.

 

5.                                       Paragraph 5. c.
Meter Testing Procedure, shall be modified to state:

 

The
metering shall be tested once every two years for accuracy by the Cooperative
or its designee. In addition, at any time either party may request that the
metering be tested. The requesting party will be responsible for the cost of
the test. If any test discloses the inaccuracy of said meters to the extent of
more than two percent (2%) fast or slow, an adjustment in billing shall be
determined by the Cooperative from the best information available.

 

6.                                       Paragraph 6. i.
Payment as Aid to Construction, shall be added as follows:

 

                                                                i.                                          Payment as Aid
to Construction. The Customer shall make a payment as a contribution in aid to
construction to the Cooperative in the amount of $650,000.00 which represents
the Cooperative’s costs for providing and installing the 12.47 kV metal clad
switchgear, control building and associated equipment located at the
substations. The Cooperative shall retain ownership and operation and
maintenance responsibilities for this equipment. The payment shall be made by
the Customer to the Cooperative by September 1, 2007.

 

7.                                       Rate Schedule
Large Power Service — Great Plains Ethanol, L.L.C., dba POET
Biorefining-Chancellor is hereby modified as shown in the attached schedule,
dated July 19, 2007, and shall become effective January 1, 2008. The
monthly facility charge will be phased in for the Cooperative’s facilities as
described in Section 2. of this Amendment. The monthly facility charge
will be $35,200.00 on January 1, 2008, $44,600.00 starting January 1,
2009 and $51,350.00 starting January 1, 2010. Rates are subject to annual
review by the Cooperative and may be adjusted annually by the Cooperative.

 

IN
WITNESS WHEREOF, the parties hereto have caused Amendment A to be executed by
their duly authorized representatives, all as of the day and year first written
above.

 

 

	
  ATTEST:

  	
   

  	
  SOUTHEASTERN
  ELECTRIC

  	
   

  
	
   

  	
   

  	
   

  	
  COOPERATIVE,
  INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/Steve
  Holmberg

  	
   

  	
   

  	
  By:

  	
  /s/
  Harley Bruns

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Secretary

  	
   

  	
  Title:
  

  	
  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
   

  	
  GREAT
  PLAINS ETHANOL, L.L.C., dba

  	
   

  
	
   

  	
   

  	
   

  	
  POET
  BIOREFINING-CHANCELLOR

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/
  Steve Kary

  	
   

  	
   

  	
  By:

  	
  /s/
  Darin Ihnen

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Secretary
  POET - Chancellor

  	
   

  	
  Title:

  	
  President

  	
   

  
										

 

 

SOUTHEASTERN ELECTRIC COOPERATIVE, INC.

MARION, SOUTH DAKOTA

 

LARGE POWER SERVICE - GREAT PLAIINS ETHANOL, L.L.C. dba POET

BIOREFINING-CHANCELLOR

 

AVAILABILITY

 

Available
to the Great Plains Ethanol, L.L.C, dba POET Biorefining-Chancellor ethanol
facility located in Section 26 of Germantown Township, Turner County, SD,
for commercial operation of the facility. This schedule is subject to the
established rules and regulations of the Cooperative.

 

TYPE
OF SERVICE

 

Multiple
deliveries of alternating current, 60 cycle, three-phase and single-phase, at
voltages of 4,160, 480 and 240 volts.

 

MONTHLY
RATE

 

The
Customer shall pay the Cooperative for service hereunder at the following rates
and conditions:

 

	
  Facilities
  Charge - 2008 

  	
   

  	
   $35,200.00 per month, plus

  
	
  Demand
  Charge 

  	
   

  	
  $9.30 per kW, plus

  
	
  Energy
  Charge 

  	
   

  	
  $0.02 845 per kWh

  

 

RATE
ADJUSTMENTS

 

Rates
are subject to annual review by the Cooperative and may be adjusted annually by
the Cooperative.

 

BILLING
DEMAND

 

The
billing demand shall be equal to the Customer’s contribution to the monthly
billing demand from the Cooperative’s power supplier, as determined by a demand
meter or otherwise, and adjusted for power factor.

 

 

MINIMUM
BILLING DEMAND

 

Irrespective
of the Customer’s requirements for kW demand or use of kWh energy, the demand
for billing purposes hereunder shall not be less than 2,000 kW for any billing
period.

 

POWER
FACTOR ADJUSTMENT

 

The
Customer agrees to maintain unity power factor as nearly as practicable. The
demand charge may be adjusted to correct for average power factors less than
five percent (5%) unity (lagging) or greater than five percent (5%) unity
(leading) by increasing the measured demand one percent (1%) for each one
percent (1%) by winch the average power factor is less than five percent (5%)
unity (lagging) or more than five percent (5%) unity (leading).

 

MINIMUM
CHARGES

 

The
minimum monthly charge shall be the Facilities Charge plus the Minimum Billing
Demand Charge provision of this rate.

 

STATE
AND MUNICIPAL TAXES

 

All
applicable state and municipal sales tax and any other non-ad valorem taxes
imposed on electric energy sales shall be applied to monthly bills rendered
under this rate schedule unless the consumer is exempt from said tax or taxes.

 

TERMS
OF PAYMENT

 

In
the event the current monthly bill is not paid in accordance with the payment
dates indicated on the bill, a late payment penalty in effect at the time shall
apply.

 

EFFECTIVE:     January 1, 2008Exhibit 10.32

 

SIXTH AMENDED AND RESTATED

IRREVOCABLE STANDBY LETTER OF CREDIT

 

Letter of Credit No. 1158

 

	
  Data
  of Issuance:

  	
  February 16,
  2008

  
	
   

  	
   

  
	
  Issuer:

  	
  Home
  Federa1 Bank

  
	
   

  	
  225
  South Main Avenue

  
	
   

  	
  Sioux
  Falls, SD 57104

  
	
   

  	
   

  
	
  To:

  	
  Northwestern
  Services Corporation

  
	
   

  	
  125
  South Dakota Avenue, Suite 1100

  
	
   

  	
  Sioux
  Falls, SD 57104-6403

  

 

                This Sixth Amended and Restated
Irrevocable Standby Letter of Credit amends, restates and replaces that certain
Fifth Amended and Restated Irrevocable Standby Letter of Credit dated February 16,
2007 by Home Federal Bank (Letter of Credit No. 1158).

 

                                                1.             Home Federal Bank (the “Bank”)
hereby establishes in favor of NorthWestern Services Corporation (“NSC,”
successor by merger to NorthWestern Energy Corporation) an Irrevocable Standby
Letter of Credit (the “Letter of Credit”) at the request and for the account of
Great Plains Ethanol, LLC d/b/a POET Biorefining - Chancellor, a South Dakota
limited liability company (“Great Plains”), whereby the Bank, subject to the
terms and conditions contained herein, authorizes NSC to draw on it at any time
or times before the Expiration Date (as defined below), by its draft (the “Draft”),
in the form of Appendix 1 hereto, an amount up to an aggregate amount of
$688,000.00, as set forth on an accompanying certificate (the “Draw Certificate”),
in the form of Appendix 2 hereto.

 

                                                2.             This Letter of Credit shall expire
at the close of business on March 1, 2009 (the “Expiration Date”), unless
extended.

 

                                                3.             This Letter of Credit is issued in
conjunction with a Natural Gas Distribution Delivery Agreement between
NorthWestern Energy Corporation and Great Plains dated September 2, 2002
(the “Agreement”), under which Great Plains agreed to transport a minimum
quantity of natural gas to its plant at a fixed price for delivery through a
pipeline constructed to serve the plant and the obligations of Great Plains
under the Agreement. The terms and conditions of the Agreement are incorporated
herein by reference.

 

 

 

                                                4.             Funds under this Letter of Credit
are available to NSC in accordance with and against its Draft and Draw
Certificate, each dated the date of presentation and executed by an officer of
NSC, referring to the number of this Letter of Credit and presented along with
the original Letter of Credit at our office at 225 South Main Avenue, Sioux
Fails, South Dakota 57104 during normal banking hours on or prior to the
Expiration Date or any extension thereof. 
NSC warrants and represents to the Bank that it has assigned or will
assign its rights to the proceeds of this Letter of Credit to Tetra Financial
Group, Within 48 hours following presentation of the Draft, Draw Certificate
and original Letter of Credit, the funds drawn shall be payable jointly by the
Bank to NSC and Tetra Financial Group.

 

                                                5.             This Letter of Credit sets forth in
full the terms of our undertaking, and such undertaking shall not in any way be
modified or amended, without the consent of the Bank, except as to the
completion of the Draft and Draw Certificates referenced to herein.

 

	
  HOME
  FEDERAL BANK

  
	
   

  	
   

  
	
  By
  

  	
  /s/
  David A. Brown

  	
   

  
	
  Its:

  	
  David
  A, Brown / Senior Vice President

  

 

AGREED
AND ACCEPTED

This
28th day of February, 2008.

 

NORTHWESTERN
SERVICES CORPORATION.

 

	
  By:
  

  	
  /s/
  Dennis Heinz, Cr. Mgr.

  	
   

  
	
  Its:

  	
  Dennis
  Heinz Credit Mgr.

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