Document:

exv10w11

 

Exhibit 10.11

AGREEMENT BETWEEN OWNER AND HDR ENGINEERING, INC. FOR PROFESSIONAL SERVICES

     THIS AGREEMENT is made as of this 24th day of July, 2005 , between E Energy Adams,
LLC, Tomah, Wisconsin (“OWNER”) and HDR Engineering Inc., (“ENGINEER”) a Nebraska corporation, with
principal offices at 8404 Indian Hills Drive, Omaha, Nebraska, 68114 for services in connection
with the project known as the Adams Ethanol On-call Services Project (“PROJECT”);

     WHEREAS, the OWNER desires to engage the ENGINEER to provide professional engineering,
consulting and related services (“Services”) in connection with the Project; and

     WHEREAS, the ENGINEER desires to render these Services as described in SECTION I, Scope of
Services.

     NOW, THEREFORE, the OWNER and ENGINEER in consideration of the mutual covenants contained
herein, agree as follows:

SECTION I SCOPE OF SERVICES

ENGINEER will provide Services for the Project, which consist of the Scope of Services as outlined
on the attached Exhibit A.

SECTION II TERMS AND CONDITIONS OF ENGINEERING SERVICES

The “HDR Engineering, Inc. Terms and Conditions for Professional Services,” which are attached
hereto in Exhibit B, are incorporated into this Agreement by this reference as if fully set forth
herein.

SECTION III RESPONSIBILITIES OF OWNER

The OWNER shall provide the information set forth in paragraph 6 of the attached “HDR “HDR
Engineering, Inc. Terms and Conditions for Professional Services” and shall designate an authorized
representative that shall have the authority to transmit instructions, receive information, and
render decisions on behalf of the OWNER.

SECTION IV COMPENSATION

Compensation for ENGINEER’S services under this Agreement shall be on the basis of fixed hourly
labor rates by employee classification plus reimbursable expenses, as detailed in Exhibit C.

Reimbursable expense shall mean the actual expenses incurred directly or indirectly in connection
with the Project for transportation, travel, meals, expendable supplies,

      

					
	Agreement for Professional Services
	 	1
	 	 

 

 

subconsultants,
subcontractors, technology charges (computer usage), telephone,
shipping and express, printing and electronic reproduction, and other incurred expense. ENGINEER
will add ten percent (10%) to all reimbursable expense to cover administrative, supervision, and
insurance expenses.

The amount of any sales tax, excise tax, value added tax (VAT), or gross receipts tax that may be
imposed on this Agreement shall be added to the ENGINEER’S compensation as Reimbursable Expenses.

Due to the uncertain nature of this PROJECT, the OWNER intends to utilize the services of the
ENGINEER on an indefinite retainer type basis, rather than establishing a ceiling price for
services. That is, the OWNER shall determine the extent of services desired on a monthly, or more
often, basis, and the ENGINEER shall provide monthly invoices for work completed through the
billing cycle. Accordingly, the OWNER, at its own discretion, may elect to terminate services at
any time through a written notice to the ENGINEER, and the compensation shall be calculated
accordingly and due payable up to that point in time.

If the OWNER elects to have the ENGINEER engage in any litigation, arbitration, or other legal or
administrative proceeding, due to the disruptive nature of the work involved, all associated labor
costs shall be multiplied by a factor of 1.5 times the rates set forth in Exhibit C or the most
current rates that may have established beyond the original Period of Service, as discussed in
Section V below and Exhibit A. Such labor shall include, but not be limited to: participation in
meetings with legal counsel; participation in depositions; providing courtroom or other
administrative testimony; preparation of supporting exhibits; and all other time associated with
preparation, travel, and follow-up.

Unless otherwise stated in this Agreement, the rates of compensation for ENGINEER’S services have
been agreed to in anticipation of the orderly and continuous progress of the project through
completion. If any specified dates for the completion of ENGINEER’S services are exceeded through
no fault of the ENGINEER, the time for performance of those services shall be automatically
extended for a period which may be reasonably required for their completion and all rates, measures
and amounts of ENGINEER’S compensation shall be equitably adjusted.

SECTION V PERIOD OF SERVICE

Upon receipt of written authorization to proceed, ENGINEER shall perform the services within the
time period(s) described in Exhibit A.

      

					
	Agreement for Professional Services
	 	2
	 	 

 

 

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

	 	 	 
	E ENERGY ADAMS, LLC

	 	HDR ENGINEERING, INC.
	 
	 	 
	Jack L. Alderman

	 	Timothy R. Crockett, PE
	 

	 	 
	Name

	 	Name
	 
	 	 
	/s/ Jack L. Alderman

	 	/s/ Timothy R. Crockett
	 

	 	 
	Signature

	 	Signature
	 
	 	 
	President

	 	Senior Vice President
	 

	 	 
	Title

	 	Title
	 
	 	 
	105 E Veterans St.

	 	8404 Indian Hills Drive
	 
	 	 
	Tomah, WI 54660

	 	Omaha, Nebraska 68114
	 

	 	 
	Address

	 	Address

      

					
	Agreement for Professional Services
	 	3
	 	 

 

 

Exhibit A

Period of Service

Scope of Service

 

 

E ENERGY ADAMS, LLC

On-Call Engineering Services

PROJECT UNDERSTANDING

The ENGINEER understands that the OWNER desires to construct an ethanol manufacturing facility near
the community of Adams, Nebraska. To develop that project the OWNER wants to retain the services
of the ENGINEER to provide environmental engineering services, independent consultation and other
project services related to the regulatory background research and permitting, infrastructure
planning and design and to provide overall project assistance to the project team throughout the
duration of the project.

PERIOD OF SERVICE

	 	 	 
	Activity	 	Anticipated Period of Service
	On-Call Project Consulting Services

	 	July 1, 2005 through July 1, 2006

The timing and duration for the scope of services described herein shall be the same as that set
forth by the OWNER; except, however, that the ENGINEER’S rates set forth in Exhibit C shall only be
applicable for work completed through 2005. Work extending into 2006 shall be equitably adjusted.

SCOPE OF SERVICE

	 	 	 
	Task 1.0	 	Project Services
	Objective:

	 	Provide project support services and assist the OWNER in
developing a suitable approach to compliance with applicable
regulations and Agency directives on an as-requested basis
	 
	 	 
	Activities:

	 	To the extent desired by the OWNER, services to be provided
under this task may include:

	 	•	 	Assemble, prepare and submit the necessary permitting documents
to the agencies having jurisdiction. This includes any meetings and
correspondences necessary for reviewing the technical and regulatory aspects of
the permit applications and negotiating permit limits. Such work may involve
securing well permits, an NPDES discharge permits for non-process wastewater or
storm water, and construction permits for associated non-process wastewater
infrastructure.
	 
	 	•	 	Prepare a “decision matrix” that summarizes monetary and
non-monetary factors for various wastewater options with due consideration
given to

 

 

	 	 	 	technical soundness, management economics, potential regulatory
issues, and
compatibility with the OWNER’s other activities associated with the construction
of an ethanol production facility.
	 
	 	•	 	Perform field investigations to assist with waste management
options. Observe and document facility siting issues, environmental land
assessments, wetland inventory and transportation assessments.
	 
	 	•	 	Attend coordination meetings with the OWNER and/or the
appropriate agency. Prepare and make technical presentations and provide
written and oral communications that are critical to facility development.
	 
	 	•	 	Assist the OWNER with progressively narrowing the range of
waste management options to a point of consensus that defines what courses of
action should be pursued for securing necessary construction and environmental
permit(s) or clearances with the applicable agencies. This process may include
the preparation of written technical memoranda, figures or engineering sketches
that the OWNER can use as an attachments to permit applications and/or to
assist with permit negotiations and related discussions.
	 
	 	•	 	Assist the OWNER with other services including design and
construction phase services for supply well(s), water/wastewater treatment
facilities, pump stations, pipelines, access roads, structures and rail service
spurs.

	 	 	 
	Task
	 	 
	Deliverables:

	 	A trip report will be prepared to document individual project
activities and transmitted to the OWNER. Other deliverables will be identified
as task order activities are defined.
	 
	 	 
	Key
	 	 
	Understandings:

	 	This task order is meant to be used for tasks that
are relatively small in scope and fee and need to be
accomplished in a timely manner. If it is determined
that the nature of the anticipated task is complex,
time consuming and/or requires additional definition
beyond the limits of this scope of service, a letter
describing the specific scope, fee and project
deliverables, will be prepared an submitted for
OWNER’s approval.
	 
	 	 
	 

	 	It is assumed by the ENGINEER that the OWNER already possesses or will otherwise
interact with its design-build firm for construction the ethanol production
facilities to acquire all necessary process and other supporting technical
information that may be needed for the ENGINEER to assist the OWNER for this
PROJECT.
	 
	 	 
	 

	 	The OWNER shall provide the ENGINEER with information necessary to complete the
environmental permit applications such as contact information, site
descriptions, and technical data on waste streams and process flow diagrams.

 

 

EXHIBIT B

HDR Engineering, Inc.

TERMS AND CONDITIONS FOR PROFESSIONAL SERVICES

1. STANDARD OF PERFORMANCE

The standard of care for all professional engineering, consulting and related services performed or
furnished by ENGINEER and its employees under this Agreement will be the care and skill ordinarily
used by members of ENGINEER’s profession practicing under the same or similar circumstances at the
same time and in the same locality. ENGINEER makes no warranties, express or implied, under this
Agreement or otherwise, in connection with ENGINEER’s services.

2. INSURANCE

ENGINEER agrees to procure and maintain, at its expense, Workers’ Compensation insurance as
required by statute; Employer’s Liability of $250,000; Automobile Liability insurance of $1,000,000
combined single limit for bodily injury and property damage covering all vehicles, including hired
vehicles, owned and non-owned vehicles; Commercial General Liability insurance of $1,000,000
combined single limit for personal injury and property damage; and Professional Liability insurance
of $1,000,000 per claim for protection against claims arising out of the performance of services
under this Agreement caused by negligent acts, errors, or omissions for which ENGINEER is legally
liable. Upon request, OWNER shall be made an additional insured on Commercial General and
Automobile Liability insurance policies and certificates of insurance will be furnished to the
OWNER. ENGINEER agrees to indemnify OWNER for the claims covered by ENGINEER’s insurance.

3. OPINIONS OF PROBABLE COST (COST ESTIMATES)

Any opinions of probable project cost or probable construction cost provided by ENGINEER are made
on the basis of information available to ENGINEER and on the basis of ENGINEER’s experience and
qualifications, and represents its judgment as an experienced and qualified professional engineer.
However, since ENGINEER has no control over the cost of labor, materials, equipment or services
furnished by others, or over the contractor(s’) methods of determining prices, or over competitive
bidding or market conditions, ENGINEER does not guarantee that proposals, bids or actual project or
construction cost will not vary from opinions of probable cost ENGINEER prepares.

4. CONSTRUCTION PROCEDURES

ENGINEER’s observation or monitoring portions of the work performed under construction contracts
shall not relieve the contractor from its responsibility for performing work in accordance with
applicable contract documents. ENGINEER shall not control or have charge of, and shall not be
responsible for, construction means, methods, techniques, sequences, procedures of construction,
health or safety programs or precautions connected with the work and shall not manage, supervise,
control or have charge of construction. ENGINEER shall not be responsible for the acts or
omissions of the contractor or other parties on the project. ENGINEER shall be entitled to review
all construction contract documents and to require that no provisions extend the duties or
liabilities of ENGINEER beyond those set forth in this Agreement. OWNER agrees to include ENGINEER
as an indemnified party in OWNER’s construction contracts for the work, which shall protect
ENGINEER to the same degree as OWNER. Further, OWNER agrees that ENGINEER shall be listed as an
additional insured under the construction contractor’s liability insurance policies.

5. CONTROLLING LAW

This Agreement is to be governed by the law of the state where ENGINEER’s services are performed.

6. SERVICES AND INFORMATION

OWNER will provide all criteria and information pertaining to OWNER’s requirements for the project,
including design objectives and constraints, space, capacity and performance requirements,
flexibility and expandability, and any budgetary limitations. OWNER will also provide copies of
any OWNER-furnished Standard Details, Standard Specifications, or Standard Bidding Documents which
are to be incorporated into the project. OWNER will furnish the services of soils/geotechnical
engineers or other consultants that include reports and appropriate professional recommendations
when such services are
deemed necessary by ENGINEER. The OWNER agrees to bear full responsibility for the technical
accuracy and content of OWNER-

 

 

furnished documents and services. In performing professional
engineering and related services hereunder, it is understood by OWNER that ENGINEER is not engaged
in rendering any type of legal, insurance or accounting services, opinions or advice. Further, it
is the OWNER’s sole responsibility to obtain the advice of an attorney, insurance counselor or
accountant to protect the OWNER’s legal and financial interests. To that end, the OWNER agrees that
OWNER or the OWNER’s representative will examine all studies, reports, sketches, drawings,
specifications, proposals and other documents, opinions or advice prepared or provided by ENGINEER,
and will obtain the advice of an attorney, insurance counselor or other consultant as the OWNER
deems necessary to protect the OWNER’s interests before OWNER takes action or forebears to take
action based upon or relying upon the services provided by ENGINEER.

7. SUCCESSORS AND ASSIGNS

OWNER and ENGINEER, respectively, bind themselves, their partners, successors, assigns, and legal
representatives to the covenants of this Agreement. Neither OWNER nor ENGINEER will assign, sublet,
or transfer any interest in this Agreement or claims arising therefrom without the written consent
of the other.

8. RE-USE OF DOCUMENTS

All documents, including all reports, drawings, specifications, computer software or other items
prepared or furnished by ENGINEER pursuant to this Agreement, are instruments of service with
respect to the project. ENGINEER retains ownership of all such documents. OWNER may retain copies
of the documents for its information and reference in connection with the project; however, none of
the documents are intended or represented to be suitable for reuse by OWNER or others on extensions
of the project or on any other project. Any reuse without written verification or adaptation by
ENGINEER for the specific purpose intended will be at OWNER’s sole risk and without liability or
legal exposure to ENGINEER, and OWNER will defend, indemnify and hold harmless ENGINEER from all
claims, damages, losses and expenses, including attorney’s fees, arising or resulting therefrom.
Any such verification or adaptation will entitle ENGINEER to further compensation at rates to be
agreed upon by OWNER and ENGINEER.

9. TERMINATION OF AGREEMENT

OWNER or ENGINEER may terminate the Agreement, in whole or in part, by giving seven (7) days
written notice, if the other party substantially fails to fulfill its obligations under the
Agreement through no fault of the terminating party. Where the method of payment is “lump sum,” or
cost reimbursement, the final invoice will include all services and expenses associated with the
project up to the effective date of termination. An equitable adjustment shall also be made to
provide for termination settlement costs ENGINEER incurs as a result of commitments that had become
firm before termination, and for a reasonable profit for services performed.

10. SEVERABILITY

If any provision of this agreement is held invalid or unenforceable, the remaining provisions shall
be valid and binding upon the parties. One or more waivers by either party of any provision, term
or condition shall not be construed by the other party as a waiver of any subsequent breach of the
same provision, term or condition.

11. INVOICES

ENGINEER will submit monthly invoices for services rendered and OWNER will make prompt payments in
response to ENGINEER’s invoices. ENGINEER will retain receipts for reimbursable expenses in
general accordance with Internal Revenue Service rules pertaining to the support of expenditures
for income tax purposes. Receipts will be available for inspection by OWNER’s auditors upon
request. If OWNER disputes any items in ENGINEER’s invoice for any reason, including the lack of
supporting documentation, OWNER may temporarily delete the disputed item and pay the remaining
amount of the invoice. OWNER will promptly notify ENGINEER of the dispute and request clarification
and/or correction. After any dispute has been settled, ENGINEER will include the disputed item on a
subsequent, regularly scheduled invoice, or on a special invoice for the disputed item only. OWNER
recognizes that late payment of invoices results in extra expenses for ENGINEER. ENGINEER retains
the right to assess OWNER interest at the rate of one percent (1%) per month, but not
to exceed the maximum rate allowed by law, on invoices which are not paid within forty-five (45)
days from the date of the invoice. In the event undisputed portions of ENGINEER’s invoices

 

 

are not paid when due, ENGINEER also reserves the right, after seven (7) days prior written notice,
to suspend the performance of its services under this Agreement until all past due amounts have
been paid in full.

12. CHANGES

The parties agree that no change or modification to this Agreement, or any attachments hereto,
shall have any force or effect unless the change is reduced to writing, dated, and made part of
this Agreement. The execution of the change shall be
authorized and signed in the same manner as this Agreement. Adjustments in the period of services
and in compensation shall be in accordance with applicable paragraphs and sections of this
Agreement. Any proposed fees by ENGINEER are estimates to perform the services required to complete
the project as ENGINEER understands it to be defined. For those projects involving conceptual or
process development services, activities often are not fully definable in the initial planning. In
any event, as the project progresses, the facts developed may dictate a change in the services to
be performed, which may alter the scope. ENGINEER will inform OWNER of such situations so that
changes in scope and adjustments to the time of performance and compensation can be made as
required. If such change, additional services, or suspension of services results in an increase or
decrease in the cost of or time required for performance of the services, an equitable adjustment
shall be made, and the Agreement modified accordingly.

13. CONTROLLING AGREEMENT

These Terms and Conditions shall take precedence over any inconsistent or contradictory provisions
contained in any proposal, contract, purchase order, requisition, notice-to-proceed, or like
document.

14. EQUAL EMPLOYMENT AND NONDISCRIMINATION

In connection with the services under this Agreement, ENGINEER agrees to comply with the applicable
provisions of federal and state Equal Employment Opportunity, and other employment statutes and
regulations.

15. HAZARDOUS MATERIALS

OWNER represents to ENGINEER that, to the best of its knowledge, no hazardous materials are present
at the project site. However, in the event hazardous materials are known to be present, OWNER
represents that to the best of its knowledge it has disclosed to ENGINEER the existence of all such
hazardous materials, including but not limited to asbestos, PCB’s, petroleum, hazardous waste, or
radioactive material located at or near the project site, including type, quantity and location of
such hazardous materials. It is acknowledged by both parties that ENGINEER’s scope of services does
not include services related in any way to hazardous materials. In the event ENGINEER or any other
party encounters undisclosed hazardous materials, ENGINEER shall have the obligation to notify
OWNER and, to the extent required by law or regulation, the appropriate governmental officials, and
ENGINEER may, at its option and without liability for delay, consequential or any other damages to
OWNER, suspend performance of services on that portion of the project affected by hazardous
materials until OWNER: (i) retains appropriate specialist consultant(s) or contractor(s) to
identify and, as appropriate, abate, remediate, or remove the hazardous materials; and (ii)
warrants that the project site is in full compliance with all applicable laws and regulations.
OWNER acknowledges that ENGINEER is performing professional services for OWNER and that ENGINEER is
not and shall not be required to become an “arranger,” “operator,” “generator,” or “transporter” of
hazardous materials, as defined in the Comprehensive Environmental Response, Compensation, and
Liability Act of 1990 (CERCLA), which are or may be encountered at or near the project site in
connection with ENGINEER’s services under this Agreement. If ENGINEER’s services hereunder cannot
be performed because of the existence of hazardous materials, ENGINEER shall be entitled to
terminate this Agreement for cause on 30 days written notice. To the fullest extent permitted by
law, OWNER shall indemnify and hold harmless ENGINEER, its officers, directors, partners,
employees, and subconsultants from and against all costs, losses, and damages (including but not
limited to all fees and charges of engineers, architects, attorneys, and other professionals, and
all court or arbitration or other dispute resolution costs) caused by, arising out of or resulting
from hazardous materials, provided that (i) any such
cost, loss, or damage is attributable to bodily injury, sickness, disease, or death, or injury to
or destruction of tangible property (other than completed Work), including the loss of use
resulting therefrom, and (ii)

 

 

nothing in this paragraph shall obligate OWNER to indemnify any
individual or entity from and against the consequences of that individual’s or entity’s sole
negligence or willful misconduct.

16. EXECUTION

This Agreement, including the exhibits and schedules made part hereof, constitute the entire
Agreement between ENGINEER and OWNER, supersedes and controls over all prior written or oral
understandings. This Agreement may be amended, supplemented or modified only by a written
instrument duly executed by the parties.

17. LIMITATION OF LIABILITY

ENGINEER’s and its employees’ total liability to OWNER for any loss or damage, including but not
limited to special and consequential damages arising out of or in connection with the performance
of services or any other cause, including ENGINEER’s and its employees’ professional negligent
acts, errors, or omissions, shall not exceed the greater of $50,000 or the total compensation
received by ENGINEER hereunder, except as otherwise provided under this Agreement, and OWNER hereby
releases and holds harmless ENGINEER and its employees from any liability above such amount.

18. LITIGATION SUPPORT

In the event ENGINEER is required to respond to a subpoena, government inquiry or other legal
process related to the services in connection with a legal or dispute resolution proceeding to
which ENGINEER is not a party, OWNER shall reimburse ENGINEER for reasonable costs in responding
and compensate ENGINEER at its then standard rates for reasonable time incurred
in gathering information and documents and attending depositions, hearings, and trial.

 

 

EXHIBIT C

SCHEDULE OF PROFESSIONAL LABOR RATES

E ENERGY ADAMS, LLC

On-Call Engineering Services

The following billable labor rates shall be applicable through calendar year 2006, subject to
the provisions in SECTION IV and SECTION V of this agreement:

	 	 	 	 	 
	 	 	Billable Rate	 
	Employee Classification	 	per Hour	 
	Project Principal
	 	$	231.00	 
	Project Manager
	 	$	158.00	 
	Senior Engineering/Senior Technical
	 	$	179.00	 
	Senior Project Engineer
	 	$	147.00	 
	Project Engineer
	 	$	121.00	 
	Engineer/Scientist
	 	$	105.00	 
	Engineering Technician
	 	$	100.00	 
	Junior Engineer/Scientist
	 	$	85.00	 
	CAD Designer
	 	$	95.00	 
	CAD Technician
	 	$	79.00	 
	Word Processing
	 	$	58.00	 
	Accounting
	 	$	105.00	 

Technology charges (computer usage), is a part of reimbursable expenses and shall be billed at
the rate of $4.10 per labor hour for each of the employee classifications listed above for each
monthly payment cycle. Personal vehicle mileage expenses shall be charged at $0.445 per mile in
accordance with IRS allowances for 2006.

 

 

Technical Support Services

E Energy Adams

[Handwritten: 29605]

TASK ORDER SUMMARY

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Task Order Name
	 	 	Task Order Number	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	     Site Drainage Preliminary Design	 	 	1.0

	 	 	 	 	 	 	 
	Subtask Name
	 	 	Subtask Number	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	     Project Coordination	 	 	NA

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	PO Number	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Task Objective
	 	 	Estimated HDR Labor & Expenses	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Disseminate project information and coordinate
project activities with the appropriate companies
and agencies.
	 	 	Hours           221                Labor	 	$	24,845	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	Estimated Expenses	 	$	1,456	 
	 	 	 	 	 	 	 
	Anticipated Schedule
	 	 	Estimated Subconsultant Fee	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Project Milestones
	 	 	Completion Dates
	 	 	(No Subconsultants)	 	$	0	 
	 	 	 	 	 	 	 
	Notice to Proceed
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(NTP)
	 	 	NA
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Coordination Letters
	 	 	Within 10 days NTP	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Hydrology and
hydraulics
assessment
	 	 	Within 20 days of NTP	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Letter report
	 	 	Within 30 days of NTP	 	 	Total Estimated Fee 	 	$	26,301	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Submittals
	 	 	Within 40 days of NTP	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Approved
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	/s/ Jack L. Alderman
	 	 	Aug. 22, 05
	 	 	/s/  Timothy R. Crockett	 	 	9/15/05	 
	 
	 	 	 	 	 	 	 	 	 	 
	E Energy Adams LLC
	 	 	Date
	 	 	HDR Engineering Inc.	 	Date

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 

			
	 	 	 
	September 15, 2005
	 	Page 1 of 3

 

 

Technical Support Services

E Energy Adams

TASK ORDER DOCUMENTATION

 

SCOPE OF SERVICES

	 	 	 	 	 
	Task Order Name:	 	Site Drainage Preliminary Design
	 
	 	 	 	 
	Objective:	 	Disseminate project information and coordinate
project activities with the appropriate companies
and agencies.
	 
	 	 	 	 
	Activities:

	 	A.
	 	Prepare coordination
letters with project
information and data for
distribution to Fagan
Engineering, Gage County,
Burlington Northern Santa
Fe (BNSF), Antioch
International, Inc. and
the Nemaha Natural
Resource District (NRD).
	 
	 	 	 	 
	 

	 	B.
	 	Develop design flows of the off-site and
on-site watershed up to but not including the facility foot print.
Coordinate this effort with Fagan’s on-site plans and conduct analysis
according to NDOR standards for flow calculations.
	 
	 	 	 	 
	 

	 	C.
	 	Evaluate the hydraulics of the ditch crossings
at the existing railroad culverts, the proposed spur crossing, the
proposed access road crossing and the south county road crossings.
Conduct the analysis for existing and proposed conditions using
criteria for rural areas and a 100-year storm event.
	 
	 	 	 	 
	 

	 	D.
	 	Prepare a planning level letter report on the
hydrology and hydraulics of the area. The report will include
hydrologic and hydraulic analyses, proposed improvements, opinions of
cost, and supporting information.
	 
	 	 	 	 
	 

	 	E.
	 	Distribute the letter report and supporting
information to Gage County and the BNSF to obtain their input on the
realignment of drainage patterns.
	 
	 	 	 	 
	Key
	 	 	 	 
	Understandings:	 	All calculations will be in accordance with Nebraska Department of Roads criteria.
HDR will be furnished with the necessary site topography overlain with the
preliminary plant layout in electronic format.
	 
	 	 	 	 
	 	 	Any structural design that may be required for the storm water diversion
structures will be covered in a separate task order.
	 
	 	 	 	 
	Meetings:	 	One meeting with Gage County Officials
	 	 	One meeting with the NRD
	 	 	One meeting with BNSF
	 	 	Note: An effort will be made to consolidate meetings if possible.
	 
	 	 	 	 
	Task Deliverables:	 	Letter report on the hydrology and hydraulics

			
	 	 	 
	September 15, 2005
	 	Page 2 of 3

 

 

Technical Support Services

E Energy Adams

TASK ORDER DOCUMENTATION

 

FEE ESTIMATE

Due to the uncertain scope of this project, E Energy Adams LLC intends to utilize the services
of the HDR Engineering, Inc. on an indefinite retainer basis, rather than establishing a ceiling
price for services. E Energy Adams LLC shall determine the extent of services desired on a
monthly, or more often basis, and HDR Engineering, Inc. shall provide monthly invoices for work
completed through the billing cycle. Accordingly, E Energy Adams LLC, at its own discretion, may
elect to terminate services at any time through a written notice to HDR Engineering, Inc., and the
compensation shall be calculated accordingly and due payable up to that point in time.

HDR will complete the task order on a time and reimbursable expense basis utilizing the labor rates
agreed to in the July 2005 Professional Engineering Service Agreement between HDR Engineering, Inc.
and E Energy Adams LLC, or as labor rates are amended for work that extends beyond 2005. Based on
the assumption that work described herein will be completed in 2005, HDR estimates that the total
fee for completion of the scope of service described in this task order to be approximately
$26,300.

			
	 	 	 
	September 15, 2005
	 	Page 3 of 3

 

 

Technical Support Services

E Energy Adams

 

TASK ORDER SUMMARY

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Task Order Name
	 	 	Task Order Number	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	     Flood Plain Permitting and Wetlands Issues	 	 	2.0

	 	 	 	 	 	 	 
	Subtask Name
	 	 	Subtask Number	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	     Project Coordination	 	 	NA

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	PO Number	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Task Objective
	 	 	Estimated HDR Labor & Expenses	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Disseminate project information and coordinate
project activities with the appropriate companies
and agencies.
	 	 	Hours          
248                Labor	 	$	28,216	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	Estimated Expenses	 	$	1,567	 
	 	 	 	 	 	 	 
	Anticipated Schedule
	 	 	Estimated Subconsultant Fee	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Project Milestones
	 	 	Completion Dates
	 	 	(No Subconsultants)	 	$	0	 
	 	 	 	 	 	 	 
	Notice to Proceed
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(NTP)
	 	 	NA
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Obtain IFS and FEMA Information
	 	 	Within 10 days NTP	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Hydrology and
hydraulics
analysis
	 	 	Within 20 days of NTP	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Meeting with NRD and ACE
	 	 	Within 30 days of NTP	 	 	Total Estimated Fee 	 	$	29,783	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Deliverables
	 	 	Within 45 days of NTP	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Approved
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	/s/ Jack L. Alderman
	 	 	Aug. 27, 2005
	 	 	/s/  Timothy R. Crockett	 	 	09/19/05	 
	 
	 	 	 	 	 	 	 	 	 	 
	E Energy Adams LLC
	 	 	Date
	 	 	HDR Engineering Inc.	 	Date

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 

			
	 	 	 
	September 15, 2005
	 	Page 1 of 3

 

 

Technical Support Services

E Energy Adams

TASK ORDER DOCUMENTATION

 

SCOPE OF SERVICES

	 	 	 	 	 
	Task Order Name:	 	Flood Plain Permitting and Wetland Issues
	 
	 	 	 	 
	Objective:	 	Disseminate project information and coordinate
project activities with the appropriate companies
and agencies.
	 
	 	 	 	 
	Activities:

	 	A.
	 	Obtain current Flood
Insurance Study (FIS)
information on the area
and any technical backup
data from the Federal
Emergency Management
Agency (FEMA).
	 
	 	 	 	 
	 

	 	B.
	 	Perform a hydraulic flood analysis and develop
the duplicate effective model, corrected effective model, existing and
proposed condition models.
	 
	 	 	 	 
	 

	 	C.
	 	Meet with the Nemaha Natural Resource District
(NRD) to discuss permitting and the construction of facility structures
within the floodplain. Provide a copy of the Hydrology and Hydraulics
Report prepared in Task Order 1.0 and the flood analysis for discussion
purposes.
	 
	 	 	 	 
	 

	 	D.
	 	Meet with the US Army Corps of Engineers (ACE)
to discuss the project and any potential wetland determination that
might be required along the drainage paths. Provide a copy of the
Hydrology and Hydraulics Report prepared in Task Order 1.0 and the
flood analysis for discussion purposes.
	 
	 	 	 	 
	Key
	 	 	 	 
	Understandings:	 	All calculations will be in accordance with Nebraska
Department of Roads criteria.
	 
	 	 	 	 
	 	 	HDR will be furnished with the necessary site
topography overlain with the preliminary plant layout
in electronic format.
	 
	 	 	 	 
	 	 	Any structural design that may be required for the
storm water diversion structures will be covered in a
separate task order.
	 
	 	 	 	 
	Meetings:	 	One meeting with the NRD

One meeting with the ACE
	 
	 	 	 	 
	Task Deliverables:	 	Hydraulics modeling output.
	 
	 	 	 	 
	 	 	NRD and ACE applications as required.

			
	 	 	 
	September 15, 2005
	 	Page 2 of 3

 

 

Technical Support Services

E Energy Adams

TASK ORDER DOCUMENTATION

 

FEE ESTIMATE

Due to the uncertain scope of this project, E Energy Adams LLC intends to utilize the services
of the HDR Engineering, Inc. on an indefinite retainer basis, rather than establishing a ceiling
price for services. E Energy Adams LLC shall determine the extent of services desired on a
monthly, or more often basis, and HDR Engineering, Inc. shall provide monthly invoices for work
completed through the billing cycle. Accordingly, E Energy Adams LLC, at its own discretion, may
elect to terminate services at any time through a written notice to HDR Engineering, Inc., and the
compensation shall be calculated accordingly and due payable up to that point in time.

HDR will complete the task order on a time and reimbursable expense basis utilizing the labor rates
agreed to in the July 2005 Professional Engineering Service Agreement between HDR Engineering, Inc.
and E Energy Adams LLC, or as labor rates are amended for work that extends beyond 2005. Based on
the assumption that work described herein will be completed in 2005, HDR estimates that the total
fee for completion of the scope of service described in this task order to be approximately
$29,800.

			
	 	 	 
	September 15, 2005
	 	Page 3 of 3exv10w12

 

Exhibit 10.12

SERVICE AGREEMENT

BETWEEN

ICM, INC.

AND

E Energy Adams, LLC

THIS AGREEMENT is entered into between ICM, INC. hereinafter called “Consultant”, and (E
Energy Adams, LLC) hereinafter called “Client”. In consideration of the convents herein contained
and upon subject to the mutual terms and conditions set forth herein, the parties hereto agree as
follows:

	1.	 	SCOPE OF WORK – Consultant shall provide environmental consulting servies for Client as
outline in ICM, INC.’s letter proposal Attachment ‘B; to Jack Aldermann dated 6/21/05.
	 
	2.	 	PAYMENT – For performance o the Services provided and as outlined in ICM, INC.’s letter
proposal dated 6/21/05, Consultant shall invoice the Client according to the attached Schedule
of Charges and Client shall pay Consultant at 310 N. 1st Street, Colwich, Kansas
6730 at the time specified herein. Terms for payment are net 30 days with 1.5% per month
service charge on balances past due 30 days or more.
	 
	3.	 	RESPONSIBILITY OF CONSULTANT – Consultant shall perform the Services as an independent
contractor in accordance with its own methods, terms of this Agreement, and applicable laws
and regulations. Consultant’s liability arising out of or in connection with the Services
shall be limited to performing at is own expense Services which are (1) deficient because of
Consultant’s failure to perform said Services in accordance with normal professional standards
for performing services of a similar nature, and (2) reported in writing to Consultant within
a reasonable time, not to exceed thirty (30) days from the completion of the Services in
accordance with Article 5. Where Client’s project requires public agency approval, Consultant
will attempt to assist in facilitating approval. However, Consultant does not assume
responsibility for securing approval by such agency.
	 
	 	 	Because of the nature of the work involved in this proposal, the Client shall indemnify and
save and hold harmless from and against any damage, liability, loss, cost or claim, whether
occasioned by ICM, INC., its officers, employees and agents or any other person or persons
arising out of, resulting form our related to, the performance of the of the work provide
for in this agreement; provided, however that Client shall not be obligated hereunder to
indemnify, save and hold harmless Consultant, its officers, employees, or agents against any
damage, liability, loss, cost, or claim which arises out of or in connection with the
intentional wrongful acts of, or the active negligence of, Consultant, or its officers,
employees or agents.
	 
	4.	 	ASSIGNMENT AND SUBCONTRACTING – This Agreement shall not be assigned by either party without
the prior written approval of the other. Consultant may, subcontract portions of the services
to a qualified subcontractor with prior approval of Client. Consultant agrees that Client
will incur on duplication of costs as a result of any such subcontract.
	 
	5.	 	COMPLETION AND ACCEPTANCE – Upon completion of the Services by Consultant, Client shall
promptly provide Consultant with a written listing of any Services not completed. Any
Services not listed by Client as incomplete in a listing delivered to Consultant within thirty
(30) days of completion of said Services shall be deemed complete and accepted. With respect
to Services listed by Client as incomplete, Consultant shall complete such Services and the
above acceptance procedure shall be repeated.

 

 

SERVICE AGREEMENT

BETWEEN

ICM, INC.

AND

E Energy Adams, LLC

Continued

	6.	 	TERMINATION – Client may terminate, with or without cause, upon thirty (30) days written
notice to Consultant. Absent Consultant’s breach of this Agreement, Consultant shall be paid
for Services rendered to the date of termination. Consultant may suspend or terminate this
Agreement upon seven days written notice to Client in the event of substantial failure by
Client to perform in accordance with the terms of this Agreement including, but not limited
to, nonpayment of amounts owing to Consultant through no fault of Consultant or an
unreasonable delay caused by Client or its agents.
	 
	7.	 	DELAY; FORCE MAJEURE – Should performance of the Consultant’s services be materially hampered
by cause beyond is reasonable control, a Force Majeure results. Force Majeure includes, but
is not restricted to, acts of contractors (other than Consultant’s contactors), fires, folds,
labor disturbances, and unusually severe weather.
	 
	 	 	If a Force Majeure occurs, Consultant will be granted a time extension based upon the effect
of the Force Majeure upon Consultant’s performance. The parties will also agree upon terms
and conditions, including additional compensation, for continuation or termination of this
Agreement. If no agreement is reached, a Force Majeure which continues for 120 days from
the event of Force Majeure gives Consultant the option to terminate its obligations under
this Agreement in accordance with Article 6.
	 
	8.	 	GOVERNING LAW – This agreement is to be governed by and construed in accordance with the laws
of Kansas, any action at law or judicial proceeding instituted for the breach of this
Agreement shall be resolved only in the State or Federal courts of the County of Sedgwick,
State of Kansas.
	 
	9.	 	AMENDMENTS – Any amendment to this Agreement shall be in writing and signed by Consultant and
Client. In the event that any of the provisions of this Agreement are held to be
unenforceable or invalid by any court of competent jurisdiction, the parties shall negotiate
an equitable adjustment to the provisions with a view toward effecting the purpose of this
Agreement. In the event that any of the provisions of this Agreement are held to be
unenforceable or invalid by any court of competent jurisdiction, the parties shall negotiate
an Agreement. In such case, the validity and enforceability of the remaining provisions, or
portions or applications thereof, shall not be affected thereby.
	 
	10.	 	TESTIMONY – Should Consultant, or its directors, officers or employees be required to testify
or to submit information to any judicial or administrative hearing concerning matters in
accordance with the Cost Schedule then in effect. Should Consultant be required by a third
party to testify at such a hearing, Consultant shall notify Client as to the date and time of
such hearing. Client agrees to save and hold harmless Consultant form and against all costs
incurred as a result of a judicial or administrative hearing concerning the services provided
for herein.

 

 

SERVICE AGREEMENT

BETWEEN

ICM, INC.

AND

E Energy Adams, LLC

Concluded

	11.	 	TIME TO BAR TO LEGAL ACTION

A. Period: All legal actions, including claims for indemnity, by either party
against the other for failure to perform properly under this Agreement or any legal action
however denominated essentially based upon such breach shall be barred 2 years from
commencement of the period defined in B.

B. Commencement of Period: The period commences when the claimant knew or should
have known of its claim. But, in any event, the period commences for:

	 	1.	 	Client claims when Consultant’s performance is substantially
complete; and
	 
	 	2.	 	Consultant claims when final payment by Client has been made.

	12.	 	ENTIRE AGREEMENT – In the event any services provide for herein are authorized by the client
to be performed or caused to be performed by Consultant prior to the effective date of this
Agreement. This Agreement, including all attachments incorporated herein by reference,
constitutes the entire Agreement between the parties. Any oral agreements, understandings,
proposals, purchase orders or negotiations are intended to be integrated herein and to be
superseded by the terms and conditions of this Agreement.

AUTHORIZATION TO PROCEED:

	 	 	 	 	 	 	 	 	 
	E Energy Adams, LLC	 	 	 	ICM, INC.
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Jack L. Alderman
	 	 	 	By:
	 	/s/ William J. Roddy
	 

	 	 
	 	 	 	 	 	 
	Title:

	 	Pres.
	 	 	 	Title:
	 	Mgr. Env. Affairs
	 

	 	 
	 	 	 	 	 	 
	Date:

	 	8/24/05
	 	 	 	Date:
	 	6-21-05
	 

	 	 
	 	 	 	 	 	 

 

 

SCHEDULE OF CHARGES – 2004

E Energy Adams, LLC

PERSONAL CHARGES

	 	 	 	 	 
	Title	 	Billing Rate
	Engineering Specialist I
	 	$150/hr
	Process Engineer I
	 	$150/hr
	Engineering Specialist II
	 	$110/hr
	Designer II
	 	$  70/hr
	Administrative
	 	$  46/hr

Expert Testimony rates are quoted separately.

OTHER CHARGES

	 	 	 	 	 
	Photocopies (8.5 x 11)
	 	$	00.15	 
	Photocopies (8.5 x 11)
	 	$	00.20	 
	Facsimile transmissions (8.5 x 11)
	 	$	00.15	 
	Automobile (per mile)
	 	$	00.375	 

Outside services, equipment and facilities not furnished directly by ICM, INC., will be billed at
cost plus 15%. Services may include, but are not limited to the following:

Rental of equipment and vehicles,

Outside laboratory testing,

Special fees, permits, insurance, etc.,

Transportation on public carriers,

Printing and photographic reproduction,

Subcontractors to ICM, Inc.,

Meals, lodging, and

Shipping, telephone & other materials.

Payment Terms: Net thirty (30) days. Thereafter, one and one-half percent (1 1/2%) interest per
month on unpaid balance will be charged.

 

 

	 	 	 	 	 
	 

	 	 	 	310 N. First St.
	 

	 	 	 	PO Box 397
	 

	 	[ICM Logo]
	 	Colwich, KS 67030
	 

	 	 	 	Phone: 316.796.0900
	 

	 	 	 	Fax: 316.796.0570

June 21, 2005

Attn:

Jack Aldermann

E Energy Adams, LLC

105 E. Veterans St

Tomah, WI 54660

	 	 	 
	Subject:

	 	Environmental Permitting Proposal for a 50 MM GPY Ethanol
	 

	 	Manufacturing Plant (w/Dry Fractionation) in Adams, NE.

Dear Jack:

Per your request for assistance in securing state approval to start construction, the attached is
my estimate to prepare the appropriate environmental applications and plans for a selected site.
You will be required to obtain other local permits in order to start construction – this proposal
is strictly for environmental permitting. All billing will be on a Time & Material basis at the
following rates:

	 	 	 
	Personnel	 	Rate
	Engineering Specialist I
	 	$150 per hour
	Process Engineer I
	 	$150 per hour
	Engineering Specialist II
	 	$110 per hour
	Designer II
	 	$  70 per hour
	Administrative
	 	$  46 per hour

ICM’s billing for time is base on the above hourly rates with no additional markup. Travel and
travel expenses are billed at cost plus 15%. Other billings may include subcontractor and/or
necessary consultant costs and will be billed biweekly on a time & material plus 15% basis.
Applicable sales tax, if any, will be added accordingly. Any use, gross receipts, or other excise
taxes and charges imposed by any federal, state, or municipal law, ordinance, or regulation upon
the provision of services covered under this Agreement are also not included and will be billed as
required.

ICM’s experience is that a Time & Materials type agreement is generally preferable for the client
due to the unexpected circumstances that may arise during environmental permitting. Additional
costs may be imposed on the project if ICM is required to address significant public comment and/or
assist in lengthy agency negotiation regarding specific permit terms and conditions.

 

 

The following costs (if required) are not included in the proposal: permit application fees,
amended submittals, ambient air sampling, continuous emission monitoring, health risk assessment,
additional air dispersion modeling iterations for additional designs and/or layout changes, water
quality sampling and lab analysis, individual permit for storm water associated with construction,
Title V operating permit application, acquisition of emission offsets, public hearings, and State
requested meetings.

	 	•	 	Air Construction Permits:
	 
	 	 	 	It has been determined that the proposed facility will be a synthetic minor source
of emissions. IF it turns out that the facility is a major source or that it
requires ambient air quality simulation modeling, LAER, or BACT analyses, then
additional costs will be incurred.
	 
	 	•	 	Water Permits:
	 
	 	 	 	It is expected that the proposed facility will be subject to state water discharge
regulations. As noted above, my cost estimate assumes that a General Permit for
Storm Water Associated with Construction Site Activity will be adequate for the
project site construction. In addition, the state program will require that permits
be obtained for water supply and discharges for non-contact process wastewater
hydrostatic testing discharges.

ICM appreciates the opportunity to provide this proposal and cost quotation to assist with project
environmental permitting. ICM and our subcontractors are extremely well qualified to assist in
securing the required environmental permits and approvals for the proposed facility. Our technical
strength is our extensive ethanol industry experience, broad understanding of the environmental
control requirements impacting the ethanol industry, and solid working knowledge of environmental
regulations. I am confident that ICM will provide the necessary technical and regulatory skills to
help make your new ethanol plant a success.

Respectfully submitted,

/s/ William J. Roddy

William J. Roddy

Manager of Environmental Affairs

Authorization to Proceed: If the above terms and the attached Service Agreement are acceptable,
your signature on the signatory page of the Services Agreement will signify your approval for ICM
to proceed with the preparation of the permit application packages.

 

 

Attachment A

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Check Box	 	 	 	 
	 	 	 	 	 	 	 	 	For ICM	 	 	 	 
	 	 	 	 	Estimated Cost	 	Task	 	 	 	 
	 	 	 	 	 
	Before Ground Breaking	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	201.
	 	Air Construction Permit (Modeling Costs Included)	 	$	15,000-$25,000	 	 	 	þ	 	 	 	 	 
	 	 	 	 	 
	202.
	 	Stormwater Notice of Intent (General Permit)—Construction	 	$	1,000	 	 	 	þ	 	 	 	 	 
	 	 	 	 	 
	203.
	 	Stormwater Pollution Prevention Plan-Construction	 	$	4,500	 	 	 	þ	 	 	 	 	 
	 	 	 	 	 
	204.
	 	State Historical Society Research      [Done Copy Attached]	 	$	600	 	 	 	o	 	 	 	 	 
	 	 	 	 	 
	205.
	 	Endangered Species Research [Done Copy Attached]	 	$	600	 	 	 	o	 	 	 	 	 
	 	 	 	 	 
	206.
	 	Health Risk Assessment (state dependent)	 	$	10,000-$50,000	 	 	 	o	 	 	 	 	 
	 	 	 	 	 
	207.
	 	Above Ground Storage Tank General
Permit Application (state dependent)
	 	$	3,000	 	 	 	þ	 	 	 	 	 
	 	 	 	 	 
	208.
	 	Odor Action Plan (Optional)	 	$	2,500	 	 	 	o	 	 	 	 	 
	 	 	 	 	 
	209.
	 	Basic Environmental Assessment (state dependent)[Done]	 	$	6,500-$10,000	 	 	 	o	 	 	 	 	 
	 	 	 	 	 
	211.
	 	Corps of Engineers Section 404 Permit (if wetlands are present) [Not needed]	 	$	1,500-$5,000	 	 	 	o	 	 	 	 	 
	 	 	 	 	 
	295.
	 	Environmental Project Management	 	$	1,000-$5,000	 	 	See Notes	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Before Operation	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	221.
	 	Industrial Well
Permit/Registration(ICM recommends application prior to
construction)
	 	$	3,000-$7,000	 	 	 	o	 	 	[HDR]
	 	 	 	 	 
	222.
	 	Water Discharge Permit (NPDES,
POTW, Irrigation and/or Irrigation Plan)
	 	$	4,000-$10.000	 	 	 	o	 	 	[HDR]
	 	 	 	 	 
	223.
	 	Hydrostatic Testing Water Discharge Permit	 	$	2,500	 	 	 	o	 	 	[HDR]
	 	 	 	 	 
	224.
	 	Stormwater Notice of Intent (General Permit)—Industrial Operation	 	$	1,200	 	 	 	þ	 	 	 	 	 
	 	 	 	 	 
	225.
	 	Stormwater Pollution Prevention Plan—Industrial Operation	 	$	5,000	 	 	 	þ	 	 	 	 	 
	 	 	 	 	 
	226.
	 	Risk Management Plan	 	$	10,000-$20,000	 	 	 	þ	 	 	 	 	 
	 	 	 	 	 
	227.
	 	Spill Prevention Controls and
Countermeasures Plan (PE Certification Not Included)
	 	$	6,000-$12,000	 	 	 	þ	 	 	 	 	 
	 	 	 	 	 
	228.
	 	Public Water Supply Permit[Needed?]	 	$	3,500	 	 	 	o	 	 	 	 	 
	 	 	 	 	 
	229.
	 	Permit from the Bureau of Alcohol, Tobacco, and Firearm	 	$	1,000	 	 	 	þ	 	 	 	 	 
	 	 	 	 	 
	231.
	 	County Health Department Septic System Permit     (geological work extra)	 	$	2,500-$3,000	 	 	 	þ	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	30 Days After Startup	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	241.
	 	Conditionally Exempt Small Quantity Generator Qualification	 	$	8,000-$12,000	 	 	 	þ	 	 	 	 	 
	 	 	 	 	 
	242.
	 	Tank Notification	 	$	2,500	 	 	 	þ	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	180 Days After Startup (After Emissions Testing)	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	251.
	 	Air Permit to Operate	 	$	10,000	 	 	 	þ	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Annually After Startup	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	261.
	 	Annual Emission Inventory	 	$3,500 per year	 	 	þ	 	 	 	 	 
	 	 	 	 	 
	262.
	 	Tier 2 Reporting	 	$2,500 per year	 	 	þ	 	 	 	 	 
	 	 	 	 	 
	263.
	 	Form R Reporting	 	$3,000 per year	 	 	þ	 	 	 	 	 

General Notes:

	 	 	 
	A.)

	 	Project Management costs are not an option, but are incurred during the cause of permit
preparation. See explanation in Attachment ‘B’.
	 
	 	 
	B.)

	 	All external services (i.e. Professional Engineer, Hydrogeologist, laboratory test, etc.)
will be billed at cost plus 15%.
	 
	 	 
	C.)

	 	Permit application fees, amended submittals, ambient air sampling, continuous emission
monitoring, health risk assessment, additional air dispersion modeling operations for
additional designs an/or layout changes, Title V operating permit application, acquisition of
emission offsets, public hearings, and State requested meetings are additional.
	 
	 	 

					
	Project: E Energy Adams, LLC
	 	Confidential — Attachment A
	 	 

 

 

	 	 	 
	D.)

	 	Water quality sampling and lab analysis (if necessary) and individual permit for storm
water associated with construction are additional to those listed above. The above rates
assume a reputable supplier has been selected by the client for the entire water treatment
program (boiler, cooling tower, RO, multi-media, water softeners, and associated equipment)
regarding state/local needs.
	 
	 	 
	E.)

	 	If it is determined that a permit, plan or application is not applicable or required
then only time and materials for making the determination will be billed.
	 
	 	 

					
	Project: E Energy Adams, LLC
	 	Confidential — Attachment A
	 	 

 

 

Attachment B

Explanation of Permits and Scope of Work

	201.)	 	Air Construction Permit:
	 
	 	 	An air construction permit application package will be prepared for the owners review and
approval. It will then be submitted to the state for review. The air construction permit
allows a company to build, initially operate, and test a new source of air pollution. This
permit typically is valid form 12 to 24 months (depending on which state) and extensions may
be granted. Application fees for the construction permit vary by state and will be paid by
the owner. The air permit must be obtained before construction (pouring concrete) and in
some states before dirt work can occur.
	 
	202.)	 	Storm Water Notice of Intent (General Permit) —Construction
	 
	 	 	A Storm Water Notice of Intent must be submitted before grading can begin. This Notice is
to make the state aware that grading activities are to begin. State and federal storm water
program are in place to protect rainfall, snow melt, and other storm water from becoming
contaminated with pollutants. The amount of time that this permit must be submitted prior
to work commencing varies by state. ICM will prepare the NOI for the owners review. Any
fees associated with the NOI will be paid by the owner.
	 
	203.)	 	Storm Water Pollution Prevention Plan —Construction
	 
	 	 	A Storm Water Pollution Prevention Plan for Construction details how storm waters will be
protected from exposure to pollutants. Also, included in this plan are details to prevent
excessive soil erosion until vegetation begins growing. Once the final plant footprint and
grading plan have been prepared by the civil engineering company, ICM will prepare the
construction Plan that must be maintained on the construction site before grading commence.
	 
	204.)	 	State Historical Society Research
	 
	 	 	State Historical Society checks for the existence of historical sites (including Indian
burial grounds) at the site where construction and industry are to occur. ICM will initiate
a historical review in the surrounding area and obtain state approval that there are no
historical issues associated with the site. Any filing fees are the owner’s responsibility.
	 
	205.)	 	Endangered Species Research
	 
	 	 	Endangered Species reviews consist of a record of review for protected species (state and
federal listed endangered or threatened), rare natural communities, state lands and waters
in the project area, including review by personnel representing state parks, preserves,
recreation areas, wetlands, fisheries, and wildlife. ICM will initiate an endangered
species review in the surrounding area and obtain state approval that there are no
endangered species issues associate with the site. Any filing fees are the owner’s
responsibility.
	 
	 	 	 

					
	Project: E Energy Adams, LLC
	 	Confidential — Attachment B
	 	 

 

 

	206.)	 	Health Risk Assessment
	 
	 	 	A Health Risk Assessment looks at the potential for risks to human health due to the
existence and operation of the facility. The requirement for this assessment varies by
state. If this is required, ICM will contract with a consultant skilled in the preparation
of approvable health risk assessment techniques of the given state. Any filing fees are the
owner’s responsibility.
	 
	207.)	 	Above Ground Storage Tank General Permit Application
	 
	 	 	Storage tanks are typically registered through the state
environmental agency and the fire marshal for environmental and fire
safety reasons. ICM in cooperation with the tank manufacturing and
construction company prepare the required permit application
package. Any filing fees are the owner’s responsibility.
	 
	208.)	 	Odor Action Plan
	 
	 	 	An Odor Action Plan is a “Good Neighbor” approach to looking at community concerns regarding
odor from a facility. If requested by the owner, ICM will prepare an “Odor Action Plan.”
The plan typically contains methods of validating the odor complaint and mitigation of the
odor.
	 
	209.)	 	Basic Environmental Assessment
	 
	 	 	Some States require that reasonably available environmental data about a project’s
environmental be researched and presented in a document made available for public review and
comment. If required by a state, ICM will prepare the Environmental Assessment. In some
cases, experts may need to be retained. Any filing fees are the owner’s responsibility.
	 
	211.)	 	Corps of Engineers Section 404 Permit
	 
	 	 	Building on or disturbing land that is wet even part of the year may qualify the land as a
“wetland” under federal regulations. The section 404 permit allows and/or restricts
activities that can occur with the land. This permit also addresses development of areas in
floodplains. ICM will prepare the permit application. Any filing fees are the owner’s
responsibility.
	 
	221.)	 	Industrial Well Permit/Registration
	 
	 	 	Industrial Well Permit/Registration is typically required for construction of a new well and
use of water in large quantities from a well or body of water so that interference with
neighboring wells does not occur. ICM will prepare the permit/registration application.
Depending on the state, this permit may require that ICM retain independent and local
consultants skilled in water allocation approval. Any filing fees are the owner’s
responsibility.
	 
	222.)	 	Water Discharge Permit (NDES, PTW, Irrigation, and/or Irrigation Plan)
	 
	 	 	These permits are associated with discharging wastewater form the facility (typically
process wastewater, cooling tower blow-down, boiler blow-down, etc.) to either a body of
water (NPDES), a public treatment system (POTW), and/or to ground applications in the form
of irrigation. If irrigation to crop land occurs an Irrigation Plan is also necessary, and
details how the irrigation amounts and contents will affect certain soils and crops. These
permits aid in the prevention of pollutants from entering natural waters
	 
	 	 	 

					
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	 	 	and crops where natural ecosystems and food supplies can be endangered. ICM will prepare
the water discharge permit application package depending on the customer’s requirements.
Any filing fees are the owner’s responsibility.
	 
	223.)	 	Hydrostatic Testing Water Discharge Permit
	 
	 	 	A Hydrostatic Testing Water Discharge Permit allows for the temporary discharge of waster
used for testing the integrity of vessel and equipment as a part of construction activities.
ICM will prepare the discharge permit application package or obtain approval from a
facility (POTW) licensed to discharge charge such water. Any filing fees are the owner’s
responsibility.
	 
	224.)	 	Storm Water Notice of Intent (General Permit) –Industrial Operation
	 
	 	 	Storm Water Pollution Prevention Plan for Industrial Operation is similar to the same permit
for construction in that it details how storm waters will be protected from exposure to
pollutants after the pant begins operation. Also, included in this plan are details to
prevent excessive soil erosion until vegetation begins growing. ICM will prepare the NOI
for the owners review. Any fees associated with the NOI will be paid by the owner.
	 
	225.)	 	Storm Water Pollution Prevention Plan – Industrial Operation
	 
	 	 	Storm Water Pollution Prevention Plan for Industrial Operation is similar to the same permit
for construction in that it details how storm waters will be protected from exposure to
pollutants, however, this plan focuses on normal industrial activities at the site after the
plant begins operation. ICM will prepare the Industrial SWPPP for the owner’s review.
	 
	226.)	 	Risk Management Plan
	 
	 	 	This goal of this plan is to prevent the release of chemicals that could cause serious harm
to human health or the environment and to reduce the severity of releases that do occur.
Included in this plan are an offsite consequence analysis, a five-year accident history, an
accident prevention program, and an emergency response program. This plan requires updating
at least every five years, and within 6 months of main certain changes onsite. Ethanol
plants typically require a risk management plan that covers storing denaturants and/or
ammonia. This plan must be in place prior to storage of covered chemicals on-site. ICM
will prepare the Risk Management Plan for the owner’s review.
	 
	227.)	 	Spill Prevention Controls and Countermeasures Plan
	 
	 	 	Spill Prevention Controls and Countermeasures Plans are written to address the likelihood
and prevention of spills of petroleum base substances as well as what actions are to be
taken in the event that a spill does occur. Proposed regulations require the plan be in
place before storage of denaturant. ICM will prepare the SPCC Plan for the owner’s review.
	 
	228.)	 	Public Water Supply Permit
	 
	 	 	There are two reasons to receive a Public Water Supply Permit. One, if there are more than
25 people on a site the access to the public water supply must be permitted, and two, if the
process water is going to come from the public water supply, the quantity of water will
necessitate a permit. Public waste supplies can not always supply quantities required
	 
	 	 	 

					
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	 	 	by some industries, and other sources may need to be evaluated. ICM will prepare the Public
Water Supply Permit for the owner’s review.
	 
	229.)	 	Permit form Bureau of Alcohol, Tobacco, and Firearms
	 
	 	 	This permit allows the facility to manufacture ethanol. In some states, registration with
the state agency may also be required. ICM will prepare the BATF permit application for the
owner’s review. Any filing fees are the owner’s responsibility.
	 
	231.)	 	County Health Department Septic System Permit
	 
	 	 	A septic system permit must be obtained if the sanitary sewer for a facility is to be tied
into a leach field or septic pond instead of a local POTW. ICM will prepare the septic
system permit application for the owner’s review. Any filing fees are the owner’s
responsibility.
	 
	241.)	 	Conditionally Exempt Small Quantity Generator Qualification
	 
	 	 	The Resource Conservation and Recover Act covers disposal of solid and hazardous wastes.
Typically, ethanol plants generate such a small quantity of hazardous and solid waste that
they are either classified as a conditionally exempt small quantity generator (CESQG). The
classification is entirely dependent on the amount of hazardous waste generated and can
change over time. While a Plan is not required by regulation for CESQG sources, a Plan can
be prepared by ICM so that the plant can document on a monthly basis that it is a CESQG and
therefore not subject to hazardous waste regulations.
	 
	242.)	 	Tank Notification
	 
	 	 	Tank Notifications are required by some states whenever a tank is place into service, taken
out of service, or the materials in the tank changes. ICM will prepare state and EPA
notifications for the owner to submit pursuant to the New Source Performance Standards.
	 
	251.)	 	Air Permit to Operate
	 
	 	 	The Air Operation Permit allows the company to operate the pollutant source within certain
requirements detailed in the permit. This permit is typically valid for up to five years,
and may be renewed. There is an annual fee associated with this permit that is based upon
the previous year’s actual emissions. ICM will prepare the Air Operating Permit Application
package for the owner’s review. Any filing fees are the owner’s responsibility.
	 
	261.)	 	Annual Emission Inventor
	 
	 	 	This is annual accounting to the governing agencies of actual pollution generated by the
facility. Annual Air Operating Permit fees are based upon this report. ICM will prepare
the annual air emission inventory for the owner’s review and submission. Any emission fees
are the owner’s responsibility.
	 
	262.)	 	Tier 2 Reporting
	 
	 	 	Tier 2 reporting lists hazardous chemicals stored on-site. The information provides the
local emergency officials and the fire department that potential hazards exist at a site.
	 
	 	 	 

					
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	 	 	This is an annual requirement. ICM will prepare annual Tier II report for the owner’s
review and submission. Any submission fees are the owner’s responsibility.
	 
	263.)	 	Form R Reporting
	 
	 	 	Form R reporting is required for facilities that process or otherwise use certain listed
chemicals above a regulated quantity. Reporting includes documenting all releases to the
environment for those chemicals. This is an annual requirement. ICM will prepare the
annual Form R report for the owner’s review and submission. Any submission fees are the
owner’s responsibility.
	 
	295.)	 	Environmental Project Management
	 
	 	 	This category is for ICM’s project management costs and includes project management and
miscellaneous work that arises during the preparation of deliverables not specifically
anticipated. An example could be extended or unpredicted research at the request of the
customer or agency.
	 
	 	 	 

					
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	 	Confidential — Attachment B

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