Document:

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                                                                    Exhibit 10.7

(U.S. ENERGY LOGO)

                           ENERGY MANAGEMENT AGREEMENT
                        (Site Development and Operations)

The purpose of this Agreement is to set forth the understanding and agreement
between U.S. Energy Services, Inc. ("U.S. Energy") and Advanced Bio Energy
("Client") related to the provision of energy management services.

PROJECT DESCRIPTION,: Client is developing a 100 million gallon per year ethanol
plant ("Plant") to be located near Fairmont, Nebraska. The Plant will have peak
electric usage of approximately 9 MW and will consume approximately 9,000 MMBtu
of natural gas per day.

U.S. ENERGY RESPONSIBILITIES,: U.S. Energy will provide consulting and energy
management services for supplies of natural gas and electricity for the Plant.
These services will be provided during the construction of the Plant
("Construction Period"), and after the Construction Period when the Plant has
been placed in service ("Completion Date"). The Completion Date shall be
determined when the Plant begins producing ethanol. These services will be
provided to Client upon request:

A. Energy Infrastructure Advisory Services During the Construction Period

1.     Provide an economic comparison of receiving natural gas distribution
       service. U.S. Energy will provide preliminary engineering cost estimates,
       route drawings, and project timeline related to constructing pipeline
       facilities.

       In the event that a direct connect pipeline option is selected, U.S.
       Energy will submit a tap request to the pipeline. In addition, U.S.
       Energy will also attempt to negotiate an option for Client to minimize
       interconnect costs through the purchase of firm transportation to the
       Plant. Engineering and construction management services related to
       constructing a pipeline may be provided by U.S. Energy's sister company
       U.S. Energy Engineering, Inc. on a fee basis.

2.     Determine whether firm, interruptible, or a blend of transportation
       entitlement will provide the lowest burnertip cost. Factors that will be
       considered include pipeline credits for the new interconnect, cost of an
       alternate fuel system, and availability of specific receipt point
       capacity.

3.     Provide advisory services to Client regarding electric pricing and
       service agreements.

       a.     Analyze the electric service proposals along with primary,
              secondary and generation options and, recommend an electric
              sourcing strategy and plan. The plan may include a combination of
              electric supplier agreement and/or installation of on-site
              generation.

                                                                          /S/RLS

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                                                      U.S. Energy Initials /s/GM
                                                                           -----
                                                                 Initials /s/RLS
                                                                          ------

       b.     Negotiate final electric service agreements that meet the pricing
              and reliability requirements of Client, including options for
              third party access to electric metering.

       c.     Prepare and implement a regulatory strategy, if required and if an
              alternative power supplier is selected. Any attorney fees required
              for the specific purpose of obtaining regulatory approval for an
              alternative power supplier, if any, will be over and above U.S.
              Energy's monthly fee herein, and must be pre-approved by Client.

4.     Evaluate the proposed electric distribution infrastructure (substation)
       for reliability, future growth potential and determination of the
       division of ownership of facilities between the utility and the Plant.

5.     Investigate economic development rates, utility grants, equipment rebates
       and other utility programs that may be available.

B. On-Going Energy Management Services Following the Completion Period

U.S. Energy will provide the following services at Client's request:

1.     Provide natural gas supply information to minimize the cost of natural
       gas purchased. This will include acquiring multiple supply quotes and
       reporting to Client the various supply index and fixed prices. U.S.
       Energy will not take title to Client gas supplies, but will communicate
       supply prices and potential buying strategies.

2.     Negotiate with pipelines, utilities, other shippers, and suppliers to
       provide transportation, balancing, and supply agreements that meet
       Client's performance criteria at the lowest possible cost.

3.     Develop and implement a price risk management plan that is consistent
       with Client's pricing objectives and 'risk profile.

4.     Provide daily nominations to the suppliers, pipeline, and other
       applicable shippers for natural gas deliveries to the Plant. This will
       include daily electronic confirmations to Client of all nominations and
       actual daily usage. U.S. Energy will utilize customer or utility supplied
       telemetering to obtain actual usage data.

5.     Provide a consolidated monthly invoice to Client that reflects all
       applicable natural gas and electric energy costs. U.S. Energy will be
       responsible for reviewing, reconciling and paying all shipper, supplier
       and utility invoices.

6.     Provide a monthly usage report of electric energy consumption and costs.
       Also, where applicable and available from the utility, obtain monthly
       interval electric load data and provide monthly load profile graphs.

                                       -2-

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                                                      U.S. Energy Initials /s/GM
                                                                           -----
                                                                 Initials /s/RLS
                                                                          ------

7.     On-going review and renegotiation of electric service costs, as required.
       This may include:

       a.     Completing and evaluating annual proposals to identify the most
              reliable and economic third party electric energy supply.

       b.     Identifying new service tariffs or opportunities to renegotiate
              the service agreement to provide lower costs.

       c.     Identifying on-site generation opportunities as market conditions
              change.

       d.     Provide a monthly projection of energy (natural gas and
              electricity) and annual summaries.

8.     Provide natural gas and electric energy operating budgets for the Plant.

9.     Perform initial sales tax exemption audits for energy consumption costs
       as required and allowed by NEBRASKA tax laws.

TERM: The initial term of this Agreement shall commence on April 1, 2005 and
continue until twenty-four (24) months after the Plant's Completion Date. The
Agreement shall be month-to-month after the initial term. This Agreement may be
terminated by either party effective after the initial term upon sixty (60) days
prior written notice. Client shall remain responsible for payment and
performance associated with any and all transportation, supply, and storage
transactions entered into by U.S. Energy and authorized by Client, prior to
termination.

FEES: U.S. Energy's fee for services described under Section A above (Energy
Infrastructure Advisory Services During the Construction Period) shall be
$35,000, payable upon execution of this Agreement. Once the plant is operational
and services are provided under Section B (On-Going Energy Management Services
Following the Completion Period), the fee will be $3,500 per month, plus
pre-approved travel expenses.

U.S. Energy's fee will increase 4% per year on the annual anniversary date of
the Plant's Completion Date.

BILLING AND PAYMENT: On the first of the month, U.S. Energy shall invoice Client
for the work to be completed that month and Client shall pay U.S. Energy within
ten (10) days of receipt of invoice.

TAX: Client will be responsible for payment of all taxes including, but not
limited to, all sales, use, excise, BTU, heating value and other taxes
associated with the purchase and/or transport of natural gas or electricity and
the provision of services hereunder.

CONFIDENTIALITY: U.S. Energy shall not divulge to any other person or party any
information developed by U.S. Energy hereunder or revealed to U.S. Energy
pursuant to

                                       -3-
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                                                      U.S. Energy Initials /s/GM
                                                                           -----
                                                         _______ Initials /s/RLS
                                                                          ------

this Agreement, unless such information is (a) already in U.S. Energy's
possession and such information is not known by U.S. Energy to be subject to
another Confidentiality Agreement, or (b) is or becomes generally available to
the public other than as a result of an unauthorized disclosure by U.S. Energy,
its officers, employees, directors, agents or its advisors, or (c) becomes
available to U.S. Energy on a non-confidential basis from a source which is not
known to be prohibited from disclosing such information to U.S. Energy by legal,
contractual or fiduciary obligation to the supplier, or (d) is required by U.S.
Energy to be disclosed by court order, or (e) is permitted by Client. All such
information shall be and remain the property of Client unless such information
is subject to another Confidentiality Agreement, and upon the termination of
this Agreement, U.S. Energy shall return all such information upon Client's
request. Notwithstanding anything to the contrary herein, U.S. Energy shall not
disclose any information which is in any way related to this Agreement or U.S.
Energy's services hereunder without first discussing such proposed disclosure
with Client.

NOTICES: Any formal notice, request or demand which a party hereto may desire to
give to the other respecting this Agreement shall be in writing and shall be
considered as duly delivered as of the postmark date when mailed by ordinary,
registered or certified mail by said party to the addresses listed below. Either
party may, from timeto-time, identify alternate addresses at which they may
receive notice during the term of this Agreement by providing written notice to
the other party of such alternate addresses.

Client:                    Revis L. Stephenson
                           Advanced Bio Energy

                           Attn:  1850 Fox Ridge Road, Orono, MN 55356
                                  ------------------------------------

U.S. Energy:               U.S. Energy Services, Inc.
       (Payment)           c/o US Bank SDS 12-1449
                           Account #: 173100561153 P.O.
                           Box 86
                           Minneapolis, MN 55486

       (Notices):          U.S. Energy Services, Inc. 1000
                           Superior Blvd, Suite 201 Wayzata,
                           MN 55391
                           Attn: Contract Administration

ASSIGNMENT OR AMENDMENT: The Agreement may not be assigned or amended without
the written consent of U.S. Energy and Client.

APPLICABLE LAW: The Agreement shall be construed in accordance with the laws of
the State of Minnesota.

                                       -4-
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                                                      U.S. Energy Initials /s/GM
                                                                           -----
                                                         _______ Initials /s/RLS
                                                                          ------

ENTIRE AGREEMENT: This Agreement constitutes the entire Agreement-among the
parties pertaining to the subject matter hereof and supersedes all prior
Agreements and understanding pertaining hereto.

Agreed to and Accepted by:

Advanced Bio Energy

By:      /s/Revis L. Stephenson, III
   -----------------------------------------------------------------

Name:          Revis L. Stephenson III
     ---------------------------------------------------------------
(Print)

Title:   Chairman
       -------------------------------------------------------------

Date:    3/31/05
      --------------------------------------------------------------

U.S. Energy Services, Inc.

By:      /s/Gail Mcminn
    -----------------------------------------------------------

Name:      Gail Mcminn
     ---------------------------------------------------------------
(Print)

Title:     Vice President
       -------------------------------------------------------------

Date:      4-5-05
       -------------------------------------------------------------

                                       -5-
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(U.S. ENERGY LOGO)

                         AGENCY AUTHORIZATION AGREEMENT

ADVANCED BIO ENERGY ("Client"), Fairmont, Nebraska, desires to engage the
services of U.S. Energy Services, Inc. ("U.S. Energy") to manage its energy
supplies for its facilities.

Client and U.S. Energy agree on the following terms and conditions:

       1.  APPOINTMENT OF U.S. ENERGY AS CLIENT'S AGENT Client agrees to appoint
           U.S. Energy as its agent, for purposes of managing its energy
           supplies for its facilities referred to above. U.S. Energy accepts
           its appointment as Client's agent for these purposes.

       2.  LIMITATIONS ON THE AUTHORITY OF U.S. ENERGY U.S. Energy has the
           authority to deal with third parties on behalf of Client, in
           connection with energy-related matters, in its capacity as Client's
           agent.

           COMMUNICATION AND INFORMATION SHARING -- U.S. Energy shall keep
           Client fully informed on a regular basis with regard to U.S. Energy's
           activities as the manager of Client's energy supplies. At the request
           of Client, U.S. Energy shall immediately provide Client with any and
           all or other information related to U.S. Energy's activities as the
           manager of Client's energy supplies.

       4.  RELEASE OF ENERGY CONSUMPTION RECORDS AND BILLS -- This Agency
           Agreement serves as authorization for the release of Client's energy
           consumption records and bills from utilities, pipelines and suppliers
           to U.S. Energy.

       5.  TERM -- This Agreement shall begin upon execution of the Agreement.
           Either party shall have the right to terminate this Agreement for any
           reason, with 30 days notice in writing, without recourse to the other
           party. Client shall remain responsible for payment and performance
           associated with any and all transportation, supply, and storage
           transactions entered into by U.S. Energy and authorized by Client,
           prior to termination.

       6.  SERVICES -- U.S. Energy shall perform the following services for
           Client:

           (a)  Solicit bids for, negotiate, execute and administer energy
                supply contracts. Administration of said contracts shall
                include:
                    -   Placing daily and monthly nominations
                    -   Reviewing invoices for accuracy and approving for
                        payment
                    -   Providing timely notices

                                                                          /s/RLS<Page>

                                                                    Exhibit 10.8

                                                  {ICM LOGO}    310 N. FIRST ST.
                                                                      PO Box 397
                                                               COLWICH, KS 67030
                                                             PHONE: 316.796.0900
                                                               FAX: 316.796.0570

================================================================================

April 14, 2005

Attn:
Revif Stephenson
Advanced BioEnergy, LLC
1850 Fox Ridge
Road Orono, MN 55356

Subject:  Environmental Permitting Proposal for a 100 MM (gas) GPY Ethanol
          Manufacturing Plant in Fairmont, NE

Dear Mr. Stepenson:

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:

<Table>
<Caption>
PERSONNEL                                                RATE
--------------------------------------------------------------------------------
    <S>                                                  <C>
    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
</Table>

ICM's billing for time is based 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 negotiations regarding specific permit terms and conditions.

<Page>

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 and
          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.

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ATTACHMENT A

<Table>
<Caption>
                                                                                                                   Check Box
                                                                                                                    for ICM
                                                                                                                     Task
----------------------------------------------------------------------------------------------------------------------------
<S>                                                                                  <C>                           <C>
BEFORE GROUND BREAKING                                                               ESTIMATED COST                /X/
----------------------------------------------------------------------------------------------------------------------------
    201.  Air Construction Permit       (Modeling Costs Included)                    $15,000 - $25,000             /X/
----------------------------------------------------------------------------------------------------------------------------
    202.  Stormwater Notice of Intent (General Permit) - Construction                $1,000                        /X/
----------------------------------------------------------------------------------------------------------------------------
    203.  Stormwater Pollution Prevention Plan - Construction                        $4,500                        /X/
----------------------------------------------------------------------------------------------------------------------------
    204.  State Historical Society Research                                          $600                          /X/
----------------------------------------------------------------------------------------------------------------------------
    205.  Endangered Species Research                                                $600                          / /
----------------------------------------------------------------------------------------------------------------------------
    206.  Health Risk Assessment (state dependent)                                   $10,000 - $50,000             / /
----------------------------------------------------------------------------------------------------------------------------
          Above Ground Storage Tank General Permit Application                                                     / /
    207.    (state dependent)                                                        $3,000
----------------------------------------------------------------------------------------------------------------------------
    208.  Odor Action Plan (Optional)                                                $2,500                        / /
----------------------------------------------------------------------------------------------------------------------------
    209.  Basic Environmental Assessment (state dependent)                           $6,500 - $10,000              / /
----------------------------------------------------------------------------------------------------------------------------
    211.  Corps of Engineers Section 404 Permit (if wetlands are present)            $1,500 - $5,000               / /
----------------------------------------------------------------------------------------------------------------------------
    295.  Environmental Project Management                                           $1,000 - $5,000               See notes

BEFORE OPERATION
============================================================================================================================
          Industrial Well Permit/Registration
    221.  (ICM recommends application prior to construction)                         $3,000 - $7,000               / /
----------------------------------------------------------------------------------------------------------------------------
          Water Discharge Permit (NPDES, POTW, Irrigation, and/or                    $4,000 - $10,000              / /
          Irrigation                                                                 $2,500                        / /
    222.     Plan)                                                                   $1,200                        / /
----------------------------------------------------------------------------------------------------------------------------
    223.   Hydrostatic Testing Water Discharge Permit                                $5,000                        / /
----------------------------------------------------------------------------------------------------------------------------
    224.  Stormwater Notice of Intent (General Permit) - Industrial                  $10,000 - 20,000              / /
          Operation
----------------------------------------------------------------------------------------------------------------------------
    225.   Stormwater Pollution Prevention Plan - Industrial Operation
----------------------------------------------------------------------------------------------------------------------------
    226.   Risk Management Plan
----------------------------------------------------------------------------------------------------------------------------
          Spill Prevention Controls and Countermeasures Plan                         $6,000 - $12,000              / /
    227.     (Pe Certification Not Included)                                         $3,500                        / /
----------------------------------------------------------------------------------------------------------------------------
    228.   Public Water Supply Permit                                                $1,000                        / /
----------------------------------------------------------------------------------------------------------------------------
    229.   Permit from the Bureau of Alcohol, Tobacco, and Firearms                  $2,500 $3,000                 / /
----------------------------------------------------------------------------------------------------------------------------
    231.   County Health Department Septic System Permit (geological work
    extra)
                                                                                     $8,000 - $12,000
30 DAYS AFTER STARTUP                                                                $2,500                        / /
============================================================================================================================
    241.  Conditionally Exempt Small Quantity Generator Qualification                                              / /
----------------------------------------------------------------------------------------------------------------------------
    242.  Tank Notification (state dependent)

180 DAYS AFTER STARTUP (AFTER EMISSIONS TESTING)
----------------------------------------------------------------------------------------------------------------------------
    251.  Air Permit to Operate                                                      $10,000                       / /

ANNUALLY AFTER STARTUP
----------------------------------------------------------------------------------------------------------------------------
    261.  Annual Emission Inventory                                                  $3,500 per year               / /
----------------------------------------------------------------------------------------------------------------------------
    262.  Tier 2 Reporting                                                           $2,500 per year               / /
----------------------------------------------------------------------------------------------------------------------------
    263.  Form R Reporting                                                           $3,000 per year               / /
</Table>

GENERAL NOTES:
    A.)   PROJECT MANAGEMENT COSTS ARE NOT AN OPTION, BUT ARE INCURRED DURING
          THE COURSE 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 ITERATIONS FOR ADDITIONAL DESIGNS AND/OR LAYOUT
          CHANGES, TITLE V OPERATING PERMIT APPLICATION, ACQUISITION OF EMISSION
          OFFSETS, PUBLIC HEARINGS, AND STATE REQUESTED MEETINGS ARE ADDITIONAL.
    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

    Project: Advanced BioEnergy, Fairmont NE Confidential - Attachment A 4/14/05

<Page>

          ENTIRE WATER TREATMENT PROGRAM (BOILER, COOLING TOWER, RO,
          MULTI-MEDIA, WATER SOFTENERS, AND ASSOCIATED EQUIPMENT) REGARDING
          STATE/LOCAL PERMITTING NEEDS.
    E.)   IF IT IS DETERMINED THAT A PERMIT, PLAN, OR APPLICATION IS NOT
          APPLICABLE OR REQUIRED THEN ONLY THE TIME AND MATERIALS FOR MAKING THE
          DETERMINATION WILL BE BILLED.

Project: Advanced BioEnergy, Fairmont NE Confidential - Attachment A     4/14/05

<Page>

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 from 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 programs 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 commences.

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 associated with the
        site. Any filing fees are the owner's responsibility.

Project: Advanced BioEnergy, Fairmont NE Confidential - Attachment B     4/14/05

<Page>

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 for 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 (NPDES, POTW, IRRIGATION, AND/OR IRRIGATION PLAN)
        These permits are associated with discharging wastewater from 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

Project: Advanced BioEnergy, Fairmont NE Confidential - Attachment B     4/14/05

<Page>

        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 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 water used for testing the integrity of vessels 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 such water. Any filing fees are the owner's
        responsibility.

224.)   STORM WATER NOTICE OF INTENT (GENERAL PERMIT) -- INDUSTRIAL OPERATION
        A 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 plant
        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
        A 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
        making 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 based
        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.

Project: Advanced BioEnergy, Fairmont NE Confidential - Attachment B     4/14/05

<Page>

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 water supplies can not always supply quantities required
        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 FROM 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 Recovery 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 placed
        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.

Project: Advanced BioEnergy, Fairmont NE Confidential - Attachment B     4/14/05

<Page>

261.)   ANNUAL EMISSION INVENTORY
        This is an 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. This is an annual
        requirement. ICM will prepare the 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.

Project: Advanced BioEnergy, Fairmont NE Confidential - Attachment B     4/14/05

<Page>

                                SERVICE AGREEMENT
                                     BETWEEN
                                    ICM, INC.
                                       AND
                             Advanced BioEnergy, LLC

THIS AGREEMENT is entered into between ICM, INC. hereinafter called
"Consultant", and Advanced BioEnergy, LLC, hereinafter called "Client". In
consideration of the covenants 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
        services for Client as outlined in ICM, INC.'s letter proposal
        Attachment 'B' to Revif Stephenson dated 4/14/05.

2.      PAYMENT - For performance of the Services provided and as outlined in
        ICM, INC.'s letter proposal dated 4/14/05, Consultant shall invoice the
        Client according to the attached Schedule of Charges and Client shall
        pay Consultant at 310 N. 1st Street, Colwich, Kansas 67030 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 its 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 Clients' 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 from or related to, the performance of the work
        provided 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
        no 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.

<Page>

                                SERVICE AGREEMENT
                                     BETWEEN
                                    ICM, INC.
                                       AND
                             Advanced BioEnergy, 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 causes beyond its reasonable control, a Force
        Majeure results. Force Majeure includes, but is not restricted to, acts
        of contractors (other than Consultant's contractors), fires, floods,
        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 a case, the validity and enforceability of the remaining
        provisions, or portions or applications thereof, shall not be affected
        thereby.

10.     TESTIMONY - Should Consultant, 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 from and against all costs incurred as a result of a judicial
        or administrative hearing concerning the services provided for herein.

<Page>

                                SERVICE AGREEMENT
                                     BETWEEN
                                    ICM, INC.
                                       AND
                             Advanced BioEnergy, 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 or 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 provided 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, such Services
        shall be deemed to have been performed under 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:

Advanced BioEnergy, LLC                        ICM, INC.

By:     /s/Revis L. Stephenson, III            By:     /s/William J. Roddy
    -------------------------------------          -----------------------------
Title: CHAIRMAN                                Title: ENV. MGR.
       ----------------------------------             --------------------------
Date:   4/26/05                                 Date: 4-14-05
      -----------------------------------             --------------------------

<Page>

                           SCHEDULE OF CHARGES - 2004
                                   (Customer)

                                PERSONNEL CHARGES
        ------------------------------------------------------------------------

<Table>
<Caption>
               Title                                             Billing Rate
        ------------------------------------------------------------------------
        <S>                                                              <C>
        Engineering Specialist I                                         $150/hr
        Process Engineer I                                               $150/hr
        Engineering Specialist II                                        $110/hr
        Designer II                                                       $70/hr
        Administrative                                                    $46/hr
</Table>

                    Expert Testimony rates quoted separately.

                                  OTHER CHARGES

<Table>
        <S>                                                        <C>
        Photocopies (8.5x11)                                       $ 00.15
        Photocopies (8.5x11)                                       $ 00.20
        Facsimile transmissions (8.5x11)                           $ 00.15
        Automobile (per mile)                                      $ 00.375
</Table>

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 the unpaid balance will be charged.

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