Document:

EXHIBIT 10.4

 

[UNITED BIO ENERGY LOGO]

2868 N. RIDGE ROAD · WICHITA, KS 67205 · 316-616-3530

WWW.UNITEDBIOENERGY.COM

 

May 4, 2004

 

Mr. Ernie Moody, President

Illini Bio-Energy, Inc.

205 South Walnut

P0 Box 686

Rochester, IL 62563

 

Re:                               CONFIDENTIAL
LETTER OF INTENT

 

Gentlemen:

 

This Letter of Intent is intended to
summarize the principal terms upon which Illini Bio Energy and its successors
(the “Company or Owner”) would retain United Bio Energy, LLC (“UBE”) to provide
a variety of services related to the management of and marketing services for a
fuel ethanol production facility to be located near Springfield, Illinois (the “Facility”).
The Company will provide services related to the business issues and financing
of the Facility. UBE will provide services related to the general management
and product marketing for Facility. The terms upon which UBE will provide their
services will be included in any management, marketing and origination
agreements between and among the Company and UBE.

 

The completion of such agreements, which are
sometimes referred to as the “definitive agreements,” is subject to and
contingent upon the Company and UBE (and their respective legal counsels)
reaching agreement on the form of such documents and the terms and conditions
set for the therein.

 

The Company and UBE expressly state their
intention that this Letter of Intent does not and shall not constitute a legal
and binding obligation, contract or agreement between and among the parties to
this Letter of Intent. Instead, the parties hereby agree that they will enter
into good faith negotiations for the preparation of definitive agreements
containing substantially the provisions described below. However, the Company
and UBE may each unilaterally withdraw from negotiation toward the foregoing
agreements or dealing with the other parties at any time, in such withdrawing
party’s sole discretion. The parties do, however, expressly intend that the
provisions of Section 4 of this letter, governing confidentiality, shall
constitute a legal and binding agreement of the parties upon execution of this
letter by each party. 

 

 

The principal terms of the proposed
agreements are as follows:

 

Section  1.
Scope of Services and Proposed Fee Schedule.

 

A. Company-provided Services (not part of UBE’s scope)

 

The Scope of
Services to be provided by the Company shall include, but not be limited to the
following areas:

 

a.               Implement
a legal business structure, financing strategy, and business plan for the
purpose of developing and operating the Facility.

b.              Develop
financial options, including associated costs and technical aspects.

c.               Provide
credit and rating analyses, submissions, presentations, etc.

d.              Develop
a Pre-financial Close budget and Schedule.

e.               Negotiate
key contracts including management, insurance, marketing and/or sales contracts
with UBE.

f.                 Other
items agreed to between the Company and UBE.

 

B. UBE Services 

 

The Scope of
Services to be provided to the Company by UBE shall include, but shall not be
limited to, performance of services in the following areas. It is understood
that UBE provides this menu of services and Company may choose those services
from the menu that best fits Company’s needs.

 

a.               General
Manager Duties & Benefits — The Scope of General Management Services to be
provided by the Company shall include, but not be limited to the following
areas:

 

1.               Prepare
an annual operating and capital budget for review and approval by the Board of
Directors.

2.               Prepare
a five year business plan for approval by the Board of Directors.

3.               Responsible
for profit and loss by supervising, managing and directing all general
operations of the company with efficiency and proper economy.

4.               Hire,
supervise and discharge all employees as necessary; ensuring all benefits,
taxes and insurance are properly and timely administered.

5.               Establish
and maintain, in good order, accurate and thorough accounting systems and
records for the Owner. Maintain structured filing and reporting system,
including monthly financial statements adequate for audit by a third party
accounting firm.

6.               Comply
with all loan covenants of lenders.

7.               Review
incoming invoices, work and supplies received by Owner for value and accuracy.

8.               Accounts
receivable — utilize necessary steps to collect payments from customers.

 

 

9.               Quality
control measures ensuring all aspects of Company’s operation are functioning to
the level desired by the Board of Directors.

10.         Contract
for, or cause to be purchased, all services, grains, utilities, supplies,
furniture, fixtures, equipment and other materials necessary for production of
the plant’s product - subject to a limit of $xx,000 dollars for any purchase.

11.         Comply
with all law and regulations, including environmental permits, OSHA and other
safety regulations and all Securities and Exchange limitations or regulations.

12.         Additional
areas of services provided by United Bio Energy for the annual management fee:

a.               Group
buying of enzymes, chemicals, spare parts and other items as may be added by
United Bio Energy, 1CM, Inc. or Fagen Management, LLC.

b.              Benchmarking
of Plant performance on a monthly basis.

c.               Process
Engineering consulting with Owner in concert with 1CM, Inc., Fagen Management,
or others regarding the on-going operations of the plant.

d.              In
urgent situations, provide a trained and skilled UBE or 1CM technician or
executive within twenty-four hours after notice of a developing concern or
issue.

e.               Provide
monitoring of the production process, via computer modem or internet, by a
skilled and trained technician or executive five days a week for a minimum of
six months after productions begins and on an as-needed basis afterwards.

 

b.              After
the Company achieves financial close and at a time mutually agreeable to both
parties, but anticipated approximately six months prior to Facility’s
commercial scale production, provide aforementioned general management services
on mutually agreeable terms with a fee schedule not to exceed the following:

 

Annual Fee -
$300,000 per year. This amount includes General Management, Group Purchasing, and
Benchmarking services. It also includes Risk Management Services for corn,
natural gas, ethanol, and distiller’s grains. Company will pay for individual
trades at the current cost and as may be adjusted by the wholesaler of UBE
Trading.

 

Incentive - An
annual incentive bonus of net income calculated and paid quarterly according to
the following table - all state and federal payments are excluded from the
calculation of net income; 

 

	
  Annual Bonus Net Income

  	
   

  	
  Percentage

  	
   

  
	
  $ 0-2,000,000

  	
   

  	
  0

  	
  %

  
	
  $ 2,000,001 to $5,000,000

  	
   

  	
  2

  	
  %

  
	
  $ 5,000,001 to $10,000,000

  	
   

  	
  4

  	
  %

  
	
  More than $10,000,000

  	
   

  	
  0

  	
  %

  

 

3

 

[Accept EDM 8/13/04]

 

c.               Provide
ethanol marketing services at a cost not to exceed $.0l per gallon. At Company’s
option, provide denaturant procurement services for $.01 per gallon.

 

[Decision Pending EDM 8/13/05]

 

d.              Provide
distiller’s grain marketing services for dry distiller’s grains (DDGS) at a
cost not to exceed 2% of net sales price, and for wet distiller’s grains (DWG
or modified DWG) at a cost not to exceed 4% of net sales price including an
on-site marketer.

 

[Decision Pending EDM 8/13/05]

 

e.               Provide
grain procurement and origination services at a cost not to exceed $.0325 per
bushel that includes an on-site merchandiser.

 

[Decision Pending EDM 8/13/05]

 

It is understood that UBE will not limit its
assistance to the services specifically enumerated above, but will extend their
services and assistance as reasonably required and requested by the company to
provide for the successful implementation of the plan of development and
general management of the Facility.

 

Section 2.
Term of Agreement.

 

The term of the various definitive agreements
shall begin on the date of execution of such definitive agreements between and among
the Company and UBE, and shall continue for an initial term of three years,
with provisions for renewal, anticipated to occur from when the Facility has
begun “commercial scale production.” For the purposes of the definitive
agreement, “commercial scale production” shall mean the commercial operation of
the Facility (after initial startup and testing is complete) to produce ethanol
and related by-products for sale to the Company’s customers on a commercial
scale as per the required specifications set forth in the Design/Build
Agreement and/or other contracts relating to the construction and operation of
the Facility.

 

The parties to this letter of intent
specifically agree that the definitive agreements between and among the Company
and UBE will contain provisions allowing each party to terminate the applicable
definitive agreement in the event that the other party to any such agreement
has failed to adequately perform its obligations under such definitive
agreement and has not cured such failure within a period specified in such
definitive agreement.

 

4

 

Section 3.
Independent Contractor.

 

UBE is an independent contractor and nothing
herein contained shall constitute any of its employees or agents as employees
or agents of the company.

 

Section 4.
Confidentiality.

 

During the period beginning on the date
hereof and ending five (5) years after termination of each of the definitive
agreements, UBE agrees not to use or disclose any information regarding the Company
of the Facility not previously available to the public. During the period
beginning on the date hereof and ending five (5) years after termination of
each of the definitive disclose an agreements, the Company agrees not to use or
disclose any proprietary information or technology exclusively owned by UBE not
previously disclosed to the public. Notwithstanding the foregoing, UBE may
disclose information as required in the performance of the definitive
agreements or by law, or as otherwise authorized by the Company.

 

Section 5.
Legal and Financial Advice.

 

None of the Services contemplated in this
Agreement shall be construed as or a substitute for legal, investment banking
or accounting services.

 

Section 6.
Exclusivity.

 

Upon execution of this letter of intent, the
Company agrees that UBE will be the exclusive party to provide the respective
services agreed upon by the company in connection with the management and
marketing of products of the Facility.

 

Section 7.
Notices.

 

Any written notice or communications required
or permitted by this letter of intent, the -definitive agreements or by law to
be served on, given to, or delivered to either party hereto, by the other party
shall be in writing and shall be deemed duly served, given or delivered when personally
delivered to the party to whom it is addressed or in lieu of such personal
services, when deposited in the United States mail, first-class postage
prepaid, addressed to the Company at:

 

	
  Illini Bio Energy

  	
   

  	
  United Bio Energy, LLC

  
	
  Ernie Moody

  	
   

  	
  Jeff Roskam

  
	
  President

  	
   

  	
  President

  
	
  205 South Walnut

  	
   

  	
  2868 N. Ridge Road

  
	
  Rochester, Illinois 62563

  	
   

  	
  Wichita, KS 67205

  

 

Section 8.
Controlling Law.

 

The laws of the State of Kansas will govern
this letter of intent and the definitive agreements.

 

If the above letter correctly sets forth our
understanding with respect to the proposed delivery of services, please initial
after each respective paragraph outlining UBE’ s proposed service, Company’s
acceptance or declination of that particular service. Then sign and return four
copies

 

5

 

of this letter. Following receipt, UBE will
work with each of you to begin preparation of the appropriate definitive
agreements.

 

Thank you for your interest and we look
forward to our future business relationships!

 

	
   

  	
  Illini Bio Energy

  
	
  By:

  	
  /s/ Ernest D. Moody

  	
   

  
	
   

  	
  8/13/04           

  	
  , Its: President

  
					

 

Duly executed and agreed to (as to the
binding provisions of Section 4) this 24th day of August, 2004.

 

United Bio Energy, LLC

 

 

	
  By:

  	
   

  	
  /s/ Jeff Roskam

  	
   

  
	
   

  	
   

  	
  Jeff Roskam, Its: President

  	
   

  

 

6Exhibit 10.5

 

[ICM LOGO]

 

October 21,
2004

 

Attn:                    Ernie Moody

Board Member

Illini Bio Energy

P0 Box 686

Rochester, ILL 62563

 

Subject:                             Environmental
Permitting Proposal for a 50 MM GPY Ethanol 

Manufacturing Plant in Illinois

 

Dear Mr. Moody:

 

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

  	
   

  
	
  Administrative

  	
   

  	
  $

  	
  46 per hour

  	
   

  

 

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.

 

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.  Wit 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

 

 

If these terms
are acceptable, your signature below will signify approval and ICM will begin
preparation of the permit application packages.

 

	
  By:

  	
    /s/
  Ernest D. Moody

  	
   

  
	
  Title:

  	
    President

  	
   

  
	
  Date:

  	
    December 16,
  2004

  	
   

  

 

 

Attachment A

 

	
   

  	
   

  	
  Estimated Cost

  	
   

  	
  Check Box For

  ICM Task

  
	
  Before Ground Breaking

  	
   

  	
   

  	
   

  	
   

  
	
  201.

  	
   

  	
  Air Construction
  Permit (Modeling Costs Not Included, est. $7,000 – 10,000)

  	
   

  	
  $15,000 -
  $25,000

  	
   

  	
  ý

  
	
  202.

  	
   

  	
  Stormwater
  Notice of Intent (General Permit) – Construction

  	
   

  	
  $1,000

  	
   

  	
  o

  
	
  203.

  	
   

  	
  Stormwater
  Pollution Prevention Plan – Construction

  	
   

  	
  $4,500

  	
   

  	
  o

  
	
  204.

  	
   

  	
  State Historical
  Society Research

  	
   

  	
  $600

  	
   

  	
  o

  
	
  205.

  	
   

  	
  Endangered
  Species Research

  	
   

  	
  $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

  	
   

  	
  o

  
	
  208.

  	
   

  	
  Odor Action Plan
  (Optional)

  	
   

  	
  $2,500

  	
   

  	
  o

  
	
  209.

  	
   

  	
  Basic
  Environmental Assessment (state dependent)

  	
   

  	
  $6,500 – 10,000

  	
   

  	
  o

  
	
  211.

  	
   

  	
  Corps of
  Engineers Section 404 Permit (if wetlands are present)

  	
   

  	
  $1,500 – 5,000

  	
   

  	
  o

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Before Operation

  	
   

  	
   

  	
   

  	
   

  
	
  221.

  	
   

  	
  Industrial Well
  Permit/Registration (ICM recommends application prior to construction)

  	
   

  	
  $3,000 – 7,000

  	
   

  	
  o

  
	
  222.

  	
   

  	
  Water Discharge
  Permit (NPDES, POTW, Irrigation, and/or Irrigation Plan)

  	
   

  	
  $4,000 – 10,000

  	
   

  	
  o

  
	
  223.

  	
   

  	
  Hydrostatic
  Testing Water Discharge Permit

  	
   

  	
  $2,500

  	
   

  	
  o

  
	
  224.

  	
   

  	
  Stormwater
  Notice of Intent (General Permit) – Industrial Operation

  	
   

  	
  $1,200

  	
   

  	
  o

  
	
  225.

  	
   

  	
  Stormwater
  Pollution Prevention Plan - Industrial Operation

  	
   

  	
  $5,000

  	
   

  	
  o

  
	
  226.

  	
   

  	
  Risk Management
  Plan

  	
   

  	
  $10,000 – 20,000

  	
   

  	
  o

  
	
  227.

  	
   

  	
  Spill Prevention
  Controls and Countermeasures Plan (PE Certification Not Included)

  	
   

  	
  $6,000 – 12,000

  	
   

  	
  o

  
	
  228.

  	
   

  	
  Public Water
  Supply Permit

  	
   

  	
  $3,500

  	
   

  	
  o

  
	
  229.

  	
   

  	
  Permit from the
  Bureau of Alcohol, Tobacco, and Firearms

  	
   

  	
  $1,000

  	
   

  	
  o

  
	
  231.

  	
   

  	
  County Health
  Department Septic System Permit (geological work extra)

  	
   

  	
  $2,500 – 3,000

  	
   

  	
  o

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30 Days After Startup (After
  Emissions Testing)

  	
   

  	
   

  	
   

  	
   

  
	
  241.

  	
   

  	
  Conditionally
  Exempt Small Quantity Generator Qualification

  	
   

  	
  $8,000 – $12,000

  	
   

  	
  o

  
	
  242.

  	
   

  	
  Tank
  Notification (state dependent)

  	
   

  	
  $2,500

  	
   

  	
  o

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  180 Days After Startup (After
  Emissions Testing)

  	
   

  	
   

  	
   

  	
   

  
	
  251.

  	
   

  	
  Air Permit to
  Operate

  	
   

  	
  $10,000

  	
   

  	
  o

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Annually After Startup

  	
   

  	
   

  	
   

  	
   

  
	
  261.

  	
   

  	
  Annual Emission
  Inventory

  	
   

  	
  $3,500 per year

  	
   

  	
  o

  
	
  262.

  	
   

  	
  Tier 2 Reporting

  	
   

  	
  $2,500 per year

  	
   

  	
  o

  
	
  263.

  	
   

  	
  Form R
  Reporting

  	
   

  	
  $3,000 per year

  	
   

  	
  o

  

 

General Notes:

	
  A.)

  	
   

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

  
	
  B.)

  	
   

  	
  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 in addition.

  
	
  C.)

  	
   

  	
  Water quality sampling and lab analysis (if
  necessary) and individual permit for storm water associated with construction
  are in addition 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 permitting needs.

  
	
  D.)

  	
   

  	
  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: (Illini Bio
  Energy, IL)

  	
   

  	
  Confidential - Attachment A

  	
   

  	
  (October 21, 2004)

  

 

 

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 NOJ 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.

 

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

 

	
  Project: (Illini Bio
  Energy, IL)

  	
   

  	
  Confidential - Attachment B

  	
   

  	
  (October 21, 2004)

  

 

 

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.

 

221.)       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 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.

 

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 cannot 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.

 

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.

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