Document:

exv10w20

 

Exhibit 10.20

STEFFL DRILLING & PUMP INC.

 

7-Day 24-Hour Service

December 11, 2006

Matt Sederstrom

Fagen Inc

501 W Hwy 212

Granite Falls MN 56241

msederstrom@fageninc.com

Matt:

Attached are cost estimates for the Buffalo Ridge Energy site. Please call to discuss if

you have any questions.

Note that the estimate is for hard rock drilling as that is what you are looking at in this

area.

In reference to scheduling the work: Start date would be two and one-half weeks from

the day we receive the signed proposal in our office.

Thank you. We look forward to working with you and Buffalo Ridge Energy on this

project.

/s/ Michael J. Steffl

Michael J. Steffl

Steffl Drilling & Pump

Enc

2295 – 66th Ave. N.E. Willmar, MN 56201-9183

(320) 235-8484 FAX (320) 235-4848

Email: steffl@waterwelldrilling.com

www.waterwelldrilling.com

 

 

STEFFL DRILLING & PUMP INC.

 

7-Day 24-Hour Service

	 	 	 
	RE:

	 	Buffalo Ridge Energy, near Sherman SD
	 

	 	cost estimates

PHASE I

TEST DRILLING

	 	 	 	 	 	 	 	 	 
	Item No	 	Description	 	Unit	 	Unit Price
	1
	 	Well permits and reports	 	Lump sum	 	$	500.00	 
	2
	 	Mobilization/Demobilization	 	Lump sum	 	$	5,800.00	 
	3
	 	Test Holes Hard Rock	 	foot	 	$	45.00	 
	4
	 	Test Hole Abandonment	 	Cubic foot	 	$	25.00	 

PHASE II

PRODUCTION DRILLING

	 	 	 	 	 	 	 	 	 
	Item No	 	Description	 	Unit	 	Unit Price
	1
	 	Mobilization/Demobilization	 	Lump Sun	 	$	5,800.00	 
	2
	 	Well Drilling	 	Lineal foot	 	$	385.00	 
	3
	 	12” well casing	 	Foot	 	$	70.00	 
	4
	 	Well Screen	 	Lineal Foot	 	 	Ø	 
	5
	 	Gravel Pack	 	Lineal Foot	 	 	Ø	 
	6
	 	Grouting	 	Cubic Foot	 	$	27.50	 
	7
	 	Well Development	 	Hour	 	$	250.00	 

PHASE III

PUMPING AQUIFER TEST

	 	 	 	 	 	 	 	 	 
	Item No	 	Description	 	Unit	 	Unit Price
	1
	 	Test pump mobilization/demobilization	 	Lump Sum	 	$	5,000.00	 
	2
	 	Test pumping/generator time	 	Hour	 	$	140.00	 
	3
	 	Accessing private wells	 	Hour	 	$	200.00	 
	4
	 	Disinfection	 	Lump Sun	 	$	500.00	 
	5
	 	7/24 Monitoring labor	 	Hour	 	$	115.00	 

Payment is based on actual quantities used.

	 	 	 	 	 
	  /s/ Michael Steffl

	 	  /s/ David Kolsrud 12-21-06	 	 
	 

	 	 	 	 
	     Steffl Drilling & Pump Inc/Date

	 	Buffalo Ridge Energy/ Date	 	 

2295 – 66th Ave. N.E. Willmar, MN 56201-9183

(320) 235-8484 FAX (320) 235-4848

Email: steffl@waterwelldrilling.com

www.waterwelldrilling.comexv10w21

 

Exhibit 10.21

January 2, 2007

Mr. Greg Van Zenten

Buffalo Ridge Energy

304 Splitrock Blvd., Suite 205

Brandon, SD 57005

	 	 	 
	Re:

	 	Request for Professional Engineering Services – Buffalo Ridge Energy
	 

	 	Final Design/Construction Documents – Sherman, SD

Dear Mr. Van Zenten:

TranSystems Corporation is pleased to submit this proposal to Buffalo Ridge Energy that addresses
your Request for Services associated with the above referenced project. This proposal is based upon
conceptual drawings previously completed under Request for Services #1. We understand that Buffalo
Ridge Energy is planning the development of an ethanol production facility to be located near the
town of Sherman, SD. We further understand that this facility, when completed, will produce a
minimum 50 million gallons of ethanol annually. Your request for services, that this proposal
addresses, pertains to our development of final design construction drawings for the conceptual
plan that has been approved by the BNSF Railway. This proposal will adopt the general terms and
conditions as set forth in the Continuous Services Agreement, dated June 29, 2006 and executed on
August 2, 2006, in accordance with the provisions of SECTION 2.1 – REQUEST FOR SERVICES.

This letter details the services TranSystems proposes to perform in connection with this project
and the fee at which TranSystems will perform these services. Furthermore, the services will be
performed with regard to the below outlined assumptions. If this proposal, addressing your request
for services, is acceptable to Buffalo Ridge Energy, please execute this agreement and return to
TranSystems by mail, fax, or e-mail.

All notices or communications pertaining to this Agreement shall be in writing, with reference to
Buffalo Ridge Energy and shall be sufficient when mailed or delivered to the address specified
below:

	 	 	 
	If to OWNER:
	 

	 	Buffalo Ridge Energy
	 

	 	304 Splitrock Blvd., Suite 205
	 

	 	P.O. Box 791
	 

	 	Brandon, SD 57005
	 

	 	Attn: Greg Van Zenten
	 
	 	 
	If to TRANSYSTEMS:
	 

	 	TranSystems Corporation
	 

	 	2400 Pershing Road, Suite 400
	 

	 	Kansas City, MO 64108
	 

	 	Attn: Paul Hentschke

					
	 	 	 	 	 
	Buffalo Ridge Energy
	 	1
	 	 

 

 

TRANSYSTEMS SCOPE OF SERVICES

Prepare plans, details, and specifications with respect to the conceptual rail plan previously
provided to Buffalo Ridge Energy and approved by the Burlington Northern Santa Fe (BNSF). The rail
plan will be comprised of (1) loop track connecting to the BNSF Main line, then branching off to
(2) more loop tracks. (1) Of the tracks will serve as a runaround track. While also leaving space
for (1) additional track in the future, the grading for the future track will be designed under
this scope. The two (2) tracks will provide storage for approximately 225 cars with lengths of
seventy (70) feet. The plant will be on the south side of the proposed rail loop. There will be
additional tracks for the load out of DDG and a load out track for Ethanol. The construction
documents will provide the following information:

	 	•	 	Background survey and topographic contours (by others)
	 
	 	•	 	General Notes and Referenced guidelines
	 
	 	•	 	Horizontal and Vertical alignments
	 
	 	•	 	Cross sections showing cuts and fills developed on 100 ft intervals
	 
	 	•	 	Typical track sections and details
	 
	 	•	 	Storm drainage plan and details
	 
	 	•	 	Proposed layout of ethanol facilities
	 
	 	•	 	Prepare project manual conveying general requirements and specifications

SERVICES PROVIDED BY OTHERS AND ASSUMPTIONS

These additional services and TranSystems’ agreement to perform the Services is based upon, and
subject to, the following services being provided by others and the listed assumptions:

1. The Owner/Client shall pay all filing fees, application fees, permit fees, etc. to all
Governmental Authorities having jurisdiction over the project.

2. The Owner/Client shall guarantee access and make all provisions necessary to enter upon public
and private property as required to perform services covered by this proposal.

3. The construction documents will be prepared in Microstation format.

4. We assume all land shown in the conceptual rail service plan has been obtained by Buffalo Ridge
Energy.

5. We assume a survey has been performed and the survey data will be made available to TranSystems
for the development of the terrain modeling.

6. We assume the top of rail elevations along the BNSF main line have been surveyed and will be
supplied to TranSystems.

7. We assume the facility design firm will provide TranSystems a CAD layout of the facility for
incorporation into the rail service plan.

8. We assume #11 turnouts will be used in the BNSF main line tracks.

9. We assume #11 turnouts will be used in the rail service plan.

10. We assume #9 turnouts will be used for the load out tracks.

11. The following items are not included in our services:

					
	 	 	 	 	 
	Buffalo Ridge Energy
	 	2
	 	 

 

 

	 	a)	 	Design of utility service. We assume that utility services will be designed
and surveyed by others. We further assume that utility plans will be provided to
TranSystems for incorporation in the construction documents.
	 
	 	b)	 	Storm drainage design. We assume that the storm drainage design associated
with the ethanol facility will be performed by others.
	 
	 	c)	 	It is assumed that the Buffalo Ridge Energy will provide all subsurface
investigations and a geotechnical engineer’s report recommending design parameters for
subgrade preparation.
	 
	 	d)	 	Construction-period services, construction administration, periodic or
full-time construction observation, construction staking, construction testing and
as-builts. We are available to provide these services upon request by Buffalo Ridge
Energy.

SCHEDULE

We understand that the conceptual plan is of high importance for Buffalo Ridge Energy to move
forward with the planning of the proposed ethanol facility. TranSystems will provide our services
on a schedule that is mutually agreeable between Buffalo Ridge Energy and TranSystems and that is
consistent with project requirements. TranSystems will consider the executed Letter Agreement as
our notice to proceed.

COMPENSATION

As compensation for the performance of the above-described Services, Buffalo Ridge Energy will
reimburse TranSystems by payment of a lump sum fee of $86,000.00. Invoices will be sent monthly and
will be based on TranSystems’ estimate of the total services completed at the time of billing, plus
expenses. Our fee includes in-house reproduction supplies and long distance phone calls. Other
reimbursable expenses, such as travel, lodging and meals, will be invoiced at our actual cost.

The proposal outlined in this Letter is valid for 60 calendar days..

We sincerely appreciate the opportunity to provide these services to Fagen, Inc. If this proposal,
addressing your request for services, is acceptable to Fagen, Inc. please execute this agreement
and return to TranSystems by mail, fax, or e-mail. Please let us know if you have any questions or
need any further information.

Very truly yours,

TRANSYSTEMS CORPORATION

/s/ Timothy P. Rock

Timothy P. Rock

Vice President

					
	 	 	 	 	 
	Buffalo Ridge Energy
	 	3
	 	 

 

 

ACCEPTANCE

Buffalo Ridge Energy hereby accepts the proposal outlined above and does hereby engage TranSystems
to perform these services, on the terms and conditions set forth in the Continuous Service
Agreement dated 29 June 2006 and executed on August 2, 2006.

	 	 	 	 	 
	By:

	 	/s/ David Kolsrud	 	 
	 

	 	 	 	 
	Printed Name: David Kolsrud	 	 
	Title: Sec/Treasurer	 	 
	Date: 1-2-07	 	 

					
	 	 	 	 	 
	Buffalo Ridge Energy
	 	4

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