Document:

exv10w5

 

EXHIBIT 10.5

SERVICES CONTRACT

THE SERVICES CONTRACT (hereinafter the “Agreement””), is made this 13 day of July, 2005, by
and between R & R Contracting, Inc., a North Dakota corporation, (hereinafter “Engineer”), and Gold
Energy, LLC, a Minnesota limited liability company, (hereinafter “Owner”).

WITNESSETH:

WHEREAS Owner intends to develop, finance and construct an ethanol plant (hereinafter the
“Project”); and

WHEREAS Owner and wishes to engage Engineer to provide certain engineering and coordination
services related to the Project and Engineer desires to accept such engagement upon the terms and
conditions set out in this Agreement.

NOW THEREFORE Engineer and Owner for the considerations hereinafter named agree as follows:

ARTICLE 1. TERM — 

Engineer shall provide engineering and coordination services for the planning and preparation of
Request for Quotation (RFQ) documents related to the Project as described in Article 2 and shall do
everything required by this Agreement. Engineer’s engagement by Owner shall commence as of the
date of this Agreement and shall continue until the Work is satisfactorily completed unless this
Agreement is properly terminated as provided herein. Owner may terminate this Agreement at any
time, with or without cause, upon delivery of oral or written notice to Engineer indicating an
intention to terminate the Agreement. In the event, Owner exercises its right to terminate this
Agreement, Engineer shall be entitled to payment for Work actually rendered and completed prior to
such notice to terminate upon submission of reasonable documentation to Owner, but in no event
shall Engineer be entitled to an amount exceeding $4,200.00.

ARTICLE
2. SCOPE OF THE WORK —

The scope of the work (hereinafter the “Work”) shall include :

1. Assist Owner in selection of final plant site by sharing advice on each prospective site
regarding:

	 	a.	 	The suitability for the rail access to each site.
	 
	 	b.	 	The best preliminary layout of the rail access for the site.
	 
	 	c.	 	A preliminary estimate on the cost of the rail for each site on a comparable
basis from site to site.
	 
	 	d.	 	A preliminary estimate on the comparative cost that may be associated with the
rail bed preparation work in association with each site.

 

 

	 	e.	 	Any other issues of advantage or concern for each of the sites that may be
noticed by Engineer.

2. Develop track layout concept for the final selected site.

	 	a.	 	This to include a layout drawing of track on site plan.
	 
	 	b.	 	Perform a site survey of the selected site to collect all data necessary for
the final design.

3. Develop final design of trackage for the final selected site including:

	 	a.	 	Plans to include final grades, turn-outs, crossings, etc. on a design drawing
for appropriate railroad company’s approval.
	 
	 	b.	 	Plans, when completed, must meet all applicable appropriate railroad company’s
and FRA industry track standards.
	 
	 	c.	 	Plans to include typical track cross-sections as required for appropriate
railroad company’s approval.
	 
	 	d.	 	Obtaining required railroad company’s approval from appropriate railroad
company’s engineering that allows for the actual construction of the plan.
	 
	 	e.	 	Design to include plans for the construction of the track bed.

4. Assist Owner in securing competitive bids for the rail work on the final selected site by
providing a complete set of bid specifications and drawings to be used under the Owner’s name, no
reference to R & R Contracting, for the Owner’s distribution in RFQ’s for the rail work. These
documents should include, but not limited to, the following deliverables:

	 	a.	 	Final approved rail trackage design drawings.
	 
	 	b.	 	Typical track cross-section views as may be required to help Owner secure the
most competitive bid responses on both the rail work and the site grading work for the
final site.
	 
	 	c.	 	Preparation of a complete set of work specifications for the rail work to be
used for the RFQ documents in gaining the most competitive bid responses on the final
work.

5. Assist Owner in securing competitive bids for the earthwork, if a final earthwork contractor is
to be selected before a final rail work contractor, on the final selected site by providing the
following deliverables:

	 	a.	 	Prepare a complete set of earthwork and grading specifications required for the
rail work areas only, to be used by the Owner in RFQ documents for securing final
earthwork offers that meet the Engineer’s requirements.

All bid documents, for the purposes of this agreement, shall be issued under the Owner’s name with
no reference to Engineer, for the Owner’s distribution on RFQ’s for the rail work on this project.
Owner will accept all bids and evaluate bids with Engineer’s assistance. Engineer shall not be
required to obtain any city, state or federal permitting, negotiate any agreements between the
appropriate railroad company and the property owner nor perform design work associated with any new
or existing utility installation or adjustment required by the plans.

2

 

ARTICLE
3. TIME OF COMPLETION — 

The Work including, but not limited to, the engineering, surveying, bid document generation,
budgeting, and railroad approval(s) required under this Agreement shall be commenced and completed
as required per Owner’s schedule.

Owner shall give Engineer a written one (1) week notice, minimum, of the required deadlines.
Engineer will be responsible to expedite the work for each deadline within the timeline given by
Owner with no undue delays on Engineer’s behalf.

ARTICLE
4. THE CONTRACT SUM & CONSIDERATION— 

The above described Work will be delivered by Engineer for a one-time lump sum payment of Four
Thousand Two Hundred dollars ($4,200.00) (hereinafter the “Lump Sum Payment”) to be paid by Owner
to Engineer within thirty days after the date Owner signs a contract with a contractor for the rail
work required on the Project (hereinafter the “Rail Work”). Engineer shall waive or refund the
Lump Sum Payment if Engineer is engaged by Owner to construct the Rail Work. No other charges will
be accepted for the Work.

ARTICLE
5. RIGHT OF FIRST REFUSAL —

If Engineer satisfactorily completes the Work and this Agreement is not otherwise terminated by
Owner in accordance with its terms, Engineer shall have a right of first refusal (hereinafter the
“ROFR”) as follows:

	1.	 	In the event that Owner receives a bid (hereinafter the “Offer”) from any person to construct
the Rail Work, which Owner is prepared to accept, the Owner shall send to Engineer notice in
writing of its desire or intention to proceed with the bid accompanied by a copy of the Offer.
	 
	2.	 	Upon receipt of notice, Engineer shall have fifteen (15) days from the date of receipt to
give Owner notice (hereinafter the “Intent to Match”) that it desires and agrees to match the
bid on the offered goods on the same terms and conditions as are contained in the bid,
provided that:

	 	a.	 	If Engineer shall have given an Intent to Match, Engineer shall construct the
described project referred to in the Offer;
	 
	 	b.	 	If Engineer shall not have given an Intent to Match within the time provided,
Engineer shall be deemed to have refused to match the Offer; and
	 
	 	c.	 	In the event that Engineer elects not to construct or match the Offer, then
Owner may accept the offer and proceed, but only at the price and on the terms and
conditions contained in the Offer.

3. In the event that Engineer elects not to match the Offer, and the project described in the Offer
proceeds forward with the design submitted by Engineer, Engineer will be compensated

3

 

for the use of the plans in the described project in the amount of ten thousand dollars
($10,000.00) to be payable by Owner.

4. This Article 5 shall be binding upon the parties and their respective heirs, executors,
administrators and successors for a period beginning on the date of this Agreement ending on the
third
(3rd)
anniversary thereof. Notwithstanding anything in this Agreement to the
contrary, if Owner elects, at any time in its sole discretion, to pay Engineer the sum of ten
thousand dollars ($10,000.00), the ROFR will be terminated and Owner shall no longer have any
obligations to Engineer pursuant to this Article 5 and Owner shall have sole ownership of the plans
prepared by Engineer and may proceed to use the plans as it
chooses.

[Handwritten: Delete BK LN (R&R Contracting, Inc.)          

(Gold Energy LLC)]                    

ARTICLE
6. MISCELLANEOUS — 

This Agreement, together with any exhibits and attachments hereto and any documents incorporated
herein, constitutes the entire understanding between the parties concerning the subject matter
hereof. No prior or contemporaneous representations, inducements, promises or agreements not
contained herein are of any force or effect. This Agreement shall be governed by and construed in
accordance with North Dakota law, and shall not be modified except in a writing signed by all
parties. This Agreement is binding upon the parties and their heirs, representatives, agents,
successors and permitted assigns. Neither this Agreement or any parties’ rights, duties,
responsibilities or obligations shall be assigned by either party, in whole or in part, without the
prior written consent of the other party hereto. If any provision herein is held to be invalid,
unenforceable, or contrary to public policy, in whole or in part, the remaining provisions shall
not be affected. No omission or delay by either party in enforcing any right or remedy or in
requiring any performance hereunder shall constitute a waiver of any such right, remedy or required
performance, nor shall it affect the right of either party to enforce such provision thereafter.
The remedies set forth herein are cumulative and in addition to all other remedies available
hereunder, at law and in equity. The headings contained herein are for convenience only and shall
not be considered in interpreting or construing this Agreement. All covenants, warranties,
representations and indemnification obligations set forth in this Agreement shall survive the
termination or expiration hereof. This Agreement may be executed in counterparts, and facsimile
signatures shall be binding upon the parties.

IN WITNESS WHEREOF, the parties hereto have set their hands the day and year first above written.

	 	 	 	 	 	 	 	 	 
	ACCEPTED BY:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Gold Energy, LLC	 	 	 	R & R Contracting, Inc.	 	 
	 

	 	 	 	 	 	 	 	 
	  /s/ Les Nesvig	 	 	 	/s/ Bruce Kopp	 	 
	 	 	 	 	 	 	 
	Les Nesvig, President

	 	 	 	Title
	 	V.P. & CFO	 	 

4exv10w6

 

EXHIBIT 10.6

SERVICE AGREEMENT

BETWEEN

ICM, INC.

AND

Red River

[Hand crossed out and written: Gold Energy LLC]

THIS AGREEMENT is entered into between ICM, INC. hereinafter called “Consultant”, and Red River
[Hand crossed out and written: Gold Energy] hereinafter called “Client”. In consideration of the
convents herein contained and upon subject to the mutual terms and conditions set forth herein, the
parties hereto agree as follows:

	1.	 	SCOPE OF WORK – Consultant shall provide environmental consulting s4rvies for Client as
outline in ICM, INC.’s letter proposal Attachment ‘B; to Dan Skloness dated 6/14/05.
	 
	2.	 	PAYMENT – For performance o the Services provided and as outlined in ICM, Inc.’s letter
proposal dated 6/14/05, Consultant shall invoice the Client according to the attached Schedule
of Charges an Client shall pay Consultant at 310 N. 1st Street, Colwich, Kansas
6730 at the time specified herein. Terms for payment are net 30 days with 1.5% per month
service charge on balances past due 30 days or more.
	 
	3.	 	RESPONSIBILITY OF CONSULTANT – Consultant shall perform the Services as an independent
contractor in accordance with its own methods, terms of this Agreement, and applicable laws
and regulations. Consultant’s liability arising out of or in connection with the Services
shall be limited to performing at is own expense Services which are (1) deficient because of
Consultant’s failure to perform said Services in accordance with normal professional standards
for performing services of a similar nature, and (2) reported in writing to Consultant within
a reasonable time, not to exceed thirty (30) days from the completion of the Services in
accordance with Article 5. Where Client’s project requires public agency approval, Consultant
will attempt to assist in facilitating approval. However, Consultant does not assume
responsibility for securing approval by such agency.
	 
	 	 	Because of the nature of the work involved in this proposal, the Client shall indemnify and
save and hold harmless from and against any damage, liability, loss, cost or claim, whether
occasioned by ICM, INC., its officers, employees and agents or any other person or persons
arising out of, resulting form our related to, the performance of the of the work provide for
in this agreement; provided, however that Client shall not be obligated hereunder to
indemnify, save and hold harmless Consultant, its officers, employees, or agents against any
damage, liability, loss, cost, or claim which arises out of or in connection with the
intentional wrongful acts of, or the active negligence of, Consultant, or its officers,
employees or agents.
	 
	4.	 	ASSIGNMENT AND SUBCONTRACTING – This Agreement shall not be assigned by either party without
the prior written approval of the other. Consultant may, subcontract portions of the services
to a qualified subcontractor with prior approval of Client. Consultant agrees that Client
will incur on duplication of costs as a result of any such subcontract.

 

 

	5.	 	COMPLETION AND ACCEPTANCE – Upon completion of the Services by Consultant, Client shall
promptly provide Consultant with a written listing of any Services not completed. Any
Services not listed by Client as incomplete in a listing delivered to Consultant within thirty
(30) days of completion of said Services shall be deemed complete and accepted. With respect
to Services listed by Client as incomplete, Consultant shall complete such Services and the
above acceptance procedure shall be repeated.

SERVICE AGREEMENT

BETWEEN

ICM, INC.

AND

Red River

[Hand crossed out and written: Gold Energy LLC]

Continued

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

 

 

	10.	 	TESTIMONY – Should Consultant, or its directors, officers or employees be required to testify
or to submit information to any judicial or administrative hearing concerning matters in
accordance with the Cost Schedule then in effect. Should Consultant be required by a third
party to testify at such a hearing, Consultant shall notify Client as to the date and time of
such hearing. Client agrees to save and hold harmless Consultant form and against all costs
incurred as a result of a judicial or administrative hearing concerning the services provided
for herein.

SERVICE AGREEMENT

BETWEEN

ICM, INC.

AND

Red River

[Hand crossed out and written: Gold Energy LLC]

Concluded

	11.	 	TIME TO BAR TO LEGAL ACTION

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

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

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

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

	 	 	 
	AUTHORIZATION TO PROCEED:
	 	 
	 
	 	 
	[Hand crossed out and written: Gold Energy LLC]
	 	 
	Red River

	 	ICM, INC.

	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ L.O. Nesvig
	 	 	 	By:
	 	/s/ [illegible signature]	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 
	Title:

	 	[Handwritten: Pres]
	 	 	 	Title:
	 	[Handwritten: Mgr. Env. Affairs]	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 
	Date:

	 	[Handwritten: 7/13/05]
	 	 	 	Date:
	 	[Handwritten: 6/14/05]	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

 

 

SCHEDULE OF CHARGES – 2004

Red River

[Hand crossed out and written: Gold Energy LLC]

PERSONAL CHARGES

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

Expert Testimony rates are quoted separately.

OTHER CHARGES

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

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

Rental of equipment and vehicles,

Outside laboratory testing,

Special fees, permits, insurance, etc.,

Transportation on public carriers,

Printing and photographic reproduction,

Subcontractors to ICM, Inc.,

Meals, lodging, and

Shipping, telephone & other materials.

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

 

 

[ICM Logo]

June 14, 2005

Attn: Dan Skolness

Red River Ethanol Plant

Ph: 218 532-2216 (H)

Ph: 701 219-1498

Subject: Environmental Permitting Proposal for a 50 (Coal) MM GPY Ethanol Manufacturing Plan in
Wahpeton, ND or Brekenridge MN.

Dear Dan:

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

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

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

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

The following costs (if required) are not included in the proposal: permit application fees,
amended submittals, ambient air sampling, continuous emission monitoring, health risk changes,
water quality sampling and lab

 

 

analysis, individual permit for storm water associated with construction, Title V operating permit
application, acquisition of emission offsets, public hearings, and State requested meetings.

	 	•	 	Air Construction Permits:

It has been determined that the proposed facility will be a synthetic minor source of
emissions. IF it turns out that the facility is a major source or that it requires
ambient air quality simulation modeling, LAER, or BACT analyses, then additional costs
will be incurred.
	 
	 	•	 	Water Permits:

It is expected that the proposed facility will be subject to state water discharge
regulations. As noted above, my cost estimate assumes that a General Permit for Storm
Water Associated with Construction Site Activity will be adequate for the project site
construction. In addition, the state program will require that permits be obtained
for water supply and discharges for non-contact process wastewater hydrostatic testing
discharges.

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

Respectfully submitted,

William J. Roddy

Manager of Environmental Affairs

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

 

 

Attachment A

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Check Box
	 	 	 	 	 	 	 	 	 	 	For ICM
	 	 	 	 	 	 	Estimated Cost	 	Task
	Before Ground Breaking	 	 	 	 	 	 	 	 
	 	201.	 	 	Air Construction Permit (Modeling Costs Included)
	 	$	15,000-$25,000	 	 	 	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	 	 	 	x	 
	 	206.	 	 	Health Risk Assessment (state dependent)
	 	$	10,000-$50,000	 	 	 	o	 
	 	207.	 	 	Above Ground Storage Tank General Permit Application (state dependent)
	 	$	3,000	 	 	 	x	 
	 	208.	 	 	Odor Action Plan (Optional)
	 	$	2,500	 	 	 	o	 
	 	209.	 	 	Basic Environmental Assessment (state dependent)
	 	$	6,500-$10,000	 	 	 	x	 
	 	211.	 	 	Corps of Engineers Section 404 Permit (if wetlands are present)
	 	$	1,500-$5,000	 	 	 	o	 
	 	295.	 	 	Environmental Project Management
	 	$	1,000-$5,000	 	 	See Notes
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Before Operation	 	 	 	 	 	 	 	 
	 	221.	 	 	Industrial Well Permit/Registration
(ICM recommends application prior to construction)
	 	$	3,000-$7,000	 	 	 	o	 
	 	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 Operaiton
	 	$	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 Firearm
	 	$	1,000	 	 	 	o	 
	 	231.	 	 	County Health Department Septic System Permit (geological work extra)
	 	$	2,500-$3,000	 	 	 	o	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	30 Days After Startup	 	 	 	 	 	 	 	 
	 	241.	 	 	Conditionally Exempt Small Quantity Generator Qualification
	 	$	8,000-$12,000	 	 	 	o	 
	 	242.	 	 	Tank Notification
	 	$	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.)	 	Project Management costs are not an option, but are incurred during the cause of
permit preparation. See explanation in Attachment ‘B’.
	 
	 	B.)	 	All external services (i.e. Professional Engineer, Hydrogeologist, laboratory
test, etc.) will be billed at cost plus 15%.
	 
	 	C.)	 	Permit application fees, amended submittals, ambient air sampling, continuous
emission monitoring, health risk assessment, additional air dispersion modeling
operations for additional designs an/or layout changes, Title V operating permit
application, acquisition of emission offsets, public hearings, and State requested
meetings are additional.
	 
	 	D.)	 	Water quality sampling and lab analysis (if necessary) and individual permit for
storm water associated with construction are additional to those listed above. The
above rates assume a reputable supplier has been selected by the client for the entire
water treatment program (boiler, cooling tower, RO, multi-media, water softeners, and
associated equipment) regarding state/local needs.
	 
	 	E.)	 	If it is determined that a permit, plan or application is not applicable or
required then only time and materials for making the determination will be billed.

 

 

Attachment B

Explanation of Permits and Scope of Work

201.) Air Construction Permit:

An air construction permit application package will be prepared for the owners review
and approval. It will then be submitted to the state for review. The air construction
permit allows a company to build, initially operate, and test a new source of air pollution.
This permit typically is valid form 12 to 24 months (depending on which state) and extensions
may be granted. Application fees for the construction permit vary by state and will be paid
by the owner. The air permit must be obtained before construction (pouring concrete) and in
some states before dirt work can occur.

202.) Storm Water Notice of Intent (General Permit) —Construction

A Storm Water Notice of Intent must be submitted before grading can begin. This Notice is to
make the state aware that grading activities are to begin. State and federal storm water
program are in place to protect rainfall, snow melt, and other storm water form becoming
contaminated with pollutants. The amount of time that this permit must be submitted prior to
work commencing varies by state. ICM will prepare the NOI for the owners review. Any fees
associated with the NOI will be paid by the owner.

203.) Storm Water Pollution Prevention Plan —Construction

A Storm Water Pollution Prevention Plan for Construction details how storm waters will be
protected from exposure to pollutants. Also, included in this plan are details to prevent
excessive soil erosion until vegetation begins growing. Once the final plant footprint and
grading plan have been prepared by the civil engineering company, ICM will prepare the
construction Plan that must be maintained on the construction site before grading commence.

204.) State Historical Society Research

State Historical Society checks for the existence of historical sites (including Indian
burial grounds) at the site where construction and industry are to occur. ICM will initiate
a historical review in the surrounding area and obtain state approval that there are no
historical issues associated with the site. Any filing fees are the owner’s responsibility.

205.) Endangered Species Research

Endangered Species reviews consist of a record of review for protected species (state and
federal listed endangered or threatened), rare natural communities, state lands and waters in
the project area, including review by personnel representing state parks, preserves,
recreation areas, wetlands, fisheries, and wildlife. ICM will initiate an endangered species
review in the surrounding area and obtain state approval that there are no endangered species
issues associate with the site. Any filing fees are the owner’s responsibility.

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 the is required, ICM will contract with a consultant skilled in the preparation of
approvable health risk assessment techniques of the given state. Any filing fees are the
owner’s responsibility.

 

 

207.) Above Ground Storage Tank General Permit Application

Storage tanks are typically registered through the state
environmental agency and the fire marshal for environmental and fire
safety reasons. ICM in cooperation with the tank manufacturing and
construction company prepare the required permit application
package. Any filing fees are the owner’s responsibility.

208.) Odor Action Plan

An Odor Action Plan is a “Good Neighbor” approach to looking at community concerns regarding
odor form 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 form a well or body of water so that interference with
neighboring wells does not occur. ICM will prepare the permit/registration application.
Depending on the state, this permit may require that ICM retain independent and local
consultants skilled in water allocation approval. Any filing fees are the owner’s
responsibility.

222.) Water Discharge Permit (NDES, PTW, Irrigation, and/or Irrigation Plan)

These permits are associated with discharging wastewater form the facility (typically process
wastewater, cooling tower blow-down, boiler blow-down, etc.) to either a body of water
(NPDES), a public treatment system (POTW), and/or to ground applications in the form of
irrigation. If irrigation to crop land occurs an Irrigation Plan is also necessary, and
details how the irrigation amounts and contents will affect certain soils and crops. These
permits aid in the prevention of pollutants from entering natural waters and crops where
natural ecosystems and food supplies can be endangered. ICM will prepare the water discharge
permit application package depending on the customer’s requirements. Any filing fees are the
owner’s responsibility.

223.) Hydrostatic Testing Water Discharge Permit

A Hydrostatic Testing Water Discharge Permit allows for the temporary discharge of waster
used for testing the integrity of vessel and equipment as a part of construction activities.
ICM will prepare the discharge permit application package or obtain approval from a facility
(POTW) licensed to discharge charge such water. Any filing fees are the owner’s
responsibility.

 

 

224.) Storm Water Notice of Intent (General Permit) –Industrial Operation

Storm Water Pollution Prevention Plan for Industrial Operation is similar to the same permit
for construction in that it details how storm waters will be protected from exposure to
pollutants after the pant begins operation. Also, included in this pan are details to
prevent excessive soil erosion until vegetation begins growing. ICM will prepare the NOI for
the owners review. Any fees associated with

225.) Storm Water Pollution Prevention Plan – Industrial Operation

Storm Water Pollution Prevention Plan for Industrial Operation is similar to the same permit
for construction in that it details how storm waters will be protected from exposure to
pollutants, however, this plan focuses on normal industrial activities at the site after the
plant begins operation. ICM will prepare the Industrial SWPP 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 offside consequence analysis, a five-year accident history, an
accident prevention program, and an emergency response program. This plan requires updating
at least every five years, and within 6 months of main certain changes onside. Ethanol
plants typically require a risk management plan that covers storing denaturants and/or
ammonia. This plan must be in place prior to storage of covered chemicals on-site. ICM will
prepare the Risk Management Plan for the owner’s review.

227.) Spill Prevention Controls and Countermeasures Plan

Spill Prevention Controls and Countermeasures Plans are written to address the likelihood and
prevention of spills of petroleum base substances as well as what actions are to be taken in
the event that a spill does occur. Proposed regulations require the plan be in place before
storage of denaturant. ICM will prepare the SPCC Plan for the owner’s review.

228.) Public Water Supply Permit

There are two reasons to receive a Public Water Supply Permit. One, if there are more than
25 people on a site the access to the public water supply must be permitted, and two, if the
process water is going to come form the public water supply, the quantity of water will
necessitate a permit. Public waste 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 eh owner’s review.

229.) Permit form Bureau of Alcohol, Tobacco, and Firearms

This permit allows the facility to manufacture ethanol. IN some states, registration with
the state agency may also be required. ICM will prepare the BATF permit application for the
owner’s review. Any filing fees are the owner’s responsibility.

231.) County Health Department Septic System Permit

A septic system permit must be obtained if the sanitary sewer for a facility is to be tied
into a leach field or septic pond instead of a local POTW. ICM will prepare the septic
system permit application for the owner’s review. Any filing fees are the owner’s
responsibility.

	241.)	 	Conditionally Exempt Small Quantity Generator Qualifications

 

 

The Resource Conservation and Recover Act covers disposal of solid and hazardous wastes.
Typically, ethanol plants generate such a small quantity of hazardous and solid waste that
they are either classified as a conditionally exempt small quantity generator (CESQG). The
classification is entirely dependent on the amount of hazardous waste generated and can
change over time. While a Plan is not required by regulation for CESQG sources, a Plan can
be prepared by ICM so that the plant can document on a monthly basis that it is a CESQG and
therefore not subject to hazardous waste regulations.

242.) Tank Notification

Tank Notifications are required by some states whenever a tank is place into service, taken
out of service, or the materials in the tank changes. ICM will prepare state and EPA
notifications of the owner to submit pursuant to the New Source Performance Standards.

251.) Air Permit to Operate

The Air Operation Permit allows the company to operate the pollutant source within certain
requirements detailed in the permit. This permit is typically valid for up to five years,
and may be renewed. There is an annual fee associated with this permit that is based upon
the previous year’s actual emissions. ICM will prepare the Air Operating Permit Application
package for the owner’s review. Any filing fees are the owner’s responsibility.

261.) Annual Emission Inventor

This is annual accounting to the governing agencies of actual pollution generated by the
facility. Annual Air Operating Permit fees are based upon this report. ICM will prepare the
annual air emission inventory for the owner’s review and submission. Any emission fees are
the owner’s responsibility.

262.) Tier 2 Reporting

Tier 2 reporting lists hazardous chemicals stored on-site. The information provides the
local emergency officials and the fire department that potential hazards exist at a site.
This is an annual requirement. ICM will prepare annual the 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 ht
customer or agency.

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