Document:

Exhibit
10.25

	
  C & A Scale Service, Inc.  

  P.O. BOX 270  
 CRESCENT, IOWA 51526  
 Phone (712) 545-3461  
 Fax (712) 545-3343

  	
   

  	
  [GRAPHIC]

  

 

	
  

  	
   

  	
  Contract # 9406  

  
	
  Millennium
  Ethanol LLC

  	
   

  	
  November 10, 2006

  
	
   

  	
   

  	
   

  
	
  Marion, S.D 

  Attn: Steve Domm     fax 605-648-3943

  	
   

  	
   

  

 

Project: (2) New 120’ x 11’ Pit Motor Truck Scale

 

Item 1: (2) Rice Lake 120’ x 11’ Motor Truck Scale
200,000 LB Capacity

 

	
  Each Scale Includes:

  	
  -

  	
  5 Module Design

  
	
   

  	
  -

  	
  30 Ton CLC

  
	
   

  	
  -

  	
  Foundation Kit

  
	
   

  	
  -

  	
  Ground Rod, Bumpers

  
	
   

  	
  -

  	
  Approach Coping

  
	
   

  	
  -

  	
  Rice Lake Steel Load Cells

  
	
   

  	
  -

  	
  Hermetically Sealed Load Cells

  
	
   

  	
  -

  	
  Checkered Deck Plate

  
	
   

  	
  -

  	
  Nema 4X Junction Boxes

  
	
   

  	
  -

  	
  5 year bridge warrant, 5 year on load cells, parts only

  
	
   

  	
  -

  	
  5 year maintenance agreement

  
	
   

  	
  -

  	
  1 test per year and inspection of scale

  
	
   

  	
  -

  	
  Rubber T-Belt for Approaches

  
	
   

  	
  -

  	
  IQ710 Digital Indicator

  
	
   

  	
   

  	
   

  

 

Item 2: (2) Foundations for Both Truck Scale

 

	
  Includes:

  	
  -

  	
  Form and Pour Piers

  
	
   

  	
  -

  	
  Form and Pour 2 - 15’ Approaches

  
	
   

  	
  -

  	
  All work to meet South Dakota Specs

  
	
   

  	
  -

  	
  (customer is responsible for Locates)

  
	
   

  	
  -

  	
  (customer is responsible for permits)

  
	
   

  	
  -

  	
  Foundation soil must meet 2500psi min.

  
	
   

  	
  -

  	
  Setting of weighbridge

  
	
   

  	
  -

  	
   

  

 

Item 3: Excavation in Virgin Soil and
Backfill/Compaction

	
  

  	
   

  	
  Continue next page

  

 

 

	
  Item 4: Installation and Calibration

  
	
   

  	
   

  	
   

  
	
  Includes:

  	
  -

  	
  Setting of Load Cells

  
	
   

  	
  -

  	
  Wiring of Load Cells

  
	
   

  	
  -

  	
  Home Run Cable from Scale to Office

  
	
   

  	
  -

  	
  Certification of Scale per S.D. Specs

  
	
   

  	
   

  	
   

  
	
  Item 5: (2) Remote Displays

  
	
   

  	
  -

  	
  Communication wire between remotes and indicator

  
	
   

  	
  -

  	
  Electrical circuit needed to each displays, not
  included

  

 

	
  Contract Price:

  	
  $

  	
  244,700.00

  	
   

  	
   

  	
   

  	
   

  
	
  Freight

  	
  $

  	
  4,500.00

  	
   

  	
   

  	
   

  	
   

  
	
  4%
  Sales Tax

  	
  $

  	
  9,968.00

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Contract:

  	
  $

  	
  259,168.00

  	
   

  	
   

  	
   

  	
   

  

 

Terms and Agreements:

First Payment 30% down prior to ordering of Truck
scales

Second Payment 30% on completion of foundation and pit
walls poured

Third Payment 30% on completion of weighbridge, decks
poured, and calibration

Final Payment 10% upon all approvals

(note: 10% of payments will be held back of terms:
final payment will include final payment of total amount above)

	
  Starting Date: June 1, 2007

  	
  Completion 90 days following

  

 

Contract valid for 1 year from contract date

Changes to contract are subject to T/M plus 10%.

	
  Contractor: C & A Scale Service
  Inc.

  	
   

  	
  Customer:

  	
  Millenium Ethanol, LLC

  
	
  Printed Name:

  	
  Charles K. Hildreth

  	
   

  	
  Printed Name:

  	
  Steve Domm

  
	
  Signature Name:

  	
  /s/ Charles K. Hildreth

  	
   

  	
  Signature Name:

  	
  /s/ Steve Domm

  
	
  Title:

  	
  President

  	
   

  	
  Title:

  	
  CEO

  
	
   

  	
   

  	
   

  	
  Date:

  	
  1/3/07

  
										

 

Quotation To:

	
  Millennium Ethanol LLC

  	
   

  	
  Quote No.: 3267(MarionTruck)

  
	
   

  	
   

  	
  Date: March 26,2007

  
	
  Marion,
  SD

  	
   

  	
  Valid: 45 Days

  
	
  Attn: Steve Domm

  	
   

  	
  Delivery: 4 to 6 weeks

  

(Fax
605-648-3943)

Project: Complete
oneWeigh System on Dual Truck Scales

Description of Equipment

Item
1: oneWeigh Software Package

Includes: Agris software,
Reader interface, and first year maintenance

Interface to moisture meter

Item
2: RF Reader Station

Includes Reader, power
supply, interface cable and 50 in-house tags

Item
3: Outbound Scale Photo-Eye Kit

Set of photo eyes for both
ends of outbound scale & interface enclosure

Item
4: Dell PC Workstation

Includes full PC with Touch
Screen monitor and 80-column printer.

Item
5: Remote Display Message Board

Displays message when
outbound truck is correctly weighed.

Item
6: Setup and Installation

Estimated
Cost           $28,900.00

Not Included: Conduit, Electrical to devices

Proposal By: Keith Clausen / Chuck Hildreth

 

	
  Accepted By:

  	
  /s/ Steve Domm

  	
    P.O.#:

  	
   

  	
  Date:

  	
  3/27/07Exhibit 10.26

SERVICE PROVIDER CONSENT
AND

AMENDMENT TO ELECTRIC SERVICE AGREEMENT

This Service Provider
Consent and Amendment to Electric Service Agreement (“Consent”) is made and
entered into this 24th day of May, 2007 by and among Southeastern
Electric Cooperative, Inc., Marion, South Dakota (“Southeastern”); Millennium
Ethanol, LLC, Marion, South Dakota (“Borrower”); and Dougherty Funding LLC,
Minneapolis, Minnesota (“Dougherty”).

WITNESSETH:

WHEREAS,
Borrower is constructing the Millennium Ethanol Plant (“Project”);

WHEREAS,
Dougherty is making a loan to the Borrower to finance the
Project (“Loan”);

WHEREAS,
Southeastern is the entity supplying electric services (the “Services”)
to the Project;

WHEREAS,
Southeastern and Borrower entered into an Electric Service
Agreement, dated July 14, 2006 (“Agreement”);

WHEREAS,
the Agreement, in Paragraph 6.e., requires Borrower to pay
Southeastern the sum of $200,000 to secure payment of electric service charges
and, in Paragraph 7.c., permits Southeastern to suspend performance or
terminate the agreement if payment is not received within ten (10) days of its
due date;

WHEREAS,
the Borrower has collaterally assigned to Dougherty all of
its rights in the Agreement (“Assignment”); and

WHEREAS,
Borrower’s CEO, Steve Domm, has consented to allow
Southeastern to complete this Consent.

NOW,
THEREFORE, in consideration of the mutual promises, covenants
and conditions contained herein, Southeastern, Borrower and Dougherty agree as
follows:

1.                         Southeastern
consents to such Assignment.

2.                         Southeastern
advises Dougherty that:

a.                          Attached
hereto as Exhibit “A” is a copy of the complete Agreement titled “Electric
Service Agreement” dated July 14, 2006. In conjunction with that

 1
 

service agreement, Southeastern has also included the
following items supporting Exhibit “A”:

·                            Exhibit
“B” titled SETTLEMENT AGREEMENT AND SERVICE TERRITORY EXCEPTION AGREEMENT that
was entered into between Southeastern and Northern States Power Company D/B/A
Xcel Energy.

·                            Exhibit
“C” is a copy of the “Official docket EL06-022 “ORDER GRANTING APPROVAL OF A
TEMPORARY EXCEPTION TO THE ASSIGNED ELECTRIC SERVICE TERRITORY EL06-022” as
approved by the South Dakota Public Utilities Commission of the State of South
Dakota.

·                            Exhibit
“D” is a copy of the “Official docket EL06-023 “ORDER GRANTING APPROVAL OF AN
EXCEPTION TO THE ASSIGNED ELECTRIC SERVICE TERRITORY EL06-023” as approved by
the South Dakota Public Utilities Commission of the State of South Dakota.

b.                         Upon
the occurrence of a default and subsequent failure to cure by the Borrower
under the Agreement, Southeastern shall notify Dougherty in accordance with
Paragraph 13 below, and Dougherty shall have the right, exercisable for ten
(10) days after such notice, to elect in writing to Southeastern to require Southeastern
to continue performance under the Agreement in which case Southeastern shall
thereafter continue to provide the Services under the Agreement provided
Dougherty reimburses Southeastern in accordance with the Agreement for Services
including reimbursement for any past due payments, charges and any other
payments due in accordance with the Agreement.

c.                          All
approvals necessary to commence construction of any facilities necessary to
provide the Service in the Agreement have been obtained except as noted in
Paragraph h.

d.                         All
the following preconditions necessary to furnish the Services in the Agreement
have been satisfied except to the extent the Agreement contradicts the
precondition (v) (“waiving any right to cease construction and/or cancel its obligations
to provide the service”) and except as noted in Paragraph h:

“Utility Preconditions”

i.                             Utility
provider has secured all approvals.

ii.                          Utility
provider has secured all necessary rights of way.

iii.                       Utility
provider has obtained the necessary financing to construct the improvements and
provide services.

iv.                      Utility
provider has entered into construction contracts to construct the improvements
(although this is not applicable as utility will use its own workforce).

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v.                         Utility
provider has satisfied all conditions it requires to construct the improvements
and provide services (including waiving any right to cease construction and/or
cancel its obligation to provide the services).

e.                          All
contracts necessary to complete such facilities have been executed and delivered
except as noted in Paragraph h.

f.                            Any
right to terminate the Agreement is set forth in the Agreement. In that
connection the Borrower has or will deposit with Southeastern upon demand all
cash payments and security required under the Agreement.

g.                         The
date of substantial completion of the Facilities is November 1, 2007.

h.                         The
following is a possible exception to the preconditions and Paragraphs c - e
above:

An easement must still be obtained for the substation;
however, the location is on-site and on property owned by the Borrower.

3.                         The
Agreement shall remain in full effect between Southeastern and the Borrower,
and the Borrower shall continue to be responsible for all its obligations under
the Agreement notwithstanding this Service Provider Consent.

4.                         If
Dougherty elects to have Southeastern continue performance in accordance with
Paragraph 2.b. above, then Dougherty shall assume all of the Borrower’s
obligations under the Agreement (including any prior obligations incurred by
the Borrower); provided, however, that this shall not relieve the Borrower of
any obligations incurred prior to the date Dougherty elects to continue
performance.

5.                         Southeastern
shall give Dougherty a copy of any notice required by Paragraph 7.c. of the
Agreement.

6.                         This
Consent may not be assigned without the express prior written consent of the
parties, which shall not be unreasonably withheld, except: a. Dougherty may
assign all of its rights in this Consent to (i) any participating lender(s)
participating with Dougherty in the Loan, (ii) to a person or entity that
Dougherty merges with, is merged into, or who acquires the assets of Dougherty
or whose assets are acquired by Dougherty or (iii) to any person or entity that
acquires Dougherty’s interest in the Loan; and b. Southeastern may assign the
Consent to another electric cooperative that acquires, consolidates or merges
with Southeastern. This Consent may not be amended except in writing, which
writing shall be expressly identified as a part hereof, and be signed by an
authorized representative of each of the parties hereto.

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7.                         In
consideration of Dougherty receiving ten (10) days to exercise its rights in
Paragraph 2.b. of this Consent and in consideration of Dougherty providing the
Loan to Borrower for the Project, Southeastern and Borrower agree to amend the
Agreement as follows:

In Paragraph 6.e., change “$200,000” to “$250,000.”

8.                         In
the event, Borrower satisfies its financial obligations to Dougherty, this
Consent is terminated.

9.                         Borrower
and Southeastern acknowledge that the Agreement remains in full force and
effect except as modified by this Consent.

10.                   This
Consent shall be governed by and construed in accordance with the laws of the
State of South Dakota.

11.                   In
the event that any court of competent jurisdiction shall hold any provision of
this Consent unenforceable or invalid, such holding shall not invalidate or
render unenforceable any other provision hereof.

12.                   All
other prior discussions, communications and representations concerning the subject
matter of this Consent are superseded by the terms of this Consent, and except
as specifically provided herein, this Consent constitutes the entire agreement
with respect to the subject matter hereof.

13.                   Notice
shall be in writing and made to Southeastern and the Borrower as set forth in
the Agreement and made to Dougherty at:

Dougherty Funding LLC

90 South Seventh Street, Suite 4300

Minneapolis, MN 55402

Attn: Senior Vice President, Mortgage Loans

Notice to Dougherty shall
be effective when mailed by first class mail, provided that notice of default
or termination shall be sent by registered or certified mail.

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IN
WITNESS WHEREOF, the parties have caused this Consent to be
executed by their duly authorized representatives, all as of the day and year
first above written.

	
  Attest:

  	
   

  	
  SOUTHEASTERN ELECTRIC 

  COOPERATIVE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ John B. McDonald

  	
   

  	
  By:

  	
  /s/ [Illegible]

  
	
  Title:

  	
  CFO / Asst. Mgr.

  	
   

  	
  Title:

  	
  General Manager

  
							

 

 

	
  Attest:

  	
   

  	
  MILLENNIUM ETHNOL LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Robin Smith

  	
   

  	
  By:

  	
  /s/ Steve Domm

  
	
  Title:

  	
  Head Bookkeeper

  Fremar Corp

  	
   

  	
  Title:

  	
  CEO

  
							

 

 

	
  Attest:

  	
   

  	
  DOUGHERTY FUNDING LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ [Illegible]

  	
   

  	
  By:

  	
  /s/ [Illegible]

  
	
  Title:

  	
  Sr. Loan Administrator

  	
   

  	
  Title:

  	
  SVP

  
							

 

 5

Exhibit “A”

ELECTRIC SERVICE
AGREEMENT

This Agreement made and entered into this 14th day of July,
2006, by and between Southeastern Electric Cooperative, Inc., Marion, South
Dakota (hereinafter called the Cooperative) and Millennium Ethanol, LLC,
Marion, South Dakota (hereinafter called the Customer).

WITNESSETH:

WHEREAS, the
Customer is constructing an ethanol plant located in Turner County, South
Dakota (hereinafter called the Facility); and

WHEREAS, the
Customer desires to have the Cooperative provide all of the electric power and
energy requirements of the Facility and the Cooperative is willing and able to
provide these requirements.

NOW, THEREFORE,
in consideration of the mutual promises, covenants and conditions contained
herein, the Cooperative and the Customer agree as follows:

1.                         Description
of Facility.

The Facility shall include the Customer owned ethanol
plant and related facilities located in Section Thirty-one (31), Township One
Hundred (100) North, Range Fifty-four (54) West, Turner County, South Dakota.

2.                         Agreement
to Sell and Purchase.

The Cooperative hereby agrees to sell and deliver to
the Customer and the Customer agrees to purchase and receive from the
Cooperative all of the electric power and energy requirements of the Customer
upon the terms and conditions hereinafter provided.

3.                         Service
Characteristics.

a.                         Service
Delivery. Service hereunder shall be provided at multiple service locations
at the Facility, consisting of approximately 3 miles of 3 phase 12.47 kV (1/0,
4/0 and 500 MCM) underground distribution line, 13 padmount transformers,
(7-1500 kVA 277/480 volt 3 phase transformers, 1-1500 kVA 4,160 volt 3 phase
transformer, 4-1000 kVA 227/480 volt 3 phase transformers and 1-150 kVA 120/208
volt 3 phase transformer) along with associated switch gear, underground
conduit and metering. The Cooperative shall install or cause to be installed,
operated and maintained approximately 2 miles of 69 kV transmission line and a
69/12.47 kVA substation located at the plant site.

b.                        Capacity.
Electrical service to the Facility under this Agreement shall be limited to
12,500 kVA. Service to additional load above 12,500 kVA shall require an
amendment to this Agreement.

c.                         Firm
Service. Service hereunder shall be firm and therefore not subject to load
curtailment. Power interruptions may occur as the result of planned and

Millennium Ethanol, LLC Electric Service Agreement

coordinated maintenance and circumstances beyond the
control of the Cooperative as provided for in Section 4.i. of this Agreement.

4.                         Service
Conditions and Requirements.

a.                         Cooperative-Owned
Facilities. The Cooperative will furnish or cause to be furnished,
installed and maintained, according to prudent utility practices, all electric
equipment and facilities required to deliver electric power and energy to the
Customer for the Facility to the point of interconnection. The Cooperative
shall install or cause to be installed approximately 2 miles of 69 kV
transmission line and a 69  to
12.47 kV substation located at the Facility. The point of interconnection shall
be located at the low voltage terminals of the distribution transformers
detailed in 3.a. above. Electric service equipment furnished, installed,
operated and maintained by the Cooperative on the property of the Customer
shall remain the property of the Cooperative and may be removed upon
termination of this Agreement.

b.                        Customer-Owned
Facilities. The Customer shall be solely responsible for the design,
installation, maintenance and safety of any and all Customer supplied electric
facilities or equipment. The Customer shall provide and maintain the necessary
protection equipment to protect its own facilities from harm from any
electrical cause as well as to protect the Cooperative’s equipment and members
from any damages, interruption of service, or faulty service due to faults or
operations of the Customer’s equipment.

c.                         Location
of Cooperative Facilities. The Customer shall provide to the Cooperative
suitable locations for the installation of electric facilities on the property
of the Customer. The Customer shall provide the Cooperative or its power
supplier, at no cost, an appropriate instrument of conveyance (acceptable to
Customer’s secured lenders and the Cooperatives) for the substation property
and permanent easements (acceptable to Customer’s secured lenders and the
Cooperatives) for all other electric power supply facilities of the Cooperative
or its power supplier located on site. The Customer shall provide site grading
for the substation at no cost to the Cooperative and shall provide concrete
pads for all distribution transformers and switchgear in accordance with
specifications provided by the Cooperative.

d.                        Accessibility
to Cooperative Facilities. Duly authorized representatives of the
Cooperative shall be permitted to enter on the property of the Customer to the
extent necessary to maintain and service electric facilities at all reasonable
times in order to carry out the provisions of this Agreement.

e.                         Operation
of Cooperative Equipment. The Customer shall do nothing to interfere with
the operation of any Cooperative-owned electric equipment or facilities,
including any metering, telecommunications, or control equipment. The Customer
shall advise the Cooperative as soon as possible if the Customer discovers any

 2
 

apparent problem with the condition or functioning of
the Cooperative’s equipment or facilities.

f.                           Operation
of Customer Equipment. The Customer’s electric service, electric
facilities, and load characteristics will conform to the National Electric Code
and National Electric Safety Code, IEEE/ANSI standards, and prudent utility
practices. If the operation of any of the Customer’s equipment causes power
quality or operational problems to the Cooperative’s electric system, the
Customer shall promptly correct or remove the cause of the problem. If the
Customer does not eliminate the problem, the Cooperative can correct or remove
the problem from the electric system and the Customer will be responsible for
the costs. The Customer shall notify the Cooperative immediately if the
Customer discovers that the condition or operation of any of the
Customer-supplied electric equipment or facilities may pose a risk to any
persons or property.

g.                        Power
Factor. The Customer agrees to maintain unity (100%) power factor as nearly
as practical. The demand charges may be adjusted to correct for average power
factors less than five percent (5%) unity (lagging) or greater than five
percent (5%) unity (leading) by increasing the measured demand one percent (1%)
for each one percent (1%) by which the average power factor is less than five
percent (5%) unity (lagging) or more than five percent (5%) unity (leading).

h.                        Cooperative
Membership. The Customer shall be a member of the Cooperative.

i.                            Hold
Harmless. If the supply of electric power and energy provided by the
Cooperative should fail or be interrupted, or become defective, through (a)
compliance with any law, ruling, order, regulation, requirement or instruction
of any federal, state or municipal governmental department or agency or any
court of competent jurisdiction; (b) Customer action or omissions; or (c) acts
of God, fires, strikes, embargoes, wars, insurrection, riot, equipment
failures, operation of protective devices, or other causes beyond the
reasonable control of the Cooperative, the Cooperative shall not be liable for
any loss or damages incurred by the Customer or be deemed to be in breach of
this Agreement. The Customer acknowledges that the delivery of electric power
and energy may at times be subject to interruption by causes beyond the control
of the Cooperative, including weather conditions, vandalism, accidents, and
other interruptions, and that the Customer assumes the risk of those potential
interruptions. The Cooperative will use its best efforts to restore electric
service in the shortest reasonable time under the circumstances.

5.                         Revenue
Metering.

a.                         Point
of Metering. Metering will measure the demand and energy of the total
Facility, and will be located at the on-site 69/12.47 kV substation on the
7.2/12.47 kV secondary bus of the substation.

 3
 

b.                        Metering
Responsibility. All revenue metering shall be furnished, installed,
maintained and read by the Cooperative.

c.                         Meter
Testing Procedure. The metering shall be tested once every two years for
accuracy by the Cooperative or its designee. In addition, at any time either
party may request that the metering be tested. The requesting party will be
responsible for the cost of the test. If any test discloses the inaccuracy of
said meters to the extent of more than two percent (2%) fast or slow, an
adjustment in billing shall be determined by the Cooperative from the best
information available.

d.                        Meter
Failure. Should the metering equipment at any time fail to register proper
amounts or should the registration thereof be so erratic as to be meaningless,
the capacity and energy delivered shall be determined by the Cooperative from
the best information available.

6.                         Rates and
Payment.

a.                         Rate
Schedule Application. The Customer shall pay the Cooperative for service
rendered hereunder at the rates and upon the terms and conditions set forth in
Rate Schedule Large Power Service – Millennium Ethanol, LLC attached to and
made a part of this Agreement and any revisions thereto or substitutions
thereof adopted by the Cooperative’s Board of Directors.

b.                        Rate
Guarantee. The demand and energy components of the attached rate schedule
are guaranteed to remain unchanged for the years 2007 and 2008, except as
provided herein. The parties agree that the rates specified may be adjusted by
the amount of any new or increased level in current local, state or federal
taxes or fees.

c.                         Rate
Changes Beyond the Guarantee Period. Through this agreement, the parties
understand that rate changes beyond 2008 will be principally driven by changes
in wholesale rates charged by the Cooperative’s power supplier. The parties
further agree that it is appropriate for future increases in the Cooperative’s
cost of operations to be reflected in rates charged to the Customer. As a
Cooperative member, the Customer is entitled to fair and equitable treatment
relative to the market-based rates and other service conditions as contained
within this agreement. The Cooperative will provide reasonable notification of
any rate changes.

d.                        Facilities
Charge. The Customer shall pay a monthly facilities charge in accordance
with the attached rate schedule. The facilities charge will be adjusted if the
Cooperative installs additional facilities not part of this agreement.

e.                         Payment
Arrangements. All charges for service shall be paid to the Cooperative by
electronic funds transfer, which will be initiated by the Cooperative. The
monthly billing periods shall be from the first day of the month through the
last

 4
 

day of the month. Such charges shall be due and
payable on the date of billing (on or about the tenth of the month). If payment
is not received by the Cooperative within ten days of the due date, the
Customer agrees that the Cooperative may disconnect service to the facility
until the payment is made. To secure the payment of said electric service
charges, the Customer shall pay to the Cooperative the sum of $200,000 no later
then 15 days prior to the startup of commercial operation of the Facility or by
February 1, 2008.

f.                           Late
Payment Charges. If payment is not received by the date indicated on the
bill, the customer shall be considered delinquent. The Cooperative will apply
and the Customer shall pay a late payment charge based on the Cooperative’s
policy of general application in effect at the time.

g.                        Disputed
Bills. The Customer shall pay all bills for services and/or energy on a
timely and in accordance with billing procedures herein contained even though
said charges may be disputed. If it is determined that the Customer is entitled
to a refund or credit for a disputed bill, the Cooperative shall, in addition
to the principal amount refunded or credited, pay interest on said amount at
the rate authorized for interest on judgments in the State of South Dakota.
Neither party shall be obligated to settle disputes by arbitration or mediation
without the mutual consent of the parties.

7.                         Commencement
and Termination.

a.                         Commencement
Date. This Agreement shall be in effect as of the date executed and the
Customer’s obligation to purchase electricity and to commence payments under
this agreement shall begin upon the startup of the commercial operation of the
Facility but no later than February 1, 2008, whichever occurs first. Electric
power requirements for plant construction prior to commercial operation shall
be subject to the Cooperative’s standard tariffs.

b.                        Minimum
Facilities Charge Obligation. In the event that this Agreement is
terminated less then 10 years after start up, except for default of the
Cooperative, and the Customer ceases to use the facilities described in Section
3a, the Customer agrees to pay to the Cooperative the equivalent of 10 years
(120 months) of Facility Charges that the Customer would have paid if the
agreement would have remained in effect for 10 years, less Facility Charge
payments already made by the Customer prior to termination.

c.                         Default
and Termination. The Customer shall be in default if it fails to timely pay
for service under this Agreement, if it breaches any other of its obligations
to the Cooperative, or if it becomes the subject of bankruptcy or insolvency
proceedings. If the Customer fails to cure that default within ten (10) days
the Cooperative may, after notice from the Cooperative, suspend or terminate
its further performance under this Agreement, disconnect electric service to the
Customer, terminate this Agreement, or take other action to address the

 5
 

Customer’s default. This provision shall not limit the
Cooperative’s right to take immediate action to suspend services if the
Customer’s act or omission interferes with the safe and efficient operation of
the Cooperative’s electric system, nor shall it limit the Cooperative’s right
to pursue any other or further remedy available to it by law.

d.                        Regulatory
Termination. Should the South Dakota Public Utilities Commission or any
court of competent jurisdiction fail to assign the customer to the Cooperative,
this contract shall be null and void.

8.                         Patronage
Capital Credits.

Service under the rates provided for in this Agreement
is subject to a special allocation of capital credits to the Customer by the
Cooperative. This allocation will take into account the unique cost assignment
associated with the market-based rates that are included in this Agreement. For
the purpose of this Agreement, the Customer acknowledges that it is not a natural
person under South Dakota law.

9.                         Disclaimer
of Warranty and Limitation of Liability.

Each party shall be responsible for its own facilities
and personnel provided or used in the performance of this Agreement. Neither
the Cooperative nor the Customer shall be responsible to the other party for
damage to or loss of any property, wherever located, unless the damage or loss
is caused by its own negligence or intentional conduct or by the negligence or
intentional conduct of that party’s officers, employees, or agents, in which
case the damage or loss shall be borne by the responsible party. Neither party
shall be responsible or liable to the other or to any other party for any
indirect, special or consequential damages, or for loss of revenues from any
cause.

10.                  Indemnification.

a.                         The
Customer shall assume all liability for and shall indemnify the Cooperative and
its members, trustees, directors, officers, managers, employees, agents,
representatives, affiliates, transmission provider, successors and assigns and
shall hold them harmless from and against any claims, losses, costs, and
expenses of any kind or character that result from Customer’s negligence or
wrongful conduct in connection with the design, construction, installation,
operation or maintenance of the Facility. Such indemnity shall include, but is
not limited to, financial responsibility for (a) monetary losses; (b)
reasonable cost and expenses of defending an action or claim; (c) damages
related to death or injury; and (d) damages to property; provided that Customer
shall not be liable for special, indirect, incidental, punitive or
consequential damages.

b.                        The
Cooperative shall assume all liability for and shall indemnify the Customer and
its directors, officers, managers, employees, agents, representatives,
affiliates, successors and assigns and shall hold them harmless from and
against any claims,

 6
 

losses, costs, and expenses of any kind or character
that result from Cooperative’s negligence or other wrongful conduct in
connection with the design, construction, installation, operation or
maintenance of its facilities. Such indemnity shall include, but is not limited
to, financial responsibility for (a) monetary losses; (b) reasonable cost and
expenses of defending an action or claim; (c) damages related to death or
injury; and (d) damages to property; provided that Cooperative shall not be
liable for special, indirect, incidental, punitive or consequential damages.

11.                  General.

a.                         Governing
Law. This Agreement and the rights and obligations of the parties hereunder
shall be construed in accordance with and shall be governed by the laws of the
State of South Dakota.

b.                        Notices.
All notices under this Agreement shall be given in writing and shall be
delivered electronically and mailed by first class mail to the respective
parties as follows:

To Customer:

Millennium Ethanol, LLC 

300 North Broadway 

Marion, SD 57043

To Cooperative:

Brad Schardin, Manager 

Southeastern Electric Cooperative, Inc. 

PO Box 388

Marion, SD 57043

c.                         No
Waiver. No course of dealing nor any failure or delay on the part of a
party in exercising any right, power or privilege under this Agreement shall
operate as a waiver of any such right, power or privilege. The rights and
remedies herein expressly provided are cumulative and not exclusive of any
rights or remedies, which a party would otherwise have.

d.                        Entire
Agreement/Amendment. This Agreement represents the entire Agreement between
the parties and may be changed, waived, or terminated only by written agreement
signed by both parties as set forth herein.

e.                         Assignment.
The Cooperative may not assign this Agreement without written consent of
Customer, which consent shall not be unreasonably withheld. The Customer may
not assign this Agreement without the written consent of the Cooperative, which
consent shall not be unreasonably withheld.

f.                           Severability.
Should any part, term or provision of this Agreement be, by a court of
competent jurisdiction, decided to be illegal or in conflict with any
applicable law, the validity of the remaining portions or provisions shall not
be affected thereby.

 7
 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be executed by their duly
authorized representatives, all as of the day and year first above written.

	
  Attest:

  	
   

  	
   

  	
  Southeastern Electric Cooperative, Inc.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Steve Holmberg

  	
   

  	
   

  	
  By:

  	
  /s/ Harley Bruns

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Secretary

  	
   

  	
   

  	
  Title:

  	
  President

  	
   

  
								

 

	
  Corporate Seal

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  	
  Millennium Ethanol, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Brent Edwards

  	
   

  	
   

  	
  By:

  	
  /s/ Steve Domm

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  C.F.O.

  	
   

  	
   

  	
  Title:

  	
  CEO

  	
   

  
								

 

Corporate Seal

	
  STATE OF SOUTH DAKOTA)

  
	
   

  	
  SS

  
	
  COUNTY OF Turner)

  

 

On this 18  day of July, 2006, before me John B. McDonald, the undersigned
office, personally appeared Harley Bruns, who acknowledged (him) herself to be
the President of Southeastern
Electric Cooperative, Inc., a South Dakota Corporation, and that (s)he as such
President, being authorized so to do, executed the foregoing instrument for the
purposes therein contained, by signing the name of the Corporation by
(him)herself as President.

IN WITNESS WHEREOF I hereunto
set my hand and official seal.

	
  

  	
   

  	
  /s/ John B. McDonald

  	
   

  
	
   

  	
   

  	
  Notary Public - State of South Dakota

  
	
   

  	
   

  	
  My commission expires

  	
  10/24/2011

  	
   

  
	
  [SEAL]

  	
   

  	
   

  
					

 

 8
 

 

	
  STATE OF SOUTH DAKOTA)

  
	
   

  	
  SS

  
	
  COUNTY OF Turner)

  

 

On this 14th day of July, 2006, before me Robin Smith, the
undersigned office, personally appeared Steve Domm, who acknowledged (him)
herself to be the C.E.O. of Millennium Ethanol, LLC, a South Dakota Limited
Liability Company, and that (s)he as such C.E.O., being authorized so to do,
executed the foregoing instrument for the purposes therein contained, by
signing the name of the Limited Liability Company by (him)herself as C.E.O..

IN WITNESS WHEREOF I
hereunto set my hand and official seal.

	
  

  	
   

  	
  /s/ Robin R. Smith

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Notary Public - State of South Dakota

  
	
   

  	
   

  	
  My commission expires

  	
  4/10/11

  	
   

  
	
  [SEAL]

  	
   

  	
   

  
					

 

 9
 

SOUTHEASTERN ELECTRIC COOPERATIVE,
INC.

MARION, SOUTH DAKOTA

LARGE POWER SERVICE -
MILLENNIUM ETHANOL, LLC

AVAILABILITY

Available to Millennium Ethanol, LLC ethanol facility located in
Section Thirty-one (31), Township One Hundred (100) North, Range Fifty-four
(54) West, Turner County, South Dakota, for commercial operation of the
facility. This schedule is not available for start-up or construction power and
is subject to the established rules and regulations of the Cooperative.

TYPE OF SERVICE

Multiple deliveries of alternating current, three-phase and
single-phase at voltages of 277/480, 120/208 volts and 4,160 volts.

MONTHLY PAYMENT

The Customer shall pay the Cooperative for services hereunder at the
following rates and conditions:

	
  Facilities Charge

  	
   

  	
  $

  	
  47,150.00

  	
   

  	
  per
  month, plus

  	
   

  
	
  Demand Charge

  	
   

  	
  $

  	
  8.85

  	
   

  	
  per
  kW, plus

  	
   

  
	
  Energy Charge

  	
   

  	
  $

  	
  .0217

  	
   

  	
  per kWh

  	
   

  

 

FACILITIES CHARGE

The Customer will pay a monthly Facilities Charge in the amount of
$47,150.00. The Facilities Charge will be adjusted if the Cooperative installs
additional facilities.

BILLING DEMAND

The billing demand shall be equal to the Customer’s contribution to the
monthly billing demand from the Cooperative’s power supplier, as determined by
a demand meter or otherwise, and may be adjusted for power factor.

MINIMUM BILLING DEMAND

The demand for billing purposes shall not be less than 2,000 kW for any
billing period.

MINIMUM CHARGES

The minimum monthly charge shall be the Facilities Charge plus the
Minimum Billing Demand Charge provision of this rate.

 10
 

POWER FACTOR ADJUSTMENT

The Customer agrees to maintain unity (100%) power factor as nearly as
possible. The demand charges may be adjusted to correct for average power
factors less than five percent (5%) unity (lagging) or greater than five
percent (5%) unity (leading) by increasing the measured demand one percent (1%)
for each one percent (1%) by which the average power factor is less than five
percent (5%) unity (lagging) or more than five percent (5%) unity (leading).

STATE AND MUNICIPAL TAXES

All applicable state and municipal sales tax and any other non-ad
valorem taxes imposed on electric sales shall be applied to monthly bills
rendered under this rate schedule unless the consumer is exempt from said tax
or taxes.

TERMS OF PAYMENT

All charges for service shall be paid to the Cooperative by electronic
funds transfer, which will be initiated by the Cooperative. The monthly billing
periods shall be from the first day of the month through the last day of the
month. Such charges shall be due and payable on the date of billing (on or
about the tenth of the month). If payment is not received by the Cooperative
within ten days of the due date, the Customer agrees that the Cooperative may
disconnect service to the facility until the payment is made. To secure the
payment of said electric service charges, the Customer shall pay to the
Cooperative the sum of $200,000 no later then 15 days prior to the startup of
commercial operation of the Facility or by February 1, 2008.

In the event the current monthly bill is not paid in accordance with
the payment dates indicated on the bill, a late payment penalty in effect at
the time shall apply.

EFFECTIVE

This rate tariff shall be in effect upon the startup of the commercial
operation of the Facility, but no later than February 1, 2008, whichever occurs
first.

 11

Exhibit “B”

SETTLEMENT
AGREEMENT AND 

SERVICE TERRITORY EXCEPTION AGREEMENT

This agreement is entered
into among Southeastern Electric Cooperative, Inc., P.O. Box 388, Marion, South
Dakota, 57043, (“Southeastern”), Northern States Power Company d/b/a Xcel Energy,
Sioux Falls Office, P.O. Box 988, Sioux Falls, SD, 57101-0988, (“Xcel Energy”),
and Millennium Ethanol LLC, 300 N. Broadway, Marion, SD 57043, (“Millennium
Ethanol”) as follows:

1.         Southeastern and Millennium Ethanol have entered into an
Electric Service Agreement dated July 18, 2006. As a result, Millennium has
filed two petitions with the South Dakota Public Utilities Commission (“Commission”)
seeking to receive temporary and permanent electric service to the proposed
Millennium Ethanol Plant to be located near Marion, South Dakota from
Southeastern. These petitions are docketed as EL06-022, requesting authority to
provide temporary electrical service to the Millennium Ethanol Plant location,
and EL06-023, seeking to provide permanent electrical service to the Millennium
Ethanol Plant under SDCL § 49-34A-56, the large load exception to the
territorial laws. Southeastern joined in both of Millennium’s Petitions. The
parties desire to enter into a Service Territory Exception Agreement in lieu of
proceeding to a conclusion in these dockets.

2.         The Millennium Ethanol Plant currently includes, but is not
limited to, the Ethanol Plant, grain handling facility, storage facility,
cooling facility, an office building and other associated facilities (“Millennium
Ethanol Plant Facilities”). The parties understand and agree that future
expansion to the Millennium Ethanol Plant Facilities will likely occur, and
this agreement specifically includes any such expansion owned and occupied by
Millennium Ethanol, or its successors, and directly devoted to the production
of Ethanol, Ethanol-related products, and byproducts, including all facilities
associated therewith.

3.         The location of the Millennium Ethanol Plant Facilities is
within four parcels of land described more fully as follows:

PARCEL 1:

The Southeast Quarter (SE1/4) of Section Thirty-one
(31), Township One Hundred (100) North, Range Fifty-four (54) West of the 5th P.M., except Tract 1, Engbrecht Addition in
said SE1/4, except the East Five Hundred Eighty Three Feet (E 583’) of the
North Fifteen Hundred Feet (N1,500’) of said SE1/4, except the East Five
Hundred Eighty Three Feet (E 583’) of the South Seven Hundred Eighteen Feet (S
718’) of said SE1/4 of said Section 31, except Lot H1 and Lot H2 in said SE1/4,
except Tract E and F, except 100’ South Dakota Railroad Authority Right-of-Way
in said SE1/4, all in Turner County, South Dakota.

Parcel 1 contains 5,373,489.7 S.F. (123.358 Acres)
including 61,158.55 S.F. (1.404 Acres) of Turner Co. Highway No. 18 Right-of-Way,
assuming 50’ of R.O.W. along described parcel, more or less.

PARCEL 2:

The East Half of the Southwest Quarter (E1/2SW1/4) of Section
Thirty-one (31), Township One Hundred (100) North, Range Fifty-four (54) West
of the 5th P.M., except Tract 1 and Tract 2 of Engbrecht
Tracts in the Southeast Quarter (SE1/4) of the Southwest (SW1/4) of said
Section 31, except Lot A in Tract 1 of Engbrecht Tracts in said SE1/4 of SW1/4
of said Section 31, except Tract D, Fremar’s Addition in the Southwest Quarter
(SW1/4) of Section of said Section 31, except 100’ South Dakota Railroad
Authority Right-of-Way in said (E1/2SW1/4), all in Turner County, South Dakota.

Parcel 2 contains 2,407,464.75 S.F. (55.268 Acres), more or less.

PARCEL 3:

Tracts B, C, D and E, Fremar’s Addition in the Southwest Quarter
(SW1/4) and the Southwest Quarter of the Southeast Quarter (SW1/4SE1/4) of
Section 31, Township One Hundred (100) North, Range fifty-four (54) West of the
5th P.M., Turner County, South Dakota.

Parcel 3 contains 1,446,057.94 S.F. (33.197 Acres) including 18,973.52
S.F. (0.436 Acres) of 446th Avenue
Right-of-Way and 5,679.23 S.F. (0.130 Acres) of Turner Co. Highway No. 18
Right-of-Way, assuming 50’ if R.O.W. along described parcel, more or less.

PARCEL 4:

A 110 foot strip of land running parallel to and immediately adjacent
to the South Dakota Railroad Authority northeasterly Right-of-Way in the
Southeast Quarter (SE1/4) of Section 36, Township One Hundred (100) North,
Range Fifty-five (55) West of the 5th P.M., Turner County, South Dakota.

Parcel 4 contains 94,722.21 S.F. (2.175 Acres) including 4,431.16 S.F.
(0.102 Acres) of 446th
Avenue Right-of-Way, more or less.

4.         This Service Territory Exception Agreement seeks a
modification of the existing service territories of Xcel Energy and
Southeastern, pursuant to SDCL § 49-34A-55. This agreement will eliminate a
duplication of facilities and will allow Southeastern to provide adequate
electric service to the Millennium Ethanol Plant Facilities.

5.         Xcel Energy and Southeastern agree that the composition of
their service territories may be changed upon approval of the Commission so
that Southeastern will be entitled to provide both temporary and permanent
electrical service to the location of the Millennium Ethanol Plant Facilities owned
by Millennium Ethanol or its successors. This agreement is limited to service
to the location of the Millennium Ethanol Plant Facilities owned and occupied
by Millennium Ethanol or its successors, including any expansion of said
facilities that are directly devoted to the production of ethanol,
ethanol-related products, and byproducts. Any land described in paragraph 3 of
this agreement not comprising a part of the location of the Millennium Ethanol
Plant Facilities is reserved for future use as part of the location, provided
that any change of ownership of any portion of said land to an owner which is
not Millennium Ethanol or its successor shall return that parcel to Xcel Energy’s
service territory

 2
 

6.         The parties agree that under the facts specifically
applicable to the Millennium Ethanol Plant Facilities, the customer’s interests
are best served by receiving service from Southeastern, and the parties have
thus agreed to this exception to the existing territorial boundaries as set
forth in the records of the Commission. This exception is not intended by the
parties to indicate either party’s consent to any other change in the service
territories of the parties.

7.         Upon approval by the Commission of this Service Territory
Exception Agreement, the parties agree that the two dockets mentioned above may
be dismissed with prejudice.

8.         It is mutually agreed that this agreement states the entire
agreement among the parties, incorporating and superseding all prior written or
oral agreements and negotiations among the parties. This agreement is binding
upon the successors and assigns of the parties.

	
  

  	
   

  	
   

  	
  SOUTHEASTERN ELECTRIC

  COOPERATIVE, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DATE:

  	
  12/18/06

  	
  BY:

  	
  /s/ Brad
  Schardin

  	
   

  
	
   

  	
   

  	
   

  	
  Brad Schardin,

  	
   

  
	
   

  	
   

  	
   

  	
  General
  Manager/CEO

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  NORTHERN STATES POWER
  COMPANY

  D/B/A XCEL ENERGY

  
	
   

  	
   

  	
   

  	
   

  
	
  DATE:

  	
  12/18/06

  	
  BY:

  	
  /s/ Kent Larson

  	
   

  
	
   

  	
   

  	
   

  	
  Kent Larson,
  Vice President

  	
   

  
	
   

  	
   

  	
   

  	
  of Customer and
  Community Service

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  MILLENNIUM
  ETHANOL, LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DATE:

  	
  12/18/06

  	
  BY:

  	
  /s/ Steve Domm

  	
   

  
	
   

  	
   

  	
   

  	
  Steve Domm,

  	
   

  
	
   

  	
   

  	
   

  	
  Chief Executive Officer

  	
   

  
							

 

 3

Exhibit “C”

BEFORE THE PUBLIC
UTILITIES COMMISSION 

OF THE STATE OF SOUTH
DAKOTA

	
  IN THE
  MATTER OF THE PETITION FOR

  	
  )

  	
  ORDER
  GRANTING

  
	
  ELECTRICAL
  SERVICE BY MILLENNIUM

  	
  )

  	
  APPROVAL
  OF A

  
	
  ETHANOL,
  LLC TO HAVE SOUTHEASTERN

  	
  )

  	
  TEMPORARY
  EXCEPTION

  
	
  ELECTRIC
  COOPERATIVE, INC. ASSIGNED

  	
  )

  	
  TO
  THE ASSIGNED

  
	
  AS ITS
  TEMPORARY ELECTRIC PROVIDER IN

  	
  )

  	
  ELECTRIC
  SERVICE

  
	
  THE
  SERVICE AREA OF XCEL ENERGY

  	
  )

  	
  TERRITORY

  
	
   

  	
  )

  	
  EL06-022

  

 

On July 24, 2006, the
South Dakota Public Utilities Commission (Commission) received a petition from
Millennium Ethanol, LLC (Millennium) for approval of Southeastern Electric
Cooperative, Inc. (Southeastern) to provide temporary electric service to
Millennium’s ethanol plant location in Sections 31 and 36, Township 100 North,
Range 54 West in Turner County, South Dakota in Xcel’s service territory as
Xcel is allegedly unable to meet Millennium’s timing requirements for temporary
electric service. A petition for Southeastern to provide permanent electric
service under the provisions of SDCL 49-34A-56 was concurrently filed in Docket
EL06-023.

On July 27, 2006, the
Commission electronically transmitted notice of the filing and the intervention
deadline of August 11, 2006, to interested individuals and entities. No
petitions to intervene or comments were filed.

On December 18, 2006, the
Commission received a Settlement Agreement and Service Territory Exception
Agreement signed by the parties (Settlement Agreement). The Settlement
Agreement is attached hereto as Attachment A and incorporated herein by
reference. Southeastern and Xcel are requesting an exception, pursuant to SDCL
49-34A-55 that would allow Southeastern to provide temporary electric service
at a site located in the following tracts of land in South Dakota:

Parcel 1:

The SE1/4 of Section 31, Township 100 North, Range 54
West of the 5th P.M., except Tract 1, Engbrecht Addition in
said SE1/4, except the East 583 Feet of the North 1,500 Feet of said SE1/4,
except the East 583 Feet of the South 718 Feet of said SE1/4 of said Section
31, except Lot H1 and Lot H2 in said SE1/4, except Tract E and F, except 100
Feet South Dakota Railroad Authority Right-of-Way in said SE1/4, all in Turner
County, South Dakota.

Parcel 1 contains 5,373,489.7 S.F. (123.358 Acres)
including 61,158.55 S.F. (1,404 Acres) of Turner County Highway No. 18
Right-of-Way, assuming 50 Feet of Right-of-Way along described parcel, more or
less.

assigned service territory is in the public interest
and the request shall be granted. It is therefore

ORDERED, that the request
seeking approval of a temporary exception to the assignment of service
territory is hereby granted.

Dated at Pierre, South
Dakota, this 9th day of January, 2007.

	
  CERTIFICATE OF SERVICE

  	
   

  	
  BY ORDER OF THE COMMISSION:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  The undersigned hereby certifies that this document
  has been served today upon all parties of record in this docket, as listed on
  the docket service list, by facsimile or by first class mall, in properly
  addressed envelopes, with charges prepaid thereon.

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ Dustin M. Johnson

  	
   

  
	
   

  	
  DUSTIN M. JOHNSON, Chairman

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Illegible

  	
   

  	
  /s/ Gary Hanson

  	
   

  
	
  Date:

  	
  1/12/07

  	
   

  	
  GARY HANSON, Commissioner

  	
   

  
	
  (OFFICIAL SEAL)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Steve Kolbeck

  	
   

  
	
   

  	
   

  	
  STEVE KOLBECK, Commissioner

  	
   

  
						

 

 3

PARCEL 2:

The East Half of the Southwest Quarter (E1/2SW1/4) of Section
Thirty-one (31), Township One Hundred (100) North, Range Fifty-four (54) West
of the 5th P.M., except Tract 1 and Tract 2 of Engbrecht
Tracts in the Southeast Quarter (SE1/4) of the Southwest (SW1/4) of said
Section 31, except Lot A in Tract 1 of Engbrecht Tracts in said SE1/4 of SW1/4
of said Section 31, except Tract D, Fremar’s Addition in the Southwest Quarter
(SW1/4) of Section of said Section 31, except 100’ South Dakota Railroad Authority
Right-of-Way in said (E1/2SW1/4), all in Turner County, South Dakota.

Parcel 2 contains 2,407,464.75 S.F. (55,268 Acres), more or less.

PARCEL 3:

Tracts B, C, D and E, Fremar’s Addition in the Southwest Quarter
(SWl/4) and the Southwest Quarter of the Southeast Quarter (SW1/4SE1/4) of
Section 31, Township One Hundred (100) North, Range fifty-four (54) West of the
5th P.M., Turner County, South Dakota.

Parcel 3 contains 1,446,057.94 S.F. (33.197 Acres) including 18,973.52
S.F. (0.436 Acres) of 446th Avenue Right-of-Way and 5,679.23
S.F. (0.130 Acres) of Turner Co. Highway No. 18 Right-of-Way, assuming 50’ if
R.O.W. along described parcel, more or less.

PARCEL 4:

A 110 foot strip of land running parallel to and immediately adjacent
to the South Dakota Railroad Authority northeasterly Right-of-Way in the
Southeast Quarter (SE1/4) of Section 36, Township One Hundred (100) North,
Range Fifty-five (55) West of the 5th P.M., Turner County, South Dakota.

Parcel 4 contains 94,722.21 S.F. (2.175 Acres) including 4,431.16 S.F.
(0.102 Acres) of 446th  Avenue Right-of-Way, more or
less.

4.         This Service Territory Exception Agreement seeks a
modification of the existing service territories of Xcel Energy and
Southeastern, pursuant to SDCL § 49-34A-55. This agreement will eliminate a
duplication of facilities and will allow Southeastern to provide adequate
electric service to the Millennium Ethanol Plant Facilities.

5.         Xcel Energy and Southeastern agree that the composition of
their service territories may be changed upon approval of the Commission so
that Southeastern will be entitled to provide both temporary and permanent
electrical service to the location of the Millennium Ethanol Plant Facilities
owned by Millennium Ethanol or its successors. This agreement is limited to
service to the location of the Millennium Ethanol Plant Facilities owned and
occupied by Millennium Ethanol or its successors, including any expansion of
said facilities that are directly devoted to the production of ethanol,
ethanol-related products, and byproducts. Any land described in paragraph 3 of
this agreement not comprising a part of the location of the Millennium Ethanol
Plant Facilities is reserved for future use as part of the location, provided
that any change of ownership of any portion of said land to an owner which is
not Millennium Ethanol or its successor shall return that parcel to Xcel Energy’s
service territory

 2
 

6.         The parties agree that under the facts specifically
applicable to the Millennium Ethanol Plant Facilities, the customer’s interests
are best served by receiving service from Southeastern, and the parties have
thus agreed to this exception to the existing territorial boundaries as set
forth in the records of the Commission. This exception is not intended by the
parties to indicate either party’s consent to any other change in the service
territories of the parties.

7.         Upon approval by the Commission of this Service Territory
Exception Agreement, the parties agree that the two dockets mentioned above may
be dismissed with prejudice.

8.         It is mutually agreed that this agreement states the entire
agreement among the parties, incorporating and superseding all prior written or
oral agreements and negotiations among the parties. This agreement is binding
upon the successors and assigns of the parties.

	
  

  	
   

  	
   

  	
  SOUTHEASTERN ELECTRIC 

  COOPERATIVE, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DATE:

  	
  12/18/06

  	
  BY:

  	
  /s/ Brad
  Schardin

  	
   

  
	
   

  	
   

  	
   

  	
  Brad Schardin,

  	
   

  
	
   

  	
   

  	
   

  	
  General
  Manager/CEO

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  NORTHERN STATES POWER
  COMPANY

  D/B/A XCEL ENERGY

  
	
   

  	
   

  	
   

  	
   

  
	
  DATE:

  	
  12/18/06

  	
  BY:

  	
  /s/ Kent Larson

  	
   

  
	
   

  	
   

  	
   

  	
  Kent Larson,
  Vice President

  	
   

  
	
   

  	
   

  	
   

  	
  of Customer and
  Community Service

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  MILLENNIUM
  ETHANOL, LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DATE:

  	
  12/18/06

  	
  BY:

  	
  /s/ Steve Domm

  	
   

  
	
   

  	
   

  	
   

  	
  Steve Domm,

  	
   

  
	
   

  	
   

  	
   

  	
  Chief Executive Officer

  	
   

  
							

 

 3

Exhibit D

BEFORE THE PUBLIC
UTILITIES COMMISSION

OF THE STATE OF SOUTH DAKOTA

	
  IN THE
  MATTER OF THE PETITION FOR

  	
  )

  	
  ORDER
  GRANTING

  
	
  ELECTRICAL
  SERVICE BY MILLENNIUM

  	
  )

  	
  APPROVAL
  OF AN

  
	
  ETHANOL,
  LLC TO HAVE SOUTHEASTERN

  	
  )

  	
  EXCEPTION
  TO THE

  
	
  ELECTRIC
  COOPERATIVE, INC. ASSIGNED

  	
  )

  	
  ASSIGNED
  ELECTRIC

  
	
  AS ITS
  ELECTRIC PROVIDER IN THE

  	
  )

  	
  SERVICE
  TERRITORY

  
	
  SERVICE
  AREA OF XCEL ENERGY

  	
  )

  	
  EL06-023

  
	
   

  	
  )

  	
   

  

 

On July 24, 2006, the
South Dakota Public Utilities Commission (Commission) received a petition from
Millennium Ethanol, LLC (Millennium) for approval of Southeastern Electric
Cooperative, Inc. (Southeastern) to provide permanent electric service to
Millennium’s ethanol plant location in Sections 31 and 36, Township 100 North,
Range 54 West in Turner County, South Dakota in Xcel’s service territory. The
petition states that Millennium believes Southeastern can furnish electric
service to meet the customer’s needs consistent with the factors of SDCL
49-34A-56 and that the customer has a strong preference to be served by Southeastern.
A petition for Southeastern to provide temporary electric service under the
provisions of SDCL 49-34A-56 was concurrently filed in Docket EL06-022.

On July 27, 2006, the
Commission electronically transmitted notice of the filing and the intervention
deadline of August 11, 2006, to interested individuals and entities. No
petitions to intervene or comments were filed.

On December 18, 2006, the
Commission received a Settlement Agreement and Service Territory Exception
Agreement signed by the parties (Settlement Agreement). The Settlement
Agreement is attached hereto as Attachment A and incorporated herein by
reference. Southeastern and Xcel are requesting an exception, pursuant to SDCL
49-34A-55 that would allow Southeastern to provide electric service at a site
located in the following tracts of land in South Dakota:

Parcel 1:

The SE1/4 of Section 31, Township 100 North, Range 54
West of the 5th P.M., except Tract 1, Engbrecht Addition in
said SE1/4, except the East 583 Feet of the North 1,500 Feet of said SE1/4,
except the East 583 Feet of the South 718 Feet of said SE1/4 of said Section
31, except Lot H1 and Lot H2 in said SE1/4, except Tract E and F, except 100
Feet South Dakota Railroad Authority Right-of-Way in said SE1/4, all in Turner
County, South Dakota.

Parcel 1 contains 5,373,489.7 S.F. (123.358 Acres)
including 61,158.55 S.F. (1,404 Acres) of Turner County Highway No. 18
Right-of-Way, assuming 50 Feet of Right-of-Way along described parcel, more or
less.

Southeastern and Xcel. Further, the Commission finds
that an exception to the assigned service territory is in the public interest
and the request shall be granted. It is therefore

ORDERED, that the request
seeking approval of an exception to the assignment of service territory is
hereby granted.

Dated at Pierre, South
Dakota, this 9th day of January, 2007.

	
  CERTIFICATE OF
  SERVICE

  The undersigned hereby certifies that this document
  has been served today upon all parties of record in this docket, as listed on
  the docket service list, by facsimile or by first class mail, in properly
  addressed envelopes with charges prepaid thereon.

  By: /s/ [Illegible]

  Date:1/12/07

  	
   

  	
  BY ORDER OF THE
  COMMISSION:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Dustin M.
  Johnson

  	
   

  
	
   

  	
  DUSTIN M.
  JOHNSON, Chairman

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Gary Hanson

  	
   

  
	
   

  	
  GARY HANSON,
  Commissioner

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Steve
  Kolbeck

  	
   

  
	
  (OFFICIAL SEAL)

  	
   

  	
  STEVE KOLBECK,
  Commissioner

  	
   

  

 

PARCEL 2:

The East Half of the Southwest Quarter (E1/2SW1/4) of Section
Thirty-one (31), Township One Hundred (100) North, Range Fifty-four (54) West
of the 5th P.M., except Tract 1 and Tract 2 of Engbrecht
Tracts in the Southeast Quarter (SE1/4) of the Southwest (SW1/4) of said
Section 31, except Lot A in Tract 1 of Engbrecht Tracts in said SE1/4 of SW1/4
of said Section 31, except Tract D, Fremar’s Addition in the Southwest Quarter
(SW1/4) of Section of said Section 31, except 100’ South Dakota Railroad Authority
Right-of-Way in said (E1/2SW1/4), all in Turner County, South Dakota.

Parcel 2 contains 2,407,464.75 S.F. (55.268 Acres), more or less.

PARCEL 3:

Tracts B, C, D and E, Fremar’s Addition in the Southwest Quarter
(SW1/4) and the Southwest Quarter of the Southeast Quarter (SW1/4SE1/4) of
Section 31, Township One Hundred (100) North, Range fifty-four (54) West of the
5th P.M., Turner County, South Dakota.

Parcel 3 contains 1,446,057.94 S.F. (33.197 Acres) including 18,973.52
S.F. (0.436 Acres) of 446th Avenue
Right-of-Way and 5,679.23 S.F. (0.130 Acres) of Turner Co. Highway No. 18
Right-of-Way, assuming 50’ if R.O.W. along described parcel, more or less.

PARCEL 4:

A 110 foot strip of land running parallel to and immediately adjacent
to the South Dakota Railroad Authority northeasterly Right-of-Way in the
Southeast Quarter (SE1/4) of Section 36, Township One Hundred (100) North,
Range Fifty-five (55) West of the 5th P.M.,  Turner
County, South Dakota.

Parcel 4 contains 94,722.21 S.F. (2.175 Acres) including 4,431.16 S.F.
(0.102 Acres) of 446th
Avenue Right-of-Way, more or less.

4.   This Service Territory
Exception Agreement seeks a modification of the existing service territories of
Xcel Energy and Southeastern, pursuant to SDCL § 49-34A-55. This agreement will
eliminate a duplication of facilities and will allow Southeastern to provide
adequate electric service to the Millennium Ethanol Plant Facilities.

5.   Xcel Energy and Southeastern
agree that the composition of their service territories may be changed upon
approval of the Commission so that Southeastern will be entitled to provide
both temporary and permanent electrical service to the location of the
Millennium Ethanol Plant Facilities owned by Millennium Ethanol or its
successors. This agreement is limited to service to the location of the
Millennium Ethanol Plant Facilities owned and occupied by Millennium Ethanol or
its successors, including any expansion of said facilities that are directly
devoted to the production of ethanol, ethanol-related products, and byproducts.
Any land described in paragraph 3 of this agreement not comprising a part of
the location of the Millennium Ethanol Plant Facilities is reserved for future
use as part of the location, provided that any change of ownership of any portion
of said land to an owner which is not Millennium Ethanol or its successor shall
return that parcel to Xcel Energy’s service territory

 2
 

6.   The parties agree that under
the facts specifically applicable to the Millennium Ethanol Plant Facilities,
the customer’s interests are best served by receiving service from
Southeastern, and the parties have thus agreed to this exception to the
existing territorial boundaries as set forth in the records of the Commission.
This exception is not intended by the parties to indicate either party’s consent
to any other change in the service territories of the parties.

7.   Upon approval by the Commission
of this Service Territory Exception Agreement, the parties agree that the two
dockets mentioned above may be dismissed with prejudice.

8.   It is mutually agreed that this
agreement states the entire agreement among the parties, incorporating and
superseding all prior written or oral agreements and negotiations among the
parties. This agreement is binding upon the successors and assigns of the
parties.

	
   

  	
   

  	
   

  	
  SOUTHEASTERN
  ELECTRIC 

  COOPERATIVE, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  DATE: 

  	
  12/18/06

  	
   

  	
  BY:

  	
   

  	
  /s/ Brad
  Schardin

  	
   

  
	
   

  	
   

  	
   

  	
  Brad Schardin,

  General Manager/CEO

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  NORTHERN STATES
  POWER COMPANY

  D/B/A XCEL ENERGY

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  DATE: 

  	
  12/18/06

  	
   

  	
  BY:

  	
   

  	
  /s/ Kent Larson

  	
   

  
	
   

  	
   

  	
   

  	
  Kent Larson,
  Vice President

  of Customer and Community Service

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  MILLENNIUM
  ETHANOL, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  DATE: 

  	
  12/18/06

  	
   

  	
  BY:

  	
   

  	
  /s/ Steve Domm

  	
   

  
	
   

  	
   

  	
   

  	
  Steve Domm,

  Chief Executive Officer

  

 

 3

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