Document:

Exhibit 10.1

 

AGREEMENT FOR INDIVIDUALLY-CONTRACTED

FIRM NATURAL GAS TRANSPORTATION SERVICE

 

This Agreement for individually-contracted firm natural gas
transportation service (hereafter referred to as the “Agreement”) is made this
8th day of April, 2004, by and between WISCONSIN POWER AND LIGHT
COMPANY, a Wisconsin corporation engaged in the distribution of natural gas,
4902 North Biltmore Lane, Madison, Wisconsin 53718-2148 (hereafter referred to
as “WPL”) and UNITED WISCONSIN GRAIN PRODUCERS, LLC, a Wisconsin limited
liability company, located at W1231 Tessman Road Cambria, Wisconsin 53923
(hereafter referred to as “Buyer”).

 

WHEREAS, Buyer has requested that WPL provide firm natural gas
transportation service for the Project (as defined below), and WPL has agreed
to provide such service; and

 

WHEREAS, Wisconsin Statutes Section 196.194(2) enables a Wisconsin
natural gas distribution utility to enter into an individual contract if the
customer has substitute gas services available; and

 

WHEREAS, WPL has filed with the Public Service Commission Wisconsin
(“PSCW”) a Contracted Service Rate tariff, as required by Wis. Stat.
Section 196.194(2); and

 

WHEREAS, the Transportation Rate (as defined below) incorporated in
this Agreement has been established with the intent of meeting the compensatory
standard, as required by Wis. Stat. Section 196.194(2); and

 

WHEREAS, Buyer meets the Availability conditions stated in the tariff,
including the demonstration of a bona fide ability to obtain substitute fuel
services.

 

NOW THEREFORE, in consideration of the mutual agreements contained
herein, WPL and Buyer stipulate and agree as follows:

 

ARTICLE I

PURPOSE

 

1.0                              The
purpose of this Agreement is to set forth the general terms and conditions
under which Buyer may purchase individually-contracted natural gas
transportation service and under which WPL agrees to provide such service.

 

* Portions omitted pursuant to a request
for confidential treatment and filed separately with the Securities and
Exchange Commission.

 

1

 

ARTICLE II

DEFINITIONS

 

2.0                                Balancing
Period – The interval used by WPL to calculate differences between Buyer’s
Transportation Gas Delivered and Transportation Gas Received.

 

2.1                                Buyer’s
Pooling Agent – The Pooling Agent or Agents whom Buyer has designated to WPL
will act on behalf of the Buyer for a given Balancing Period.

 

2.2                                Construction
Costs – The direct and indirect costs incurred by WPL with respect to the
construction of the Gas Delivery Facilities.

 

2.3                                Gas
Delivery Facilities – The gas main and associated facilities to be installed by
WPL to provide an interconnection between the Project and the Pipeline gate
station, with capacity of at least 8000 dekatherms per day of natural gas
transportation service to Buyer’s Project.

 

2.4                                Pipeline
– ANR Pipeline Company or any successor interstate pipeline company that
delivers the Buyer’s purchased gas from producers to the point at which the
Pipeline’s gate station and WPL’s Gas Delivery Facilities interconnect.

 

2.5                                Pipeline
Transportation Agreement – An agreement executed by Buyer or on behalf of Buyer
for the delivery of natural gas supplies via an interstate pipeline company to
the Pipeline gate station.

 

2.6                                Project
– Buyer’s dry mill, fuel grade ethanol plant to be built by Buyer at Buyer’s
expense in Friesland, Wisconsin.

 

2.7                                Transportation
Gas Delivered – The volume of natural gas (expressed in dry dekatherms)
conveyed by WPL to Buyer as determined by measuring equipment which WPL will
own and operate at Buyer’s facilities for measuring natural gas deliveries.

 

2.8                                Transportation
Gas Received – The volume of natural gas (expressed in dry dekatherms), which
an interstate pipeline transporter delivers on behalf of Buyer to WPL through
the Pipeline gate station connected to WPL’s Gas Delivery Facilities pursuant
to a Pipeline Transportation Agreement.

 

2.9                                Transportation
Rate – The total of the rates set forth in Sections 4.1 and 4.2 of this
Agreement.

 

2.10                          Utility
Service Rate Schedule and Riders – WPL Volume III Rate Book Schedules and
Riders, or successors thereto.  Such
rate schedules and riders shall govern the terms and conditions associated with
natural gas transportation service under this Agreement, but not the rates and
surcharges which apply.

 

2

 

ARTICLE III

FACILITIES CONSTRUCTION

 

3.0                                Pursuant
to the Utility Service Rate Schedule and Riders, WPL shall construct or
cause to be constructed, and shall own, operate, and maintain the Gas Delivery
Facilities to render the natural gas transportation service contemplated by
this Agreement.  The Gas Delivery
Facilities include Town Border Station pipeline upgrades, pipeline facilities,
measurement and telemetry equipment, heating, regulation, and other gas conditioning
facilities.

 

ARTICLE IV

SERVICE AND RATES

 

4.0                                Service
Volumes and Terms

 

Subject to the provisions herein (including, without limitation,
Section 5.2), during the term of this Agreement, WPL agrees to transport
and deliver to Buyer the Transportation Gas Received, as defined herein, to a
maximum of 8,000 dekatherms per day of Transportation Gas Received at a
regulated pressure of 60 psig at the meterset. 
Buyer agrees that it will commence using WPL’s gas transportation
service no later than May 1, 2005 (the “Target Commencement Date”).  Buyer shall commence payment for such
service pursuant to Clauses 4.1 and 4.2 below upon the Target Commencement Date
or when the meter registers a measurable flow of gas for two or more
consecutive days, whichever is earlier (the “Billing Commencement Date”).

 

WPL shall transport and deliver any volumes of Transportation Gas
Received in excess of 8,000 dekatherms per day if approved by WPL prior to
transportation and delivery and if facilities and capacity are available to do
so.  If either is not available, WPL
shall nonetheless endeavor to provide the gas transportation service through
the installation of additional Gas Delivery Facilities, at additional cost to
be negotiated by Buyer and WPL.  WPL’s
approval shall not be unreasonably withheld or delayed.

 

Buyer and WPL agree that the Transportation Gas Received under this
Agreement shall be governed by the terms and conditions of service of Buyer’s
applicable Utility Service Rate Schedule and Riders, but that the Transportation
Rate, and any associated surcharges, will be governed solely by this
Agreement.  Buyer is solely responsible
for making arrangements for the Transportation Gas Received, that is,
contracting and paying for the purchase of the natural gas and for the delivery
through an interstate pipeline transporter of the natural gas to the
interconnection between the Pipeline gate station and WPL’s Gas Delivery
Facilities.

 

Effective with the Billing Commencement Date, the Buyer agrees to pay a
minimum annual amount to WPL that is equal to the annual billings for 1,400,000
dekatherms of Transportation Gas Delivered, for the Transportation Rate
components detailed in sections 4.1 and 4.2 below.  This amount will be reconciled annually following the end of

 

3

 

each calendar year, prorated for the first year from the Billing
Commencement Date through December 31 and for the last year from
January 1 through the termination date, and any shortfall amount will be
billed by WPL and paid by Buyer in accordance with Section 4.5 below.  Any event within WPL’s control that requires
curtailment will lower the above minimum annual billing volume of 1,400,000
dekatherms by 4,000 dekatherms for each day of curtailment.

 

4.1                                Transportation
Rate

 

Buyer will pay WPL each month a service fee of [*]. Buyer will also pay
WPL [*] for each dekatherm for the first 1,400,000 dekatherms of Transportation
Gas Delivered to Buyer by WPL.  Each
additional dekatherm consumed by Buyer above the 1,400,000 dekatherm threshold
will be billed by WPL to Buyer at [*]/dekatherm.

 

4.2                                Administration
Charge

 

Buyer will pay WPL each month an Administration Charge of [*] to
recover costs associated with billing and administration of their account.

 

4.3                                FERC
Mandated Non-gas Surcharges

 

Buyer is responsible for any FERC mandated non-gas surcharges including
without limitation, Take or Pay Recovery, Dakota Cost Recovery, Gas Industry
Transition Cost Recovery, Gas Research Institute Charges, and Annual Cost Adjustment
Charges which are rightfully and properly assessed by the Pipeline or any other
entity related to the Transportation Gas Delivered.  Buyer will reimburse and indemnify WPL for any such FERC mandated
non-gas surcharges billed by the Pipeline or any other entity to WPL with
respect to any natural gas delivered to Buyer pursuant to this Agreement.

 

4.4                                Adjustment
of Transportation Rate

 

If, at any time subsequent to the effective date of this Agreement, the
Public Service Commission of Wisconsin (1) in any way indicates that it intends
to review, or initiates an inquiry or proceeding to review whether the
Transportation Rate is compensatory under Wis. Stat. Section 196.194(2),
or (2) determines that the Transportation Rate is not compensatory, each party
shall provide the other with immediate notice of any such PSCW inquiry,
proceeding, intention, or determination and shall provide the other with any
correspondence or other documentation related to any PSCW inquiry, proceeding,
intention, or determination.  The
parties agree to negotiate in good faith to amend Sections 4.1 and 4.2 of this
Agreement to resolve any PSCW concerns regarding the amount of the
Transportation Rate.

 

4.5                                Billing

 

WPL will bill Buyer by the terms of this Agreement on a monthly basis,
with the invoice

 

* Portions omitted pursuant to a request
for confidential treatment and filed separately with the Securities and
Exchange Commission.

 

4

 

to be received by Buyer at least fifteen (15) days before the due date
thereof.  Buyer will remit payment for
each invoice within fifteen (15) days after receipt of each invoice.

 

4.6                                Taxes

 

Buyer shall be responsible for any and all taxes and royalties imposed
by any governmental agency, if any, on WPL with respect to the Transportation
Gas Delivered for the benefit of Buyer through the Gas Delivery Facilities.

 

4.7                                Additional
Services

 

Nothing in this Agreement will preclude the parties from entering into
agreements for additional services to Buyer, and the payment therefor, to the
extent the parties mutually agree.

 

ARTICLE V

SERVICE CONDITIONS

 

5.0                                Title

 

Buyer warrants that it shall have good title to the Transportation Gas
Received by WPL on Buyer’s behalf at the Pipeline gate station for transportation
hereunder and that such quantities shall be free and clear of all liens,
encumbrances, and adverse claims whatsoever which would interfere with or make
wrongful WPL’s transportation of same.

 

5.1                                Balancing
Service

 

Buyer accepts the balancing services set forth in the applicable
Utility Service Rate Schedules and Riders during the term of this Agreement so
that any positive or negative imbalances can be liquidated during a balancing
period.

 

5.2                                Continuity
of Service and Interruptions

 

WPL shall use commercially reasonable diligence to provide Buyer with
firm gas transportation service, but shall not be liable for interruptions,
deficiencies, or imperfections in service resulting from causes that are beyond
its reasonable control.  WPL shall not
be held liable for interruptions, deficiencies, or imperfections in service
resulting from inadequate gas supply. 
Further, WPL shall not be held liable for any interruptions,
deficiencies, or imperfections in service due in any way to the Pipeline’s
failure or inability to deliver gas to WPL at sufficient pressure in order for
WPL to deliver the Transportation Gas Received to Buyer.

 

5

 

5.3                                Conduct
of Operations

 

Buyer shall conduct its operations in such a manner as to avoid any
damage to person or property resulting from cessation or restriction of
deliveries of transportation gas to Buyer hereunder.

 

5.4                                Additional
Customers

 

WPL may serve additional customers from the Gas Delivery
Facilities.   However, WPL shall not
serve any other subsequent customer if service to such customer would cause WPL
not to fulfill its obligations to Buyer under Section 4.0 or increase the
cost to Buyer over the rates set forth in this Agreement.

 

ARTICLE VI

TERM

 

6.0                                Term

 

The term of this Agreement shall commence on the date on which this
Agreement is executed by both WPL and Buyer, and shall terminate five (5) years
thereafter.

 

Termination of this Agreement shall be subject to final balancing of
quantities in accordance with the provisions of this Agreement and interstate
pipeline requirements on balancing. 
Obligations to pay monies due for service provided hereunder shall not
be affected by and shall survive the termination of this Agreement.

 

ARTICLE VII

GOVERNING LAW AND EFFECT OF FURTHER ORDERS OR
REGULATIONS

 

7.0                                This
Agreement shall be governed by and interpreted in accordance with the laws of
the State of Wisconsin.  This Agreement
and the services performed hereunder are subject to all valid laws, orders,
rules, and regulations of duly constituted authorities having
jurisdiction.  This Agreement and
Amendments are subject to approval by the Public Services Commission of
Wisconsin as an Individual Contract under Wis. Stat. Section 196.194(2).

 

ARTICLE VIII

CONFIDENTIALITY REQUIREMENTS

 

8.0                                This
Agreement shall be filed by WPL with the PSCW under rules of confidentiality
within 20 days of execution. Other than said filing, both Buyer and WPL agree
not to provide any information regarding this Agreement or the Transportation
Rate to any other parties (unless required to do so by a duly constituted
governmental or regulatory body) as long as this Agreement is in force.  If a duly constituted governmental or
regulatory body does request information regarding this Agreement or the
Transportation Rate, both Buyer and WPL agree to provide the other with notice
at least five (5) days before the date of making such requested disclosure so
that the other party to this Agreement may intervene in any proceeding which
may affect the ultimate disclosure of this Agreement

 

6

 

or the Transportation Rate. 
Further, Buyer and WPL agree that information regarding this Agreement
or the Transportation Rate may be disclosed to individuals or organizations who
are not parties to this Agreement if prior written consent is received from the
other party to this Agreement.  Finally,
either party to this Agreement may disclose the terms of this Agreement to any
of its employees or agents including employees or agents of its affiliate
companies, excluding WPL’s nonpublic utility power marketing affiliates, on a
need-to-know basis.

 

ARTICLE IX

EVENTS OF DEFAULT

 

9.0                                Either
party which asserts that a breach or default of this Agreement has occurred
shall promptly give the alleged defaulting party written notice of the asserted
default which specifies the nature of the breach.  The following events constitute Events of Default hereunder:

 

a.                                       Except with
respect to instances where WPL breaches its obligations under Section 4.0
above, if either party breaches or fails to observe or perform any other
material term, covenant, agreement, or obligation of this Agreement, unless: a)
within thirty (30) days after written notice from the non-defaulting party
specifying the nature of such breach or failure, the defaulting party cures
said default, or if the breach or failure cannot be reasonably cured within
thirty (30) days, then within such longer period as the parties may agree in
writing; or b) within thirty (30) days after the written notice of default the
defaulting party provides the non-defaulting party with a notice of dispute
pursuant to Section 11.1 and cures any part of the breach or failure not
subject to dispute within the original thirty (30) day notice period or if not
curable within that time, within such longer period as the parties may agree in
writing.

 

b.                                      Any
representation or warranties herein shall prove to have been incorrect when
made or deemed made.

 

c.                                       If either party
is dissolved, or its existence is terminated, or its business is discontinued,
unless this Agreement is assigned to a successor pursuant to Article XII,
or unless a majority of the owners elect to continue its business under a
successor company, and such company notifies the non-defaulting party of its
intention to assume the defaulting party’s obligations under this Agreement
within thirty (30) days of such dissolution, termination, or discontinuation.

 

d.                                      If WPL breaches
its obligations under Section 4.0 unless within twenty-four (24) hours
after notice from the Buyer, WPL cures the breach.

 

7

 

9.1                                Remedies
Upon Default.  Subject to the dispute
resolution and arbitration procedures in Article XI, upon the occurrence
of an Event of Default by a party, or if otherwise permitted under this
Agreement, the non-defaulting party may exercise all remedies available at law
or at equity or other appropriate proceedings.

 

a.                                       The
non-defaulting party may seek recovery of amounts due and unpaid by the defaulting
party, and/or for damages and expenses resulting from the Event of Default,
which shall include all costs and expenses reasonably incurred in the exercise
of its remedy (including reasonable attorney’s fees).

 

b.                                      If the Event of
Default relates to the failure of WPL to provide Transportation Gas pursuant to
the terms of this Agreement, Buyer shall have the right to specific performance
of WPL’s obligation to provide Transportation Gas as required under this
Agreement.

 

c.                                       If a material
Event of Default occurs, the non-defaulting party may, without recourse to
legal process, terminate this Agreement by delivery of a written notice to the
defaulting party declaring termination, without liability to the non-defaulting
date of termination.  To exercise this
option, the non-defaulting party must deliver the written notice of termination
while the material Event of Default is continuing or within ninety (90) days
after the Event of Default has been cured by the defaulting party.  If the notice of termination is not
delivered within that time period, the non-defaulting party may not terminate
this Agreement for that Event of Default. 
Any such notice of termination shall be effective ninety (90) days after
receipt by the defaulting party.

 

9.2                                Effect
of Termination.  No termination of this
Agreement following any Event of Default shall relieve the defaulting party of
its liability and obligations arising hereunder prior to the effective date of
termination.

 

9.3                                Limitation
of Liability.  Neither party shall be
entitled to seek incidental, consequential, indirect, special, or exemplary
damages, including, without limitation, any damages for lost profits or
production.

 

ARTICLE X

FORCE MAJEURE

 

10.0                          Neither
WPL nor Buyer shall be liable for any loss or damage of any nature suffered or
incurred as a result of any failure or delay in performance due to Force
Majeure, except for payment obligations of Buyer hereunder.  For the purpose of this Agreement, Force
Majeure shall mean any circumstance, event, act, or force not resulting from
the fault or negligence of the party claiming Force Majeure which is beyond the
control of the party claiming Force Majeure, including, but not limited
to:  any strikes, lockouts, or labor
disputes; fires or explosions; acts of God; acts or omissions of third parties
not under the control of WPL or Buyer; acts of the public enemy; riots;
incendiaries; sabotage; terrorist activity or threat of terrorist activity
which, under the circumstances, would be considered

 

8

 

to be a precursor to actual terrorist activity; economic sanction or
embargo; earthquake; abnormal weather conditions, action of the elements,
floods, lightening, or wind; unavailability of equipment, supplies, or
products; interference by civil or military authorities; compliance with the
laws of the United States of America or with the orders or policies, laws, or
rules of any governmental authority; equipment breakdown or failure; delays in
transit or delivery on the part of transportation companies or communication
facilities; or any other event or circumstance whether similar or dissimilar to
the foregoing which is beyond the reasonable control of the party claiming
Force Majeure.  No party shall be deemed
to have suffered an event of Force Majeure due to the failure of equipment
which that party, or its agents, employees, or assigns, is responsible for
operating or maintaining if the equipment has not been operated or maintained
in accordance with prudent utility practice.

 

10.1                          Effect
of Force Majeure.  If a party is
rendered wholly or partly unable to perform its obligations under this
Agreement because of Force Majeure, that party shall be excused from whatever
performance is affected by the Force Majeure to the extent so affected,
provided that:

 

a.                                       The party
affected by such Force Majeure, as soon as reasonably practical after the
occurrence of the claimed Force Majeure event, gives prompt oral notice to the
other party, followed by a written notice, fully describing the particulars of
the occurrence;

 

b.                                      The suspension of
performance is of no greater scope and of no longer duration than is required
by the Force Majeure; and

 

c.                                       The Party
affected by such Force Majeure shall in good faith use such effort as is
reasonable under all the circumstances known to the party at the time to remove
or remedy the cause(s) of the Force Majeure and to mitigate the damages.

 

10.2                          Payment
Obligations Not Excused. 
Notwithstanding anything in this Article to the contrary, no
payment obligation arising under this Agreement prior to the date of an event
of Force Majeure shall be excused by such event of Force Majeure.

 

10.3                           Settlement of Strikes.  Notwithstanding Section 10.1(c),
neither party shall be required to settle any strike or other labor disturbance
except on terms satisfactory to such party.

 

ARTICLE XI

DISPUTE RESOLUTION

 

11.0                          General
Provisions.  Every dispute of any kind
or nature between the Parties arising out of or in connection with this
Agreement (each a “Dispute”) shall be resolved in accordance with this Section,
to the extent permitted by Law.

 

9

 

11.1                          Referral
to Senior Management.

 

a.                                       Upon the
occurrence of a Dispute, either Buyer or WPL may deliver a notice to the other
party requesting that the Dispute be referred to the senior management of WPL
and Buyer.  Any such notice shall
include the names of the senior management of the party nominated to attempt to
resolve the Dispute and a schedule of their availability during the thirty
(30) day period following the date of the notice.  Any such notice shall be delivered within a reasonable time after
the Dispute arises, but in no event shall it be delivered less than thirty (30)
days before the institution of legal or equitable proceedings based on such
Dispute would be barred by any applicable statute of limitations.

 

b.                                      Within seven (7)
days after receipt of a notice pursuant to Section 11.1(a), the other
party shall provide a notice to the requesting party indicating the names of
the senior management of the party nominated to attempt to resolve the Dispute,
and a schedule of their availability during the remainder of the thirty
(30) day period following the date of the notice.

 

c.                                       During the
remainder of the thirty (30) day period following delivery of the notice, the
nominated members of the senior management of WPL and Buyer shall meet as
frequently as possible and shall attempt in good faith to resolve the Dispute.

 

11.2                          Arbitration

 

a.                                       Any Dispute that
has not been resolved within thirty (30) days of the delivery of a notice in
accordance with Section 11.1 shall be submitted to arbitration pursuant to
the procedures set forth in this Section and pursuant to the commercial
arbitration rules of the American Arbitration Association (the “Arbitration
Rules”).  If and to the extent that the
provisions of this Section are inconsistent with the Arbitration Rules,
the provisions of this Section shall control in any arbitration proceeding
to the extent permitted by Law.

 

b.                                      Either WPL or
Buyer may make demand for arbitration in writing to the other party, setting
forth the nature of the Dispute, the amount involved, if any, the remedies
sought, and the name of the arbitrator appointed by the party demanding
arbitration.  The demand for arbitration
shall be made within a reasonable time after the expiration of the thirty (30)
day period set forth in Section 11.1(a), and in no event shall it be made
when institution of legal or equitable proceedings based on such Dispute would
be barred by any applicable statute of limitations.

 

c.                                       Within fifteen
(15) days after any demand for arbitration under Section 11.2(a), the
other party shall name its arbitrator, or if in default thereof, such
arbitrator shall be named pursuant to the Arbitration Rules.  The two (2) arbitrators so selected shall
name a third arbitrator within ten (10) days after selection of the second
arbitrator, or, in the absence of agreement on a third arbitrator by the two
(2) arbitrators so appointed, a third arbitrator shall be appointed pursuant to
the Arbitration Rules.

 

10

 

d.                                      The arbitration
hearing shall be held in Dane County, Wisconsin, or such other place as may be
mutually agreed upon by the parties, and shall commence not later than ninety
(90) days after the date of the original demand under
Section 11.2(a).  The award of the
arbitrators shall be made not later than thirty (30) days after the date of
closing of the hearing, or if oral hearings have been waived, after the date of
transmitting the final statements and proof to the arbitrators; provided,
however, that in no event shall any award be made later than one hundred and
eighty (180) days after the date of the original demand for arbitration under
Section 11.2(b).  The arbitrators
shall be required to render a reasoned decision in writing accompanying any
word.

 

e.                                       In the event the
arbitrators find a breach of the terms and conditions of this Agreement to have
occurred and be continuing, the arbitrators shall have express authority to
order specific performance of the terms and obligations of the Agreement to the
extent allowed in Section 9.1(b) above, and to order the payment of
damages to compensate the non-defaulting party for any loss to the extent
allowed in Sections 9.1(a), 9.1(b), 9.2, and 9.3 above.  Any payment of damages ordered by the
arbitrators shall bear interest at the Prime Rate as set forth in the Wall
Street Journal, which interest shall accrue daily, from the date as of which
such damages are calculated to the date on which the party entitled thereto
receives payment thereof in full.  The
award of the arbitrators shall be final, except as otherwise provided by
applicable law.  Judgment upon such
award may be entered on behalf of the prevailing party in any court having
jurisdiction thereof, and application may be made by such party to any such
court for judicial acceptance of such award and an order of enforcement.

 

f.                                         The
administrative and arbitrator’s costs shall be borne by the unsuccessful party
unless the arbitrators by their award shall otherwise provide, but each party
shall pay its own other costs and attorneys fees.

 

11.3                          No Other
Remedies.  Unless an Event of Default
unrelated to the matters in dispute occurs, during the conduct of dispute resolution
procedures pursuant to this Article XI no party shall exercise any other
remedies hereunder arising by virtue of the matters in dispute; provided,
however, that nothing in this Section shall be construed to prevent WPL
from suspending performance in the event that Buyer has not paid undisputed
amounts due and owing to WPL under this Agreement.

 

ARTICLE XII

ASSIGNMENT AND TRANSFER

 

12.0                          Except
as otherwise provided in this Article, neither party may assign all or any
portion of its interest in this Agreement without the consent of the other
party, which consent shall not be unreasonably withheld.

 

11

 

12.1                          Either
party shall have the right to assign all (but not less than all) of its
interest in this Agreement to a subsidiary or affiliate or to an entity with
which it has merged or consolidated or transferred all or substantially all of
its assets; provided, however, that the assignee shall assume in writing all of
the assignor’s rights and obligations under this Agreement and shall be
creditworthy.

 

12.2                          Buyer
shall have the right to assign its interest in this Agreement in whole to its
lenders for collateral security purposes in connection with obtaining
construction or permanent financing for the Project.  WPL shall cooperate with Buyer in Buyer’s efforts to obtain
financing, including the provision of consents or authorizations, opinions of
counsel, and other documents reasonably required by lenders to obtain financing
for the Project.

 

12.3                          This Agreement
shall be binding upon and shall inure to the benefit of the respective
successors and assigns of the parties.

 

ARTICLE XIII

MODIFICATION OF TERMS AND CONDITIONS

 

13.0                          Modification
of the terms and conditions of this Agreement may be made from time to time
during the term hereof upon the mutual agreement of both parties and shall not
be binding unless in writing and signed by authorized representatives of both
parties.  To the extent required by
regulation, rule, or statute, any and all modifications of the terms and
conditions of this Agreement shall be filed in a timely manner (under rules of
confidentiality) by WPL with the PSCW.

 

ARTICLE XIV

NOTICES

 

14.0                          Unless
otherwise provided herein, all communications from one party to the other shall
be sent by registered mail, overnight mail, or facsimile transmission.  All communications should be addressed to:

 

	
  WPL:

  	
   

  	
  Buyer:

  
	
   

  	
   

  	
   

  
	
  Pat Keenan

  	
   

  	
  Kevin Roche

  
	
  Director – Sales and Marketing

  	
   

  	
  President

  
	
  Alliant Energy

  	
   

  	
  United Wisconsin Grain Producers, LLC

  
	
  4902 North Biltmore Lane

  	
   

  	
  Friesland, WI 53935-0247

  
	
  Madison, WI 53707-1007

  	
   

  	
  Phone No. 920-348-5016

  
	
  Phone No. 608-458-3489

  	
   

  	
  Fax No. 920-348-5009

  
	
  Fax No. 608-458-0214

  	
   

  	
   

  

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the date first written above.

 

12

 

	
  WISCONSIN
  POWER AND LIGHT

  COMPANY

  	
  UNITED WISCONSIN GRAIN PRODUCERS, LLC

  
	
   

  	
   

  
	
  By:

  	
  /s/ Patrick E. Keenan

  	
   

  	
  By:

  	
  /s/Kevin Roche

  	
   

  
	
   

  	
   

  
	
  Name:

  	
  Patrick E. Keenan

  	
   

  	
  Name:

  	
  Kevin Roche

  	
   

  
	
   

  	
   

  
	
  Title:

  	
  Director

  	
   

  	
  Title:

  	
  President

  	
   

  
										

 

13Exhibit 10.2

 

WPS Energy Services,
Inc. Gas Sales Agreement

 

WPS
Energy Services, Inc., a Wisconsin corporation, (hereinafter referred to as the
“Seller”) and United Wisconsin
Grain Producers, LLC (hereinafter referred to as the “Buyer”) hereto agree as of April 1, 2004 to
the terms of this Gas Sales Agreement (the “Agreement”) as follows:

 

I. QUANTITY AND PRICE

 

1.1                                Seller agrees to sell and deliver to Buyer,
and Buyer agrees to purchase and receive from Seller, the quantity of Gas
mutually agreed upon and for
the price specified in any Authorization for Sale (Authorization) executed and
effective between the parties.  Sales and
purchases will be on a Firm or Interruptible basis, as specified in the
effective Authorization.

 

1.2                                Buyer and Seller shall use all reasonable efforts
to provide each other with sufficient notice to allow nomination changes to all
Transporters in accordance with the nomination requirements of that
Transporter.  Imbalance and cashout
charges shall be charged to and/or paid by the party causing the imbalance or
in accordance with the effective Authorization.

 

II. DELIVERY POINT

 

2.1                                Seller shall deliver the Gas purchased and sold
hereunder to Buyer at the locations set forth as Delivery Point(s) in the
effective Authorization.

 

III. DEFINITIONS

 

3.1                                As used in the Agreement, “Gas” shall mean
natural gas, which is of merchantable pipeline quality and in conformance with
the quality specification of the receiving pipeline, local distribution company
(utility) or other transporting pipelines.

 

3.2                                “Interruptible” shall mean that either party may interrupt its performance at any time
for any reason, whether or not caused by an event of Force Majeure, with no
liability, except such interrupting party may be responsible for any Imbalance
Charges related to its interruption after the nomination is made to the
Transporter and until the change in deliveries and/or receipts is confirmed by Transporter.  In the event of an interruption, Seller
agrees to assist Buyer in finding alternate fuel.

 

3.3                                “Firm” shall mean that either party may
interrupt its performance without liability only to the extent that such
performance is prevented for reasons of Force Majeure; provided, however, that
during Force Majeure interruptions, the party invoking Force Majeure may be
responsible for any Imbalance Charges related to its interruption after the
nomination is made to the Transporter and until the change in deliveries and/or
receipts is confirmed by the Transporter.

 

3.4                                “Secondary Firm” shall mean that Seller shall
be request to sell and Buyer shall be required to purchase quantities of Gas
set forth herein.  Either party may
interrupt its performance to the extent that such performance is prevented for
reasons of Force Majeure or curtailment of such party’s Firm Secondary
transportation and/or storage between secondary firm points by the delivering pipeline. If a party interrupts for any
other reason the non-breaching party’s exclusive remedy shall be that it may
recover its cost of alternate supply, replacement gas, or market.

 

3.5                                “Imbalance Charges” shall mean any fees,
penalties, costs or charges (in cash or in kind) assessed by a Transporter for
failure to satisfy the Transporter’s balance and/or nomination requirements.

 

3.6                                “Cashout” shall mean any process used by a
Transporter to purchase, sell, or trade natural gas at the end of any delivery period for the purpose of balancing receipts and
deliveries with that Transporter for that delivery period.

 

3.7                                “MMBtu” shall mean one million British
thermal units, which is equivalent to one dekatherm.

 

3.8                                “Transporter(s)” shall mean all Gas
gathering or pipeline companies, or local distribution companies, acting in the
capacity of a transporter, transporting Gas for Seller or Buyer upstream or
downstream, respectively, of the Delivery Point pursuant to a particular
Transaction Confirmation.

 

3.9                                “NYMEX Last Day Settle” shall mean the
expiration price of the natural gas contract on the day that trading of the underlying monthly contract is terminated.

 

IV. BILLING, PAYMENT,
AND FINANCIAL RESPONSIBILITY

 

4.1                                By the tenth (10th) day of each
month, Seller shall submit to Buyer an invoice setting forth the quantity of
Gas purchased by Buyer during
the preceding month and the total due. 
If the actual total quantities purchased are not available by the
invoice date, the invoice will be based on an estimate using nominated
quantities.  Such estimates shall be
adjusted to reflect actual quantities on the following month’s statement or on
the first month’s statement after actual quantities become available.

 

*
Portions omitted pursuant to a request for confidential treatment and filed
separately with the Securities and Exchange Commission.

 

 

4.2                                Except as provided in Section 4.3, Buyer
shall remit payment to Seller for the total amount due by the 20th
day of the month.  Payment shall be made
by check, wire transfer, or EFT for amounts up to $50,000.  Payments larger than $50,000 shall be made by
wire transfer, EFT, ACH, or other method acceptable to Seller.

 

4.3                                If Buyer disputes the amount payable under
any invoice rendered hereunder, Buyer shall pay when due the amount not in
dispute under such invoice as well as provide documentation acceptable in
industry practice to support the amount paid or disputed.  Such payment shall not be deemed to be a
waiver of Buyer’s right to recoup any overpayment, nor shall acceptance of any
payment be deemed to be a waiver of Seller’s right to any underpayment.

 

4.4                                In the event Buyer fails to pay the
undisputed amount due to Seller when due, interest on the unpaid portion of the
undisputed amount shall accrue at a rate equal to one and one half percent (1
1⁄2%) per month, provided that in no event shall such rate exceed the maximum
rate allowed by law, compounded daily from the date such payment is due until
the same is paid. If Buyer fails to pay the undisputed portion of any invoice
rendered hereunder beyond ten (10) days after the due date of such invoice,
then Buyer shall be in default and Seller, in addition to all other legal
remedies available to it, shall have the right to suspend further sales of Gas
until such default has been cured.

 

4.5                                When reasonable grounds for insecurity of
payment or title to the Gas arise, either party may demand adequate assurance
of performance.  Adequate assurance shall
mean sufficient security in the form and for the term reasonably specified by
the party demanding assurance, including, but not limited to, a standby
irrevocable letter of credit, a prepayment, a security interest in an asset
acceptable to the demanding party or a performance bond or guarantee by a
creditworthy entity.  In the event either
party shall (i) make an assignment or any general arrangement for the benefit
of creditors; (ii) default in the payment obligation to the other party; (iii)
file a petition or otherwise commence, authorize, or acquiesce in the
commencement of a proceeding or cause under any bankruptcy or similar law for
the protection of creditors or have such petition filed or proceeding commenced
against it; (iv) otherwise become bankrupt or insolvent (however evidenced); or
(v) be unable to pay its debts as they fall due; then the other party shall
have the right to either without and/or suspend deliveries or payment, or
terminate the Agreement without prior notice, in addition to any and all other
remedies available hereunder.

 

4.6                                Each party shall have the right during
normal business hours to examine the books and records of the other party to
the extent necessary to verify the accuracy of any statement, charge, computation
or demand made under this Agreement. 
Either party shall provide reasonable (in no event less than five (5)
business days) advance notice of any audit.

 

V. TITLE, TAXES

 

5.1                                Seller warrants title to all Gas delivered
hereunder, that it has good and lawful authority to sell the same,
that said Gas is free from liens and adverse claims of every kind.  Title to all Gas delivered hereunder shall
pass from Seller to Buyer at the Delivery Point(s).

 

5.2                                Seller shall pay or cause to be paid all
production, severance or similar taxes lawfully levied on Seller, on the gas,
or on any transaction giving rise to taxes, and applicable to the Gas delivered
hereunder which accrue prior to its delivery to Buyer at the Delivery Point(s),
and Seller shall hold Buyer harmless therefrom. 
Buyer shall pay all taxes lawfully levied on Buyer applicable to such
Gas at and after delivery to the Delivery Point(s) and shall hold Seller
harmless therefrom.  In the event that
sales of Gas hereunder are subject to any local gas revenue, utility, sales or
use taxes which Seller is obligated to remit to any competent taxing authority,
Buyer shall reimburse Seller for any such taxes remitted by Seller in
connection with sales of Gas hereunder. 
Buyer shall provide Seller with evidence of any applicable exemption or
exclusion from sales or other similar taxes, in the appropriate states.

 

VI. TERM, SUCCESSION
AND ASSIGNMENT

 

6.1                                The term of this Agreement shall commence on
the date first mentioned above, with deliveries occurring pursuant to the
delivery term in an effective Authorization. 
Any termination of this Agreement shall not relieve either party of any
obligation incurred hereunder prior to the effective date of termination or any
obligation which specifically extends beyond such date of termination pursuant
to an effective Authorization.

 

6.2                                This Agreement shall be binding upon the
inure to the benefit of the respective heirs, representatives, successors, and
assigns of the parties hereto; however, nether party hereto shall assign its
interests herein to a nonaffiliated entity without having first obtained the
written approval of the other party.

 

VII. FORCE MAJEURE

 

7.1                                In the event either party is rendered
unable, wholly or in part, by Force Majeure to carry out its obligations under
this Agreement, other than to make payments due hereunder, the obligations of
each party, so far as they are affected by such Force Majeure, shall be
suspended during the period of Force Majeure. 
The term “Force Majeure” as employed herein shall mean strikes, lockouts
or other industrial disturbances, acts of God, acts of the public enemy, wars,
blockades, riots, landslides, hurricanes, lightening, earthquakes, fires,

 

 

floods, washouts, unavoidable freezing of pipes or wells and
explosions, governmental actions such as necessity for compliance with any
court order, law, statute, ordinance, or regulation promulgated by a
governmental authority having jurisdiction or any other unplanned or
non-scheduled occurrence, condition, situation, or threat thereof not covered
above and not involving economic inability, which renders either Buyer or
Seller unable to perform its obligations hereunder, provided such event is
beyond the reasonable control of the party claiming such inability.  The claiming party shall give the other party
notice and full particulars in writing including a specific description of the
cause relied upon and estimated duration of such event as soon as reasonably
possible after the occurrence.

 

VIII. QUALITY AND
MEASUREMENT

 

8.1                                The measurement, testing, heat content, and
quality characteristics of the Gas delivered hereunder shall be governed by the
applicable measurement and testing provisions specified in the FERC tariff or
in the applicable state commission tariff of the Transporter receiving Gas
hereunder at the Delivery Point(s). 
Unless otherwise stated, the heat content of the Gas will be measured on
a dry basis.

 

8.2                                Buyer or Buyer’s transporter(s), at its or
their option, may refuse to accept delivery of any Gas not meeting the quality
specifications.

 

IX. INDEMNIFICATION

 

9.1                                Unless otherwise specifically agreed, title
to the Gas shall pass from Seller to Buyer at the Delivery Point(s).  Seller shall have responsibility for and
assume any liability with respect to the Gas prior to its delivery to Buyer at
the specified Delivery Point(s).  Buyer
shall have responsibility for and any liability with respect to said Gas after
its delivery to Buyer at the Delivery Point(s).

 

9.2                                Seller agrees to indemnify Buyer and save it
harmless from all losses, liabilities or claims including attorneys’ fees and
costs of court, from any and all persons, arising from or out of claims of
title, personal injury or property damage from said Gas or other charges
thereon which attach before title passes to Buyer.  Buyer agrees to indemnify Seller and save it
harmless from all Claims, from any and all persons, arising from or out of
claims regarding payment, personal injury or property damage from said Gas or
other charges thereon which attach after title passes to Buyer.

 

X. WARRANTY AND
DAMAGE DISCLAIMERS

 

10.1                          EXCEPT AS IS EXPRESSLY PROVIDED IN THIS
AGREEMENT, ALL GAS SOLD HEREUNDER IS PROVIDED AS IS AND SELLER EXPRESSLY
DISCLAIMS ALL OTHER WARRANTIES, WHETHER EXPRESS OR IMPLIED, INCLUDING BUT NOT
LIMITED TO ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR PARTICULAR
PURPOSE.

 

10.2                          EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED
HEREIN, IN NO EVENT WILL EITHER PARTY BE LIABLE UNDER THIS AGREEMENT, WHETHER
ARISING UNDER CONTRACT, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY), OR
ANY OTHER LEGAL THEORY, FOR INCIDENTAL, CONSEQUENTIAL, SPECIAL, OR PUNITIVE
DAMAGES.

 

XI. MISCELLANEOUS

 

11.1                          The sale of Gas herein is subject to all
applicable federal and state laws, orders, rules and regulations and to the
Federal Energy Regulatory Commission rules and regulations or successor agency
having jurisdiction.  Either party shall
have the right to question or contest any such law, ordinance, order rule, or
regulation.

 

11.2                          If any provision in this Agreement is
determined to be invalid, void or unenforceable by any court having
jurisdiction, such determination shall not invalidate, void, or make
unenforceable any other provision, agreement or covenant of this Agreement.

 

11.3                          This Agreement and any effective
Authorization, together set forth all understandings between the parties
respecting the terms and conditions of any transaction herein described.  All prior agreements, understandings and
representations, whether consistent or inconsistent, oral or written, between
the parties are merged into and superseded by this written Agreement.  No modification or amendment of this
Agreement shall be binding on either party unless in writing and signed by the
parties.

 

11.4                          Any notice, request, demand, statement, bill
or payment provided for in this Agreement, or any notice which a party may
desire to give to the other shall be in writing and if mailed shall be
considered as duly delivered five business days after the postmark date when
mailed by ordinary mail to the other party at the following address.  If delivered by facsimile, any such document
shall be considered delivered on the same business day.

 

	
  Payments by Mail:

  	
  Payments by Wire, EFT, or ACH

  
	
  WPS Energy Services, Inc.

  	
  Firstar Bank Wisconsin

  
	
  P.O. Box 19046

  	
  ABA No.: 075000022

  
	
  Green Bay, WI 54307-9046

  	
  WPS Energy Services, Inc.

  
	
   

  	
  Account No.: 121740451

  

 

 

11.5                           No failure by either party to enforce any
right, obligation or remedy hereunder shall operate as a waiver of any of the
foregoing, or the waiver of any future right, obligation or remedy, whether of
like or different character or nature.

 

11.6                           The heading throughout this Agreement are
inserted for reference purposes only, and are not to be construed or taken into
account in interpreting the terms and provisions of any Article, not to be
deemed in any way to qualify, modify or explain the effects of any such term or
provision.

 

11.7                           In the event of any conflict or
inconsistency between the terms hereof and the terms of any effective
Authorization, the terms of the Authorization shall control.

 

11.8                           THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF WISCONSIN.

 

11.9                           Each party to this Agreement represents and
warrants that it has full and complete authority to enter into and perform this
Agreement.  Each person who executes this
Agreement on behalf of either party represents and
warrants that is has full and complete authority to do so and that such party
will be bound thereby.

 

IN WITNESS WHEREOF, the parties have duly executed this
Agreement to be effective on the day and year first written above.

 

	
  SELLER: WPS ENERGY SERVICES, INC.

  	
  BUYER: UNITED WISCONSIN GRAIN PRODUCERS,
  LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
  BY:

  	
  /s/ Mark A. Radtke

  	
   

  	
  BY:

  	
  /s/ Kevin Roche

  	
   

  
	
   

  	
   

  
	
  NAME:

  	
  Mark A. Radtke

  	
   

  	
  NAME:

  	
  Kevin Roche

  	
   

  
	
   

  	
   

  
	
  TITLE:

  	
  President

  	
   

  	
  TITLE:

  	
  President

  	
   

  
	
   

  	
   

  
	
  DATE:

  	
  4/24/02

  	
   

  	
  DATE:

  	
  4/20/04

  	
   

  
											

 

 

Exhibit “A” to Gas
Sales Agreement AUTHORIZATION FOR SALE

 

Attached to and made a part of the Gas Sales Agreement (“Agreement’)
dated April 1, 2004 between WPS ENERGY SERVICES, INC., a Wisconsin corporation,
as Seller, and UNITED WISCONSIN GRAIN PRODUCERS, LLC, as Buyer.

 

SECTION A – AUTHORIZATION SUBJECT TO GAS SALES AGREEMENT 

 

A.1                             By this Authorization, Seller agrees to sell
and Buyer agrees to purchase Buyer’s full requirements of Gas at the Delivery
Points listed below pursuant to the terms of this Authorization and of the Gas
Sales Agreement, unless otherwise agreed to in writing by the Parties.

 

A.2                             If the Parties agree to terms in this
Authorization that modify, change or otherwise conflict with any provisions of
the Gas Sales Agreement, the terms of this Authorization shall govern.

 

SECTION B – SERVICES AND PRICES

 

B.1                               Gas shall be delivered on a Secondary Firm
basis at Randolph and shall be delivered to the city gate delivery point
identified in Section C of this Exhibit A.

 

Seller shall inform Buyer of any constraint days called by the utility and at the
same time advise Buyer of how much gas they have available to burn for that
day.  Such notification to the Buyer from
Seller should be as timely as possible.

 

B.2                               Buyer and Seller may from time to time agree
in writing, which shall include e-mail, or telefacsimile communication, on
fixed price term(s), quantity, price and location.  These agreed upon pricing details, herein referred
to as “Fixed”, shall be agreed to by a Fixed Price Authorization and a Fixed
Price Confirmation which will include the fixed price term, quantity, price and
location.  A fixed price transaction cost
will be included on the Fixed Price Confirmation, Gas priced in this manner
shall be considered to be the first gas through the meter for each month.  Any unused quantities that have an agreed
upon price will be purchased back by the Seller at prevailing market rates.

 

B.3                               Gas price shall be NYMEX Last Day Settle,
unless fixed, plus transportation identified in B.1 of this Exhibit A.  If more commodity is
purchased than transportation, market interruptible transportation will be
applied to the balance of the fixed commodity. 
If transportation is purchased in excess of the fixed commodity, the
balance of the commodity will be priced equal to the NYMEX Last Day
Settle.  Usage beyond that accounted for
in the aforementioned manner will be priced equal to WPS-ESI Market Supply.

 

	
  Delivery Month

  	
   

  	
  Commodity

  Volumes in Dth

  	
   

  	
  Commodity Price/Dth

  	
   

  	
  Transportation

  Volumes in Dth

  	
   

  	
  Transportation

  Price/Dth

  
	
  March 2005 – April 2006

  	
   

  	
  3,000 per day/ per month

  	
   

  	
  NYMEX Last Day Settle, Unless
  Fixed

  	
   

  	
  3,000 per day/ per month

  	
   

  	
  [*]

  

 

B.4                               Balancing Service: Seller agrees to monitor and review all
information provided to the Seller by Buyer and utility regarding Buyer’s daily
usage of gas.  Based on such information,
Seller shall, on a continuous basis, select the appropriate Daily Nomination Quantity
(“DNQ”), and shall make daily nomination adjustments necessary to deliver the
DNQ requested by Buyer.  The Seller
agrees to indemnify Buyer from all scheduling charges which may be assessed by
Buyer’s utility, provided, however, Buyer’s actual usage of gas continues with
the same level of predictability and the Buyer continues to communicate with
the Seller regarding changes in as consumption. 
Balancing service does not include indemnification of penalties charged
by the Buyer’s utility during a constraint day; However,
in the event Seller is negligent with respect to its notification of Buyer,
Seller agrees to indemnity Buyer from penalties resulting from the failure of
notification.

 

Balancing Service price is [*]. 
Price may be automatically adjusted by Seller to reflect costs associated
with any law, statute, or regulation, or any governmental permit or approval
that has been modified, changed, replaced, supplemented or conditioned in a
manner that adversely affects the economic benefits originally

 

*
Portions omitted pursuant to a request for confidential treatment and filed
separately with the Securities and Exchange Commission.

 

 

intended to accrue to the Seller under this
Agreement.  Prior to making any
adjustment, Seller agrees to provide Buyer with a copy of the particular change
responsible for the adjustment.

 

	
  B.5

  	
  General Notices to the Seller:

  	
   

  	
  General Notices to the Buyer:

  
	
   

  	
  WPS Energy Services, Inc.

  	
   

  	
  United Wisconsin Grain Producers, LLC

  
	
   

  	
  1088 Springhurst Drive

  	
   

  	
  P.O. Box 247

  
	
   

  	
  Green Bay, WI 54304

  	
   

  	
  Friesland, WI 53935

  
	
   

  	
  Phone: (920) 617-6100

  	
   

  	
  Phone: (920) 348-5016

  
	
   

  	
  Direct: (608) 617-6043

  	
   

  	
  Facsimile: (920) 348-5009

  
	
   

  	
  Facsimile: (920) 617-6070

  	
   

  	
  Email: roche@uwgp.com and mail@uwgp.com

  
	
   

  	
  Attention: Leah Howard

  	
   

  	
  Attention: Kevin Roche

  

 

SECTION C – DELIVERY POINT(S)

 

	
  Utility Delivering

  from Citygate

  	
   

  	
  Citygate

  Delivery Point

  	
   

  	
  Buyer Service

  Address

  	
   

  	
  Utility Account

  Number

  	
   

  	
  Utility Meter Number

  	
   

  
	
  Alliant Energy

  	
   

  	
  Randolph

  	
   

  	
  W1231 Tessman Road

  Cambria, WI 53923

  	
   

  	
  To be Determined

  	
   

  	
  To be Determined

  	
   

  

 

SECTION D – TERM OF AUTHORIZATION

 

This
Authorization shall be effective from March 1, 2005 to April 30, 2006 (“Initial
Term”) and shall renew automatically if notice terminating this Authorization
is not given 60 days prior to the end of the Initial Term.  If allowed, to be renewed beyond the Initial
Term, this Authorization shall remain in effect for each successive year until
terminated by either party providing 60 days prior written notice.

 

SECTION E – SPECIAL PROVISIONS

 

E.1                                If Buyer has an existing contract with a
supplier other than the Seller, then Buyer acknowledges and agrees that if
Buyer is obligated to take delivery or make payment to that supplier, Buyer
also remains liable to Seller for all obligations under this Agreement, and,
any enforcement of the other contract does not release Buyer or Seller from
obligations herein.

 

E.2                                Should Buyer and Seller agree
to fix pricing for Nymex and/or Basis, the following shall apply:

 

Gas price shall be NYMEX Last Day Settle, unless Fixed,
plus transportation for the fixed price volumes.  Usage beyond the volumes fixed will be
supplied and priced at WPS-ESI Incremental Market Supply Price.  Any unused volumes shall be purchased back by
the Seller at prevailing market rates.

 

Notwithstanding the term identified in Section D, this Authorization
will remain in effect as long as gas supplies are secured on Buyer’s behalf
under the terms of this Authorization and any Fixed Price Confirmation pursuant
to Section E.2.  Upon receipt of notice
of termination, Seller will not secure additional gas beyond the term of the
current Authorization.

 

E.3                                WPS Energy Services, Inc. will require UWGP
– United Wisconsin Grain Producers, LLC to forward Quarterly updates on the
project status, (i.e. sources and uses of funds statements as well as a
construction budget summary report).  The
first report should be dated June 30, 2004.

 

IN WITNESS WHEREOF, the parties have duly executed this
Agreement to be effective on the day and year first written above.

 

	
  SELLER: WPS ENERGY SERVICES, INC.

  	
  BUYER: UNITED WISCONSIN GRAIN PRODUCERS,
  LLC

  
	
   

  	
   

  
	
  BY:

  	
  /s/ Mark A. Radtke

  	
   

  	
  BY:

  	
  /s/ Kevin Roche

  	
   

  
	
   

  	
   

  
	
  NAME:

  	
  Mark A. Radtke

  	
   

  	
  NAME:

  	
  Kevin Roche

  	
   

  
	
   

  	
   

  
	
  TITLE:

  	
  President

  	
   

  	
  TITLE:

  	
  President

  	
   

  
	
   

  	
   

  
	
  DATE:

  	
  4/24/02

  	
   

  	
  DATE:

  	
  4/20/04

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00070-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00070-of-00352.parquet"}]]