Document:

Exhibit 10.21

ENERGY MANAGEMENT
AGREEMENT

(Site Development and Operations)

The purpose of this Agreement is to set forth the understanding and
agreement between Energy Management & Consulting Services, LLC (“EMCS”) and
Millennium Ethanol, LLC (“Client”) related to the provision of energy
management services.

PROJECT DESCRIPTION:
Client is developing an ethanol plant (“Plant”) to be located near Marion
SD.

EMCS RESPONSIBILITIES:
EMCS will provide consulting and energy management services for supplies of
natural gas and electricity for the Plant. These services will be provided
during the construction of the Plant (“Construction Period”), and after the
Construction Period when the Plant has been placed in service (“Completion Date”).
The Completion Date shall be determined when the Plant begins producing
ethanol. These services will be provided to Client upon request:

A. Energy Infrastructure Advisory Services During the
Construction Period

1.         Provide an economic
comparison of distribution service options. Such options will include service
from area distribution utilities, interstate pipelines and third party
contractors. EMCS will provide preliminary engineering cost estimates, route
drawings, and project timelines related to constructing pipeline facilities.

In the event that a direct connect pipeline option is selected, EMCS
will submit a tap request to the pipeline. In addition, EMCS will also attempt
to negotiate an option for Client to minimize interconnect costs through the
purchase of firm transportation to the Plant.

2.         Determine whether firm,
interruptible, or a blend of transportation entitlement will provide the lowest
burnertip cost. Factors that will be considered include pipeline credits for
the new interconnect, cost of an alternate fuel system, and availability of
specific receipt point capacity.

3.         Provide advisory services
to Client regarding electric pricing and service agreements.

a.                         Analyze
the electric service proposals along with primary, secondary and generation
options and recommend an electric sourcing strategy and plan. The plan may
include a combination of electric supplier agreement and/or installation of
on-site generation.

b.                        Negotiate
final electric service agreements that meet the pricing and reliability
requirements of Client, including options for third party access to electric
metering.

c.                         Prepare
and implement a regulatory strategy, if required and if an alternative power
supplier is selected. Any attorney fees required for the specific purpose of
obtaining regulatory approval for an alternative power supplier, if any, will
be over and above EMCS’s monthly fee herein, and must be pre-approved by
Client.

4.         Evaluate the proposed
electric distribution infrastructure (substation) for reliability, future
growth potential and determination of the division of ownership of facilities
between the utility and the Plant.

5.         Investigate economic
development rates, utility grants, equipment rebates and other utility programs
that may be available.

B. On-Going Energy Management Services Following the
Completion Period

EMCS will provide the following services at Client’s request:

1.         Provide natural gas
supply information to minimize the cost of natural gas purchased. This will
include acquiring multiple supply quotes and reporting to Client the various
supply index and fixed prices. EMCS will not take title to Client gas supplies,
but will communicate supply prices and potential buying strategies.

2.         Negotiate with pipelines,
utilities, other shippers, and suppliers to provide transportation, balancing,
and supply agreements that meet Client’s performance criteria at the lowest
possible cost.

3.         Develop and implement a
price risk management plan that is consistent with Client’s pricing objectives
and risk profile.

4.         Provide daily nominations
to the suppliers, pipeline, and other applicable shippers for natural gas
deliveries to the Plant. This will include daily electronic confirmations to
Client of all nominations and actual daily usage. EMCS will utilize customer or
utility supplied telemetering to obtain actual usage data.

5.         Provide a consolidated
monthly invoice to Client that reflects all applicable natural gas and electric
energy costs. EMCS will be responsible for reviewing, reconciling all shipper,
supplier and utility invoices.

6.         Provide a monthly usage
report of electric energy consumption and costs. Also, where applicable and
available from the utility, obtain monthly interval electric load data and
provide monthly load profile graphs.

7.         On-going review and
renegotiation of electric service costs, as required. This may include:

a.                         Completing
and evaluating annual proposals to identify the most reliable and economic
third party electric energy supply.

b.                        Identifying
new service tariffs or opportunities to renegotiate the service agreement to
provide lower costs.

c.                         Identifying
on-site generation opportunities as market conditions change.

d.                        Provide
a monthly projection of energy (natural gas and electricity) and annual
summaries.

8.         Provide natural gas and
electric energy operating budgets for the Plant.

 2
 

9.                          Perform
initial sales tax exemption audits for energy consumption costs as required and
allowed by South Dakota tax laws.

TERM: The initial term of
this Agreement shall commence on October 4, 2006 and continue and continue
until thirty six (36) months after the Plant’s Completion Date. The Agreement
shall be year-to-year after the initial term. This Agreement may be terminated
with a 90 day notice under mutually agreeable terms. This Agreement may be
terminated by either party effective after the initial term upon sixty (60)
days prior written notice. Client shall remain responsible for payment and
performance associated with any and all transportation, supply, and storage
transactions entered into by EMCS and authorized by Client, prior to
termination.

FEES: EMCS’s fee for
services described above during the term of this Agreement shall be a signing
retainer of $9,000 and than $3,000 per month or $0.065 per MMBtu which ever is
greater.

EMCS’s fee will increase 4% per year on the annual anniversary date of
the effective date of this Agreement.

BILLING AND PAYMENT: On the
first of the month, EMCS shall invoice Client for appropriate energy costs from
the previous month and for the EMCS retainer for the current month. Client
shall pay EMCS within ten (10) days of receipt of invoice.

TAXES: Client will be
responsible for payment of all taxes including, but not limited to, all sales,
use, excise, BTU, heating value and other taxes associated with the purchase
and/or transport of natural gas or electricity and the provision of services
hereunder.

CONFIDENTIALITY: EMCS shall
not divulge to any other person or party any information developed by EMCS
hereunder or revealed to EMCS pursuant to this Agreement, unless such
information is (a) already in EMCS’s possession and such information is not
known by EMCS to be subject to another Confidentiality Agreement, or (b) is or
becomes generally available to the public other than as a result of an
unauthorized disclosure by EMCS, its officers, employees, directors, agents or
its advisors, or (c) becomes available to EMCS on a non-confidential basis from
a source which is not known to be prohibited from disclosing such information
to EMCS by legal, contractual or fiduciary obligation to the supplier, or (d) is
required by EMCS to be disclosed by court order, or (e) is permitted by Client.
All such information shall be and remain the property of Client unless such
information is subject to another Confidentiality Agreement, and upon the
termination of this Agreement, EMCS shall return all such information upon
Client’s request. Notwithstanding anything to the contrary herein, EMCS shall
not disclose any information which is in any way related to this Agreement or
EMCS’s services hereunder without first discussing such proposed disclosure
with Client.

NOTICES: Any formal notice,
request or demand which a party hereto may desire to give to the other
respecting this Agreement shall be in writing and shall be considered as duly
delivered as of the postmark date when mailed by ordinary, registered or
certified mail by said party to the addresses listed below. Either party may,
from time-to-time, identify alternate addresses at which they may receive
notice during the term of this Agreement by providing written notice to the
other party of such alternate addresses.

 3
 

 

	
  Client:

  	
   

  	
  Millennium Ethanol

  27283 447th Ave

  Marion SD 57043

  
	
   

  	
   

  	
   

  
	
  EMCS:

  	
   

  	
  Energy Management & Consulting Services LLC

  
	
   

  	
  (Payment)

  	
   

  	
  4600 E Tiger Lilly St.

  
	
   

  	
   

  	
   

  	
  Sioux Falls SD 57000

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (Notices):

  	
   

  	
  Energy Management & Consulting Services LLC

  4600 E Tiger Lilly St.

  Sioux Falls SD 57000

  

 

ASSIGNMENT OR AMENDMENT:
The Agreement may not be assigned or amended without the written consent of
EMCS and Client.

APPLICABLE LAW: The
Agreement shall be construed in accordance with the laws of the State of South
Dakota.

ENTIRE AGREEMENT: This
Agreement constitutes the entire Agreement among the parties pertaining to the
subject matter hereof and supersedes all prior Agreements and understanding
pertaining hereto.

 

Agreed
to and Accepted by:

 

	
  Millennium Ethanol, LLC

  	
   

  	
  Energy Management & Consulting

  Services, LLC

  
	
   

  	
   

  	
   

  
	
  /s/ Steven Domm

  	
   

  	
  /s/ Jeff McKinney

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name (Print):

  	
    STEVEN DOMM

  	
   

  	
  Jeff McKinney

  
	
   

  	
   

  	
   

  	
   

  
	
  Title: 

  	
    CEO

  	
   

  	
  President / CEO

  
	
   

  	
   

  	
   

  	
   

  
	
  Date: 

  	
    10/16/06

  	
   

  	
  October 6, 2006

  
						

 

 4

Memorandum of Understanding

This memorandum of understanding is intended to clarify the buyout
option mentioned in section nine of Energy Management Agreement entered into on
October 16, 2006. The plant has a scheduled first grind of early January of
2008, so it is anticipated full gas usage will begin in January of 2008. It is
anticipated the plant will use an average of 10,800 MMBtu per day. As you can
see by the chart below the anticipated management fee by month is listed. If
Millennium wished to end this contact and buyout of the remaining term they
would simply add each month’s anticipated charge in which service will not be
taken, the total would be the total buyout value of the contract.

	
  Month

  	
   

  	
  Amount

  	
   

  
	
  Nov-06

  	
   

  	
  $

  	
  3,000

  	
   

  
	
  Dec-06

  	
   

  	
  $

  	
  3,000

  	
   

  
	
  Jan-07

  	
   

  	
  $

  	
  3,000

  	
   

  
	
  Feb-07

  	
   

  	
  $

  	
  3,000

  	
   

  
	
  Mar-07

  	
   

  	
  $

  	
  3,000

  	
   

  
	
  Apr-07

  	
   

  	
  $

  	
  3,000

  	
   

  
	
  May-07

  	
   

  	
  $

  	
  3,000

  	
   

  
	
  Jun-07

  	
   

  	
  $

  	
  3,000

  	
   

  
	
  Jul-07

  	
   

  	
  $

  	
  3,000

  	
   

  
	
  Aug-07

  	
   

  	
  $

  	
  3,000

  	
   

  
	
  Sep-07

  	
   

  	
  $

  	
  3,000

  	
   

  
	
  Oct-07

  	
   

  	
  $

  	
  3,120

  	
   

  
	
  Nov-07

  	
   

  	
  $

  	
  3,120

  	
   

  
	
  Dec-07

  	
   

  	
  $

  	
  3,120

  	
   

  
	
  Jan-08

  	
   

  	
  $

  	
  21,902

  	
   

  
	
  Feb-08

  	
   

  	
  $

  	
  21,902

  	
   

  
	
  Mar-08

  	
   

  	
  $

  	
  21,902

  	
   

  
	
  Apr-08

  	
   

  	
  $

  	
  21,902

  	
   

  
	
  May-08

  	
   

  	
  $

  	
  21,902

  	
   

  
	
  Jun-08

  	
   

  	
  $

  	
  21,902

  	
   

  
	
  Jul-08

  	
   

  	
  $

  	
  21,902

  	
   

  
	
  Aug-08

  	
   

  	
  $

  	
  21,902

  	
   

  
	
  Sep-08

  	
   

  	
  $

  	
  21,902

  	
   

  
	
  Oct-08

  	
   

  	
  $

  	
  22,777

  	
   

  
	
  Nov-08

  	
   

  	
  $

  	
  22,777

  	
   

  
	
  Dec-08

  	
   

  	
  $

  	
  22,777

  	
   

  
	
  Jan-09

  	
   

  	
  $

  	
  22,777

  	
   

  
	
  Feb-09

  	
   

  	
  $

  	
  22,777

  	
   

  
	
  Mar-09

  	
   

  	
  $

  	
  22,777

  	
   

  
	
  Apr-09

  	
   

  	
  $

  	
  22,777

  	
   

  
	
  May-09

  	
   

  	
  $

  	
  22,777

  	
   

  
	
  Jun-09

  	
   

  	
  $

  	
  22,777

  	
   

  
	
  Jul-09

  	
   

  	
  $

  	
  22,777

  	
   

  
	
  Aug-09

  	
   

  	
  $

  	
  22,777

  	
   

  
	
  Sep-09

  	
   

  	
  $

  	
  22,777

  	
   

  
	
  Oct-09

  	
   

  	
  $

  	
  23,684

  	
   

  
	
  Nov-09

  	
   

  	
  $

  	
  23,684

  	
   

  
	
  Dec-09

  	
   

  	
  $

  	
  23,684

  	
   

  
	
  Jan-10

  	
   

  	
  $

  	
  23,684

  	
   

  
	
  Feb-10

  	
   

  	
  $

  	
  23,684

  	
   

  
	
  Mar-10

  	
   

  	
  $

  	
  23,684

  	
   

  
	
  Apr-10

  	
   

  	
  $

  	
  23,684

  	
   

  
	
  May-10

  	
   

  	
  $

  	
  23,684

  	
   

  
	
  Jun-10

  	
   

  	
  $

  	
  23,684

  	
   

  
	
  Jul-10

  	
   

  	
  $

  	
  23,684

  	
   

  
	
  Aug-10

  	
   

  	
  $

  	
  23,684

  	
   

  
	
  Sep-10

  	
   

  	
  $

  	
  23,684

  	
   

  

 

 

Agreed
to and Accepted by:

 

	
  Millennium Ethanol, LLC

  	
   

  	
  Energy Management & Consulting

  Services, LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Steven Domm

  	
   

  	
  /s/ Jeff McKinney

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Steven
  Domm

  	
   

  	
  Jeff McKinney

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:
  CEO

  	
   

  	
  President / CEO

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  October
  27, 2006

  	
   

  	
  October 27, 2006Exhibit 10.22

Scofield & Associates, LLC

S.D.Scofield 

Managing Partner

September 26th, 2006

Mr. Steve Domm 

Millennium Ethanol, LLC 

PO Box 357 

Marion, SD 57043

Re: Engagement Letter 9-27-06

Dear Mr. Domm:

Thank you for asking Scofield & Associates, LLC, to advise
Millennium Ethanol, LLC (“Millennium”). This Engagement Letter sets forth the
terms and conditions of our engagement.

Scope of Work to include:

·                            Work
with Millennium as its advisor to develop a comprehensive understanding of the
Company’s strategic positioning in the industry.

·                            Work
with the Company as its advisor over the next 12 months to advise it with
regards to all of its capital market decisions including but not limited to the
Private Letter Ruling / Tax-Exempt Asset Revenue Bonds.

·                            Work
with the Company as its advisor concerning (a) a review of the trading
characteristics of industry mergers and acquisitions, (b) a review and
identification of potential merger, acquisition, and sale candidates.

·                            Assist
the Company in developing a strategic plan regards potential merger,
acquisition or sale.

·                            Assist
the Company in the execution of the strategic plan.

Fees, Expenses and Billing: Our fees
for the Services are (i) $8,500 per month for twelve (12) months commencing
October 1st, 2006
through September 30th,
2007, plus taxes and out-of-pocket expenses, payable upon the 1st of
each month, (ii) 0.75% of any debt (or debt like financing) secured and closed
on by Millennium, (iii) 0.75% of any merger, acquisition or sale total asset
value (either by Millennium, or of Millennium) if the deal is sourced by
Scofield & Associates, and (iv) .25% of any merger, acquisition or sale
total asset value (either by Millennium, or of Millennium) if the deal is
sourced by Millennium, whereby sourced is defined as a transaction with any
third party that was not identified by Scofield & Associates, LLC.

With the execution of this Engagement Letter, you also acknowledge the
Indemnification Agreement executed by FreMar Cooperative, Inc., and Millennium
Ethanol, LLC is in full force and effect.

We greatly appreciate the opportunity to provide our services to
Millennium, and look forward to working with you and your team. If you concur
with the terms of this Engagement Letter, please indicate so by signing below
and faxing a signed copy to 413-215-6722, and mailing an original to us at;

Scott D. Scofield – Managing Partner

• PO Box 8 • Madison • South Dakota • 57042

v: 605-256-0717 • f: 605-256-0718 • e:
sscofield@svtv.com

Scofield & Associates 

6530 Killarney Park Drive 

Wentworth, South Dakota 57075

	
  

  	
   

  	
  Sincerely,

  
	
   

  	
   

  	
  /s/ Scott D. Scofield

  	
   

  
	
   

  	
   

  	
  Scott D. Scofield

  

 

	
  CONSENT AND AGREED TO: 

  Millennium Ethanol, LLC.

  	
   

  	
   

  
	
   /s/ Mr. S. Domm  10/12/06

  	
   

  	
   

  	
   

  
	
  Mr. S. Domm
  - CEO

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