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7. Agreements

3 Months Ended

Mar. 31, 2012

Working Capital Arrangement. On March 9, 2011, the Company entered into a Purchasing Agreement and Corn Procurement and Working Capital Agreement with J.D. Heiskell. Pursuant to the terms of the agreement, J.D. Heiskell agrees to supply the Company all the requirements for whole yellow corn for the ethanol plant commencing with the first delivery of corn to the Gilbert facility adjacent to the keyes Plant and originally ending December 31, 2011 with a one year renewal term. Heiskell further agrees to sell all ethanol to Kinergy Marketing or other marketing purchaser designated by the Company. Heiskell agrees to sell all WDGS and Syrup to A.L. Gilbert as the primary customer and exclusive marketer for the WDGS. These Corn Supply, Working Capital and Purchasing agreements are ordinary purchase and sale agency agreements for an ethanol plant.

See following for the J.D. Heiskell Purchasing Agreement, Corn Procurement, Working Capital Agreement activity as invoiced net of marketing and monthly true-up accounting during the three months ending March 31, 2012 and 2011.

	Three months ended March 31,
	2012		2011

Ethanol sales		32,053,209		-
Wet distiller's grains sales		7,831,741		-
Corn purchases		36,784,805		-
Accounts receivable		824,881		-

The J.D. Heiskell Agreement did not have activity until the Keyes, CA ethanol plant began production in April 2011, so there was no activity for the three months ending March 31, 2011.