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7. Agreements

6 Months Ended

Jun. 30, 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 during the three and six months ending June 30, 2012 and 2011 as invoiced net of marketing and monthly true-up accounting.

	3 months ending June 30, 2012		6 months ending June 30, 2012		3 months ending June 30, 2011		6 months ending June 30, 2011
Ethanol sales		31,064,699		63,117,908		21,903,394		21,903,394
Wet distiller's grains sales		8,109,315		15,941,056		4,115,192		4,115,192
Corn oil sales		166,509		166,509		-		-
Corn purchases		37,646,472		74,431,277		26,292,878		26,292,878
Accounts receivable		890,716		890,716		507,570		507,570