Holt County Ethanol, LLC Of O'Neill Signs Natural Gas Agreement

O'Neill, Nebraska - July 9th, 2007 - Holt County Ethanol, LLC of O'Neill, Nebraska, announces that it just recently signed a precedent agreement with Nebraska Resources Company, LLC which will supply natural gas and construct a new natural gas pipeline that will run from the interstate Trailblazer Pipeline near Hastings, NE to the Holt County Ethanol plant site located 7 miles east of O'Neill. The term of

the agreement is 10 years.
              Nebraska Resources Company, LLC is a partnership between Seminole Energy Services, LLC based in Tulsa, Oklahoma, and Aquila, Inc., which is based out of Omaha, NE.

              Seminole Energy Services, LLC is primarily engaged in providing: full-service retail natural gas
marketing to commercial, industrial, agricultural, government and residential choice customers; full-service purchasing from producers, including well-head distribution and risk management; and midstream services, including building and operating natural gas gathering, processing and treating facilities.

              Aquila, Inc. is an electric and natural gas distribution company that serves approximately 900,000 customers in five Midwestern states (Colorado, Iowa, Kansas, Nebraska and Missouri.) The company also owns and operates generation assets.
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offices. This is required in order to begin the initial construction process. Monona County Ethanol, L.L.C., a subsidiary of Midwest Ethanol Producers, L.L.C., head quartered in O’Neill, NE, announced it's plans in August of 2006 to build an ethanol plant on their optioned 477 acre site in Monona County, Iowa, just 6 miles South of Onawa, or 1 mile North of Blencoe.

              Monona County Ethanol, L.L.C. is also beginning to discuss the development of other ag-related industries, including a bio-diesel plant, a CO2 plant, and a coal-fired power plant, all to be located at the same site. The bio-diesel plant would utilize the germ oil portion of the corn processed at the ethanol plant, along with soybeans. The CO2 is also a by-product of the ethanol production process and would be captured and sold primarily to bottling companies for use in soft drinks. The coal-fired power plant would generate the power necessary for all the plants on site with the use of coal as the heat source, which is currently about 1/6 the cost of natural gas. Not only is this a cost-saver for the plants, it would also prevent a higher local/regional demand for natural gas and electricity, which in turn could lead to higher prices for both. The development of these plants and construction will continue to boost the economy of Onawa, Blencoe, and the surrounding communities while providing resources to other facilities.
              The Blencoe plant will be permitted to produce more than 100 million gallons of ethanol each year, along with 320,000 tons of dry distillers grain(a high protein cattle feed), and will consume more than 37 million bushels of corn annually.
The plant will provide 45 professional, skilled and semi-skilled employment opportunities, with compensation packages averaging $52,000.00 per year including benefits.
The plant will pump millions of dollars into the local and area economies through higher wages, contract and sub-contract labor, sales and property tax revenue, improved infrastructure, and higher corn prices for farmers.
Technology will be handled by PRAJ, and Engineering by CJ Schneider Engineering Co. out of Omaha, NE.
              Ground-breaking is scheduled to be in the 2nd quarter of 2007, with production slated for the 3rd quarter of 2008.
              This will be the fifth planned plant for Midwest Ethanol Producers, L.L.C. They are currently in the construction stages for a 100 MMGY Plant in O'Neill, Nebraska in which the ground-breaking took place July 28th, 2006. The other planned sites are in Holdrege, Arapahoe, and Elm Creek, all in Nebraska as well.