Related Party Transactions

9 Months Ended

Sep. 30, 2011

RELATED PARTY TRANSACTIONS

Dakota Ethanol owns an 8% interest in RPMG, in which Dakota Ethanol has entered into marketing agreements for the exclusive rights to market, sell and distribute the entire ethanol and dried distiller's grains inventories produced by Dakota Ethanol. The marketing fees are included in net revenues.

Sales and marketing fees related to the agreements are as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010

Sales ethanol	$	30,991,989	$	20,864,223	$	90,932,374	$	56,553,530
Sales co-products	3,120,057		2,201,118		6,766,808		5,803,893

Marketing fees ethanol	54,257		53,203		172,048		160,196
Marketing fees co-products	21,131		25,503		58,444		69,257

	September 30, 2011		December 31, 2010
Amounts due included in accounts receivable	$	3,628,051	$	3,504,400

- Definition

The entire disclosure for related party transactions, including the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

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Reference 3: http://www.xbrl.org/2003/role/presentationRef

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+ Details