Commitments and Major Customer

3 Months Ended

Dec. 31, 2012

Commitments and Major Customer [Abstract]

Commitments and Major Customer

Commitments and Major Customer

The Company has an agreement with an unrelated entity for marketing ,selling and distributing all of the ethanol produced by the Company. For the three months endedDecember 31, 2012 and 2011 the Company has expensed $138,262 and $170,383, respectively, under this agreement for marketing fees. Revenues with this customer were $34,012,975 and $33,713,458, respectively, for the three months endedDecember 31, 2012 and 2011. Trade accounts receivable of $5,326,768 was due from the customer as of December 31, 2012.

The Company has an agreement with an unrelated entity for marketing, selling and distributing the distiller's grains. For the three months endedDecember 31, 2012 and 2011, the Company has expensed marketing fees of $187,396 and $138,288, respectively, under this agreement. Revenues with this customer were $12,478,100 and $8,138,333, respectively, for the three months endedDecember 31, 2012 and 2011. Trade accounts receivable of $1,564,428 was due from the customer as of December 31, 2012.

The Company entered into an agreement on January 1, 2013 with an unrelated party to provide the coal supply for the ethanol plant. The agreement expires on January 1, 2015. The agreement is subject to a minimum purchase requirement. For the calendar year 2013 the estimated purchase commitment totals, $2,030,000.

The Company has entered into a variable contract with a supplier of denaturant. The variable contract is for a minimum purchase of 243,000 gallons at the average of the OPIS Conway In-Well Natural Gasoline High and Low price plus $.1875/usg. The term of the contract is from January 1, 2013 through March 31, 2013. The minimum future purchase commitment is $581,621.