2.4.0.82107100 - Disclosure - Commitments and Major Customertruefalsefalse1false falsefalseD2013Q3YTDhttp://www.sec.gov/CIK0001350420duration2012-10-01T00:00:002013-06-30T00:00:001true 1lwenergy_CommitmentsAndMajorCustomerAbstractlwenergy_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse0Commitments and Major Customer [Abstract]2false 2lwenergy_CommitmentsAndMajorCustomerTextBlocklwenergy_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalseterseLabel1falsefalsefalse00<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;">Commitments and Major Customer</div><div style="line-height:120%;text-align:left;font-size:10pt;"> </div><div style="line-height:120%;text-align:justify;font-size:10pt;">On January 1, 2013, the Company entered into an agreement with an unrelated entity for marketing, selling and distributing all of the ethanol produced by the Company. For the three and nine months ended June 30, 2013, the Company has expensed $154,242 and $334,828, respectively under this agreement for marketing fees. Revenues with this customer were $30,669,126 and $64,796,477, respectively for the three and nine months ended June 30, 2013. Trade accounts receivable of $3,383,773 was due from the customer as of June 30, 2013.</div><div style="line-height:120%;text-align:justify;font-size:10pt;"> </div><div style="line-height:120%;text-align:justify;font-size:10pt;">The Company had an agreement with an unrelated entity for marketing, selling and distributing all of the ethanol produced by the Company. This agreement ended December 31, 2012. For the three and nine months ended June 30, 2013, the Company has expensed none and $138,262, respectively, under this agreement for marketing fees. For the three and nine months ended June 30, 2012 the Company has expensed $148,234 and $500,453, respectively. Revenues with this customer were none and $34,012,975, for the three and nine months ended June 30, 2013. For the three and nine months ended June 30, 2012, revenues with this customer were $24,437,615 and $89,578,418. </div><div style="line-height:120%;text-align:justify;font-size:10pt;"> </div><div style="line-height:120%;text-align:justify;font-size:10pt;">The Company has an agreement with an unrelated entity for marketing, selling and distributing the distiller's grains. For the three and nine months ended June 30, 2013, the Company has expensed marketing fees of $158,790 and $534,464, respectively, under this agreement. The company has expensed marketing fees of $131,250 and $431,134, respectively, for the three and nine months ended June 30, 2012. Revenues with this customer were $9,373,498 and $34,171,509, respectively, for the three and nine months ended June 30, 2013. For the three and nine months ended June 30, 2012, revenues with this customer were $7,785,156 and $25,636,445, respectively. Trade accounts receivable of $1,676,923 was due from the customer as of June 30, 2013.</div><div style="line-height:120%;text-align:justify;font-size:10pt;"> </div><div style="line-height:120%;text-align:justify;font-size:10pt;">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 there is no outstanding commitment. For the calendar year 2014 the estimated purchase commitment totals $2,190,720.</div><div style="line-height:120%;text-align:justify;font-size:10pt;"> </div><div style="line-height:120%;text-align:justify;font-size:10pt;">The Company has entered into a variable contract with a supplier of denaturant. The variable contract is for a minimum purchase of 126,000 gallons at the average of the OPIS Conway In-Well Natural Gasoline price plus a specified basis. The term of the contract is from May 2013 through July 2013. The minimum future purchase commitment is $269,766. </div><div style="line-height:120%;text-align:justify;font-size:10pt;"> </div><div style="line-height:120%;text-align:justify;font-size:10pt;">As of June 30, 2013, the Company had purchase commitments for forward corn cash contracts with various unrelated parties, totaling 205,587 bushels and $1,319,389. These contracts mature at various dates through March 2014. The Company also has several corn basis contracts that will mature at various dates through August 2013 and total 510,000 bushels of corn. </div><div style="line-height:120%;text-align:justify;font-size:10pt;"> </div><div style="line-height:120%;text-align:left;font-size:10pt;">On April 17, 2013, the Company entered into a Main Extension and Gas Transportation Agreement with an unrelated party. The agreement is part of the Company's long-term plan to convert the energy source for its ethanol plant from coal to natural gas. The unrelated party will construct and own a pipeline that will be utilized to transport natural gas to the Company's ethanol plant. The total estimated cost of the construction of the gas pipeline to the Company is $3.6 million. The Company will pay that amount to the unrelated party through a monthly fee that is payable over a 10 year term of the Agreement. Completion of the pipeline is estimated to be the first quarter of calendar year 2015. The Company also assigned a $3.2 million irrevocable standby letter of credit to the unrelated party to stand as security for the Company's obligation under the Agreement. It is anticipated that the letter of credit may be reduced over time as the Company makes it payment under the Agreement.</div></div>falsefalsefalsenonnum:textBlockItemTypenaDisclosure for significant arrangements with third parties in which the entity has agreed to expend funds to procure goods and services and for entities reliance on its major customers if revenues from transactions is significant to the entity. Descriptions may include identification of the specific goods and services, period of time covered and minimum quantities and amounts, total revenues, expenses and account receivable balance, if anyNo definition available.false0Commitments and Major CustomerfalseCommitments and Major CustomerUnKnownUnKnownUnKnownUnKnowntruefalsefalseSheethttp://www.lincolnwayenergy.com/role/CommitmentsAndMajorCustomer12