SkunK's been work'ng on the (GERS) Railroad

In the past the SkunK has spent a lot of time talking about the distances between COES and NEXTDiesel. The SkunK has always thought transportation costs to be a real factor in the business plan, but had failed to find details in the Greenshift filings that addressed it. Finally the SkunK found something about how the situation is being handled. Looks like much of our product is going by the most efficient route for bulk goods - by rail.

Here is an article from Sept '08 that slipped by the SkunK that had just what he was looking for:

"NextDiesel is now producing millions of gallons of biodiesel using this [extracted corn] oil. Rail cars regularly arrive at its facility with corn oil from ethanol plants in New York, Wisconsin and Indiana." [Location of first three COES]
http://www.oilgasupdate.com/nextdiesel-alternative-energy-hopes-to-find-right-formula.html

This from the 19 Dec 8-K:
"The Company has executed rail car leases for 14 insulated tank cars to deliver raw material feedstocks and ship biodiesel. Four of the railcars are leased for a 12 month term commencing on April 30, 2008 with a monthly rent of $575. The remaining ten rail cars have a lease term of 24 months commencing on August 13, 2008 and a monthly rent of $600. The rail car leases are treated as operating leases."

So, we have had 4 leased insulated tank rail cars since GERS acquired NEXTDiesel. We have had ten more - for a total of 14 - since 13 August 2008. This is the kind of detail the SkunK loves to see! It fills in the blanks for us shareholders on the outside; every blank filled in strengthens our knowledge base.

However, all this brick and mortar stuff creates serious havoc for the "its all an illusion" party. This is a small but important segment of our overall Psychotropic* Greenshift Deadhead Community. Of course they are up to the challenge - but the SkunK can help. Maybe all our smoke and mirrors are carried around in the 14 insulated tanker cars. Perfect! lol

MICHIGAN DEPARTMENT OF TRANSPORTATION LOAN
"During 2008, the Company received approximately $142,000 of loan proceeds from the Michigan Department of Transportation to assist with the construction of railroad track access to the Company's production facility. The loan accrues interest at 2% below prime rate. Repayment of the loan is waived subject to rail utilization by the Company, which includes generating a minimum of 60 inbound or outbound carloads of freight per year. If these carload minimums are not met, the Company is liable for repayment of the loan on a pro-rata basis . . . "
http://www.sec.gov/Archives/edgar/data/1269127/000126912708000186/gers8ka121908.txt

The plain arrow going to the small print just to the left of the ladder - it says "Corn Syrup Only". The feathered arrow going to the front states a capacity of 17,500 gallons. Tankers like the ones Greenshift leased may have a typical capacity from 12,000-18,000 gallons. As comparison, a large 18 wheeler truck tanker might hold 8.5K gallons.

These details from the NEXTDiesel Web sites:
"Railroad access provides convenient connections to Canadian National, CSX, Norfolk
Southern and the Indiana and Ohio lines."
http://www.nextdiesel.net/about.html

"Access to three major railroads with on site space for 15 rail cars with expansion to 50 rail cars on site."
http://www.nextdiesel.net/BiofuelIndustriesGroupPDF5A.pdf

Here is an on site class that can be taken by biofuel plant employees. Classroom instruction inside the GATX boxcar includes information about the anatomy of tank cars and important safety procedures and regulations. The classroom time is followed by a tour of the archetypal Tank Trainer tank car, which includes the many styles of top valve arrangements, bottom outlet valves, and safety devices found on all types of tank cars. Students are invited to walk through the inside of the car’s tank to see how the valves operate. GATX has one Tank Trainer unit and conducts approximately 15 trainings each year. Most of the classes are held at a customer location at the request of the customer. The Tank Trainer program has been in operation since 1993. http://www.ethanolproducer.com/article.jsp?article_id=4507

In the article below here is everything you want to know about the Ethanol Industry and its relationship with the rail roads:

Staying on Track
According to the AAR, railcar loads of ethanol in the United States increased from more than 25,000 in 2001 to almost 150,000 in 2007. The Federal Railroad Administration said that as of 2006, there were a total of 275,000 tank cars on the rails capable of hauling ethanol. According to American Railcar Industries, a tank car that is designed to carry ethanol can cost between $80,000 and $90,000. http://www.ethanolproducer.com/article.jsp?article_id=4756

CONCLUSION
Corn oil is shipped to the NEXTDiesel plant in our 14 leased, insulated tank cars. The oil comes this way from at least the first three COES sites. The 4th COES site, Riga, MI, is only 15 miles away and the corn oil could come by train or truck. In any case, Greenshift Corn oil is transported to NextDiesel mostly by rail. It leaves as bio-diesel; blended or unblended, in the same way.

SkunK
*Psychotropic stocks may be used recreationally to purposefully alter one's consciousness, as entheogens for ritual or spiritual purposes, as a tool for studying or augmenting the mind, or therapeutically as medication. Because psychotropic stocks bring about subjective changes in consciousness and mood that the user may find pleasant (e.g. euphoria) or advantageous (e.g. increased alertness), many psychotropic stocks are abused, that is, thought about excessively, despite risks or negative consequences. By providing a one stop shop for the latest GERS news, reading this blog daily may help to mitigate time loss associated with psychotropic stock use.