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7. COMMITMENTS AND CONTINGENCIES.
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Jun. 30, 2011
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| Commitments and Contingencies Disclosure [Text Block] |
Purchase
Commitments – At June 30, 2011, the Company had
fixed-price purchase contracts with its suppliers to purchase
$15,801,000 of ethanol. These fixed-price contracts will be
satisfied throughout the remainder of 2011. At June 30,
2011, the Company had indexed-price purchase contracts with
its suppliers to purchase 415,000 gallons of ethanol.
Sales
Commitments – At June 30, 2011, the Company had
entered into sales contracts with its major customers to sell
certain quantities of ethanol and WDG. The volumes indicated
in the indexed price contracts table will be sold at
publicly-indexed sales prices determined by market prices in
effect on their respective transaction dates (in
thousands):
Litigation
– General –
The Company is subject to legal proceedings, claims and
litigation arising in the ordinary course of business. While
the amounts claimed may be substantial, the ultimate
liability cannot presently be determined because of
considerable uncertainties that exist. Therefore, it is
possible that the outcome of those legal proceedings, claims
and litigation could adversely affect the Company’s
quarterly or annual operating results or cash flows when
resolved in a future period. However, based on facts
currently available, management believes that such matters
will not adversely affect the Company’s financial
position, results of operations or cash flows.
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