NEDAK Ethanol receives fine for no permit

By Bryan Sims | November 03, 2008
Web exclusive posted Nov. 24, 2008 at 2:00 p.m. CST

NEDAK Ethanol LLC has been fined $15,000 by the state of Nebraska for building an ethanol storage and load-out site near O'Neil, Neb., without first receiving a construction permit from the Nebraska Department of Environmental Quality, which is a violation of Nebraska Air Quality Regulations.

The Department of Environmental Quality was represented by the Nebraska Attorney General's office in the case.

According to court filings, $5,000 of the $15,000 fine was due on Nov. 3; the remaining $10,000 fine isn't due for another year and if NEDAK doesn't violate any provision of the Nebraska Environmental Protection Act within the next year, its $10,000 fine would be waived.

NEDAK, which is constructing a 44 MMgy ethanol plant near Atkinson, Neb., has operations divided between two sites in Holt County. Fermentation and distillation of ethanol would occur near Atkinson, while storage and load-out would take place near O'Neill. The plant is expected to begin operations late this year.

Once operational, NEDAK plans to transport the ethanol by train. However, this could present a challenge as NEDAK's train service ends in O'Neill, which is approximately 18 miles from Atkinson. NEDAK intends to truck its ethanol to the load-out site so it can be shipped by train to its planned destination.