11/08/2007 DESIGN REVIEW COMMITTEE Executive Session

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Dudley Thomas 46 Nicoletta's Way Prod Ace.Bio-Fuel Dudley Thomas was present. He addressed the Committee saying that bio-diesel is made from waste vegetable oil and animal fats and is therefore nontoxic and fire degradable. He said it is a diesel equivalent and is used in non-modified diesel engines for vehicles, ships, trains and, especially, for school buses. A detailed discussion was held and some of the highlights of the discussion included the following: • Glen asked: Is this 100%vegetable oil? Mr. Thomas responded he will manufacture 100%bio- diesel but will sell a product called B-20. He will go to station and pump diesel into truck but will not have diesel on the site. • Odor...Yes. He's using McDonald's french fry oil and will smell like french fries. • Process...He said he will take vegetable oil and put it in a vat and then pump catalyst into the vat to break down the vegetable into 2 components. One component is glycerin;and the other component is triglyceride. Triglyceride is what he is going to sell. • Methyl hydroxide is the catalyst. Methanol mixed with sodium peroxide gives the methyl hydroxide that he uses as the catalyst. • Heating of the tanks is done via solar/thermal connectors. • Flash point of product is 300 degrees. Sheldon said that makes it Class D. • Mr. Thomas showed pictures of the processing units and diagram data. • Glen Harrington stated he wants to be assured that they don't produce too much heat. • Mr. Thomas pointed out the methanol tank and said it is about 2,000 gallons;he said the computer controls the mixer; and he then went through the process they perform. Mr. 'Thomas said the tanks are stainless steel with tube for vapors to escape. • Mr. Thomas said he would work closely with Fire Department regarding approval of fire suppression system to be used. He said he had another facility of this type in California. • Tank can run 3 days without sun. • Mr. Thomas stated he doesn't like to dispense methanol unless up high because methanol can make people sick. • Tank goes to State with material to be approved before it can be sold. • Mr. Thomas showed the 3 bays in the building he will be using. They are numbered 8, 9, and 10. • He will not have any outside storage. • He will have 2 drivers because he said he may buy from Bakers Commodities also. • Plans are to increase production when sales warrant. • Waste from this process? Mr. Thomas said he will have 4-6 55 gallon drums welded together; these drums have top one-third cut off;hardware cloth basket will sit down in the drum and big pieces of vegetable oil waste will be caught in hardware cloth. Mr. Thomas said in the beginning they would probably want to dump this waste at the Transfer Station. • Retail price would be 5 cents below diesel cost. • Mr. Thomas pointed out that nitrogen oxide is 20%higher than in diesel,but everything else is much less. • Anticipate having 5 employees at the processing plant. Office will be someplace else. • Not going to fill vehicles at this location. They are going to deliver in drums.