Olie77,
Yes, Utica was one of the original COES installs that GERS took on debt to build. The system was 50% complete, but thanks to the Y/A deal, the system is now 100% complete. The old business model was to take on debt by building and owning the systems, and giving the producer a cut. The new business model is to let the producers fund and own the equipment, and GERS gets a cut. That's why debt is dropping like a rock and we're turning profitable. The Utica COES earns a 20% royalty as do the rest of the licensed systems. We gave up full ownership of the equipment in exchange for a 20% ownership, the reduction in debt, and Y/A paid to finish building it. I believe the royalty is still based on the price of diesel fuel instead of corn oil like the majority of our other customers.
Didion is a potential customer. I talked with the plant manager there and he acted like he didn't even know what corn oil extraction was. Maybe Didion is part of the unannounced 400 million gallons in new licenses we gained in Q2 but it remains to be seen.
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