LPCA, biodiesel plant on OPDA agenda

The Odessa Public Development Authority met Monday to hear from treasurer of the Livestock Producers Cooperative Association, Sue Lani Madsen, and to discuss three letters of interest submitted by parties willing to explore leasing and/or buying Odessa’s mothballed biodiesel plant.

LPCA

Madsen announced that the plant had closed Friday, February 13. She said she hoped the closure was temporary and that members of the cooperative wanted it to continue. Efforts are under way, she said, to raise additional capital and/or find additional investors to help with the cash flow situation that had developed over the slower winter months (in terms of butchering jobs) and to reorganize plant operations.

Madsen admitted that the plant had been ‘undercapitalized’ to begin with, and some members of the OPDA were quick to point out that they had expressed such a concern prior to construction. She also said she had a long list of “lessons learned” that would be closely monitored as the Cattle Producers of Washington (CPoW) and other involved partners move ahead with their reorganization efforts.

Plant manager Darren Summers, she said, has opted not to return to the plant when and if it reopens, deciding instead to focus on his family’s purchase of Voise Sausage and likely reopening of KD Meats, a custom meat-processing business formerly operated by Summers and his wife Kendrain. Summers himself confirmed the information on a recent visit to The Record.

Madsen also said that the USDA “grant of inspection” will remain active while efforts to reopen continue. The wastewater permit issued by the state Dept. of Ecology and held by the OPDA will also remain in force in the interim. Some wastewater testing results were not within the desired ranges, and the CPoW board will also be working to resolve that issue.

The original plant design by Belsby Engineering, Madsen said, was based on plans filed with Ecology by Vern’s Moses Lake Meat, a slaughtering facility that had at some point been slated for closure but is, in fact, still operating. It was later learned that Vern’s had added two additional wastewater settling tanks, whereas the Odessa facility’s plans were based on the two shown in the original Ecology filing. Board members are considering adding additional tanks to allow longer dwell times that should solve the problem of the out-of-range test results. Other options also include establishment of bio-swales or constructed wetlands to handle wastewater.

A major spike in the price of cattle on the hoof was also a factor affecting the bottom line at LPCA, with calves selling for $1,600 at one point last year, Madsen said.

Madsen’s request for 90 days for the CPoW/LPCA to work out issues related to the reorganization was granted by the OPDA. By March 1, Madsen will also submit a formal written request to the OPDA for adjusted terms of payment for money owed to the OPDA.

Biodiesel plant

The OPDA’s administrative assistant Stacey Rassmussen showed the board members the three letters recently received from three different entities located around the country. The letters express interest in the biodiesel plant, but board members want much more detailed proposals from each of them. Rassmussen will respond to each, giving them 60 days to return in-depth proposals.

Interest expressed in the prior round of responses to the OPDA’s request for proposals was withdrawn by the company that submitted it. Board members were encouraged that three responses were received this time around.

Discussion by the board members then focused on what options were available to whomever might end up operating the biodiesel plant. Originally, the plant was started up to produce a renewable fuel product under the Energy Freedom Program established by the Washington state legislature. Board members questioned whether the plant might perform canola crushing only and then supply the oil to either a biodiesel refinery or to a plant that uses food-grade oil. They agreed that more research needed to be done.

Other issues involving storage space for the canola seed or meal also needed to be addressed, but the topic was tabled pending clarification of legal issues.