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Mississippi Investment Petroleum Co., also known as MIPCO, signed a lease with Universal several months ago to make biodiesel at the facility, which was built in 2004 for Biodiesel of Mississippi Inc. But Biodiesel went under in 2006.
"Everything is pretty much good to go there," Solomon Ali, Universal's senior vice president for investor relations, said Monday from a cell phone with a Charlotte, N.C., area code.
Universal Bioenergy is a Nevada corporation with offices in Florida. Charlotte, N.C., investor Process Technologies amp& Services recently sued MIPCO for return of a $635,000 investment, saying it was deceived into believing MIPCO's leaders knew how to succeed in the biofuels venture.
Ali hedged on whether MIPCO is paying the agreed $250,000-per-month lease, but he said the Mississippi company continues to abide by its terms, which have some monetary wiggle room based on production.
Robbie Wilbur, spokesman at Mississippi Department of Environmental Quality, said recently the agency has issued no permits that would allow the Nettleton facility to operate.
Last week, MIPCO President Mike Cook of Madison said his company continues to put hopes into the Nettleton plant, but he doesn't expect any headway there for several months. The entire facility is outside, unlike its Houston refinery.
"Until the weather warms up, we can't do much over there," Cook speculated.
Meanwhile in Houston, an eviction hearing for MIPCO is still set for Thursday, said Justice Court Clerk Lynne Taylor.
The facility, where MIPCO moved after difficulties with a start-up in Aberdeen, is owned by state Sen. Jack Gordon of Okolona. MIPCO's lease is for $10,000 per month.
When MIPCO missed its December rent, Gordon filed the eviction notice.
However, it's believed Gordon recently got his money for December, but he didn't return a call about how or if that payment affects his plans.
Ali said his company's concerns were raised when MIPCO was threatened with eviction.
"It was an alarming situation in Houston," he said.
Last week, Cook said he expected refinery staff to be back at work Jan. 4 after a New Year's break. Tuesday, no one answered a Daily Journal call to the Houston facility.
Contact Patsy R. Brumfield at (662) 678-1596 or patsy.brumfield@djournal.com.
Below is from Universal's Securities and Exchange Commission filing. Universal is going to make $2.4 million off of MIPCO in 2010, but MIPCO can't pay $10K in rent a month in Houston? Sounds like a lot of chest thumping. Or what some of us call fraud...
Is that Mike Cook's home address in Madison below in the filing? Maybe someone could pay him and his wife a visit if they really wanted their money back...
Description of Leaser - MIPCO
Since the revenue stream is dependent on MIPCO, here is some information about MIPCO and its management team:
Mississippi Investment Petroleum Company (MIPCO) was founded in late 2008, by a group of investors with the mutual goal to better the environment. The group in toto have over 80 year’s business experience and have operated several successful businesses. Mr. Tommy Farrar and Mr. Gary Bell were brought on board in early 2009. Tommy Farrar was hired as the General Manager of Operations and Gary Bell as the Plant Manager. Tommy Farrar has 31 years work experience in a manufacturing including materials purchasing, quality management, and distribution management. Gary Bell has 34 years work experience in processing, maintenance, and distribution. Both will participate in overseeing the opening and daily operations of the Nettleton facility. MIPCO is currently finalizing the opening of a biodiesel facility in Houston, MS and has a third facility under construction in Aberdeen, MS. For more information, contact UBRG at (800) or visit our web site at www.universalbioenergy.com.
Universal Bioenergy, Inc. (UBRG-its trading symbol) wishes to announce the initiation of a long term lease agreement between its wholly owned subsidiary- Universal Bioenergy, North America, Inc. (UBNA) and Mississippi Investment Petroleum Company LLC (MIPCO), a Mississippi Limited Liability Company, having its offices at 4 Moss Woods Cove, Madison, Mississippi 39110.
In return for the use of the biodiesel refinery plant owned by UBNA at Nettleton, Mississippi, MIPCO will pay UBNA a production fee of $0.25 per gallon for each gallon of fuel produced at the plant. MIPCO has agreed to pay all permitting fees and costs to bring the plant into full operation. The expectation is that the plant will be in partial operation in sixty days from September 1, 2009, with full operating capacity of 1,000,000 gallons a month to follow shortly thereafter.
By the end of 2009, the lease will provide a revenue stream to UBNA of $250,000 per month or three million per year. Since there are no operating costs for UBNA this will also be a Gross Operating Profit. Currently the management of the parent Company, UBRG, has budgeted $50,000 for G&A and R&D per month starting in January 2010. Since the company currently is debt free, the $50,000 per month will be the costs for the Company other than taxes. Based on these numbers, UBRG should have a gross profit of $2,400,000 for 2010.
How much money did Lunsford, Cook, Craven, Ali, and all the other criminals make on that scam? All these boys should be run outta Mississippi on rails! Stand up citizens! Don't take anymore!!!
UNIVERSAL BIOENERGY INCORPORATED (OTC: UBRG)
"Up 557.14% in morning trading"
OTCPicks.com Daily Market Movers Digest Midday Report for Tuesday, August 25th, 2009
August 25 - Universal Bioenergy Signs Multi-Million Dollar Biofuels
Contract
Universal Bioenergy Inc. (OTC: UBRG) a company focused on the development and production of alternative energy sources and green technologies,
announced today that it has signed a multi-million dollar contract with Mississippi Investment Petroleum Company (MIPCO), a next generation biofuels energy producer and marketer.
Under the terms of the agreement MIPCO will have a biodiesel fuel production arrangement and lease of Universal Bioenergy`s biodiesel fuel refinery in Nettleton, Mississippi to produce and distribute biodiesel fuel to the Southeast, Midwest and Gulf Coast regions of the United States. The estimated gross revenue to be generated from the fuel sales to the end user
is $30 million. The gross operating profit to Universal Bioenergy is estimated at $3 million, with a net profit of $2.4 million per year, since
the company will incur no operating costs other than general and administrative expenses. Universal Bioenergy is currently debt free and the
current market value of its refinery plant at full operation is estimated at $13 million.
Their Chief Executive Officer Dr. Richard Craven states, "This contract will be very favorable to Universal Bioenergy, in terms of our revenue,
growth, expansion goals and to secure similar contracts with other firms in the future." It is projected that the refinery would be producing fuel in November of this year, and would produce about 12 millions gallons per year
at current capacity.