News
Missoula based Sustainable Systems fails to pay farmers. Missoula’s biodiesel bus system loses its fuel supplier of 10 years
A Montana biodiesel company has forfeited its commodities license to the state after failing to pay farmers for oilseeds grown in 2008, according to company financial records.
Sustainable Systems http://www.sustainablesystemsllc.com/ , a Missoula renewable-fuels firm, is negotiating a settlement with the governments of Montana and North Dakota for outstanding payments to farmers for oilseeds. The company’s Montola oilseed crushing plant in Culbertson sits idle for lack of capital. In addition to biofuels, Sustainable Systems produces culinary safflower oil.
By TOM LUTEY
Of The Gazette Staff
Full Story: http://www.billingsgazette.net/articles/2009/04/22/news/state/35-biodiesel.txt
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Missoula’s biodiesel bus system loses its fuel supplier of 10 years
Story by Allison Maier
Montana Kaimin
ASUM Transportation has fueled its buses with biodiesel for nearly 10 years, but it has been forced to change its ways after Missoula’s only supplier stopped providing the renewable fuel.
“It’s kind of bad news on Earth Day,” said Nancy Wilson, ASUM Transportation director.
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State Works with Culbertson Plant to Pay Oilseed Farmers
A Culbertson oilseed processor has ceased processing operations and is cooperating with the Montana Department of Agriculture in efforts to pay farmers who delivered safflower seed to the plant.
Sustainable Systems LLC and a parent company agreed on Wednesday to sign a consent agreement allowing the department to sell agricultural commodities including crops, seed and processed cooking oil held at several Montana locations. According to the company’s records, Sustainable Systems owes 54 safflower growers in Montana and North Dakota a total of $1.2 million for delivered crops.
Legal notices are scheduled for publication this week in area newspapers stating that the company’s $113,000 surety bond in Montana will be distributed to pay a percentage of what is owed to the Montana growers. A separate process is occurring in North Dakota under a different legal framework. Under terms of the consent agreement, agricultural commodities will be sold and Sustainable Systems will provide additional money in the future to satisfy the contracts for delivered safflower.
"We plan to work through this in an orderly process that maximizes the value of assets for the benefit of growers. Our first priority is to get producers paid," said Director Ron de Yong of the Montana Department of Agriculture.
In addition to the delivered crops, Sustainable Systems signed 2008 contracts with about three dozen other safflower and sunflower growers who have not yet delivered the seed. The company has agreed to work separately on contract issues with those growers.
The Culbertson plant has been in existence since 1956, and produced safflower cooking oil most recently under the Montola brand. At full production, Sustainable Systems had 19 employees crushing and refining oil from crops. Last month, the company voluntarily relinquished its license to purchase agricultural commodities, and has cooperated with the investigation and planned liquidation to pay growers.
"The voluntary cooperation should speed up the process of getting money to growers and allowing future development of the bio-products industry in Montana," de Yong said.
For more information about the department’s actions, contact Andy Gray, Commodity Services Bureau chief at the Montana Department of Agriculture at (406) 444-3730 or by e-mail at [email protected].
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