Laidlaw Energy Group, Inc. Issues Update
January 28 2010 - 1:17PM
Business Wire
Laidlaw Energy Group, Inc. (Ticker Symbol “LLEG”) is pleased to
provide its shareholders with the following update on the Company’s
progress.
Dear Laidlaw Energy Shareholders and Friends:
I am writing today to provide you with an update on several
matters that I believe are of interest to our shareholders.
Massachusetts Projects
Both of the projects we are currently pursuing in Mass are
progressing well. We have been negotiating the asset purchase
agreement for one of the projects for quite some time and we just
provided the seller what we hope will be close to the final draft.
So, while timing is always a bit challenging to estimate, we hope
to execute this agreement in the near future. We are very excited
about this project, because it is already qualified as a renewable
generator and we believe it already possesses certain permits
(subject to confirmation), so it is potentially a very fast-track
project for us.
The other project in Massachusetts that we have been pursuing is
also moving along well. For this project, the plan is to lease the
existing power house while we further develop the project and then
the lease would convert to a purchase once we have secured all
approvals to operate as a biomass plant. We are currently
negotiating this document. This is an operating power house that
currently serves the thermal energy needs of a significant
manufacturer. We are currently negotiating a 20 year energy
services agreement with this company to serve its thermal energy
needs from the proposed biomass plant. This project seems to be
gathering a lot of support from local and state political sources
and could really be a template for future projects. Indeed, the
current owner of the power house has proposed a similar arrangement
at another location that we are currently exploring.
Berlin Project
The New Hampshire Site Evaluation Committee has accepted our
permit application as complete. See
http://www.nhsec.nh.gov/2009-02/documents/100126application_order.pdf
The 8 month clock to a decision commence as of the date of the
acceptance. We expect to have a public meeting on the application
in approximately 30 days.
Joint Venture
We have started to receive funds from the HLE joint venture to
cover overhead and development costs, so we expect this will be a
significant positive factor going forward in terms of reducing
LLEG's capital needs. There is a note due to us at the end of
February in connection with the JV that is expected to yield
significant additional working capital and is anticipated to allow
us to be profitable for fiscal 2010.
Ellicottville, NY Project
Last month we met with the Town Board representing the Town of
Ellicottville. The purpose of the meeting was to discuss the
potential resolution of the dispute concerning our existing power
plant located there and our plan to convert it to biomass fuel.
While the meeting was cordial and productive in terms of fostering
increased understanding between the parties as to their views and
concerns, our offer of settlement was not accepted. We continue to
pursue this project and hope a amicable resolution can be achieved.
Since we are left with no other alternative, the state and Federal
litigation will continue to move forward in the interim.
Corporate Governance
We are exploring numerous additional options to increase the
transparency of the Company to stakeholders. While we continue to
explore the possibility of listing our securities to trade on the
OTCBB or another venue, it is my hope that we will voluntarily
commence disclosure of additional company information this fiscal
year so stakeholders will have much the same information
irrespective of whether we choose to go forward with a new listing
or not.
I hope this information proves helpful to our stakeholders in
terms of fostering an increased understanding of our business and
current activities.
Very truly yours,
Michael B. BartoszekPresident & CEO
About Laidlaw Energy Group
Laidlaw Energy is engaged in the development of independent
power plants that generate electricity from renewable resources,
with a particular emphasis on biomass power. LLEG's mission is to
build and manage a profitable portfolio of biomass facilities
through the development of new facilities and acquisition of
existing facilities, and in so doing become the leading supplier of
biomass power in the United States. Laidlaw Energy is headquartered
in New York, New York. For more information, please visit our
website at www.LaidlawEnergy.com.