John and Eli: At present, the Charleston processor is not operating. Apparently, neither GRNO nor the partnership have sufficient cash available to buy feedstock, pay labor, wait for checks for diesel sales to arrive, etc. Several types of activities are underway in an effort to raise the necessary sum. The present processor is configured to handle about 450/500 waste oil gallons per hour, and would need a significant upgrade to handle 1000 gph. It is the intention of the partnership to upgrade the machine when resources permit. Several original partners have, in accord with the terms of the partnership agreement, exchanged their shares in the partnership for shares of GRNO stock. Thus the general partner has increased its ownership of the unit from 10% originally to 53%. The other 47% remains in the hands of various limited partners.
The machine is, to the best of our knowledge, eligible for U.S. tax credits, but there has been no application to the IRS for a private letter ruling, nor action by the IRS regarding such a claim on a tax return. The EPA, in determining which environmental standards apply to this machine, has described it as a machine for the production of "synthetic fuels," a term that the tax law also uses, but I don't believe that anyone has rendered a legal opinion on whether the EPA interpretation and IRS interpretation of that term would be identical.
Obviously, any asset, including the processor, can be sold, if it is in the best interests of the partnership to do so. Also, partnership units can be sold, as can the interests of the general partner (GRNO). There are provisions within the partnership agreement determining how and under what conditions, and with what consequences, such sales can take place. I can't imagine that a serious inquiry or offer wouldn't be looked at seriously. One starts in any case by contacting the general partner.
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