COMMITMENTS

12 Months Ended

Jan. 31, 2021

Disclosure Text Block Supplement [Abstract]

Commitments Disclosure [Text Block]

10. COMMITMENTS

At January 31, 2021, One Earth and NuGen have combined forward purchase contracts for approximately 6.4 million bushels of corn, the principal raw material for their ethanol plants and they have combined forward purchase contracts for approximately 1,428,000 MmBtu of natural gas.

At January 31, 2021, One Earth and NuGen have combined sales commitments for approximately 38.6 million gallons of ethanol, 73,000 tons of distillers grains and 21.6 million pounds of non-food grade corn oil.

One Earth has entered into an agreement with an unrelated party for the use of a portion of that party’s natural gas pipeline. The term of the original agreement was 10 years, and the amount was $4,380,000, which was paid over 120 equal monthly installments of $36,500 beginning in February 2009. A new 15-year agreement, with monthly payments of $29,250 was effective February 1, 2019. One Earth paid approximately $351,000 in fiscal year 2020, approximately $358,000 in fiscal year 2019 and approximately $438,000 in fiscal year 2018 pursuant to the agreement.

One Earth and NuGen each have a contract with an unrelated party (“Distillers Grains Marketers”) for distillers grains marketing services. Under the terms of the contracts, the Distillers Grains Marketers will purchase all of One Earth’s and NuGen’s distillers grains production during the term of the contracts. The contracts call for One Earth and NuGen to pay a fee per ton of distillers grains sold for the Distillers Grains Marketers’ services. The terms of the agreements are for one year and renew automatically for additional one-year terms, unless either party sends notice to the other party of its intent to terminate the agreement at least 90 days prior to the expiration of the then current term of the agreement. One Earth and NuGen combined incurred fees of approximately $841,000, $936,000 and $1,250,000 in fiscal years 2020, 2019 and 2018, respectively, for these marketing services.

The refined coal entity has various agreements (site license, operating agreements, etc.) containing payment terms based upon production of refined coal under which the Company is required to pay various fees. These fees totaled approximately $2,500,000, $4,231,000 and $9,927,000 in fiscal years 2020, 2019 and 2018, respectively.