AGPI Financial Alternatives

  

· Flexible Terms

Contractual agreements usually require an initial down payment of 40 percent. The balance of the purchase price is divided into a schedule of payments that are made periodically as construction progresses. Site preparation and transportation costs are the responsibility of the purchaser.

· Lease

Upon plant completion, AGPI assists with plant start-up and provides training for the plant operator. Utilizing equipment lease packages, based on the buyers financial status, AGPI can arrange lease/purchase agreements with equipment lease companies. Leases generally run for a 5-year term with a residual payment due at the end of the lease period. Lease costs normally run somewhat higher than prevailing interest rates. Site preparation and transportation costs remain the responsibility of the purchaser. AGPI offers assistance with plant start-up and provides training for the plant operator.

 

 

· Joint Venture/Partnership Agreements.

In a joint venture/partnership agreement, Alternative Gas Processing, Inc. provides the processing equipment, gathering system, pipelines and tap and handles plant operations. In return, AGPI, Inc. receives a negotiated share of the net revenue after all expenses are paid, or a percentage of the gross sales revenue.

· Fee-Based Processing Arrangement

With a fee-based arrangement, AGPI receives a set fee for processing, or, a set fee plus a percentage of the gross sales revenue. AGPI. provides the processing equipment, gathering system, pipelines and tap and handles plant operations.

· Gas-Purchase Agreement

Under a gas purchase contract, AGPI provides the processing equipment, gathering system, pipelines and tap. It also handles plant operations and gas sales. The owner is paid either a fixed price (subject to pro-rata reduction in the event of severe market drop) OR a percentage of the sales price actually received for the gas.