Certain Relationships between US BioEnergy Corporation, CHS, Inc. and Provista Renewable Fuels Marketing, LLC
Exhibit 99.1
Certain Relationships between US BioEnergy Corporation, CHS, Inc. and Provista Renewable Fuels Marketing, LLC
We market our ethanol as well as ethanol produced by third-parties through Provista Renewable
Fuels Marketing, LLC, a joint venture between us and CHS, Inc. On March 31, 2006, CHS acquired 50%
ownership in our existing wholly-owned ethanol marketing business, Provista. Pursuant to this
agreement, US BioEnergy and CHS each own 50% of the membership interest in Provista, entitling each
to 50% of the financial rights and 50% of the voting rights with respect to Provista as its
members. Provista is managed by CHS pursuant to a management agreement.
In connection with the formation of the joint venture, we entered into an ethanol marketing
agreement with Provista. The marketing agreement has an initial term through November 30, 2007, and
thereafter will automatically renew on one-year additional terms, unless either party provides the
other with ninety days written notice of non-renewal. Pursuant to the master agreement, certain of
our subsidiaries have entered into separate ethanol sales and marketing agreements that are
substantially identical in all material respects to the master agreement.
CHS beneficially owns approximately 20.11% of our outstanding common stock. Xxx Xxxxxxxx, one
of our directors, serves as executive vice president and chief operating officer, processing, of
CHS. From November 2005 until June 2006, Xxxxxx Xxxxxxxx and Xxx Xxxxx, both of whom are executive
officers of CHS, served as members of our board of directors.
