May 17, 2007 Dakota Minnesota and Eastern Railroad Corporation Attn: Tim Carlson, Real Estate Manager 140 N Phillips Ave. Sioux Falls, SD 57101

Exhibit 10.20

May 17, 2007

Dakota Minnesota and Eastern Railroad Corporation
Attn: Xxx Xxxxxxx, Real Estate Manager
000 X Xxxxxxxx Xxx.
Xxxxx Xxxxx, XX 00000

Re: Real Estate Option Agreement dated May 23, 2006 between Dakota Minnesota and Eastern Railroad Corporation (the “Optionor”) and MinnErgy, LLC, a Minnesota limited liability company (the “Optionee”)

Dear Optionor:

We hereby extend the term of the option granted by the Agreement referenced above, for an additional year. Our check in the amount of $2,500.00 (Additional Option Payment) is enclosed. As so extended the option shall expire at 12:00 midnight on May 23, 2008, unless further extended according to the Agreement.

Sincerely,
 

/s/ Xxxxxx X. Xxxxxx  

Xxxxxx X. Xxxxxx, Chairman 

RECEIPT

I hereby acknowledge receipt of the Additional Option Payment of $2,500.00, and extension of the Option to May 23, 2008, is hereby acknowledged.

Dakota Minnesota and Eastern Railroad Corporation

By	/s/ Xxx Xxxxxxx
	Its

Xxx Xxxxxxx
Mgr. Real Estate
& Public Works