Good Earth Resources
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Nationwide, many landfills are closing or exhausting their remaining capacity, yet due to environmental restrictions, zoning laws, and other regulatory and bureaucratic delays, pitifully few new landfills are opening to offset the looming space crisis. Meanwhile municipal waste continues to flow in greater volume. Handling the nation's waste stream has become a major problem for most municipalities. With more waste created daily, landfills nationwide are rapidly facing a capacity crisis. Landfills are akin to owning a reverse gold mine.
Good Earth Resources, Inc. (GER) has been formed to provide a solution for municipal waste problem in the St. Louis, Missouri area and capitalize on the lucrative benefits of possessing fully permitted landfills.
There are four components in this operation: purchase two landfills; sort and recycle incoming waste; import an out-of-state waste stream; and convert landfill gas to either electricity or a fuel alternative.
GER will purchase the landfills, one in Eastern Missouri (Martin Creek Landfill) and one in Southern Illinois (Barton Sanitary Landfill). Both landfills are near St. Louis, Missouri and the initial waste stream for both landfills will emanate from the St. Louis area.
At both landfills, all waste will be sorted and recyclables removed. The remainder will be compacted, baled, and buried in the landfills. Today, only 10% of the landfills nationwide perform these functions, the remainder preferring to dump raw waste into their landfills, thereby ignoring a substantial source of income.
GER will accept direct delivery of waste to its landfills, dispatch its own road tractors to bring more distant waste, and rail-haul waste from New York City and Chicago. Hauling Missouri waste assures GER a steady waste stream, independent of other sources, to meet its income projections in the first month of operations. Initially, GER expects to accept as much as 1,540 tons to its landfills daily.
At the landfills incoming waste will be dumped into receiving facilities designed to contain waste vapors, control vectors, and house machinery. The waste is moved onto conveyers from which employee-sorters remove all paper, cardboard, glass, plastic, and metals. These will be sold for a substantial profit, and the remainder compressed into two-thirds cubic yard bales. Bales will be stacked in a large, PVC-wrapped cell in the landfill that allows efficient capture of the methane gas. Most landfills do none of this.
Removing recyclable materials and baling the remaining organic waste adds considerable value to GER's asset base, the permitted property, by reducing the volume thereby adding to the life of the landfill. Further, recyclable sales add to gross revenues.
Landfills are valued by the volume of waste in cubic yards ("air yards") that can be deposited into the permitted area. By compacting, the deposited volume is increased five-fold. For instance, the Martin Creek landfill permit covers an area of 42 acres to accept 3,612,000 cubic yards. 2,000 cubic yards of loose waste buried daily without compaction would fill the landfill in 6+ years. By recycling, compacting and baling, 2,000 yards is reduced to 220 cubic yards and the life of the landfill is extended to 32 years. This increases both value and gross income.
The current fee per cubic yard of waste is $11.33 ($34.00 per ton) in the St. Louis area. 2,000 cubic yards/day of loose waste for 42 acres generates $35,328,000 in 6+ years. By recycling, compacting and baling, the same area can be used for 32 years and generates $176,640,000 or daily volume can be increased. Sorting and compacting costs are minor in comparison to the valuation increase, and recyclables offset these expenses.
Anticipating agreements from waste haulers, GER expects to collect 940 tons daily for Barton in the first months of operations. This generates in excess of $5,500,000 revenues per year. An additional 600 tons/day for Martin Creek, transported to Barton during Martin Creek's construction, adds $4,000,000 more. Investors can expect an outstanding annual return as well as ownership in a profitable business with dividends in the first year.
GER principals will seek other sources of waste to augment this projected waste stream, such as New York City, Chicago, and other large municipalities. Rail spurs are part of this plan and, once operational, will facilitate the incoming flow of waste from distant cities.
Within twelve months of commencing operations, GER will collect the methane gas and convert it to saleable energy in the form of either electricity sold into the national grid or methanol for sale as a gasoline alternative. This will augment annual revenues.
The principals of GER are experienced in every aspect of this business and are founding this company to meet the growing need for sought-after landfills in the St. Louis area, as well as to operate a profitable business.
Don Smith, co-founder of GER, has extensive experience in waste collection, landfill operation, and waste handling. He operated three of Chicago's major landfills during the mid 1980s, as well as one in Gary, Indiana. Later he managed a hazardous waste facility in Scott City, Missouri. His expertise in working with the Department of Natural Resources resulted in the landfill permit that the property now possesses. He constructed and operated a municipal waste transfer station in Wellston, Missouri in 1984.
John App, co-founder of GER, has a strong background in finance and marketing and will concentrate on developing the out-of-state waste stream sources from New York City and Chicago. Mr. App has owned and operated several businesses over the years as well as serving as a founding board member of Capital Bank of Carlsbad, California, being elected to the Orange County California Board of Education in 1974, and being a founding member of the Orange County California Marine Institute at Dana Point, California.
G. Calvin Rathbone, Esq. serves as corporate counsel to GER and with a strong sales background, will also assist in developing out of state waste stream sources. Mr. Rathbone's previous experience includes manager of sales and marketing for a company providing equipment for the exploration and production of oil and gas.
General Plan of Action
At this time, the principals of GER are seeking a $16,469,951 net investment to:
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