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

by Minnergy Llc
July 27th, 2007
 

Exhibit 10.20
May 17, 2007
Dakota Minnesota and Eastern Railroad Corporation
Attn: Tim Carlson, Real Estate Manager
140 N Phillips Ave.
Sioux Falls, SD 57101
  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/ Daniel H. Arnold      
Daniel H. Arnold, 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/ Tim Carlson      
  Its       
 
Tim Carlson
Mgr. Real Estate
& Public Works