FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
Date of Report (Date of earliest event reported) March 9, 2000.
HIGH PLAINS CORPORATION
(Exact name of registrant as specified in its charter)
Kansas #1-8680
(State or other jurisdiction of (Commission File
incorporation) Number)
200 W. Douglas #48-0901658
Suite #820 (IRS Employer
Wichita, Kansas 67202 Identification No.)
(Address of principal
executive offices)
(316) 269-4310
(Registrant's telephone number)
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Item 5 Other Information
Wichita, Kansas, March 9, 2000 - High Plains Corporation (Nasdaq:HIPC) today
confirmed a substantial increase in ethanol prices nationwide. "The fuel
ethanol that was selling for $.90 per gallon FOB our plants in October and
November of 1999, is now bringing $1.10 to $1.15 per gallon," said Gary R.
Smith, High Plains' President and CEO. "Markets have tightened, and the
oversupply situation that prevented ethanol prices from rising with the price
of gasoline over the past year, appears to have ended. With oil prices now
above $34.00 per barrel, and unleaded gasoline prices projected to exceed
$2.00 per gallon in portions of the country soon, interest in ethanol
supplies has soared," continued Smith.
Ethanol has several advantages as a fuel additive. Not only does it provide
the cleaner burning oxygen content necessary to bring fuel into compliance
with the federal Clean Air Act for air quality non-attainment areas, but it
also enhances octane ratings, and replaces expensive imported petroleum
products with a renewable, locally produced alternative fuel.
Smith further stated that, "With today's increased gasoline prices, a gallon
of 10% ethanol blended fuel should sell for less than a gallon of regular
unleaded fuel. And, with the current economics of ethanol blending, and the
increased scrutiny of MTBE (ethanol's competing fuel oxygenate which has been
found to have contaminated several ground and surface water sources
nationwide) we expect ethanol prices to stay strong even into the
traditionally weaker summertime season."
Smith also applauded the recent efforts of the Environmental Protection
Agency to assess the ability of the ethanol industry to replace MTBE in
gasoline sold in California and other states. Carol Browner, Administrator
of the EPA, recently challenged the industry to establish its ability to
expand production to meet increased demand caused by anticipated MTBE phase-
outs. In testimony before The House Commerce sub-committee on Health and
Environment Eric Vaughn President of the Renewable Fuels Association,
speaking for the industry said, "We see ethanol as the solution. Ethanol can
protect both the air quality and the water quality."
Based in Wichita, Kansas, High Plains Corporation is among the nation's
largest producers of ethanol. The Company operates production facilities in
Colwich, Kansas; York, Nebraska and Portales, New Mexico. Additional
information is available on the Company's Web site, www.highplainscorp.com.
This press release contains forward-looking statements that are made pursuant
to the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. Investors are cautioned that all forward-looking statements involve
risks and uncertainties, including without limitation risks of fluctuations
in feedstock commodity prices, changes in the market prices or demand for
motor fuels and Ethanol, legislative changes regarding air quality, fuel
specifications or incentive programs, as well as general market conditions,
competition and pricing. The Company believes that forward-looking
statements made by it are based upon reasonable expectations. However, no
assurances can be given that actual results will not differ materially from
those contained in such forward-looking statements. Additional information
concerning these and other factors is contained in the Company's Securities
and Exchange Commission filings, including its annual 10-K, Proxy Statement
and quarterly 10-Q filings, copies of which are available from the Company
without charge.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant had duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: March 9, 2000 HIGH PLAINS CORPORATION
/s/Gary R. Smith
President & CEO
