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 29, 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 29, 2000 - High Plains Corporation (NASDAQ:HIPC), a
leading producer of ethanol, the gasoline additive, sees multiple advantages
for both the public and the Company from legislation proposed last week.
On March 20, the administrator of the Environmental Protection Agency, Carol
Browner, announced that her agency will ask Congress for changes in the Clean
Air Act of 1990 that will encourage the use of ethanol, a renewable fuel made
from corn, in place of MTBE, a petroleum-derived Additive. Specifically, the
EPA is advocating a ban on MTBE, an end to the current oxygen standard, and
the implementation of a nationwide renewable fuel standard, which could
significantly increase the demand for ethanol. This recommendation mirrors
the Clinton Administration's action plan on MTBE, which states that, "By
preserving and promoting continued growth in renewable fuels, particularly
ethanol, this step will increase farm income, create jobs in rural America,
improve or energy security, and help protect the environment."
The Clean Air Act requires gasoline in areas with serious air pollution to
contain at least two- percent oxygen by weight. MTBE and ethanol both are
oxygenates.
MTBE, used in one-third of the gasoline sold in the Untied States, has been
found to be a carcinogen and has been linked to groundwater pollution in
California and elsewhere.
Ms. Browner said that her agency will seek to "significantly reduce or
eliminate" use of MTBEs under the Toxic Substance Control Act. That law
allows EPA to ban chemicals "deemed to pose an unreasonable risk to the
public or the environment," according to the EPA.
Gary R. Smith, president of High Plains, referred to a study released
yesterday that said ethanol production could more than double if MTBE is
banned. The study was prepared by an independent industry analyst at the
request of The Governors' Ethanol Coalition, and declared that the
replacement of MTBE would be a "significant market opportunity for the
domestic ethanol industry."
The study further estimated that replacing MTBE with ethanol would increase
demand for ethanol to nearly 3.2 billion gallons per year by 2004, up from
approximately 1.5 billion gallons currently.
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 29, 2000 HIGH PLAINS CORPORATION
/s/Gary R. Smith
President & CEO
