CARLSBAD, N.M. (AP)--A company called Oops Unlimited has applied for $10 million in industrial revenue bonds to build an Eddy County factory to convert cow manure into ethanol--a plan opposed by area residents.

Company president Dale Balzano estimates the construction cost at $15 million. He said dairies have already signed contracts with his company to provide more than 500 tons of manure.

However, residents and business owners in the Seven Rivers and Lakewood areas told Eddy County commissioners Jan. 18 that they oppose such a factory in their back yard.

"I don't care if the manure is covered and put on an asphalt pad, you will still have a smell and fly problem that will have an impact on outdoor recreation," said Richard Arthur, who lives near the proposed plant site.

Industrial revenue bonds exempt startup businesses from paying property and equipment taxes until the bonds are paid off and the business is financially stable, Eddy County Manager Steve Massey said. If the business fails, creditors would go after the owners, not the county, he said.

Balzano said his company has contracted with Advanced Technology Concepts of Denver to conduct independent tests for air quality, ash composite and ethanol quality at its facility.

The commission voted to send two members to Denver to tour a demonstration plant and see the testing, which will determine if the manure is suitable to convert into ethanol.

Balzano also said his company has signed a contract with Navajo Refining in Artesia for six months worth of ethanol and is wants to provide ethanol to Fort Bliss in El Paso, Texas.

Residents of a recreational vehicle park near the proposed site suggested there are better places for the plant.

"Eddy County is such a vast area that there are location choices that would have a much less detrimental effect on so many residents," Michael Klick said. "About the only thing we ask for is what we have--a safe, pleasant environment in which to live."

Balzano said his company would handle manure in an environmentally friendly way and that only two weeks' worth would brought to the plant at a time.

The proposed business would employ about 40 people in jobs ranging from chemical engineers to administrative assistants.

Date: 1/27/05

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