Objective
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. Landfills across the country are facing an increasing amount of waste each day, which is causing them to be in constant crisis. Landfills are like owning a reverse mine of gold.
Good Earth Resources, Inc., was established to solve the St. Louis, Missouri, municipal waste problem and maximize the lucrative benefits of fully permitted landfills.
Operation
This operation includes four components. It involves the purchase of two landfills, the sorting and recycling of incoming waste, import an out-of–state waste stream, and the conversion landfill gas to electricity or a fuel option.
GER will purchase two landfills: one in Eastern Missouri, Martin Creek Landfill, and one at Barton Sanitary Landfill in Southern Illinois. Both landfills lie near St. Louis. The initial waste stream will come from the St. Louis Area.
All waste will be separated at both landfills and recycled materials removed. The rest of the waste will then be compacted, bagged, and buried at the landfills. Only 10% of landfills in the country perform this function today. The rest prefer to dump raw waste into landfills and ignore a significant source of income.
GER will accept the direct delivery of waste to its landfills. It will dispatch its own road tractors and train waste from New York City to Chicago. GER will have a steady stream of waste from Missouri, which it can use to generate its income projections for the first month. GER will initially accept 1,540 tonnes of Missouri waste to its landfills each day.
Unique Features
The landfills will dump the incoming waste into facilities that contain waste vapors, control Vectors, and house machinery. Employee-sorters take away all paper, cardboard and plastic from the waste, which is then moved onto conveyers. These will be sold for a substantial profit, and the remainder compressed into two-thirds cubic yard bales. The methane gas will be captured in a large cell that is PVC-wrapped. This is a standard practice in most landfills.
Baling organic waste, and removing any recyclable material, adds significant value. Recycling also adds to gross revenues.
Landfill Valuation
Landfills are valued by the volume of waste in cubic yards (“air yards”) that can be deposited into the permitted area. The volume of waste that can be deposited is five times greater when compacted. For instance, the Martin Creek landfill permit covers an area of 42 acres to accept 3,612,000 cubic yards. If 2,000 cubic yards of waste were buried each day without compaction, the landfill would be full in six years. Recycling, compacting, baling, and baling can reduce the landfill’s life to 2,000 yards. This can increase both value and gross earnings.
The current fee per waste cubic yard in St. Louis is $11.33 ($34.00/ton). 2,000 cubic yards/day of loose waste for 42 acres generates $35,328,000 in 6+ years. The same area can be reused for 32 years by recycling, compacting, and baling. Or, you can increase the daily volume. Compacting and sorting are relatively inexpensive in comparison with the increase in valuation. However, recyclables can offset these costs.
Company Objectives
Anticipating that waste haulers will agree to take their trash, GER estimates that Barton will receive 940 tonnes per day in its first three months of operations. This generates over $5,500,000 in annual revenues. Additional 600 tons per day for Martin Creek are transported to Barton during Martin Creek’s construction. This adds $4,000,000. Investors can look forward to a spectacular annual return and ownership in profitable businesses with dividends in their first year.
Principals of GER will look for other sources of waste in order to supplement the projected waste stream. This could include New York City, Chicago and other large cities. The rail spurs will be part of the plan once they become operational and will facilitate the incoming waste flow from distant cities.
Within 12 months of establishing operations, GER can collect methane gases and convert them to energy. This will augment annual revenues.
Management
GER’s principals, who are highly skilled in every aspect of business, founded this company to fulfill the growing demand for St. Louis landfills and to make it a profitable business.
Don Smith, cofounder of GER, has extensive knowledge in waste collection, landfill operation and waste handling. In the mid 1980s, Smith managed three of Chicago’s largest landfills and one in Gary, Indiana. He later managed a hazardous material facility in Scott City. He was a skilled worker with the Department of Natural Resources and the landfill permit is now in possession of the property. In 1984, he built and managed a municipal waste transfer station at Wellston, Missouri.
John App is co-founder of GER. With a strong background as a marketer and in finance, he will concentrate his efforts on developing outside-state waste streams from New York City. App, who has owned and operated many businesses over the years, was elected to Orange County California Board of Education in 1974 and a founding member of Orange County California Marine Institute at Dana Point.
G. Calvin Rathbone, Esq. As corporate counsel to GER, Mr. Rathbone has a strong background in sales and can also help with developing state waste stream resources. Previous experience with Mr. Rathbone includes managing sales and marketing for an equipment company for the exploration and production oil and gas.
General Plan of Action
At this time, the principals of GER are seeking a $16,469,951 net investment to:
- Both the Martin Creek or Barton landfills can be purchased.
- By hauling waste, you can increase the daily waste stream to Barton landfill.
- Barton can be equipped with compacting and sorting equipment to increase the landfill’s life expectancy.
- Complete construction of Martin Creek landfill.
- Machines and other equipment that are required to operate can be leased, purchased, or leased.
- For waste collection in Missouri cities, build two transfer stations.
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Use methane to increase revenue.
1.1 Objectives
- Six million dollars in sales, with 600 tonnes per day for Martin Creek.
- Barton recycling facility to be built with at least one compactor/baler and space for expansion up to two.
- Construct Martin Creek landfill.
- Purchase property to renovate an existing, abandoned rail spur near Barton landfill. Construction will require approximately ninety days.
- Continue to promote Martin Creek and Barton, by contacting other cities and hauling companies, as well as out-of-state ones.
1.2 Mission
GER will collect the waste from certain designated transfer station and deliver it to one of its two landfills. This will benefit both parties, since it will lower GER customer’s costs, and through GER’s more efficient transportation, will provide an additional waste stream to GER.
All recyclable materials are to be removed by GER. GER will accept vehicle tires to earn income. Every aspect of this operation not only increases the cash flow, but also protects the environment. The principals at GER will take all necessary steps to make sure that the environment is protected.
1.3 Keys to Success
- Focus on bringing to Martin Creek & Barton as many waste capacities as possible.
- It is important to process the waste stream efficiently and profitably. Reduce stoppages and time.
- Operate the landfill operation as efficiently and safely as possible using every method to increase profits yet maintain a high concern for the environment.
- Maintain a family-like atmosphere with all GER co-workers and customers.