Objective
Many landfills nationwide are closing down or exhausting the remaining capacity. However, environmental restrictions, Zoning Laws, and other bureaucratic delays mean that pitifully few new landfills will open to compensate for this space crisis. Despite this, municipal waste continues to grow in volume. The problem of managing the nation’s trash stream is a major concern for many municipalities. The national landfill capacity crisis is rapidly approaching as more waste is created every day. Landfills are like owning a reverse mine of gold.
Good Earth Resources, Inc. has been created to address the municipal waste problem in St. Louis, Missouri and to capitalize on the lucrative opportunities of owning fully permitted landfills.
Operation
There are four components in this operation: purchase two landfills; sort and recycle incoming waste; import an out-of-state waste stream; and convert landfill gas to either electricity or a fuel alternative.
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.
Both landfills will sort all waste and remove recyclables. The rest of the waste will then be compacted, bagged, and buried at the landfills. Today, only 10% percent of landfills nationwide can perform these functions. The rest prefer to dump their raw waste in landfills, thus ignoring a significant source.
GER will accept waste direct from customers, send its own trucks to transport more distant materials, and haul waste by rail from New York City and Chicago. Hauling Missouri waste assures GER a steady waste stream, independent of other sources, to meet its income projections in the first month of operations. GER plans to accept 1,540 tons daily in its first month of operations.
Unique Features
At the landfills, incoming trash will be dumped in receiving facilities to contain waste vapours, control vectors and house machinery. The waste is transported onto conveyers where employees sort all metals, paper, cardboard, and glass. These will be sold at a significant profit and the rest of the waste will be compressed into two-thirds cubic yards bales. Bales will then be stored in a large PVC wrapped cell at the landfill to capture the methane gas. Most landfills don’t do this.
Baling organic waste and removing recyclable materials adds significant value to GER’’s asset base, which is the permitted property. It reduces the landfill’s volume, increasing the landfill’s life. Additionally, recycling can increase gross revenues.
Landfill Valuation
Landfills can be valued by the volume in cubic yards of waste (â€â€air yardsâ€TM) that can safely be deposited within the designated area. By compacting, the deposited volume is increased five-fold. Martin Creek’s permit allows it to take in 3,612,000 cubic feet. It covers 42 acres. A landfill could be filled in six years if 2,000 cubic feet of loose waste was buried every day without compaction. Recycling, compacting, and baling reduces the landfill’s size to 2,000 yards. The landfill can also be extended for 32 years by extending its life span to 220 cubic yards. This increases both value as well as gross income.
The current fee per waste cubic yard in St. Louis is $11.33 ($34.00/ton). In 6+ years, $35,328,000 can be generated from 42 acres of loose waste at 2,000 cubic yards/day. You can reuse the same area for 32 years, generate $176,640,000 per day, or increase your daily volume by compacting, baling, and recycling. The cost of sorting and compacting is minimal in comparison to the value increase. Recyclables help offset these costs.
Company Objectives
Anticipating waste hauler agreements, GER expects that GER will collect 940 tonnes daily for Barton within the first month of operation. This generates over $5,500,000 in annual revenues. Martin Creek can transport an additional 600 tons per hour to Barton. Investors can expect to receive a high annual return, as well as ownership of a profitable business that pays dividends within the first one year.
Principals from GER will find other sources to boost this projected waste stream. They may look into New York City or Chicago as well as other large metropolitan areas. Rail spurs are part of this plan and, once operational, will facilitate the incoming flow of waste from distant cities.
Within twelve months of commencing operations, GER will collect the methane gas and convert it to saleable energy in the form of either electricity sold into the national grid or methanol for sale as a gasoline alternative. This will help increase 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, the co-founder of GER has extensive experience in waste collection and landfill operation. He operated three of Chicago’s major landfills during the mid 1980s, as well as one in Gary, Indiana. Later, he managed a hazardous-waste facility in Scott City. His expertise in working with the Department of Natural Resources resulted in the landfill permit that the property now possesses. In 1984, he operated a municipal solid waste transfer station in Wellston.
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. serves as corporate counsel to GER and with a strong sales background, will also assist in developing out of state waste stream sources. 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
The principals are looking for a $16,469 951 net investment to:
- Both Martin Creek and Barton dumps are available for purchase.
- The hauling of waste will increase the daily stream of waste to Barton landfill.
- Barton has the ability to install sorting and compacting machines that will maximize the life of landfills.
- Complete the construction of Martin Creek landfill.
- You can lease or buy the machinery and vehicles you need for your operations.
- To collect trash in Missouri cities you will need to build two transfer points.
-
You can increase your revenues by using methane.
1.1 Objectives
- Six million dollars in sales, with 600 tonnes per day for Martin Creek.
- Barton Recycling Facility to be constructed with at most one compactor/baler, and enough room for expansion to up two.
- Construct Martin Creek landfill.
- Purchase property to buy land and renovate an old abandoned rail spur close to Barton landfill. Construction will take approximately ninety days.
- Continue to market Martin Creek and Barton by contacting and soliciting business from additional cities and hauling firms, including out-of-state sources.
1.2 Mission
In the instance where some waste haulers would normally direct waste to other landfills, GER will haul that waste from certain designated transfer stations to either of its two landfills. Both the parties will benefit from this as it will lower GER customers’ costs and will provide GER an additional waste stream through GER’’s more efficient transportation.
All recyclable materials will be removed and sold by GER. GER will take used tires from vehicles to make income at the landfills. The operation is a win-win situation for both the environment and cash flow. The principals in GER will use every resource to ensure the protection of the environment.
1.3 Keys for Success
- Focus on bringing as much waste to Martin Creek or Barton as possible.
- It is important to process the waste stream efficiently and profitably. Reduce stoppages and time.
- Operate landfill operations as efficiently and safely to maximize profits while preserving the environment.
- Keep a family atmosphere for all GER staff, customers, and co-workers.