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Weekly UpdatesFutureFuel Chemical Co. of Batesville has sued the National Biodiesel Board of Jefferson City, Mo., to get out of a long-term contract.
FutureFuel, which makes specialty organic chemical products and biofuels, said it didn't realize that its contract called for FutureFuel to pay annual dues of $5,000 plus 1 cent for every gallon of biodiesel sold until 2015.
FutureFuel said it thought it needed the relationship with the board to register its biodiesel with the Environmental Protection Agency. But that isn't the case.
If FutureFuel can't get out of the contract with the board, FutureFuel "will suffer significant financial loss in paying burdensome fees and dues to [the National Biodiesel Board]," the lawsuit said.
The contract dates back to 2005 when the company was Eastman Chemical Co. of Kingsport, Tenn.
FutureFuel acquired Eastman's Batesville plant in 2006. However, FutureFuel said that it didn't know about the contract with the board until mid-2007.
While FutureFuel paid the fees to the board, it said it stopped paying the volume-based dues.
In February, the board said that if FutureFuel wanted out of the contract, it would have to pay a settlement. The lawsuit didn't say how much the settlement would have been. If FutureFuel doesn't sign the settlement agreement, however, the board "will proceed with termination of membership ... which purportedly will subject [FutureFuel] to additional and substantial costs and fees," the lawsuit said.
FutureFuel has asked a U.S. District Court judge to rescind the contract and award FutureFuel court costs and attorney's fees.
An attorney for the National Biodiesel Board couldn't be reached for comment. However, in its answer, the board denied the allegations of wrongdoing and asked that the case be dismissed.
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