BIRMINGHAM, AL—Masada Resource Group, LLC, the company that has a contract with the City of Middletown to design and build a waste-to-ethanol plant, Thursday renewed an offer first made in May 2006 to advance the city $3 million in annual host fees under its waste management services agreement with Middletown The offer was never acted upon by city officials in 2006.

Mayor Marlinda Duncanson said the offer would require discussion with the common council and advice of the city’s special lawyers handling the case.

Masada Chief Operating Officer Timothy Judge said their project can help ease the energy crisis and financially aid the city.

“We’re putting that offer on the table again in the hopes that Middletown will work with us to build the waste to ethanol facility.”

Duncanson was not quick to pass judgment on the offer.

“It’s not a decision that I would make. It’s a decision a decision that would be made by the entire council and I would think they would be conferring with legal counsel before their decision.”

Masada and the city are currently in arbitration proceedings regarding a claim by Masada that it is entitled to an extension of its waste management contract due to the death of the company’s founder in 2005. The city is also questioning the validity of its agreement with Masada. Company CEO Donald Watkins said the legal dispute is “a complete waste of time, money and resources on both sides. “

Watkins said he predicted $4 per gallon fuel prices in 2007 and said gas prices are expected to increase to $5 per gallon by next year. “It makes no sense for the city to fight Masada’s efforts to move the Middletown waste-to-ethanol plant project forward. The best answer to rising fuel prices is the local production of more fuel, which is clearly within the city’s control,” said Watkins. “Hiring freezes and cuts in city services will not solve the city’s financial problems.”