May 17, 2007 Dakota Minnesota and Eastern Railroad Corporation Attn: Tim Carlson, Real Estate Manager 140 N Phillips Ave. Sioux Falls, SD 57101

Exhibit 10.20

May 17, 2007

Dakota Minnesota and Eastern Railroad Corporation
Attn: ▇▇▇ ▇▇▇▇▇▇▇, Real Estate Manager
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Re:

Real Estate Option Agreement dated May 23, 2006 between Dakota Minnesota and Eastern Railroad Corporation (the “Optionor”) and MinnErgy, LLC, a Minnesota limited liability company (the “Optionee”)

Dear Optionor:

We hereby extend the term of the option granted by the Agreement referenced above, for an additional year. Our check in the amount of $2,500.00 (Additional Option Payment) is enclosed. As so extended the option shall expire at 12:00 midnight on May 23, 2008, unless further extended according to the Agreement.

RECEIPT

I hereby acknowledge receipt of the Additional Option Payment of $2,500.00, and extension of the Option to May 23, 2008, is hereby acknowledged.

Dakota Minnesota and Eastern Railroad Corporation

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Mgr. Real Estate
& Public Works