The Path to BioFuel is Paved with Mechanic’s Liens

The Path to BioFuel is Paved with Mechanic’s Liens

In the spring of 2018, Fulcrum BioEnergy, Inc. (Fulcrum) announced the start of site construction for the second phase of the Sierra BioFuels Plant (Sierra). With over $15,000,000 in mechanic’s liens filed in 2020, $4.5M of which were filed between July 2020 and September 2020, construction and unpaid claims continue.

Who is Fulcrum?

Fulcrum is a California based company and “is leading the development of a reliable and efficient process for transforming municipal solid waste – or household garbage – into transportation fuels including jet fuel and diesel.”

Excellent news for lowering carbon emissions!

What is the Sierra BioFuels Plant?

According to a press release, Sierra is the “nation’s first commercial-scale plant converting a municipal solid waste feedstock, or household garbage, that would otherwise be landfilled, into a low-carbon, renewable transportation fuel product.”

Further “Sierra will convert approximately 175,000 tons of household garbage into more than 10.5 million gallons of fuel each year. Through Sierra, Fulcrum will create hundreds of well-paying jobs including approximately 500 during construction, 120 permanent plant operations jobs and many more indirect jobs throughout Northern Nevada.”

The plant is situated on parcel 005-071-49, commonly known as 3600 Peru Drive, Sparks NV 89434 (though some liens note the city of McCarran) in Storey County.

 Top 5 Liens in Q3 2020

Throughout the course of the project, lien claimants have furnished a myriad of materials including cement, steel pipe, engineering services, ventilation systems, boilers, heavy equipment rentals, and chemical technology systems.

According to Storey County NV and data in NCS’ LienFinder™, liens filed in Q3 2020 totaled more than $4,500,000 – here are the top 5:

1. Johnson Matthey Inc. with a claim of $1,523,470.40
2. Jord Oil & Gas Systems BV with a claim of $1,043,587.50
3. Ahern Rentals Inc. with a claim of $428,815.05
4. Cleaver-Brooks Inc. with a claim of $311,496.19
5. ZEECO Inc. with a claim of $286,631.50

Your Mechanic’s Lien Rights in Nevada

If you are furnishing to Fulcrum’s project, or any private project in Nevada, be sure to take proper steps to secure your mechanic’s lien rights.

• Preliminary Notice: serve the notice after first furnishing but within 31 days from first furnishing
• Mechanic’s Lien: file the lien within 90 days from last furnishing or 90 days from project completion, whichever is later
• Suit: file suit after 30 days but within 6 months from filing the lien

Nevada is a full balance lien state, which means the mechanic’s lien is enforceable for the full amount owed, regardless of payments made by the owner. This is good news for those who have yet to file their lien(s). But, as a best practice, don’t wait. If you haven’t been paid, proceed with the mechanic’s lien.

*Image courtesy of Fulcrum BioEnergy’s Twitter account 8/17/2020