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Dundy County approves Conditional Use Permit for Blackshirt Feeders' relocated methane digester with conditions

Dundy County Board of Commissioners · May 1, 2026
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Summary

After hearings in August and November 2022, the Dundy County Board of Commissioners unanimously approved Blackshirt Feeders LP's request to relocate a methane digester, attaching conditions including NDEE approval, groundwater monitoring, fly/dust mitigation and a requirement to withdraw the prior CUP when construction begins.

The Dundy County Board of Commissioners voted unanimously to approve a Conditional Use Permit (CUP) permitting Blackshirt Feeders LP to relocate a methane digester on Aug. 11, 2022 (finalized at a Nov. 7 public hearing), attaching a set of conditions tied to state review and local protections.

The permit covers a project the applicant described as part of a 150,000-head facility that would use roller-compacted concrete pens and covered anaerobic methane digesters. At public hearings, Blackshirt representatives said the digester system would hold manure in heated tanks for about 30 days to capture methane (which the applicant called “green natural gas”), that lagoons would be lined with 60-mil HDPE liners, and that the facility would be built to handle a 100-year storm event. Eric Behlke, identified in meeting records as a Blackshirt Feeders manager, and Dean Settje, the applicant’s presenter, gave project costs (Phase 1: $50 million; Phases 2–3: $25 million each; methane digester line-item $100 million) and projected 127 employees.

Why it matters: Commissioners and nearby residents raised groundwater and odor concerns that could affect neighboring Haigler and other landowners. The board tied final approval to external environmental review by the Nebraska Department of Environment and Energy (NDEE) and required measures intended to limit environmental and nuisance impacts.

Key conditions the board added require NDEE approval before finalization; re-examination of separation distances if NDEE finds anaerobic conditions require different setbacks; a fly and dust mitigation plan; a prohibition on converting to a standard dirt-pen feedlot without a new CUP and public hearing; on-site containment of runoff with positive drainage; installation of groundwater monitoring wells per NDEE guidelines; withdrawal of the original CUP (CUP #1) when construction of this site (CUP #2) begins; mortality disposal per an NDEE-approved Mortality Management Plan; and an applicant obligation to pay the defense deductible for NIRMA representation if litigation arises.

Public comment and questions focused on odor, lighting and traffic. Karen Harford and other members of the public asked whether digesters or large manure piles would produce noticeable smells; applicant representatives said the continuously fed digester process would avoid large piles and that manure processed through the digester would be less odorous. Commissioners also asked about emergency flaring; the applicant confirmed a flame would be present for safe gas disposal during emergency shutdowns.

What happens next: The CUP approval is contingent on required state permits and NDEE determinations, including groundwater-monitoring requirements. The record of the hearings notes that once construction begins on the approved site, the applicant will withdraw the previously approved northern CUP. The county retains inspection rights and required compliance with NDEE and any county-specified, science-based conditions.

At the Nov. 7 hearing the board recorded a roll-call motion: Jerry Fries moved to approve the CUP, Richard Bartholomew seconded; Scott Olson, Richard Bartholomew and Jerry Fries voted yes, and the motion carried unanimously. The approved conditions and the CUP record are available at the Dundy County Clerk’s Office.