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      AND EXCHANGE COMMISSION</strong></font></div>
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      D.C. 20549</strong></font></div>
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      REPORT</strong></font></div>
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      to Section&#160;13 or 15(d)&#160;of the</strong></font></div>
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      Exchange Act of 1934</strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>December
      17, 2007</strong></font></div>
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      BIODIESEL, INC.</strong></font></div>
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      name of registrant as specified in its charter)</font></div>
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      Fork, UT 84660</strong></font></div>
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      of principal executive offices)</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Registrant&#8217;s
      telephone number, including area code:
<strong>(801)&#160;990-2810</strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Mountain
      States Holdings, Inc.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(Former
      name or former address, if changed since last report)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      Check the appropriate box below if the Form 8-K filing is intended to
      simultaneously satisfy the filing obligation of the registrant under any of
      the
      following provisions:</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font style="DISPLAY: inline;" face="Wingdings">o</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      Written communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font></div>
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      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font></div>
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      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
      Act
      (17 CFR 240.14d-2(b))</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
      Act
      (17 CFR 240.13e-4(c))</font></div>
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    <div><br></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div><br></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Section
      1 - Registrant&#8217;s Business and Operations</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Item
      1.01
      Entry into a Material Definitive Agreement</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">On
      December 20, 2007, Better Biodiesel, Inc. (the &#8220;Company&#8221;) entered into an Asset
      Purchase, Settlement and Mutual Release Agreement with Ron Crafts, Chairman
      and
      Chief Executive Officer of the Company, John Crawford, President, Chief
      Technology Officer and a Director of the Company, Lynn Dean Crawford, Chief
      Operations Officer of the Company, James Crawford, Mary Crafts, and Culinary
      Crafts, LLC. (the &#8220;Disengaging Parties&#8221;), under which Ron Crafts, John Crawford,
      Lynn Dean Crawford and James Crawford exchange a total of
      15,750,000<strong>&#160;</strong>shares of common stock of the Company in
      exchange for: (i) 100% of the membership interests in Domestic Energy Partners,
      LLC., the Company&#8217;s wholly-owned subsidiary (&#8220;DEP&#8221;); (ii) certain contracts,
      certain biodiesel processing equipment related to the Company&#8217;s proprietary
      production technology, office furnishings, transferrable tax rebate
      certificates, documents and copyrights owned by the Company and/or DEP; (iii)
      all of the rights, title and interest held in the invention indentified in
      the
      patent application assigned to the Company; and (iv) the Company&#8217;s Twin Cessna
      airplane (the &#8220;Asset Sale Agreement&#8221;).</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Additionally,
      under the Asset Sale Agreement, DEP will assume all liabilities in connection
      with, or obligations owed to, Ron Crafts, John Crawford, James Crawford, Lynn
      Dean Crawford and Culinary Crafts, including certain wages and loans payable
      (the liabilities have a stated, total of approximately
      $321,784.00).</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      Asset
      Sale Agreement also stipulates that Ron Crafts, John Crawford and Lynn Dean
      Crawford resign from their respective positions with the Company, upon
      closing.&#160;&#160;The closing of the Asset Sale Agreement also occurred on
      December 20, 2007, as described below.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Section
      2- Financial Information</strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Item
      2.01
      Completion of Acquisition or Disposition of Assets</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">On
      December 20, 2007, the Company and the Disengaging Parties, as defined in
      Section 1.01, closed the Asset Sale Agreement, resulting in the Disengaging
      Parties returning to the Company a total of
      15,750,000<strong>&#160;</strong>shares of common stock of the Company in
      exchange for: (i) 100% of the membership interests in DEP, as defined in Section
      1.01, (ii) certain contracts, certain biodiesel processing equipment related
      to
      the Company&#8217;s proprietary production technology, office furnishings,
      transferrable tax rebate certificates, documents and copyrights owned by the
      Company and/or DEP; (iii) all of the rights, title and interest held in the
      invention indentified in the patent application assigned to the Company; and
      (iv) the Company&#8217;s Twin Cessna airplane (the &#8220;Asset Sale Agreement,&#8221; described
      above).</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Additionally,
      under the Asset Sale Agreement, DEP assumed all liabilities in connection with,
      or obligations owed to, the Disengaging Parties, including certain loans payable
      (the liabilities have a stated, total of approximately
      $321,784.00).</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      Asset
      Sale Agreement also resulted in the resignation of Ron Crafts, John Crawford
      and
      Lynn Dean Crawford resign from their respective positions with the Company,
      as
      described below.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Eight
      shareholders of the Company beneficially owning a total of 26,192,000 shares
      of
      the Company&#8217;s 30,945,000 total issued and outstanding shares of common stock
      consented to the Asset Sale Agreement, in accordance with Section 7-107-104
      and
      Section 7-112-102 of the Colorado Revised Statutes.&#160;&#160;Excluding
      shareholders with a direct interest in the assets sold in the Asset Sale
      Agreement, four shareholders beneficially owning a total of 10,401,000 consented
      out of the remaining 15,154,001 total shareholders that are considered
      disinterested in the assets of the transaction.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      remaining management of the Company continues to focus on the Company&#8217;s
      operations in the biodiesel industry, while shifting its business plan, from
      a
      singular focus on biodiesel production through proprietary technology, to a
      broader business plan including, in addition to research and development of
      biodiesel fuel technology, the supply of biodiesel raw materials vertically
      integrated with the marketing and distribution of biodiesel fuel
      products.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      Company intends to appoint additional management and directors during the first
      quarter of 2008 to execute its plans.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font style="DISPLAY: inline; FONT-SIZE: 10pt;">&#160;&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: serif, Times New Roman;">&#160;</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font style="DISPLAY: inline; FONT-FAMILY: serif, Times New Roman;">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt;"><strong>Section
      5 - Corporate
      Governance and Management</strong></font></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Item
      5.02
      Departure of Directors or Principal Officers; Election of Directors; Appointment
      of Principal Officers.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">On
      December 20, 2007, the Company accepted the resignations of Ron Crafts from
      his
      positions as Chairman of the Board of Directors and Chief Executive Officer,
      John Crawford, from his positions as Director and as President and Chief
      Technology Officer, and Lynn Dean Crawford from his position as Chief Operations
      Officer.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      resignations are the result of the Board of Director&#8217;s and management&#8217;s decision
      to broaden its business plan, as described in Item 2.01, and the resulting
      Asset
      Sale Agreement, in response to management&#8217;s belief that the proprietary
      technology included in the Asset Sale Agreement would not be ready for
      large-scale commercial use in the near term.&#160;&#160;Neither Ron Crafts, John
      Crawford nor Lynn Dean Crawford resigned due to any disagreement on any matter
      relating to the Company&#8217;s operations, policies or practices, or regarding the
      general direction of the Company.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Company
      intends to appoint additional management and directors during the first quarter
      of 2008.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Section
      8 &#8211; Other Events</strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Item
      8.01&#160;&#160;Other
      Events.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">On
      December 17, 2007, the Company executed a letter of intent with GeoAlgae
      Technology, Inc., a Wyoming corporation (&#8220;GAT&#8221;), to enter into an acquisition
      agreement (the &#8220;Exchange&#8221;) whereby Better Biodiesel will acquire 100% of GAT,
      which will become a wholly-owned subsidiary of the Company, in exchange for
      (i)
      3,300,000 shares of common stock of Better Biodiesel and&#160;&#160;(ii) Better
      Biodiesel&#8217;s commitment to make 6,700,000 shares available as additional
      compensation, issuable to GAT subject to following performance based criteria,
      to be definitively determined in the Exchange.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">GAT
      is
      developing proprietary technology that its management believes will enable
      the
      production of biodiesel fuel on a commercial scale using green algae as feed
      stock.</font></div>
    <div><br></div>
    <div><br></div>
    <div><br></div>
    <div><br></div>
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    <div><br></div>
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    <div><br></div>
    <div><br></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Section
      9 - Financial Statements and Exhibits</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Item
      9.01
      Financial Statements and Exhibits</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font style="DISPLAY: inline; FONT-SIZE: 10pt;">(d)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt;">Exhibits.</font></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Asset
      Purchase, Settlement and Mutual Release Agreement, dated December 20, 2007,
      attached hereto as Exhibit 10.4.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Letter
      of
      Intent with GeoAlgae Technology, Inc., dated December 17, 2007, attached hereto
      as Exhibit 99.8.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>SIGNATURES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Pursuant
      to the requirements of the Securities Exchange Act of 1934, the Registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Dated
      December 21, 2007</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 13.7pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td valign="top" width="39%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            <td align="left" colspan="2" valign="top" width="39%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>BETTER
                BIODIESEL, INC.</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="39%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="35%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="39%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.15pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">By:</font></div>
            </td>
            <td align="left" valign="top" width="35%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">/s/
                Gary Crook</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="39%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.15pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.15pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="35%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Gary
                Crook, Chief Financial Officer</font></div>
              <div>&#160;</div>
            </td>
          </tr>

      </table>
    </div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">EXHIBIT
      INDEX</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Exhibit&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Description</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Number</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">10.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Asset
      Purchase, Settlement and Mutual Release Agreement, dated December 20,
      2007</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 11.4pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">99.8&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Letter
      of Intent with GeoAlgae Technology, Inc.</font></div><br>
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form8-k.htm
SECURITIES
      AND EXCHANGE COMMISSION
Washington,
      D.C. 20549
FORM 8-K
CURRENT
      REPORT
Pursuant
      to Section 13 or 15(d) of the
Securities
      Exchange Act of 1934
December
      17, 2007
Date
      of Report (date of earliest event reported):
BETTER
      BIODIESEL, INC.
(Exact
      name of registrant as specified in its charter)
Colorado
333-67174
84-1153946
(State
                or other jurisdiction
of
                incorporation)
(Commission
                File Number)
(IRS
                Employer
I.D.
                Number)
355
      South 1550 West
Spanish
      Fork, UT 84660
(Address
      of principal executive offices)
Registrant's
      telephone number, including area code:
(801) 990-2810
Mountain
      States Holdings, Inc.
(Former
      name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
      simultaneously satisfy the filing obligation of the registrant under any of
      the
      following provisions:
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
      Act
      (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
      Act
      (17 CFR 240.13e-4(c))
Section
      1 - Registrant's Business and Operations
Item
      1.01
      Entry into a Material Definitive Agreement
On
      December 20, 2007, Better Biodiesel, Inc. (the "Company") entered into an Asset
      Purchase, Settlement and Mutual Release Agreement with Ron Crafts, Chairman
      and
      Chief Executive Officer of the Company, John Crawford, President, Chief
      Technology Officer and a Director of the Company, Lynn Dean Crawford, Chief
      Operations Officer of the Company, James Crawford, Mary Crafts, and Culinary
      Crafts, LLC. (the "Disengaging Parties"), under which Ron Crafts, John Crawford,
      Lynn Dean Crawford and James Crawford exchange a total of
      15,750,000
shares of common stock of the Company in
      exchange for: (i) 100% of the membership interests in Domestic Energy Partners,
      LLC., the Company's wholly-owned subsidiary ("DEP"); (ii) certain contracts,
      certain biodiesel processing equipment related to the Company's proprietary
      production technology, office furnishings, transferrable tax rebate
      certificates, documents and copyrights owned by the Company and/or DEP; (iii)
      all of the rights, title and interest held in the invention indentified in
      the
      patent application assigned to the Company; and (iv) the Company's Twin Cessna
      airplane (the "Asset Sale Agreement").
Additionally,
      under the Asset Sale Agreement, DEP will assume all liabilities in connection
      with, or obligations owed to, Ron Crafts, John Crawford, James Crawford, Lynn
      Dean Crawford and Culinary Crafts, including certain wages and loans payable
      (the liabilities have a stated, total of approximately
      $321,784.00).
The
      Asset
      Sale Agreement also stipulates that Ron Crafts, John Crawford and Lynn Dean
      Crawford resign from their respective positions with the Company, upon
      closing.  The closing of the Asset Sale Agreement also occurred on
      December 20, 2007, as described below.
Section
      2- Financial Information
Item
      2.01
      Completion of Acquisition or Disposition of Assets
On
      December 20, 2007, the Company and the Disengaging Parties, as defined in
      Section 1.01, closed the Asset Sale Agreement, resulting in the Disengaging
      Parties returning to the Company a total of
      15,750,000
shares of common stock of the Company in
      exchange for: (i) 100% of the membership interests in DEP, as defined in Section
      1.01, (ii) certain contracts, certain biodiesel processing equipment related
      to
      the Company's proprietary production technology, office furnishings,
      transferrable tax rebate certificates, documents and copyrights owned by the
      Company and/or DEP; (iii) all of the rights, title and interest held in the
      invention indentified in the patent application assigned to the Company; and
      (iv) the Company's Twin Cessna airplane (the "Asset Sale Agreement," described
      above).
Additionally,
      under the Asset Sale Agreement, DEP assumed all liabilities in connection with,
      or obligations owed to, the Disengaging Parties, including certain loans payable
      (the liabilities have a stated, total of approximately
      $321,784.00).
The
      Asset
      Sale Agreement also resulted in the resignation of Ron Crafts, John Crawford
      and
      Lynn Dean Crawford resign from their respective positions with the Company,
      as
      described below.
Eight
      shareholders of the Company beneficially owning a total of 26,192,000 shares
      of
      the Company's 30,945,000 total issued and outstanding shares of common stock
      consented to the Asset Sale Agreement, in accordance with Section 7-107-104
      and
      Section 7-112-102 of the Colorado Revised Statutes.  Excluding
      shareholders with a direct interest in the assets sold in the Asset Sale
      Agreement, four shareholders beneficially owning a total of 10,401,000 consented
      out of the remaining 15,154,001 total shareholders that are considered
      disinterested in the assets of the transaction.
The
      remaining management of the Company continues to focus on the Company's
      operations in the biodiesel industry, while shifting its business plan, from
      a
      singular focus on biodiesel production through proprietary technology, to a
      broader business plan including, in addition to research and development of
      biodiesel fuel technology, the supply of biodiesel raw materials vertically
      integrated with the marketing and distribution of biodiesel fuel
      products.
The
      Company intends to appoint additional management and directors during the first
      quarter of 2008 to execute its plans.
Section
      5 - Corporate
      Governance and Management
Item
      5.02
      Departure of Directors or Principal Officers; Election of Directors; Appointment
      of Principal Officers.
On
      December 20, 2007, the Company accepted the resignations of Ron Crafts from
      his
      positions as Chairman of the Board of Directors and Chief Executive Officer,
      John Crawford, from his positions as Director and as President and Chief
      Technology Officer, and Lynn Dean Crawford from his position as Chief Operations
      Officer.
The
      resignations are the result of the Board of Director's and management's decision
      to broaden its business plan, as described in Item 2.01, and the resulting
      Asset
      Sale Agreement, in response to management's belief that the proprietary
      technology included in the Asset Sale Agreement would not be ready for
      large-scale commercial use in the near term.  Neither Ron Crafts, John
      Crawford nor Lynn Dean Crawford resigned due to any disagreement on any matter
      relating to the Company's operations, policies or practices, or regarding the
      general direction of the Company.
Company
      intends to appoint additional management and directors during the first quarter
      of 2008.
Section
      8 – Other Events
Item
      8.01  Other
      Events.
On
      December 17, 2007, the Company executed a letter of intent with GeoAlgae
      Technology, Inc., a Wyoming corporation ("GAT"), to enter into an acquisition
      agreement (the "Exchange") whereby Better Biodiesel will acquire 100% of GAT,
      which will become a wholly-owned subsidiary of the Company, in exchange for
      (i)
      3,300,000 shares of common stock of Better Biodiesel and  (ii) Better
      Biodiesel's commitment to make 6,700,000 shares available as additional
      compensation, issuable to GAT subject to following performance based criteria,
      to be definitively determined in the Exchange.
GAT
      is
      developing proprietary technology that its management believes will enable
      the
      production of biodiesel fuel on a commercial scale using green algae as feed
      stock.
Section
      9 - Financial Statements and Exhibits
Item
      9.01
      Financial Statements and Exhibits
(d)
Exhibits.
Asset
      Purchase, Settlement and Mutual Release Agreement, dated December 20, 2007,
      attached hereto as Exhibit 10.4.
Letter
      of
      Intent with GeoAlgae Technology, Inc., dated December 17, 2007, attached hereto
      as Exhibit 99.8.
SIGNATURES
Pursuant
      to the requirements of the Securities Exchange Act of 1934, the Registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.
Dated
      December 21, 2007
BETTER
                BIODIESEL, INC.
By:
/s/
                Gary Crook
Gary
                Crook, Chief Financial Officer
EXHIBIT
      INDEX
Exhibit                                Description
Number
10.4                      Asset
      Purchase, Settlement and Mutual Release Agreement, dated December 20,
      2007
99.8                      Letter
      of Intent with GeoAlgae Technology, Inc.