WATERVILLE -- First, it was a shortage in wood-pellet burning stoves. Now the pellets themselves are in short supply.

Area residents are finding it difficult to get the pellets, even if they've ordered them ahead of time. Bags of them can be seen stacked on store shelves, but retailers are rationing them.

Bill Peebles, general manager at Spring Brook Ice & Fuel Co., said his company is allowing customers just two tons of bags per pick-up. Still, Peebles said, people want more.

"Everybody wants a year's worth of pellets in three months," Peebles said. "If everybody in the state of Maine bought all their oil in the month of June, there'd be a shortage of oil."

Peebles predicted there will be plenty of wood pellets to go around by January.

"We've already seen a decline in new orders," he said.

Some Mainers are augmenting their supply with corn.

Brian Munroe of Solon has purchased a stove that can burn 75 percent corn and 25 percent wood pellets. He has purchased two tons of corn fuel from Agra Energies of Maine LLC of Farmington.

"I can't get all the wood that I need," Munroe said. "I don't like going into the winter not knowing my heat source."

Munroe said he purchased the New Englander combination stove, used, from a dealer in the Augusta area. It came with an electronic key pad that has one key for corn and one for pellets, he said.

If the pellets were more readily available, Munroe would be burning just wood. He paid $294 a ton for the corn, while wood pellets are selling for $260 and up.

"I haven't even hooked it up yet, so I can't tell you from experience how it works," he said.

Wood-pellet producers are having a hard time keeping up with orders.

Robert Linkletter, co-owner of Maine Woods Pellet LLC in Athens, on Wednesday said his company can't meet demand. Maine Woods Pellet, Corinth Wood Pellets and the smaller Northeast Pellet LLC are the three Maine producers of the tiny gems.

Another plant is under construction in Strong.

Maine Woods Pellet serves outlets and individuals in the Skowhegan area, as well as five statewide distributors.

"We're quite a bit behind, but we're giving everybody some," Linkletter said. "It just seems to be no matter how much we make, we're behind. I know that people are panicking to get them all at once. They need to relax."

Maine Woods Pellet gets its raw material from Linkletter & Sons Inc., one of the region's biggest logging operations.

Linkletter said the first-year company is operating at about 70 percent capacity, and is having growing pains. Maine Woods Pellet produced 50 truckloads of 25 tons each last week, and is averaging 10 loads per day. Pellets come in 40-pound bags.

"We just got started in May," he said. "We had to train four complete crews, and they make mistakes. Mistakes cause down time. We're living and learning the hard way."

John Richardson, state department of economic and community development commissioner, said that most of the wood pellets that will be burned in Maine this year will come from out of state.

"We're somewhat overwhelmed by the demand," he said.

"We'll have enough wood pellets this winter, but the cost is unsure," Richardson said. "Much depends on the price of oil."

Todd Richard, who manages Northern Lights Hearth & Sports in Farmington, said manufacturers have ramped up production, and retailers will "get over the hump" of the current high demand.

That high demand, however, has Northern Lights charging $325 per ton of pellets, compared to the $260 many prepaid months ago. Northern Lights gets its pellets, manufacutured in British Columbia, by rail from Montreal.

"We've been able to sell pellets to people just so they wouldn't be cold," Richard said. "People who wanted six tons might have four. We can get pellets whenever we want, but it's the price."

Those who have prepaid for pellets might or might not want to purchase them from major chains such as Wal-Mart or The Home Depot, or from Marden's Discount Store.

Paul LePage, Marden's president, said he has received four rail-flatbed loads of pellets from Canada. He promised the first two to employees at a discount, and the other two loads sold quickly, he said.

LePage said that Marden's has 40 more loads on order, but isn't sure he'll get them.

"They're not guaranteeing them because there's such a shortage," he said. "Other buyers are offering higher prices."

Mike Begin, a purchaser at Marden's, said the company ordered 40 loads of pellets in August.

"I just talked to them this morning, and they're backlogged," Begin said.

Larry Grard -- 861-9239

lgrard@centralmaine.com