Great Plains Gasification Associates, A Partnership, Transco Coal Gas Company, A Partner Other Than The Tax Matters Partner - Page 14

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          between ANG and DOE, dated January 29, 1982 (the project                    
          administration agreement), if the partnership defaulted on its              
          obligations under the loan documents, ANG would, at the DOE                 
          Secretary’s option, continue to act as administrator of the Great           
          Plains project.                                                             
               In connection with the project administration agreement, ANG           
          and the partnership entered into a coal purchase agreement to               
          provide a source of lignite coal for the project.  The agreement            
          was based upon coal rights previously obtained by ANG to buy and            
          receive from a third party sufficient coal to satisfy the                   
          project’s requirements.  ANG agreed to deliver for the                      
          partnership’s account sufficient coal to support the plant’s                
               ANG served as the project’s sole operator until October                
          1988.  After production commenced at Great Plains in 1984, ANG              
          had 800 to 1,200 full-time workers on site at the project.                  
          Partnership Enters Gas Purchase Agreements With Pipeline                    
               On January 29, 1982, the partnership entered into 25-year              
          gas purchase agreements with pipeline companies affiliated with             
          four of the partners (the pipeline affiliates).  The gas purchase           
          agreements provided that, after the project’s in-service date,              
          the partnership was obligated to tender to the pipeline                     
          affiliates all synthetic natural gas produced by the project, and           
          the pipeline affiliates were collectively obligated to purchase             

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