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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
operation.
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
Affiliates
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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