Great Plains Gasification Associates, A Partnership, Transco Coal Gas Company, A Partner Other Than The Tax Matters Partner - Page 17

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          project remained an important part of the partners’ business                
               On March 25, 1983, the partnership advised DOE that changing           
          economic conditions required changes in the project’s financial             
          structure.  The same day, each partner notified DOE that it                 
          believed that conditions existed that would permit it to vote to            
          terminate participation in the project pursuant to the partners             
          consent and agreement, but that it did not presently intend to              
          exercise this right.                                                        
          Debt Restructuring Negotiations                                             
               In 1983, the partnership’s representatives began meeting               
          with officials of DOE and the Synthetic Fuels Corp. (SFC) to                
          negotiate additional financial assistance for the project.  On              
          September 13, 1983, the partnership applied to SFC for interim              
          price supports for the synthetic natural gas to be produced by              
          the project.  The partnership advised SFC that interim price                
          supports would make possible the plant’s completion and                     
          operation.  Plant construction was then 72 percent complete and             
          on schedule.  Approximately $1.2 billion had been invested in the           
          project:  $383 million represented the partners’ equity capital;            
          the balance was FFB debt guaranteed by DOE.                                 
               Negotiations between the partnership and SFC over price                
          supports dragged on until July 1985.  In the meantime, DOE--which           
          was monitoring the SFC negotiations--began contingency plans with           

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