Great Plains Gasification Associates, A Partnership, Transco Coal Gas Company, A Partner Other Than The Tax Matters Partner - Page 21

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          He urged the SFC board to move quickly to conclude the price                
          assistance agreement with the partnership.  Similarly, in a May             
          21, 1985, letter to SFC, DOE Secretary Herrington also supported            
          an SFC assistance agreement; he urged that any support agreement            
          should ensure the long-term operation of the plant.  By letter              
          dated May 22, 1985, SFC Chairman Edward Noble responded that to             
          ensure the long-term operation of the plant, DOE should                     
          restructure the debt repayment schedule.  Mr. Noble requested               
          further response from DOE before committing to final negotiations           
          with the partnership.                                                       
               Also on May 22, 1985, DOE Assistant Secretary Mares gave               
          congressional testimony, describing the need for the price                  
          guarantee assistance agreement.  He testified that DOE believed             
          that, if SFC provided the intended financial assistance for the             
          project, the sponsors would be able to continue operating the               
          project beyond the year 2000.  He testified that, in the event of           
          foreclosure on the project assets, the partnership would be                 
          entitled by North Dakota law to a 1-year redemption period and              
          would be entitled to possession of the property and to its rents            
          and profits during that time.  He testified that under North                
          Dakota law, although the partnership may have voluntarily waived            
          those rights in the loan documents, contracts in restraint of the           
          right of redemption are void and unenforceable.                             

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