- 27 -
that control over the Great Plains project had reverted to DOE
and that ANG was now acting solely at the direction and under the
control of DOE. The partnership advised the vendors and
suppliers that DOE had halted all capital improvements at the
project and was unwilling to fund such expenses; accordingly, the
partnership instructed the vendors and suppliers to cease
providing services, materials, or labor, or otherwise incurring
expenses for capital projects until further notice from DOE.
On or about August 13, 1985, DOE stated publicly that it
would allow the Great Plains project to continue operating
temporarily while DOE and officials for the State of North Dakota
discussed ways to meet DOE’s conditions for long-term plant
operation. Shortly thereafter, ANG and the United States reached
a revised project administration agreement. Under this
agreement, ANG was formally reappointed project administrator,
with complete authority, subject to the DOE Secretary’s
directions, to do all things necessary for the operation and
maintenance of the Great Plains gasification plant and related
facilities. Under this agreement, ANG was to be paid a
performance fee of approximately $3 million per year.
Accordingly, ANG employees (numbering at least 800)
continued to operate the project as they had before the partners
terminated their participation. Liaison between DOE and the
project administrator was conducted through designated employees
Page: Previous 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 NextLast modified: May 25, 2011