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of the project administrator and DOE’s regional office in
Chicago, Illinois. DOE was not, however, directly involved in
the plant’s day-to-day operations.
The Partnership’s Continued Activity
After DOE assumed control of the project, there were
continuing disputes between the partnership and DOE, including
disputes over the partnership’s and the partners’ liability for
project expenses incurred under the standstill agreement.14 In
September and October 1985, ANG and DOE requested the
partnership’s permission to sell certain “excess” project assets,
including parcels of real property, portable living quarters, and
some items of equipment. The partnership declined to approve the
sale.15
Although the partnership did not direct or control the Great
Plains project after DOE assumed of control of it on August 1,
14 After several months of negotiations, the parties agreed
that the partnership owed DOE $13.4 million. In July 1987, the
management committee met to approve this agreement and to call
for further equity contributions of $12.5 million from the
partners to the partnership. The partnership also made an
additional cash call to satisfy a settlement with the State of
North Dakota for sales and use tax liabilities.
15 In an Oct. 14, 1985, letter to the project administrator,
C. W. Rackley, chairman of the partnership’s management
committee, advised that authority to approve the sale no longer
rested with the Management Committee and suggested that the
request be directed to DOE. In a Nov. 1, 1985, letter to DOE,
Mr. Rackley indicated that in view of the pending foreclosure
action, the partnership had been advised that it would not be
appropriate for the management committee to approve the sale.
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