Great Plains Gasification Associates, A Partnership, Transco Coal Gas Company, A Partner Other Than The Tax Matters Partner - Page 29

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          1985, representatives of the partners and the partnership                   
          continued to meet on matters concerning the partnership and the             
          project.  There were numerous meetings of the partnership’s                 
          management, tax, and finance committees.  ANG continued to                  
          maintain insurance on the project, paying the insurance premiums            
          out of project revenues.  The partnership continued to be named             
          as the insured party on these insurance policies.                           
          The Project’s Improving Financial Situation                                 
               During August 1985, DOE advanced approximately $1,597,000 to           
          cover project expenses.  The advance was repaid to DOE in                   
          December 1985 out of project revenues.  After August 1985, DOE              
          provided no other funds for the project.                                    
               For the 6 months following August 1, 1985, cumulative                  
          revenues from the Great Plains project exceeded cumulative                  
          expenses.  The project continued to operate with a positive                 
          cashflow in 1985, 1986, and 1987, accumulating a surplus of more            
          than  $130 million.  For the 11 months ended June 30, 1986, the             
          project generated positive cashflow of about $57 million.  For              
          the year ended June 30, 1987, the project generated positive                
          cashflow of about $16 million.  ANG continued to use project                
          revenues to operate the gasification plant, with excess revenues’           
          being segregated in separate accounts.                                      









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