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The Partners’ Ongoing Efforts To Reopen Negotiations With DOE
On August 23, 1985, Transco Energy’s CEO, Mr. Jack Bowen,
met with DOE Deputy Secretary Boggs to discuss a possible workout
of the partnership’s debt. This meeting occurred even as the
partners were embarking on a public relations campaign directed
at North Dakota citizens, lobbyists, the White House, and members
of Congress, to bring DOE back to the negotiating table.
As discussed in greater detail infra, on August 29, 1985,
DOE initiated court proceedings to foreclose on the project
assets. The next day, Transco Energy submitted to DOE a
“discussion draft” outlining key elements for the partnership’s
continued participation in the project. This discussion draft
contemplated that the partnership would retain title to the plant
and proposed making interest on the DOE-guaranteed debt
contingent on project cashflow. The discussion draft included no
provision for additional capital contributions by the partners.
Between August and November 1985, Mr. Bowen had more
meetings and telephone conversations with various high-level DOE
officials regarding a possible workout. The other partners were
kept informed of these discussions. Mr. Bowen offered to have
all the partners meet directly with DOE, but DOE indicated a
preference to work through only one contact until a proposal was
sufficiently developed to require input from all the partners.
DOE agreed to prepare a proposal for the partners’ consideration.
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