Great Plains Gasification Associates, A Partnership, Transco Coal Gas Company, A Partner Other Than The Tax Matters Partner - Page 32

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          partnership to retain ownership of the plant and would have                 
          required, among other things, that the partnership recommence               
          operating the project, covering cash shortfalls through further             
          cash investments in the project up to an amount equivalent to the           
          tax credits previously earned from the project.  On January 30,             
          1986, representatives of Transco Energy and ANRC met with DOE               
          Deputy Secretary Boggs and DOE General Counsel Farrell regarding            
          the restructuring proposal.  The DOE representatives stated that            
          they found “nothing offensive” in the proposal and that DOE would           
          consider it and respond.                                                    
               The partners continued to meet and discuss these matters.              
          The other partners were divided over whether to join ANRC’s                 
          proposal to DOE.  At an April 1, 1986, meeting, Transco and                 
          Pacific agreed to participate in ANRC’s proposal, although                  
          Pacific indicated that it intended to “take a passive position              
          for the present”.  Tenneco and Midcon declined to participate in            
          ANRC’s proposal on the ground that the tax benefits they had                
          realized from the project were insufficient to justify the                  
          additional capital contributions contemplated under the proposal.           
          Neither Tenneco nor Midcon sought, however, to obstruct the other           
          partners’ efforts to retain the partnership’s future involvement            
          in the project.                                                             
               In the meantime, other events threatened to overtake the               
          negotiations with DOE.  In February 1986, DOE had asked the                 
          public for “expressions of interest” in acquiring or                        




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