[sammyg2]

The plant in North Dakota makes a synthetic type of natural gas.

After over THIRTY YEARS it is still not profitable enough to have paid for itself. After over THIRTY YEARS the plant still owes the US government $330 million on the loan to build the plant.
Here's some history:

Great Plains Synfuels Plant
Recapture of Original Loan Guarantees
The Great Plains Synfuels Plant was constructed with financial assistance from the DOE through $1.55 billion in loan guarantees. Of the original amount at risk, about $330 million remains unfunded thus far, and the DOE is still contracted to receive shares of the plant revenue through 2009 to further offset this amount.

Original Construction
The plant was originally constructed by private investors for a total investment of $2.1 billion in the early 1980's. The investors provided $550 million and borrowed $1,550 million. The borrowed money was guaranteed by the DOE.

Original Owners Default
The original investors defaulted on August 1, 1985, about one year after first gas was put in the pipeline, due to the very low price of natural gas. The DOE refused to provide further assistance.

DOE Operation Period
The DOE operated the plant from 1985 until 1988 when they sold the plant to Basin Electric Power Cooperative. During this time the DOE accumulated $135 million in operational cash flow.

Sold to Basin Electric Power Cooperative
Basin Electric purchased the plant from the DOE in 1988 for the sum of $85 million plus an agreed revenue sharing mechanism, access to an environmental trust fund ($30 million), access to an operational trust fund ($75 million) and the forfeiture of $755 million in tax credits.

Revenue Sharing to Date
The revenue sharing has provided payments to the DOE of $235 million through 2005 and an estimated $40 million for 2006 for a total of $275 million through 2006. Basin Electric did call upon the $30 million environmental trust fund, but did not use any of the $75 million operational trust fund.

Financial Balance to Date
Of the original 1.5 billion loan guarantee, all but $330 million has been recouped by the US government so far, and DGC will continue to share profits through 2009 to further offset this amount.


The following table lists the original loan guarantee amount and how the U.S. Government has recouped its money to date.
$ in millions

Original Construction Cost of Plant
$2,100

Financing from Original Owners
550

Loans guaranteed by DOE
$1,550

Loans Defaulted and Covered by DOE
1,550

Operational Cash Flow while under DOE Ownership
135

Net Deficit at time of sale to Basin Electric
1,445

Sale Price to Basin Electric
85

Environ. Trust Fund Payment to DGC
(30)


Profit Sharing through 2006
275


Production Tax Credits Waived by DGC
755

Net payments from DGC to US Gov.
1,085

Total US Government recapture from original loss
1,190


Net US Government loss from loan guarantee to date
330