Los Alamos DOE Fuel Consumption Dispute Sample Clauses

Los Alamos DOE Fuel Consumption Dispute. The matters set forth on Schedule 2.10(a) to the Disclosure Letter and Schedule 2.19(c), Item 2 of the Disclosure Letter as described below: As part of its duties at LANL, the Company oversaw the operation of a back-up steam plant in area TA-21. The tank held diesel fuel to supply the boilers when they were needed. However, the facility was seldom operated. The duties of the Company’s personnel included monitoring the contents of the above-ground storage tank. In 2002 it was discovered that fuel was missing from the tank. Indications are that the fuel leaked from a portion of the 80-foot underground line running from the tank to the boilers. A part of the line had been replaced in the mid 1990s because it was corroded, but the remaining part of the line, which had neither wrapping nor cathodic protection, was not replaced because of LANL budgetary constraints. The Company was previously charged approximately $300,000 for the investigation and assessment of this matter. No remediation has been undertaken and no further demands have been made on the Company relating to this matter. However, the contract is not yet closed out and this issue could come up again as part of the closeout.
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Related to Los Alamos DOE Fuel Consumption Dispute

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