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<br />. <br /> <br />Attachment 1 <br /> <br />Discussion on ()e\'t'lopmcnt of Cap Con\'t'rsion Factor <br /> <br />. <br /> <br />A simplified approach to accounting for the effect of Section 207 on Escrow Agreement <br /> <br />interim quarterly payments was presented to the t\\'O contractors that hold repayment <br /> <br />contracts. A draft worksheet (Attachment 4) provided proposes a method of applying <br /> <br />the intent of Section 207 to actual joint cost cxpcnditures for use in the quarterly billing <br /> <br />process. The methodology applies a ratio. or cap conversion factor. to post-1999 actual <br /> <br />joint cost expenditures to reflect the cap on repa)'TIlcntliability eSlablishcd in Section <br /> <br />207. The usc of the ratio is intended to meet the requirement orScetion 207 for the <br /> <br />reimbursable costs nol to exceed $43,000,000 for the first 5500,000,000 ofthc tolal <br /> <br />project costs. To simplify the administration ofthc csera\\' account, the cap conversion <br /> <br />factor is applied to all joint cosls incuITed from 1999 to the present. This resuhs in a <br /> <br />diffcrcnce bctv.'cen thc amount actually paid to date b\' cOlltmctors and the amount due as <br /> <br />a result of IltlSt--Scction 207:... Hm6tffi4-tlu~~T-ffis-4ff~H~ilt~..h~--rt'Sutt--sl:HelT1;l-.f-th~ <br /> <br />~~nftl~"'H.ltt407Iangult~ffi.-0t.0t-~nh~f'-;-1(U)4..-lt is Reclamation's position <br /> <br />that this difTercnce is not an o\'erpayment. as the amounts paid to date were billed and <br /> <br />paid in accordance with the applicable agreements and law at the time the payments were <br /> <br />made. <br /> <br />. <br />