_GENERAL DOCUMENTS - C1981017 ‎(236)‎

• Permit No: C1981017
• IBM Index Class Name: GENERAL DOCUMENTS
• Doc Name: Bid Documents ‎(IMP)‎ 1993 Permit Renewals
• Permit Index Doc Type: General Correspondence
• Media Type: D
• Archive: No

a. Pipe line from tunnel to plant. 65,000.
b. Plant pipework. 26 ,000.
c. Coarse classifier. 20,000.
d. New building. 30,000.
e. Electrical costs. 21 ,000.
f. System monitoring 30,000.
The Manufacturer
Mid-Continent issued a purchase order for manufacture of the
treatment plant on September 18, 1989 . The plant was to have been
manufactured and installed in December, 1989.
Mid-Continent made a substantial down payment, followed by
"progress payments" for purchase of the various supplies and
components of the system. Payments totalling $189,171 have been
made to H2O to manufacture the plant.
During December and January, scheduled dates for delivery of the
system were repeatedly cancelled by H2O, although Mid-Continent
personnel were led to believe the plant had been manufactured, and
would be installed within days.
Finally, on Jan. 26, Mid-Continent's project engineer managed to
contact Clint Holeman, owner of H 0, who said he would be unable
to deliver the system, and that H2� was out of business.
Further investigation revealed that, although orders had been
placed for the components and supplies of the system, most of the
vendors and suppliers had not been paid. Of $136,746 in purchase
orders, payments which had actually been made totalled only
$13 ,148 . As a result, very little of the necessary components and
supplies had been delivered to H2O, and the system had not been
assembled.
Mid-Continent has received no accounting for the actual expenditure
of funds paid to H2O. We intend to seek legal recourse, but it
is uncertain as to whether our money can be recovered.
Guy Hansen, a former H2O employee, has estimated that completion
of the plant would cos? another $125,000, and probably up to six
weeks for assembly.
We've determined this is infeasible for a number of reasons,
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