63M-3-201 - Contract for pilot plant -- Contents -- Financing -- Termination of contract.
63M-3-201. Contract for pilot plant -- Contents -- Financing -- Termination ofcontract.
(1) The council is authorized to enter into contracts with contractors to provide for thedesign, construction, and operation of a pilot plant to fulfill the purposes of this act.
(2) The contracts provided for in Subsection (1) shall provide, among other things, forthe following:
(a) The plans and specifications for and the processes to be used in the pilot plant mustbe approved by the council.
(b) The station is to be the project engineer in respect to the pilot plant and is to representthe council in respect to it. As the project engineer the station has the responsibility ofmonitoring performance by the contractors, gathering data pertinent to the purpose for which thepilot plant is to be constructed and operated, and performing such administrative, accounting, andother duties assigned to it in respect to the pilot plant by the council. As compensation for itsservices the station is to receive its costs, direct and indirect, calculated in accordance withstandard accounting procedures followed by the University of Utah in contracts with the UnitedStates government and its agencies; and the amount to be so paid to the station is to beconsidered part of the costs of design, construction, and operation of the pilot plant.
(c) The contractor shall provide all funds necessary to the design, construction, andoperation of the pilot plant for the objective period which are not provided by the appropriationmade to the council for purposes of this act under Section 5. To provide its portion of thesefunds the contractor may use both private and public sources, but that from public sources canonly be used with prior approval by the council.
(d) The site for the pilot plant is subject to prior approval by the council.
(e) The pilot plant and any production from it shall be owned by the state of Utah in theproportion that its appropriation for purposes of this act under Section 5 bears to the total cost ofdesigning, constructing, and operating the pilot plant for the objective period. This total costdoes not include the cost or value of the site for the pilot plant or tar sand feedstock for theobjective period.
(f) The council shall have the exclusive right to determine when the end of the objectiveperiod has been reached, at which time any contracts between the council and the contractorregarding the pilot plant shall terminate. The pilot plant is then to be sold for cash pursuant tolaw at competitive bidding when the sale of the pilot plant equipment is determined to bepracticable by the council. The gross proceeds from the sale shall be paid to the state but not inexcess of the amount of the appropriation made under Section 5 plus an interest factor of 10%per year from the date of the contracts to the sale date.
Renumbered and Amended by Chapter 382, 2008 General Session