CONTACTS 
0201 - O-0395 0301 Department of Natural      406 444 6699
020101 - Ms. Sarah Bond, Esquire, =406 444 6660, Legal Department

SUBJECTS
Litigation Support
Preliminary Meeting, Counsel

0504 -    ..
0505 - Summary/Objective
0506 -
050601 - Follow up
050602 -
050603 -
050604 -
050605 - Need Case in 9th Circuit on Arbitration in Montana
050606 -
050607 - Should request a copy from Bill Cahill.  Sarah is short handed.
050608 - Bill's para legal can pull a copy and send to both of us, if it is
050609 - available.
050610 -
050611 - It should be something like -- Clark County v. Frank Briscoe
050612 - Construction Company.
050613 -
050614 - This is a major case dealing with entitlement for time extensions and
050615 - extended overhead expense arising from design changes.  Similiar
050616 - issues my exist on BPP.  A major case like this would likely get
050617 - attention if cited, even it is not within this jurisdiction.  It
050618 - would be helpful to have the language in order to structure the BPP
050619 - performance record in a way that recognizes any bright line rules set
050620 - out in the opinion.
050621 -
050622 -
050623 -  ..
050624 - Teleconference Bill Cahill on State Claims
050625 -
050626 - Bill and Sarah feel the State should be giving notice to Sletten of
050627 - the approximate amount of damage the State expects to incur resulting
050628 - from its claims against the Contractor.
050629 -
050630 - The State should submit its claims to the Engineer for determination
050631 - as provided by the contract.  The State need not immediately adjust
050632 - payment to the contractor, if the Engineer finds in favor of the
050633 - State.  The arbitration clause may affect the actual disbursement of
050634 - funds.  Such amounts could be paid into an interest bearing
050635 - account, if Sletten objects to the Engineer's determination.
050636 -
050637 - Discussed two examples:
050638 -
050639 -
050640 -    ..
050641 -   Welding Prequalification
050642 -
050643 -   Failure of the Contractor to perform welding prequalification
050644 -   requirements.  The State ultimately took over this work and
050645 -   incurred $3,000 to $4,000 plus the delay to the job.
050646 -
050647 -
050648 -   Voith Corrective Work on DTL
050649 -
050650 -   This is a major expense arising from Sletten's failure and refusal
050651 -   to perform the requirement to utilize the recommendations and
050652 -   suggestions for assemblying the DTL from the manufacturer's Field
050653 -   Representative.
050654 -   ..
050655 -   This could be $20,000 to $50,000, plus delay cost.
050656 -
050657 -
050658 -    ..
050659 -   Dewatering/Standby Electricity
050660 -
050661 -   Has been disputed for some time and also resulted in a number of
050662 -   occassions when the work has been flooded.  It will touch the
050663 -   acceleration claim and the Contractor intends to claim cost of
050664 -   clean up, delay, etc.  That aspect could reach $100 000 or more
050665 -   (Sletten recently claimed $60,000 for 3 or 4 days of lost time due
050666 -   to a lightening strike that caused flooding -- the merits appear
050667 -   questionable, but show an intent to inflate claims, so it should be
050668 -   expected that a major claim will arise on this matter).
050669 -
050670 -   The State might be liable for failing to take corrective action in
050671 -   order to mitigate.  The issue is of greater importance now because
050672 -   of the pending installation of Voith equipment  which is more
050673 -   susceptible to flood damage.
050674 -   ..
050675 -   It was expected the contractor would have installed flood
050676 -   gates which would reduce the amount of water the dewatering system
050677 -   must handle; however, this work is now a week or so behind because
050678 -   the gates have not been delivered to the job.  If Voith is delayed
050679 -   in its start, then the flood gates might yet be delivered, and
050680 -   installed in time to help solve the problem.  If not then other
050681 -   measures may be needed.  The State has recently considered
050682 -   installing a supplemental backup power system.
050683 -
050684 -
050685 -  ..
050686 - Voith Contract Interface Sletten Contract
050687 -
050688 - Explained the conflict Tudor faces in demanding Sletten complete to
050689 - the point where Voith can commence its contract on 881017  and such
050690 - demand resulted from verbal understandings with Voith; then within
050691 - past few days Voith has backed away and informed Tudor in writing
050692 - that it cannot start until 881114.
050693 -
050694 - Advised this reversal is consistent with other Voith conduct  and
050695 - thereby presents a management problem, as well as an immediate
050696 - coordination issue with the Sletten contract.  Cited review of
050697 - Voith's 880912 letter re equipment tolerances  ref 4.  Bill said he
050698 - would like to review it.  Sarah said she has a copy and will send one
050699 - to Bill.
050700 - ..
050701 - Advised that Tudor and State staff will be meeting with Voith in
050702 - York, Pa next week.
050703 -
050704 -
050705 -
050706 -  ..
050707 - Bill, Sarah asked about notification with respect to State claims
050708 -
050709 - Advised I have written a status report to Jeff and Clyde on this
050710 - matter, ref 8.  Bill will obtain a copy from Clyde.  Sarah thinks she
050711 - has a copy, but has not had a chance to review it.
050712 -
050713 -
050714 - Taping recording meetings
050715 -
050716 - Advised of the impact this has had on Sletten's project manager,
050717 - Mr. Merriman, and that Sletten has discontinued taping the meetings
050718 - probably in order to submit its own meeting notes without the
050719 - burden of accountablity.
050720 - ..
050721 - Bill recommended that Tudor consider taping meetings.  He finds
050722 - this is helpful in expediting acceptance of written notes, as
050723 - competent evidence.
050724 -
050725 -
050726 -  ..
050727 - Bill Cayhill Coordinate on Representing Tudor
050728 -
050729 - Bill will call me tomorrow at the job or the motel after talking to
050730 - Clyde.
050731 -
050732 -      [On 881007 Clyde requested less contact between DNRC and Welch.
050733 -      ref SDS 3 0951]
050734 -
050735 - Bill asked me to call him the week of 881010 when I am in SF, to
050736 - arrange a meeting.  Explained potential conflict with my knee
050737 - operation, about getting together, but I will call him for sure.
050738 -
050739 - We concluded the conference call about 1200.
050740 - ..
050741 - Sarah had an appointment. I will call her this afternoon to
050742 - discuss a few remaining issues, ref 7 - 9.  Made a copy of documents
050743 - and left on her desk to facilitate our discussion.
050744 -
050745 -
050746 -