CONTACTS 
0201 - Department of Natural Resources    406 444 6699 fax 6721
020101 - Ms. Sarah Bond, Esquire

SUBJECTS
Collateral Damage
Mitigation (Voith Instructions)
Voith corrective action

0605 -    ..
0606 - Summary/Objective
0607 -
060701 - Prepared notice to Voith, ref DIT 3 0001 of possible collateral damage
060702 - and demanded they commence monitoring and submit operations plan, per
060703 - supplemental agreement, ref DRP 1 & 2, and DIP 3.
060704 -
060705 -     This is more complicated than originally anticipated because I was
060706 -     unaware until reading the letters from Voith and the SI Agreement
060707 -     that Voith has committed to furnish a monitoring "plan."
060708 -     Therefore, DNRC needs to demand performance of such "plan" plus
060709 -     demand that Voith carry out the plan, and in the alternative,
060710 -     inform Voith that DNRC will do it and charge Voith.
060711 -
060712 -     The good thing about this is that Voith recognized from the
060713 -     beginning the potential for collateral damage which was reasonable
060714 -     because it is an expert.
060715 -
060716 - Completed draft to Voith.  Need to draft letter to Tudor submitting a
060717 - copy of the DNRC letter to Voith, and placing a demand on Tudor to
060718 - direct the contractor to perform, and to advise the Department of any
060719 - matters Tudor knows or has reason to believe should be required to
060720 - secure full compliance with the contract by Voith.
060721 -
060722 - These need to be faxed to Voith and Tudor asap.
060723 -
060724 -
060725 -
060726 -  ..
0608 -
0609 -
0610 - Meeting Notes re SI Agreement
0611 -
061101 - Reviewed the meeting notes and the Agreement.  They strongly show that
061102 - Voith accepts the failure of the Speed Increaser, ref DIT 2, page 20,
061103 - because they tried a new idea but made a bad design, ref DIT 4 page
061104 - 16.
061105 -
061106 -     [On 911025 expert confirms Voith design was defective. ref SDS 6
061107 -     9499]
061108 -
061109 - DNRC appears to reject the idea that it is in any way liable for costs
061110 - arising from this occurrance.  Voith [Weiss] accepts liability for
061111 - in/out costs, p. 29.
061112 -
061113 - DNRC does not appear to assert it is entitled to recover lost revenue,
061114 - ref DIT 1 page 29.
061115 -
061116 -
061117 -     Voith Recommends
061118 -
061119 -     Change Oil Immediately - p. 20
061120 -     Monitoring plan to avoid high risk - p. 20
061121 -
061122 -     For New SI - "...carefully controlled run-in, half the load
061123 -     before, to break in the teeth before the full load, slowly.  Ten
061124 -     hours at half load beforetaking the next ramp."  p. 21
061125 -
061126 -     Owner can visit shop, have inspections on new manufacture, p. 22
061127 -     [Tudor observation]
061128 -
061129 -     DNRC consultant complete audit by Jul 19, if info comes asap (by
061130 -     Jul 4) p. 24.
061131 -
061132 -     May be delay on "annulus" [data which is a] critical path item,
061133 -     p. 24.
061134 -
061135 -     Shut down plant, if DNRC accepts Voith proposal, p. 27
061136 -
061137 -     Voith [Weiss] starts design on new SI on 910627, p. 27.
061138 -
061139 -     Voith [Bob E.] will provide study of 3 equally spaced inspection
061140 -     ports and furnish to DNRC for review, p 28.
061141 -
061142 -     Voith [Weiss] will provide DNRC information to compare old with
061143 -     new SI design, p. 29.
061144 -
061145 -
0612 -
0613 -