Jasper wants compensation for lost payments but decides to allow appeal decision to stand

Monday’s Jasper Utility Service Board (USB) meeting featured two decisions regarding the biomass power plant lawsuit.

The first decision came at the request of Attorney Bill Kaiser, counsel for the city in the lawsuit and lease development. Kaiser requested the board issue a resolution to not pursue a “petition of transfer” —a transfer of the Court of Appeals’ decision to the Indiana Supreme Court for judgement. The deadline for the city to file the petition is Wednesday.

Kaiser told the board his recommendation was based on the added expense of filing the petition and the delay filing would cause in resolving the lawsuit. He further explained, “The Indiana Supreme Court is not obligated to take the petition. So you could go through this, take the time, effort and money to seek the petition of transfer and the Indiana Supreme Court could deny it.”

The board unanimously approved a resolution to not petition the Indiana Supreme Court.

Healthy Dubois County can now move forward in deposing individuals connected to the lease negotiations between the city and then-Twisted Oak CEO Jay Catasein. Those requests for scheduling are expected to begin next week.

The Utility Service Board then directed Kaiser to explore options in seeking compensation for the loss of income from the lease option payments. The lease option payments were $60,000 to be paid quarterly by Catasein until the plant was operational.

According to Wayne Schuetter, chairman of the USB, these payments were placed in the lease to compel Twisted Oak, now Jasper Clean Energy, to quickly move through the commercial and regulatory issues in preparation of converting the power plant to burn a mixture of miscanthus gigantus (a genetically engineered biofuel crop) and natural gas. Kaiser stated it allowed Catasein to have some skin in the game so to speak.

This information came out during a meeting which included another Jasper Clean Energy report with little to no movement by Catasein in regards to power purchase agreements.

[quote style=”boxed”]”The responsibility of the board is to oversee the utilities and if there are fiscal losses due to activities or actions by other groups for the rate payers of Jasper, it’s our responsibility to look at recouping those.” USB Chairman Wayne Schuetter.[/quote]

The city approved a resolution in October to relieve Catasein of the obligation of those lease option payments until the lawsuit was resolved. Currently the city has not been able to collect six lease option payments totaling $360,000. In January that amount will roll over to $420,000.

[quote style=”boxed”]In regards to the longevity of the lawsuit, Dr. Norma Kreilein, member of Healthy Dubois County, Inc, stated, “It was the opinion of the appeals court in its decision that the city of Jasper caused its own delays on numerous occasions while the citizens acted in good faith in seeking discovery.”[/quote]

In addition to the loss of the lease option payments, the city has spent roughly $150,000 to $200,000 in legal fees since the August decision approved the lease with Catasein. According to Kaiser, the city spent between $100,000 and $150,000 to prepare the lease and prepare for the lawsuit in 2011 and another $50,000 for legal fees for the lawsuit in 2012.

The city has been embroiled in a lawsuit brought by Healthy Dubois County, Dr. Norma Kreilein, Rock Emmert and others against the city for Indiana Open Door Law violations that allegedly occurred during the negotiation for the lease of the Jasper Power Plant to Twisted Oak. Special Judge Lucy Goffinet issued a ruling in favor of the city in January after a two day trial in December.

Healthy Dubois County appealed the judge’s ruling and the Indiana Court of Appeals granted their appeal on Nov. 19 based on several factors including questioning whether a volunteer group that met 13 to 15 times constituted a legal body subject to Indiana Open Door Laws.

Information on the Court of Appeals decision.