1.0

Introduction

1-1

2.0

Executive Summary

2-1

3.0

Financing a major energy development project

3-1

3.1

General Financing Considerations

3-2

3.2

Electric power plant project

3-3

3.3

Synfuels project

3-4

4.0

Requirements for proceeding with the project

4-1

4.1

Obtaining equity sponsors

4-1

4.2

Issues of Financial return and project control for the Crow Tribe

4-3

4.3

Study of joint power plant and Synfuels Project

4-4

5.0

Available Federal Financial Assistance for Synthetic Fuels

5-1

5.1

Energy Security Act

5-1

5.1.1

Loan Guarantees

5-2

5.1.2

Price Guarantees

5-3

5.1.3

Purchase Agreements

5-4

5.1.4

Direct loan authority

5-5

5.1.5

Joint Ventures

5-5

5.2

Synthetic Fuels Projects Receiving Federal Financial Assistance

5-6

5.2.1

Union Oil Shale Project

5-6

5.2.2

Colony Oil Shale Project

5-9

5.2.3

Great Plains Gasification Associates

5-11

5.2.4

Applicability to Crow Project

5-15

5.3

Actions to date of Synthetic Fuels Corporation

5-17

5.3.1

Solicitation Process

5-17

5.3.2

Project Selection Criteria

5-18

5.3.3

Available Financial Resources

5-20

5.3.4

Likelihood of Receiving Financial Assistance

5-20

6.0

Crow Synfuels Project Financial Structure

6-1

6.1

Financial Structure Options

6-1

6.1.1

Tax Benefits

6-1

6.1.2

Organizational Options

6-2

6.1.3

Private Financing

6-2

6.1.4

Project Structure with Loan Guarantee

6-4

6.2

Project Debt Structure

6-6

7.0

Financial Characteristics of the Project

7-1

7.1

Project Costs

7-1

7.2

Cost of Substitute Natural Gas

7-5

7.3

Project Financing

7-17

7.4

Projected Operating Results

7-17

7.5

Price Guarantees

7-19

7.6

Sensitivity Analysis

7-21

7.7

Coproduction of Methanol and Substitute Natural Gas

7-23

8.0

Project Risks

8-1

8.1

Identification of Project Risks

8-1

8.2

Risk Sharing

8-1