With Solar Plant on Hold, Lawsuits Start

What has been planned as perhaps the largest solar energy plant in Nevada has been shelved, sparking litigation between the owners.

Global Finance Corp., which lists itself as 10 percent owner of the Amargosa Farm Road Solar Power Project in Nye County, has turned to U.S. District Court to stop a sale of majority owner STA Development to another company. Global Finance contends it has not had a chance to review transaction documents that could have a large bearing on Amargosa's future.

This followed a Sept. 1 letter in which STA informed Global Finance managing director Donald Reid, who identified himself as a Las Vegas resident, that it had put the project on hold in March. Less than four months earlier, Interior Secretary Ken Salazar announced approval the project on six acres of federal land about 80 miles north of Las Vegas.

"This solar facility is yet another critical component in the department's growing renewable-energy portfolio," Salazar said in a statement.

Proponents estimated that the plant, with a total capacity of 500 megawatts, would provide enough power for 150,000 homes and create 1,300 construction jobs. But critics complained the two plants would have consumed huge amounts of water needed to drive electric turbines.

According to the letter written by STA President Alice Harron, the fatal blow came March 7, when NV Energy rejected a bid for it to buy Amargosa-generated electricity.

"STA has tried, without success, to identify other viable options for the development of the project ... to return it to active development," Harron wrote.

As a result, she declared the joint development agreement signed four years ago with Global Finance to be dead. Reid countered in subsequent correspondence that he still considers it alive.

In court documents, Reid said he continued working on the project even after the NV Energy decision, mainly in a public relations role, by attending renewable- energy meetings, leading a site tour for members of Sen. Harry Reid's staff and appearing on a radio program. He said he had worked extensively on securing water rights in previous years.

The rupture between STA and Global Finance was pushed to the fore Oct. 5, when STA's German parent company, Solar Millenium AG, said it would sell its U.S. projects to another German company, Solarhybrid AG. Donald Reid is trying to halt this deal for fear that his 10 percent piece of Amargosa will be eliminated in the process.

Source: http://www.lvrj.com/business/with-solar-plant-on-hold-lawsuits-start-134169293.html