Federal court judge increases CUC’s pipeline project funding ceiling to $10.6M

U.S. District Court for the NMI designated Judge David O. Carter yesterday increased the Commonwealth Utilities Corp.’s pipeline construction project’s funding ceiling to $10,617,300.17.

Carter said after the Engineering Environmental Management Company’s (EEMC) receipt of the pipeline project payments by this order, the task order for the project is closed.

Carter ordered the CNMI to pay within 30 business days EEMC Gilbane Federal’s invoices in the combined amount of $1,140,000 pursuant to pipeline project activities.

The judge said after EEMC’s receipt of the pipeline project payments required by this order, the EEMC is fully reimbursed for all pipeline costs and will not be entitled to future reimbursement for the task order costs.

Due to unforeseen site conditions and construction challenges encountered that include human remains exhumations, additional archeological excavations, an unexploded 500-lb World War II bomb, among others, CUC’s oil pipeline construction project’s cost increased by $2.1 million from the $8.5-million budget ceiling.

U.S. Department of Justice Environmental Section senior attorney Bradley R. O’Brien requested the court to increase the Task Order 2(CUC pipeline) to $10,617,300.17 to reflect the $2,135,139.17 cost increase from the $8,482,161 estimate.

O’Brien said notwithstanding the complexities, the pipeline construction was completed in an approximate six-month time frame beginning in November 2015.