CUC given 10 days to pay Gilbane Federal $437,090

The federal court has ordered the Commonwealth Utilities Corp. and the CNMI government to pay Gilbane Federal within 10 business days $437,090 for activities performed on CUC projects.

Gilbane Federal is a California-based construction company mandated by the federal court to expeditiously complete some stalled CUC projects.

In the same order on Monday, U.S. District Court for the NMI designated Judge David O. Carter directed the court’s registry investment account to wire transfer all funds, including the principal and interest, held in the court registry and deposited by CUC (about $300,000) to Gilbane Federal.

Carter approved in October the parties’ agreement to pay Gilbane Federal $375,000 pursuant to Task Order 3 for activities relating to the Tank 102 project. The parties in the case are CUC, the CNMI government, and the U.S. Department of Justice.

The Tank 102 project involves the construction of a 500,000-gallon diesel fuel tank to replace an older one that has been found to be a source of pollution and is non-repairable.

Since the money in the court registry does not equal $375,000, Carter said that CUC shall directly pay Gilbane Federal the shortfall using CUC funds within 10 days.

Upon full payment of the $375,000 to Gilbane Federal, Carter said the Task Order 3 is deemed closed.

The budget ceiling was originally $300,000. The parties, however, agreed to the payment of $375,000, prompting Carter to raise the budget ceiling for Task Order 3 to $375,000.

The judge ordered the court registry investment account to transfer $32,195 held in the court registry and deposited by the CNMI government to Gilbane Federal pursuant to Task Order 1.

Last October, Carter approved a $132,555 payment to Gilbane Federal pursuant to Task Order 1 for activities such as providing construction management, oversight, and court required activities.

In his order Monday, Carter gave CUC 10 business days to pay Gilbane Federal $100,360 pursuant to Task Order 1 activities. The judge said the payment shall be made pursuant to grant funding.

Carter also gave CUC 10 business days to pay Gilbane Federal $336,730 pursuant to Task Order 2 for activities relating to the CUC pipeline project.

The payment, he said, will be made pursuant to grant funding.

Last October, Carter approved a $336,730 payment to Gilbane Federal pursuant to Task Order 2.