University of Wyoming trustees have approved an insurance policy worth $15 million and agreed to waive government immunity as the school teams up with General Electric Co. to build a coal gasification research facility.
The agreement is part of a promise to compensate GE if any university employees reveal trade secrets associated with the planned High Plains Gasification Advanced Technology Center.
The policy, which has a $14.9 million deductible, covers the life of the facility plus three years.
The university, like other state entities, is legally protected from many types of lawsuits.
"If we don't want to waive (governmental) immunity, they don't want to do the deal," said Richard Miller, UW's vice president for governmental, community and legal affairs.
Wyoming is working with General Electric Co. to build the $100 million coal gasification research plant in Cheyenne. The plant is scheduled to be operating in late 2012.
The goal of the new research plant, which will be owned by Wyoming and operated by GE, is to find efficient and cost-effective ways of turning Wyoming coal into a synthetic gas that can be processed into various clean fuels and products. There are 19 other gasification plants around the country, but none use Wyoming coal on a commercial scale.
Miller said the waiver and policy were part of the deal for getting the research system for UW scientists. He said it would take "off-the-charts negligence" to reveal GE's intellectual property.
The parties negotiated the $15 million figure, but the value of any company secrets could be much greater, Miller said.
"It is proprietary information that is strictly controlled," Miller said. "However, should that happen, the consequence financially is severe."
The university will work with the Legislature's Joint Appropriations Committee and other lawmakers to create a process to deal with a breech, Miller said.
Trustee Dr. Taylor Haynes of Cheyenne said the agreement means GE will be responsible for protecting the university's intellectual property as well.
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Information from: Wyoming Tribune Eagle - Cheyenne, http://www.wyomingnews.com