- Associated Press - Monday, March 31, 2014

CASPER, Wyo. (AP) - A company proposing to build a $2 billion facility that would process coal into gasoline and other liquid fuel has severed ties with its contractor for the project.

Houston-based DKRW Advanced Fuels has been planning to build the facility near Medicine Bow.

The Chinese contractor for the project, Sinopec Engineering Group, recently announced in a statement to investors that the firm and DKRW had severed ties. DKRW initiated arbitration to recover an undisclosed award for breach of contract.

The Casper Star-Tribune reports (http://bit.ly/P7lGcv ) DKRW signed an estimated $1.6 billion deal with Sinopec in 2012. Work was delayed last year after DKRW said it was unsure when Sinopec would begin construction.

The Wyoming Industrial Siting Council approved a more than three-year extension to the timetable for the project in December.

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Information from: Casper (Wyo.) Star-Tribune, http://www.trib.com