CH2M Hill to Pay $2.9M to Settle Hatchery Claims

The company that designed a new fish hatchery in Fairbanks has agreed to pay $2.9 million to settle the state's claims over alleged flaws.

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by Associated Press

FAIRBANKS- The company that designed a new fish hatchery in Fairbanks has agreed to pay $2.9 million to settle the state's claims over alleged flaws.


The company, CH2M Hill Inc., agreed to the settlement in late May.


The Ruth Burnett Sport Fish Hatchery had initially been scheduled to open in 2009, but because of construction delays and problems with its water filtration system designed to remove iron and manganese, it didn't begin stocking lakes until recently.


The project ended up costing roughly $50 million - about twice as much as first anticipated.


The state leveled the blame at designer CH2M Hill and at the construction contractors Alaska Mechanical Inc.


Senior Assistant Attorney General Dana Burke says the settlement releases CH2M Hill from all liability from currently identified flaws in its design, but leaves open the possibility for new claims if further defects are identified.


As part of the deal, CH2M Hill dismissed its claims for more money from the state for additional, uncompensated work it said it did on the hatchery. That work was estimated by the Department of Law to cost up to $2 million.