COEUR d'ALENE - Hydroplane race sanctioning organization H1 Unlimited has cut all ties with Doug Miller and Keith Kroetch, the two men who failed to return the races to Lake Coeur d'Alene this past summer.

H1 Chairman Steve David said Tuesday that the two Diamond Cup organizers racked up debts that weren't getting paid to H1.

"Any agreement we had with them has expired," David said. He replaced Sam Cole, who retired earlier this year as head of H1.

"They can't run an unlimited event without us, and we have no intention of approving another sanction for the old group," David said.

Miller on Tuesday acknowledged the debt, which he said has been paid down considerably. He added that he and the other organizers tried to negotiate a new payment schedule, but were unsuccessful.

"As recently as (Tuesday) I was supposed to have a conversation with Steve David, which didn't happen," Miller said. "We hope to avoid litigation."

Miller said he and his group have a state permit to use the lake.

"If H1 wants to race on Lake Coeur d'Alene they will have to work with us," Miller said. "Our intention is to have a race during Labor Day weekend - with or without H1."

This action now by H1 paves the way for another group to step forward, independent of Miller and Kroetch, and organize races for 2015 and beyond.

Miller and his group paid H1 with some checks that weren't honored by the bank, David said.

"We are working on collecting on those checks," he said. "We've tried to settle it. There was going to be a payout and that didn't work out too well."

H1 has retained the services of law firm Paine Hamblen, and Coeur d'Alene attorney Michael Hague in particular.

"We have some unconditional guarantees signed by Kroetch and signed by Doug Miller that need to be honored," David said.

The balance owed to H1 is between $51,000 and $56,000, he said. The Press has reported about others who are owed money, too.

David said H1 is looking to build a long-term relationship with a new group in Coeur d'Alene for future races.

"We look forward to definitely returning to Coeur d'Alene (in 2015) and putting on a heck of a boat race," he said.