Oil business sues energy company, seeks $12 million in decommissioning expenses

By Nick Bartholomew | Oct 20, 2015

A Virginia-based company is suing a Houston energy business, alleging breach of contract regarding decommissioning of oil wells and pipelines.

Dominion Oklahoma Texas Exploration & Production Inc., of Richmond, Va., filed a lawsuit Oct. 9 in U.S. District Court Eastern District of Louisiana against Bluewater Industries, of Houston, alleging it had failed to adhere to contractual obligations regarding decommissioning of wells and pipelines.

According to the complaint, Dominion sold all interests in their assets to Millennium, which then sold and transferred the assets to ATP Oil & Gas Corp on Oct. 31, 2005. Millennium had previously agreed to decommissioning obligations to Dominion in a corporate agreement executed by Bluewater, the suit says.

In a letter dated July 8, 2013, ATP notified the Bureau of Safety and Environmental Enforcement of the U. S. Department of the Interior (BSEE) that it couldn’t perform decommissioning obligations owed to Dominion due to bankruptcy.

The plaintiff says it demanded that Millennium and Bluewater perform the obligations instead on Jan, 21, 2014 and April 22, 2014. The suit says both have still failed to adhere to their contractual obligations.

Dominion seeks decommissioning expenses now and into the future, which total more than $12 million. They also seek litigation costs and any other relief deemed appropriate by the court. They are represented by attorneys James E. Wright, David M. Hunter and Tyler J. Rench of Jones Walker in New Orleans.

U.S. District Court for the Eastern District of Louisiana case number 2:15-cv-05010-EEF-MBN.

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