Fort Smith Companies to Fight in Federal Court over Well Wishes

by Arkansas Business Staff  on Monday, Feb. 3, 2014 12:00 am  

A Fort Smith company said it is owed $7.5 million from another Fort Smith firm for not drilling a saltwater disposal well.

Arkoma Injection Consulting LLC, which is in the business of providing leasing and consulting services for saltwater disposal well projects, said it had an agreement with Select Energy Services LLC.

That agreement involved shipping and disposing of saltwater from natural gas wells in Arkansas and other states, according to Arkoma’s recent lawsuit, filed in U.S. District Court in Fort Smith.

Arkoma said that it signed a contract with Select to drill a well in Johnson County that would have held 60 million barrels of saltwater.

Arkoma received the necessary permits in December 2011 and Select was supposed to have drilled and operated the well within two years.

But Select never did, Arkoma said in its lawsuit.

As a result, Arkoma said, it missed out on Select’s royalty payments from the well, which Arkoma estimated to be at least $7.5 million.

It is seeking that amount plus other damages for the alleged breach of contract.

Select denied Arkoma’s allegations in its answer filed in the case.

Select’s attorney, Robert Honea of Fort Smith, declined to comment.

Arkoma’s attorney, Joshua Carson of Fort Smith, didn’t return a call to comment.



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