Remember last week we told you about the lawsuit filed by Arkansas Oklahoma Gas Corp. of Fort Smith against BP Energy Co. of Houston for $34.4 million?
AOG says it had a contract requiring BP to provide up to 30,000 MMBtu of natural gas per day at a specific price.
But between Feb. 15 and Feb. 19, the week of the big winter storm, BP didn’t meet that requirement, which forced AOG to get the gas from other sources, spending $34.4 million more than it would have under the contract with BP.
BP sent Whispers a statement via email after our deadline last week. “These recent extreme weather conditions and historic freezing temperatures caused significant disruption to natural gas and power markets,” BP said. “Throughout this period, [BP] has sought to honor existing contractual arrangements and respond to customer needs, while complying with all laws and regulations governing the relevant markets.”
AOG is suing BP for breach of contract.
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