Oil developer faces $1.5 billion lawsuit over pipeline in Oklahoma
A pipeline owned by Oklahoma-based Weaid is facing a $1 billion lawsuit from an Oklahoma man who says he’s being targeted by oil developers who say the company is overstepping its boundaries.
The suit filed Monday in Oklahoma’s Oklahoma Supreme Court says that a Weaid subsidiary has violated the Oklahoma Petroleum Code by diverting natural gas from an existing oil pipeline owned and operated by another company in an attempt to boost its own oil production.
Weaid’s lawsuit says the company was operating the pipeline at a lower rate than required to achieve the oil production goal.
The lawsuit also says Weaid and its affiliates failed to comply with state and federal environmental laws and have violated state and local rules and regulations by conducting hydraulic fracturing operations without proper permits.
Weidaid has denied the allegations and is seeking $1,500 per barrel for the oil extracted from the gas.
Oklahoma Attorney General Mike Hunter said in a statement Monday that the company has been cooperating with the lawsuit and will cooperate with federal authorities in their investigation.
“Weaid has taken significant steps to protect the health and well-being of its employees, residents, and visitors, and we are committed to ensuring that Weaid will be held accountable for any violations of its fiduciary duties,” Hunter said.
The lawsuit alleges that the oil company is violating Oklahoma’s Oil Pollution Control Act by diverging natural gas that was originally destined for an existing Weaid pipeline. “
As the attorney general has said, Weaid intends to vigorously defend its claims and to seek the appropriate amount of damages.”
The lawsuit alleges that the oil company is violating Oklahoma’s Oil Pollution Control Act by diverging natural gas that was originally destined for an existing Weaid pipeline.
The oil company also is alleged to have violated Oklahoma’s Energy Conservation and Conservation Enhancement Act by not properly completing the pipeline and transferring the gas to an adjacent company, Weidead Energy Corp. The state’s Oil and Gas Commission oversees oil and gas drilling and production in the state.