Austin-based Gulf Energy Exploration Corp. is turning to the Texas Legislature to get some relief in a bit of a dispute with the Texas Railroad Commission.
Gulf Energy took over some orphaned wells off the coast of Calhoun County last year on state leases with the intent of going back in to restart production. It seems the wells were owned by the bankrupt American Coast Energy Co., which owed the state money on the leases.
| Part of Gulf Energy’s presentation showing a well the Railroad Commission wrongly capped.
However, the Texas Railroad Commission had a couple of the wells plugged accidentally after Gulf Energy paid for them. The TRC admitted to the mistake, but the company says when the price tag for redrilling the wells came in at around $2 million TRC balked. So the company has asked the state to let it sue the TRC to get them to pay for the job.
The Texas State Senate Committee on Jurisprudence ok’d Gulf Energy’s right to pursue the lawsuit last week.
The Capital Annex blog first blogged on this (with a bit more vitriol).