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WEST VIRGINIA RECORD

Wednesday, April 24, 2024

Energy company alleges business partner breached contract

Lawsuits
Natural gas 05

CLARKSBURG — An energy company is suing a business partner, alleging breach of contract.

Pachira Energy LLC filed a complaint in U.S. District Court for the Northern District of West Virginia against Northeast Natural Energy LLC and NNE Water Systems LLC of Charleston, alleging they abused their power to benefit at the expense of the minority interest owner.

According to the complaint, Pachira Energy has suffered significant monetary injuries as a result of the wrongful conduct of the defendant in failing to provide the plaintiff with adequate and full access to books and records of the operations of their joint venture businesses, such as Blacksville AMI, the JOA Operations, and the Water Line and Handling Facilities on property in Monongalia County. 

Additionally, Pachiira says it was further harmed from the use of water from its water line facilities to wells not owned by the plaintiff and without its consent. 

The plaintiff alleges Northeast Natural Energy and NNE Water Systems failed to allow Pachira Energy to examine the records supporting the billing statements to verify its accuracy, failed to offer Pachira ownership rights to Seismic Data, for which Pachira paid about $897,000, in violation of the agreement, deprived of the plaintiff of proportionate share of the gas produced, and utilized joint venture water line to provide water for the defendant's other business ventures.

Pachiria Energy seeks trial by jury, judgment to compel the defendants to produce all documents and records, and grant other relief as the court deems just. It is represented by attorneys Katherine M. Gafner and Jared S. Hawk of K&L Gates LLP in Pittsburgh, and by Jeffrey C. King of K&L Gates LLP in Fort Worth, Texas.

U.S. District Court for the Northern District of West Virginia case number 18-CV-168

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