Bakersfield, California 2021-07-22 22:45:00 –
The jury begins with a long-standing dispute between two oil companies in Kern County that have accused them of damaging their property and limiting production on the scale of tens of millions of dollars.
In July 2014, Taft’s TRCO perating Co. Inc. filed a proceeding in the Kern County High Court against San Ramon-based Chevron USA Inc. for compensatory damages and interest. Chevron counterclaimed for damages in May 2017.
At issue in both proceedings is that steam injection and other oilfield operations cause infiltration-related problems, leading to state-imposed restrictions on businesses in the vicinity of companies in the Midway-Sunset oilfield near Taft. That is.
The situation was notorious after the penetration contributed to the formation of the sinkhole that swallowed Chevron supervisor Robert David Taylor on June 21, 2011. Release.
According to the TRC, Chevron was unable to properly abandon wells that had spent more than $ 1 million in repairs over the years. The TRC proceedings allege that attempts to correct the infiltration of chevrons, also known as “surface representation,” relied on the careless design, construction and installation of French drainage channels in the field.
The proceedings also accuse Chevron of neglecting the use of an oil field technology called circulating steam. This injects steam underground at high pressure to reduce the viscosity of the crude oil and create cracks that can carry the oil to the surface.
The TRC called Chevron’s actions “underground invasion,” and said that state concerns about nearby surface representations previously required reducing production of about 1,000 barrels per day for four years. The out-of-pocket repair cost is estimated at $ 10 million.
“For many years before the summer of 2011, TRC was operating our wells safely at Midway Sunset Field,” a TRC spokeswoman said in an email Thursday. Contained most of our field. “
“Then, TRC was able to resume normal operation,” the statement continued. “We look forward to hearing from the jury how Chevron’s business interfered with our business and hope that the losses incurred by Chevron’s negligence will ultimately be compensated.”
Chevron refused to issue an official statement about the upcoming trial. However, the mutual dissatisfaction showed numerous surface representations of TRC’s assets at Midway Sunset. It blames TRC for creating or creating conditions that allow fluids to move and damage chevron assets.
The proceedings state that TRC’s actions, including excavations claiming to have passed to Chevron’s property, caused or exacerbated problems in the wells Chevron tried to abandon. It claims that the TRC “intentionally, recklessly, and / or neglectedly” moved vapors and reservoir fluids underground, causing them to appear on the surface of Chevron’s property.
Chevron’s mutual complaints have blamed regulatory orders for lost production, and the TRC is trying to recover financially. If the TRC can raise money from Chevron based on compliance with state orders, Chevron says it should be able to recoup lost profits and damages from the state.
Judge David Lampe’s previous trial will begin in early August and will be considered by the jury in mid-September.
Neighboring oil producers head to trial over lost production linked to fatal sinkhole near Taft | News Source link Neighboring oil producers head to trial over lost production linked to fatal sinkhole near Taft | News