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AIX suing Cook Inlet Energy over sales
AIX Energy LLC has sued Cook Inlet Energy LLC for more than $1.2 million in damages over what it claims is a breach of contract involving the Kenai Loop field.
Houston-based AIX Energy claims Cook Inlet Energy cancelled purchases under a gas supply agreement and failed to fully pay outstanding balances on its account, according to a Jan. 30 complaint filed in U.S. Bankruptcy Court for the Southern District of Texas. As of Feb. 10, Cook Inlet Energy had yet to respond to the complaint.
AIX Energy inherited the gas supply agreement with Cook Inlet Energy when it acquired nearly all of Buccaneer Energy Ltd.’s assets in a bankruptcy auction (which is why the damages case is proceeding through bankruptcy court). The sale closed Nov. 7, 2014, after an auction in which AIX Energy and Cook Inlet Energy were the only bidders.
Contract to sell natural gas The primary asset in the sale was the onshore Kenai Loop gas field, northeast of the city of Kenai, although the deal also included various contracts Buccaneer had executed. Among those contracts was one to sell gas to Cook Inlet Energy for industrial use.
According to the AIX Energy complaint, Cook Inlet Energy “interrupted” the agreement on Nov. 21 by no longer receiving shipments from AIX Energy. After a series of correspondences between the companies, Cook Inlet Energy paid off some of the outstanding balance, according to AIX Energy, leaving some $1.2 million as-yet-unpaid.
The timeline AIX Energy presented in its complaint is slightly confusing. AIX Energy claims to have sent an invoice for $316,487.03 to Cook Inlet Energy on Dec. 17 for shipments through the first three weeks of November. “On or about” Dec. 16, Cook Inlet Energy sent payment for $415,959. On Dec. 19, Cook Inlet Energy sent proof of its earlier payment and a promise for additional payment, although no additional payment arrived, according to AIX Energy, which is claiming at least $1,203,896.02 in damages.
- Eric Lidji
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