01 Nov SG Interests and Gunnison Energy Under Investigation by U.S. Department of Justice, Again

This time, the investigation is about price gouging along the Bull Mountain Pipeline.  An in-depth report from Aspen Journalism confirmed the investigation is taking place and exposes the tension between different factions of natural gas drillers in our area.

The article states:

“Pipelines that cross public lands – like the newly operational, 25.5-mile, $80 million dollar Bull Mountain Pipeline, the trunk for at least three smaller feeder pipes in Gunnison Energy and SG Interests’ network – are subject to federal common carrier laws.  The laws require pipeline owner-operators to accept and transport gas produced by nearby third-party operators at fair market prices.

Instead, according to Scott Thurner, president of Riviera Drilling & Exploration, a veteran operator in the Ragged Mountain area, Gunnison Energy and SG Interests used their monopoly along the pipes ‘as a device to squeeze out other operators on our end of the field.’ “

The current investigation is separate from another that resulted in a proposed settlement between both operators and the government about allegations of bid-rigging for BLM leases.  That settlement is still pending approval from a federal judge.

To read the full article from Aspen Journalism, click here.