The state of Oklahoma has filed lawsuits against two Texas-based natural gas companies, ET Gathering & Processing and Symmetry Energy Solutions, alleging that they fraudulently reduced gas supplies during Winter Storm Uri, leading to soaring prices and significant profits for the companies. Oklahoma’s attorney general, Gentner Drummond, stated that his office intends to pursue additional litigation against other companies that may have engaged in market manipulation during the storm. Both lawsuits seek actual and punitive damages, as well as a share of any profits obtained through wrongdoing. Drummond described the level of fraud perpetrated on Oklahomans during the storm as staggering and unconscionable.
Symmetry Energy Solutions has denied the allegations made in the lawsuit, stating that they are unfounded and that the company will vigorously defend itself. ET Gathering & Processing, which acquired Enable Midstream Partners in 2021, has not yet responded to requests for comment regarding the lawsuits. The lawsuits were filed in Osage County, Oklahoma, marking the state’s first legal action against natural gas operators over their actions during the 2021 winter storm. The storm, which caused temperatures to plummet across the country and left millions without power, resulted in widespread damage and hardship for many.
The impact of Winter Storm Uri was felt across multiple states, with Kansas Attorney General Kris Kobach filing a similar lawsuit against a natural gas marketer operating in that state. In Texas, which also experienced severe consequences from the storm, the electric utility Griddy Energy reached a settlement with state regulators to address the issue of exorbitant electric bills received by its customers. The lawsuits in Oklahoma highlight a broader pattern of legal action being taken against companies involved in the energy sector during the devastating winter storm, as authorities seek to hold accountable those who may have taken advantage of the crisis for financial gain.
The lawsuits filed by Oklahoma against ET Gathering & Processing and Symmetry Energy Solutions seek to hold these companies responsible for their alleged actions during Winter Storm Uri, with the state aiming to recover damages and a portion of any profits obtained through fraudulent means. Attorney General Gentner Drummond emphasized the seriousness of the allegations, stating that some companies engaged in market manipulation reaped billions of dollars in ill-gotten gains during the storm. As legal proceedings unfold, the outcomes of these cases could have significant implications for how the energy sector operates during future crises and disasters, as regulators and authorities work to prevent similar incidents of fraud and manipulation from occurring.
The response from Symmetry Energy Solutions, in denying the allegations and planning to vigorously defend itself in court, suggests that legal battles over the actions of energy companies during Winter Storm Uri may be protracted and contentious. The lawsuits mark a significant step by Oklahoma in holding natural gas operators accountable for their conduct during the storm, while also signaling a broader effort to address issues of market manipulation and profiteering in the energy industry. As the legal process unfolds, the details of how these companies operated during the crisis, and the extent of the alleged wrongdoing, will come to light, shedding more light on the systemic issues that arose during the winter storm and its aftermath. Oklahoma’s pursuit of justice in these cases reflects a commitment to ensuring accountability and transparency in the energy sector, and to protecting consumers from potential abuses by companies seeking to exploit natural disasters for financial gain.
