The Wyoming Supreme Court has dismissed an appeal from Denbury Resources which has been ordered to pay APMTG Helium LLC over $35m in damages and interest for undelivered helium.
The Supreme Court dismissed the appeal which challenged a court order and Denbury must pay APMTG Helium LLC, a joint venture between Air Products and MATHESON, $35,199,276 after years of litigation.
In 2009, helium company APMTG entered into a helium feedgas agreement with Cimarex Energy Co. and Riley Ridge, LLC, which agreed to design, construct, and operate a natural gas processing plant in Big Piney, Wyoming, and to annually deliver specified quantities of helium to APMTG, according to court records.
The helium feedgas agreement required Cimarex and Riley Ridge to deliver 200 million standard cubic feet (mmscf) of helium to APMTG the first and second years of the contract and 400 mmscf per year thereafter, according to the appeal’s legal document. The liquidated damages were capped at $8m per year, and total liquidated damages for the life of the contract could not exceed APMTG’s final investment to construct its plant, which APMTG predicted would be $38.6-$42.9m, according to court records.
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