Mammoth Energy Services made another case this week for the U.S. government and Puerto Rico to pay the firm more than $328 million still owed for electrical restoration work following the 2017 Hurricane Maria.
The Oklahoma City company released quotes from a former FEMA official whose statements about FEMA funding supported payments that should have been made to Mammoth’s subsidiary Cobra Acquisitions. The statements were made by Mike Byrne who previously was the Financial Control Office for FEMA’s response to Hurricane Maria in Puerto Rico.
Byrne’s quotes were made on April 15, 2021 in a declaration as part of the Mastec Renewables Puerto Rico v. Mammoth Energy Services, Inc. and Cobra Acquisitions, LLC in the United States District Court of the Southern District of Florida.
“Multiple third-party reviews have concluded that the funds obligated by FEMA to support Cobra’s efforts restoring power in Puerto Rico were reasonable, customary and eligible, as was the work done by Cobra,” said Mammoth’s Chief Executive Officer, Arty Straehla.
“The men and women of our Company worked hard to restore power and normalcy to the island of Puerto Rico, and yet more than two and one-half years later, PREPA continues without explanation to breach their contractual obligations.”
A longtime FEMA official, Byrne was appointed FCO for FEMA’s response to Hurricane Irma and Hurricane Maria in Puerto Rico in 2017. He held the position until April 2019.
As FCO in Puerto Rico, he was responsible for coordinating FEMA’s disaster and recovery response.
Following Hurricane Maria (September 2017) in Puerto Rico and its complete destruction of the island’s power grid, Mammoth, through its subsidiary Cobra, was awarded an initial $200 million reconstruction contract in 2017. Through five separate amendments to the original contract, the aggregate contract amount was eventually increased to $945 million. PREPA awarded a second contract of up to $900 million to Cobra in response to a Request for Proposals (“RFP”) process.
As of September 30, 2021, Mammoth, through Cobra, is owed $328 million including $101 million in interest charges, as specified in the contract, on remaining invoices for work Cobra completed more than two and one-half years ago.
Source: Mammoth Energy release