The lawsuit initiated by Gabe Rogers and Michael Horton against Texas-based oil companies Empire Petroleum Corporation and XTO Energy Inc., a subsidiary of ExxonMobil, centers on the fraudulent sale of over 600 unprofitable oil wells in New Mexico. The plaintiffs allege that these companies misrepresented the costs associated with cleaning up and plugging these wells, which could potentially leave taxpayers responsible for the cleanup if the companies fail to do so.
Key points of the lawsuit include:
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Misrepresentation of Cleanup Costs: Rogers and Horton claim that Empire Petroleum significantly underreported the asset retirement obligation (ARO) related to the cleanup costs of the 670 oil wells it purchased from XTO Energy in December 2022. They assert that the actual cost should be around $306,000 per well instead of the reported $9,100.
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Financial Inability: The lawsuit argues that Empire Petroleum did not have the financial means to cover these cleanup costs at the time of acquisition. This could lead to the wells becoming abandoned or orphaned if the company fails to fulfill its obligations.
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Statewide Impact: New Mexico is one of the largest oil and gas producers in the U.S
Read the full article at Grist
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