Oklahoma Attorney General Gentner Drummond last week filed litigation in Osage County District Court that could make the county courthouse in Pawhuska the center of activity for a natural gas pricing dispute with seismic implications for Oklahoma government and politics.
Drummond, whose roots run deep in Osage County, said in court papers that the county is an appropriate venue for the allegations he is making because “a substantial part of the allegations stated herein occurred in Osage County, and defendants own assets in Osage County.” The behavior complained of in the litigation allegedly amounted to manipulation of the availability of natural gas in Oklahoma in February of 2021, during a subfreezing two-week period now known as Winter Storm Uri.
Drummond has alleged violations of the Oklahoma Antitrust Reform Act, breach of contract, unjust enrichment, fraud, constructive fraud, bad faith breach of contract, civil conspiracy, negligence, and violation of the Oklahoma Common Carrier Statute.
The attorney general took action in defense of the interests of the Grand River Dam Authority (GRDA) and Oklahoma electricity ratepayers more broadly. Drummond’s litigation says that, “during Winter Storm Uri, Oklahoma’s natural gas prices ballooned exponentially compared to prices in states where gas transmission and transactions are subject to (a) more stringent legal framework.” Natural gas prices in Oklahoma during Uri were 40 to 100 times those in Louisiana, Drummond’s litigation said. Drummond said in a media statement that some companies appear to have “reaped billions of dollars in ill-gotten gains” as a result of manipulative behavior.
Read More: A.G. files natural gas litigation in Osage County