Lawsuit: Treetop Midstream Misled into Constructing $100 Million Pipeline

Treetop Midstream Services is suing Southern Company and its subsidiary Mississippi Power Company, claiming it was misled into building a $100 million pipeline.

The midstream company planned to purchase carbon dioxide from Mississippi Power Company’s Kemper County power plant, a carbon capture plant in DeKalb, Mississippi. Treetop filed suit against Atlanta-based Southern Company and its subsidiary Mississippi Power in Georgia on June 9 after Mississippi Power terminated Treetop’s contract to purchase carbon dioxide from them, which left Treetop with a $100 million pipeline that will now lead to nothing.

Treetop’s contract with Mississippi Power stated the midstream company must complete a pipeline nine months before Kemper started operating and prepare Mississippi oil fields to receive the gas.

The Kemper plant is over two years behind schedule and $3.8 billion over budget. Treetop stated in its suit that Mississippi Power should have known by 2013 that it would not complete the plant by the promised May 2014. They also stated that Southern Company faked construction schedules to keep federal income tax credits.

Treetop wants its money back, plus interest and punitive damages.

Source:
PennEnergy