Kern River Holdings Files Lawsuit Against Shell Trading

HOUSTON, Dec. 6, 2017 — Kern River Holdings Inc., a wholly-owned subsidiary of San Antonio-based All American Oil and Gas Inc., has filed a breach of contract claim against Shell Trading (US) Co., a Houston-based affiliate of Royal Dutch Shell.

The lawsuit, filed in Harris County District Court, alleges that Shell Trading failed to take delivery of crude oil shipments and improperly sought to deny responsibility for service interruptions when the company-owned San Pablo Bay Pipeline suffered a rupture in May of 2016 that spilled more than 20,000 gallons of oil near Tracy, California. 

As a result of the rupture, Kern River was forced to store curtailed production from its Bakersfield facility for almost 60 days while the pipeline was down. According to the lawsuit, Shell Trading was obligated by contract to take delivery of crude oil production by truck, and failed to take reasonable steps to mitigate any losses by Kern River due to service interruptions. 

The breach of contract claim represents Kern River's lost revenues, expenses for the storage tanks, and damage resulting from decreased production once service was restored. 

Kern River has previously negotiated a business interruption insurance claim concerning the event with its insurance carrier AIG, which was paid in full. Kern River's total damage claim against Shell Trading is for $3,306, 348, subject to AIG's subrogation amount for its insurance payment.  

Media contact:
Dave Katz, Esq.
Kern River Holdings
(210) 226-1118
[email protected]

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SOURCE Kern River Holdings

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About the Author: Carrie Brunner

Carrie Brunner grew up in a small town in northern New Brunswick. She studied chemistry in college, graduated, and married her husband one month later. They were then blessed with two baby boys within the first four years of marriage. Having babies gave their family a desire to return to the old paths – to nourish their family with traditional, homegrown foods; rid their home of toxic chemicals and petroleum products; and give their boys a chance to know a simple, sustainable way of life. They are currently building a homestead from scratch on two little acres in central Texas. There’s a lot to be done to become somewhat self-sufficient, but they are debt-free and get to spend their days living this simple, good life together with their five young children. Carrie writes mostly on provincial stories.
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