Mammoth Energy Remains Unpaid By PREPA For Vital Hurricane Maria Recovery Work
Immediately after Hurricane Maria made landfall, Mammoth Energy, and its subsidiary Cobra Acquisitions LLC, moved quickly to restore power to Puerto Rico and its inhabitants. Four years later, it is well past time for PREPA to pay for that work.
Hurricane Maria Hit the Commonwealth of Puerto Rico on September 20, 2017. In October 2017 Mammoth Energy’s subsidiary Cobra Acquisitions proposed and was awarded the first of two contracts by the Puerto Rico Electric and Power Authority (PREPA) totaling $1.2 billion to begin rebuilding and restoring power to Puerto Rico.
Working with PREPA and other Puerto Rican authorities from December 2017 to March 2019, in challenging terrain, Mammoth Energy’s subsidiary Cobra Acquisitions’ team successfully restored and rebuilt the power grid in Puerto Rico.
And then inexplicably and without notice, in May 2019 PREPA stopped communicating and paying Mammoth Energy’s subsidiary Cobra Acquisitions, leaving over $300 million in unpaid bills for a project completed. And even though FEMA obligated and sent this money to the island at the end of 2020, PREPA continues to breach its contractual obligations for payment to this day.
Still in 2021 the company continues its fight for payment from PREPA with no explanation from PREPA or Puerto Rico as to the whereabouts of this money or when they plan to pay. From 2020 to present Mammoth Energy and its subsidiary Cobra Acquisitions has shed over half of its work force while over $300 million accrues $3 million monthly in contractually stipulated interest, due in large part, to this inexcusable breach of contract by PREPA.
Timeline of Events
“Hurricane Maria makes landfall on Puerto Rico, devastating the island
”
“Cobra submits a proposal to restore power to Puerto Rico’s demolished grid”
“Cobra proposal was reviewed and accepted by the Puerto Rico Electric Power Authority (PREPA) and Cobra was awarded an initial reconstruction contract in 2017”
“Within 7 days of the initial contract award, Cobra swiftly had an advance crew of approximately 35 employees on site in Puerto Rico”
“Cobra performs crucial aerial damage assessment”
“Fully equipped team of 463 workers, 120 security/medical staff, 80 support staff in Puerto Rico
”
“Cobra strategically places two barges off the coast of Puerto Rico to house workers so as not to strain the island’s resources”
“After a Request for Proposal (RFP) process Cobra was awarded a second contract to continue the vital mission on Puerto Rico”
“Power is returned to 75% of Puerto Rico ahead of schedule because of Cobra’s quick efficient work”
“With Cobra’s work and leadership all power returned to Puerto Rico”
“Cobra completes all of its work and demobilizes from Puerto Rico”
“FEMA releases a commissioned third-party report by the Rand Corporation on the work Cobra did in Puerto Rico validating that contracts were properly obtained and the work done to restore power was cost effective and more than timely”
“Mammoth is STILL OWED OVER $325 million ”