OKLAHOMA CITY, Nov. 16, 2021 /PRNewswire/ -- Mammoth Energy
Services, Inc. (NASDAQ: TUSK) ("Mammoth" or the "Company") today
released quotes from Mike Byrne, who
previously served as the FCO for FEMA's response to Hurricane Irma
and Hurricane Maria in Puerto
Rico, regarding the work performed by Mammoth's subsidiary
Cobra Acquisitions LLC ("Cobra"). Byrne's quotes were made on
April 15, 2021 in a declaration as
part of the Mastec Renewables Puerto Rico v. Mammoth Energy
Services, Inc. and Cobra Acquisitions, LLC in the United States District Court of the
Southern District of Florida.
In the declaration, Byrne, who as FCO was responsible for
coordinating FEMA's disaster and recovery response in Puerto Rico, stated:
"Given the complex and evolving
nature of the situation in Puerto
Rico, FEMA put in place additional measures to ensure FEMA's
funds would be spent appropriately."
"Determinations as to whether work
was available for FEMA funding were made after multiple levels of
review, by various FEMA individuals working in various
capacities."
"The steps include several tiers
of review, which likely would have included legal, program,
engineering, insurance, and environmental review, and then review
by FEMA headquarters."
"Only after both FEMA and OMB
(Office of Management and Budget in Washington DC), if significant funds are
involved, approves the relevant work can FEMA obligate
funding."
"FEMA's ultimate determination as
to whether work was eligible for FEMA funding was set forth in an
Eligibility Determination Memorandum ("Determination Memo" or "DM")
Exhibit D is a December 22, 2017
Determination Memo, which concludes that certain work submitted by
PREPA, to be performed by Cobra, was eligible for FEMA funding.
DM's were created in the ordinary course of FEMA's work, and were a
regular part of FEMA's business."
"All of us who were overseeing the
recovery effort were concerned about the lack of contractor
resources in Puerto Rico and about
the time it was taking PREPA to provide the documents necessary to
bring additional resources to Puerto
Rico, including executed contracts and the documents
necessary to prepare Project Worksheets ("PW") for additional
work."
These documents are available on the Mammoth website:
https://ir.mammothenergy.com/events-presentations.
Mammoth's Chief Executive Officer, Arty Straehla, commented:
"Multiple third-party reviews have concluded that the funds
obligated by FEMA to support Cobra's efforts restoring power in
Puerto Rico were reasonable,
customary and eligible, as was the work done by Cobra. Our work has
stood the test of time through several subsequent natural
disasters. The men and women of our Company worked hard to restore
power and normalcy to the island of Puerto Rico, and yet more than two and
one-half years later, PREPA continues without explanation to breach
their contractual obligations."
A longtime FEMA official, Mr. Byrne was appointed FCO for FEMA's
response to Hurricane Irma and Hurricane Maria in Puerto Rico in October
2017, which position he held until April 2019. In that capacity he was deployed to
Puerto Rico for approximately a
year, and then for the next six months divided his time between
Puerto Rico and the U.S. Virgin Islands, which was also recovering
from those two storms. As FCO in Puerto
Rico, he was responsible for coordinating FEMA's disaster
and recovery response.
Following Hurricane Maria (September
2017) in Puerto Rico and
its complete destruction of the island's power grid, Mammoth,
through its subsidiary Cobra, was awarded an initial $200 million reconstruction contract in 2017.
Through five separate amendments to the original contract, the
aggregate contract amount was eventually increased to $945 million. PREPA awarded a second contract of
up to $900 million to Cobra in
response to a Request for Proposals ("RFP") process.
As of September 30, 2021, Mammoth,
through Cobra, is owed $328 million
including $101 million in interest
charges, as specified in the contract, on remaining invoices for
work Cobra completed more than two and one-half years ago.
Mammoth Energy Services, Inc.
Mammoth is an integrated, growth-oriented energy services
company focused on the construction and repair of the electric grid
for private utilities, public investor-owned utilities and
co-operative utilities through its infrastructure services
businesses. The Company also provides products and services to
enable the exploration and development of North American onshore
unconventional oil and natural gas reserves. Mammoth's suite of
services and products include: infrastructure services, well
completion services, natural sand and proppant services, drilling
services and other energy services. For more information, please
visit www.mammothenergy.com.
Contact:
Mark Layton,
Chief Financial Officer
mlayton@mammothenergy.com
(405) 608-6007
Media Contact:
Peter
Mirijanian
peter@pmpadc.com
(202) 464-8803
Investors:
Rick
Black
rblack@dennardlascar.com
(832) 435-0026
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content:https://www.prnewswire.com/news-releases/mammoth-energy-releases-testimony-from-fema-official-stating-funds-obligated-by-fema-to-prepa-were-reasonable-customary-and-made-after-multiple-levels-of-review-301425201.html
SOURCE Mammoth Energy Services, Inc.