SOUTH JORDAN, UT / ACCESSWIRE / October 31, 2018 / Pioneer Oil and Gas (OTC PINK: POGS - News) announces that the Bureau of Land Management has an enforcement action against Pioneer Oil and Gas ("Company") to plug and abandon 10 wells and remediate the oil and gas lease that was effective back in 1999 and terminated between Pioneer Oil and Gas and the Eastern Shoshone and Northern Arapaho Tribes of the Wind River Indian Reservation ("Tribes") on November 2001. The enforcement action has been affirmed by the State Director of the BLM for the State of Wyoming and Pioneer is in the process of appealing the decision to the Interior Board of Land Appeals. During the period, the Company held the lease it did not operate the wells on the lease nor did it perform any operations other than some minor cleanup operations that were required for taking the lease.
The Tribes have also commenced a lawsuit against the Company that is primarily requiring the same obligation as the enforcement action namely that the Company plug and abandon the 10 wells and remediate the lease. The Company contends since it did not drill any wells on the lease nor operate the lease to produce oil and gas during the time it was lessee it should not be liable for past operations that occurred on the lease prior to the time it was the lessee. The Company is also arguing that the statute of limitations bars recovery along with laches (unreasonable delay) and other defenses in contesting the actions. Pioneer Oil and Gas will continue to vigorously fight both actions and request a stay of one of them while waiting the outcome of the other.
A final adverse decision regarding this matter against the Company could have a detrimental effect on the financial health of the Company and might require a bankruptcy if the Company is not successful in prevailing on the BLM enforcement action and the lawsuit by the Tribes.
For further information, shareholders are advised to call the Company directly at 801-566-3000.
SOURCE: Pioneer Oil and Gas