OKLAHOMA CITY — Mammoth Energy Services Inc. announced today the first appeal response from the Federal Emergency Management Agency in a disputed contract with Puerto Rico Electric Power Authority.
"Despite our work having received numerous third-party validations, PREPA (Puerto Rico Electric Power Authority) continues to choose to pay advisors rather than its pre-existing obligations for services performed years ago, said Arty Straehla, Mammoth's Chief Executive Officer in a prepared statement.
“PREPA says that they can't pay when they don't have funds and won't pay when they do have funds. This lack of accountability should serve as a red flag for any entity that is considering performing work for PREPA and is bad news for people of Puerto Rico the next time a natural disaster strikes," the release states.
The total amount PREPA owes Cobra exceeds $350 million and continues to accrue contractual interest at the rate of over $3.3 million per month.
This appeal followed the May 26, 2021, determination memorandum issued by FEMA, which denied $47 million of the claimed costs under the first contract.
FEMA found that $24.4 million of staffing costs were eligible for funding and that FEMA would amend Project Worksheet 251 to obligate this additional funding.