TOPEKA — A small Kansas town is fighting natural gas prices charged by BP Energy during last month’s extreme cold, accusing the multinational oil and gas giant of “unconscionable profiteering” under state statute.
A lawsuit filed Tuesday by the city of Mulberry says BP inflated prices for natural gas from $2.98 per mmbtu on Feb. 9 to $329.615 from Feb. 13-16. The city is asking for bills to be recalculated at a reasonable rate.
Jim Zakoura, an attorney representing the city in the lawsuit, said BP took advantage of Mulberry and other Kansas towns that operate their own utilities at a moment when residents needed natural gas to heat their homes and stay alive.
“This is pure and simple price gouging and profiteering in the sale of a critical life product, in a life and death situation,” Zakoura said. “It is not only unlawful conduct under Kansas law but also shows a complete disregard for the people of Kansas.”
A spokeswoman for BP said the company was aware of the lawsuit filed in Crawford County District Court and declined to answer questions.
Mulberry is a southeast Kansas town along the Missouri border with a population of about 500 people. Like dozens of other small Kansas towns, the city distributes natural gas for heating to residents, businesses, schools, nursing homes and medical care facilities. Monthly gas bills for February would be 10 times higher than usual because of the higher prices.
The city pays a monthly service fee to Utility Gas Management to procure contracts to acquire natural gas, but the prices are dictated by producers like BP, which has headquarters in Houston.
ESCALATING PRICES
Prices charged per mmbtu by BP Energy to city of Mulberry, according to court documents
Feb. 10: $4.05
Feb. 11: $9.64
Feb. 12: $44.80
Feb. 13: $329.615
Feb. 14: $329.615
Feb. 15: $329.615
