Continental shareholder files lawsuit over pipeline deal

A Continental Resources Inc. shareholder is questioning a pipeline deal the company signed with an affiliate owned by CEO Harold Hamm and his family.
by Jay F. Marks Modified: September 20, 2013 at 10:00 pm •  Published: September 19, 2013
Advertisement
;

A Continental Resources Inc. shareholder has filed a lawsuit over the company's pipeline deal with affiliate Hiland Partners LP.

Laborers District Council Construction Industry Pension Fund contends the deal will cost Continental nearly $100 million over five years to move up to 100,000 barrels of oil a day on the pipeline.

That is one-third of the total development cost of the Hiland pipeline from Dore, N.D., to Guernsey, Wyo., but Continental will have access to only one-tenth of the line's capacity, according to the lawsuit filed Wednesday in Oklahoma County District Court.

“Moreover, Continental is obligated to finance Hiland's pipeline even if the company never transports oil through it,” according to the lawsuit.

The pension fund accuses Continental's board of breaching its fiduciary duty to the company. It maintains Continental CEO Harold Hamm will receive the “lion's share” of profits from the pipeline since he owns 68 percent of Continental's stock, while he and his family own Hiland, a privately held company.

A Continental spokeswoman declined to comment on the lawsuit Thursday because the company had not received a copy of it.

Officials said in May that the deal was competitively bid and did not represent a conflict of interest.


by Jay F. Marks
Energy Reporter
Jay F. Marks has been covering Oklahoma news since graduating from Oklahoma State University in 1996. He worked in Sulphur and Enid before joining The Oklahoman in 2005. Marks has been covering the energy industry since 2009.
+ show more


Trending Now


AROUND THE WEB

  1. 1
    Blake Griffin replaced by John Wall on US World Cup roster
  2. 2
    Two Texas players under investigation 'immediately eligible'
  3. 3
    Eleanor Holmes Norton says 'you don't have a right to know' what's going on in government |...
  4. 4
    This Was the Syrian Civil War's Bloodiest Week Yet — And You Probably Heard Nothing About It
  5. 5
    Music Festival Bans Native American War Bonnets
+ show more