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Gemma Power Systems Receives Notice to Proceed on a 1.2-GW Power Project in Texas

LCG, April 8, 2025--Gemma Power Systems (“Gemma”), a wholly owned subsidiary of Argan, Inc. (“Argan”), has received a notice to proceed on its previously announced engineering, procurement and construction (“EPC”) services contract with Sandow Lakes Energy Company, LLC (“SLEC”) for a 1.2-GW power plant in Lee County, Texas. Construction of the natural gas-fired, combined cycle facility is scheduled to commence this summer, with an expected project completion date in 2028

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NeuVentus Receives Storage Permits for its Texas Reliability Underground (TRU) Hub Salt Cavern Storage Project

LCG, April 4, 2025--NeuVentus, LLC ("NeuVentus") announced this week the receipt of a final order from the Railroad Commission of Texas (RRC) that grants a subsidiary of NeuVentus authority to create and operate 12 salt caverns for storage of a variety of gases (including natural gas and hydrogen) and liquids at its Texas Reliability Underground Hub ("TRU Hub") salt cavern storage project located in Liberty County, Texas.

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Industry News

Suits Over Alleged Pipeline Practices Can Be Heard in California

LCG, Oct. 18, 2002--A group of civil lawsuits against El Paso Corp., Southern California Gas (SCG) and San Diego Gas & Electric (SDG&E) are being allowed to proceed in California rather than under Federal Energy Regulatory Commission (FERC) jurisdiction, based on a ruling by San Diego Superior Court Judge Richard Haden.

Plaintiffs contend that a trial before a jury in California, beginning as early as September 2003, could result in penalties of three times damages, up to $1 billion, if the suits are successful. Sempra, the parent of SCG and SDG&E, has acknowledged that a meeting between representatives of the three companies took place in an Arizona hotel in 1996, at which it has said there was discussion of keeping gas prices from becoming burdensome to consumers. The lawsuits contest that representation, and argue that projects to build pipelines into California were cancelled based on the meeting, in order to raise gas prices.

The Sempra companies hoped to have seven lawsuits in which they are cited heard before FERC, according to Denise King, a Sempra spokeswoman. According to Judge Haden's ruling, FERC, which has jurisdiction over interstate gas and power commerce, is not a proper adjudicator in the matter, as California's anti-trust statutes would be the standard used.

In a separate case, El Paso was found by an administrative law judge, Curtis Wagner, to have withheld available gas supplies during the energy crisis in 2000 and 2001. El Paso has denied Wagner's ruling, and said regulators such as Wagner should not be "second guessing" its maintenance activities.
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