Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Complaint alleges conspiracy among U.S. providers of pressure pumping services for fracking, (Aug 1, 2013)
Law Firms Mentioned:Hilliard, Munoz, Gonzalez, LLP
Organizations Mentioned:Baker Hughes | Baker Hughes, Inc. | Cherry Canyon Resources, L.P. | Halliburton | Halliburton Co. | Hilliard & Shadowen, LLC | Schlumberger, N.V.
By Jeffrey May, J.D.
A complaint was filed yesterday in the federal district court in Corpus Christi, Texas, against Halliburton Company, Baker Hughes, Inc., and Schlumberger, N.V. for conspiring to restrain trade in the U.S. market for fracking pressure pumping services (Cherry Canyon Resources, L.P. v. Halliburton Co., filed July 31, 2013).
Cherry Canyon Resources, L.P. brought the action on behalf of a proposed nationwide class of purchasers of fracking pressure pumping services in the United States from at least May 29, 2011, through the present. Fracking pressure pumping is the process of injecting water and other materials into a well to break apart rock formations and unleash oil and gas, according to the complaint.
The complaint follows Department of Justice confirmation on July 25, that the Antitrust Division “is investigating the possibility of anticompetitive practices involving pressure-pumping services performed on oil and gas wells.” The plaintiff alleges that Baker Hughes and Halliburton have disclosed that they have received civil investigative demands from the Antitrust Division.
Halliburton, Baker Hughes, and Schlumberger are the three largest providers of pressure pumping services for fracking in the United States, according to the plaintiff. These firms allegedly colluded to restrict and manipulate supply in order to increase prices and market share. They allegedly fixed the price and output of fracking pressure pumping services sold directly to putative class, according to the plaintiff.
The plaintiff seeks damages and injunctive relief for violations of federal antitrust law.
This is Case 2:13-cv-00238.
Attorneys: Robert C. Hilliard (Hilliard, Munoz, Gonzalez, LLP) and Steve D. Shadowen (Hilliard & Shadowen, LLC) for Cherry Canyon Resources, L.P.
Companies: Cherry Canyon Resources, L.P.; Halliburton Co.; Baker Hughes, Inc.; Schlumberger, N.V.
News: Antitrust