TomCo Energy PLC’s (LON:TOM) part-owned operation in Ohio has been suspended following the receipt of a cessation order (CO) from the state authorities.
The Greenfield joint venture vehicle received the order from Utah's Division of Oil, Gas and Mining (DOGM) and it pertains to the Temple Mountain Mine location, in permit area M/47/0089, where the DOGM alleges that the approved operational mining plan is not being followed.
Specifically, the DOGM claimed that the Petroteq oil sands plant (POSP) at Asphalt Ridge is processing material from an off-site source and staging waste products from off-site sources.
“Greenfield strongly refutes the basis for the issuance of the CO and believes that it has been conducting operations in line with the site's existing permit held by Petroteq and the approved operational plan,” TomCo said in a stock market statement.
TomCo told investors that Greenfield’s legal adviser has formally responded to DOGM requesting they withdraw the CO with immediate effect.
A site meeting has been arranged for later today with a view to resolving the matter.
The company noted that until such time that the CO is withdrawn, processing and testing operations at the POSP will remain suspended.
The POSP operation is part of a project that’s being advanced by the Greenfield Energy LLC joint venture company, which comprises Valkor LLC and TomCo.
The pilot utilises a plant owned by Petroteq Energy and includes technology licenced from Quadrise Fuels International.
Subject to the pilot results and the FEED, Greenfield will develop a new 10,000 bopd plant – comprising two 5,000 bopd trains – utilising design improvements and knowledge gained from the POSP pilot.