Trinity East Sues Dallas Over $19M Paid For Drilling Leases

Wilonsky scoops the Dallas city attorney’s office in finding out about the lawsuit filed this morning by Trinity East Energy, which paid the city $19 million for rights to drill for oil and gas on public land in northwest Dallas only to have the council change the rules:

The Dallas City Attorney’s Office was unaware of the suit until contacted by The Dallas Morning Newsthis morning. We expect a reply later today.

The suit maintains that when it signed its deals with the city on August 15, 2008, it received a letter from then-Dallas City Manager Mary Suhm saying she was “reasonably confident” Trinity East would be able to drill on the 22-acre tract of land on the west side of Luna Vista.

In a statement issued this morning, Trinity East Energy President Stephen Fort says, “This is about a deal, plain and simple. We had a deal with the City of Dallas, and they went back on it. The city made promises to us and took our money. They sold us minerals but then denied us the ability to extract them.”