The University of Wyoming filed a lawsuit this week seeking $2.5 million from an energy company it partnered with to research enhanced oil recovery.
The university in 2024 signed a contract with Houston-based ACU Energy to advance research at the university’s Center of Innovation for Flow Through Porous Media, according to the university’s complaint filed Monday in Wyoming’s U.S. District Court. ACU Energy agreed to pay the university $15 million over the six-year research period. The company, according to the complaint, was to pay the university $2.5 million annually with two payments each year.
While the university kept up its end of the bargain — by assembling a research team, training research members and incurring costs to modify laboratory space — ACU Energy “failed to pay the University even a cent owed under the Agreement, leaving $2,500,000 outstanding in unpaid invoices,” the complaint alleges.
ACU Energy did not respond to a WyoFile request for comment before publication.
The company notified the university in February that it was terminating the contract, and the university notified ACU Energy in May of its breach of contract, according to court filings. The university asked the court for a jury trial.
Enhanced oil recovery refers to methods used to squeeze more crude from reservoirs that have already been tapped for primary production, extending the life of an oilfield.
The university commonly accepts money from private businesses in return for lending resources and expertise to advance research. The Center of Innovation for Flow Through Porous Media is part of the university’s Research Centers of Excellence in the College of Engineering and Physical Sciences.
The Center of Innovation for Flow Through Porous Media, led by Mohammad Piri, a professor of petroleum engineering, bills itself as “the most advanced oil and gas research facility in the world.” The center conducts research at the university’s High Bay Research facility, which “is funded by $37.2 million in state dollars and $16.3 million in private contributions, with an additional $9.2 million in private gifts for research equipment,” according to the center’s website.
The center has received donations from oil industry heavyweights like ExxonMobil, Halliburton and Baker Hughes.
Piri was tapped to serve as “principal investigator” for the UW-ACU Energy partnership, according to the university’s complaint. As of press time, ACU Energy had not filed a response to the lawsuit.
This article was originally published by WyoFile and is republished here with permission. WyoFile is an independent nonprofit news organization focused on Wyoming people, places and policy.