Nathaniel plant sustains fire damage

Englewood, Colo.- On Friday, June 4, 2004 at 7:20 PM MDT there was a mechanical failure at the Nathaniel Energy Corporation helium and gas processing facility with one of the plant's compressors at the Sturgis Station.

Gas was released and caused a fire that was extinguished quickly and securely. Staff responded immediately and followed the emergency procedures to shut the plant down. Fortunately, because safety systems and procedures were engaged successfully, nobody was injured and the damage was contained.

Management at the plant worked through the weekend to secure the plant and assess the damage. The main part of the plant, the purifier and liquefier representing about forty to fifty percent of the revenue from the division, was brought back up on Saturday morning with management working diligently through Friday night. Management believes that a portion of the damages can be repaired within two weeks, which will bring the plant up to approximately sixty to seventy-five percent operating capacity.

The company is currently in communications with its insurance company and has already deployed contractors to start the repair process to bring the entire plant online. The company carries a policy for property damage and for business interruption if the loss continues beyond thirty days. Management is currently evaluating the timing for the completion of repairs and is awaiting reports from the insurance company and contractors expected within the next few days.

Boise City News
P.O. Box 278
105 W. Main Street
Boise City, Oklahoma 73933-0278
Phone: 580 544-2222
Fax: 580 544-3281
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