Mammoth Energy Releases Testimony From FEMA Official Stating Funds Obligated By FEMA To PREPA Were Reasonable, Customary And "Made After Multiple Levels Of Review"

"Given the complex and evolving nature of the situation in Puerto Rico, FEMA put in place additional measures to ensure FEMA's funds would be spent appropriately."
Published: Nov. 16, 2021 at 4:00 AM AKST

OKLAHOMA CITY, Nov. 16, 2021 /PRNewswire/ -- Mammoth Energy Services, Inc. (NASDAQ: TUSK) ("Mammoth" or the "Company") today released quotes from Mike Byrne, who previously served as the FCO for FEMA's response to Hurricane Irma and Hurricane Maria in Puerto Rico, regarding the work performed by Mammoth's subsidiary Cobra Acquisitions LLC ("Cobra").  Byrne's quotes were made on April 15, 2021 in a declaration as part of the Mastec Renewables Puerto Rico v. Mammoth Energy Services, Inc. and Cobra Acquisitions, LLC in the United States District Court of the Southern District of Florida.

In the declaration, Byrne, who as FCO was responsible for coordinating FEMA's disaster and recovery response in Puerto Rico, stated:

"Given the complex and evolving nature of the situation in Puerto Rico, FEMA put in place additional measures to ensure FEMA's funds would be spent appropriately."

"Determinations as to whether work was available for FEMA funding were made after multiple levels of review, by various FEMA individuals working in various capacities."

"The steps include several tiers of review, which likely would have included legal, program, engineering, insurance, and environmental review, and then review by FEMA headquarters."

"Only after both FEMA and OMB (Office of Management and Budget in Washington DC), if significant funds are involved, approves the relevant work can FEMA obligate funding."

"FEMA's ultimate determination as to whether work was eligible for FEMA funding was set forth in an Eligibility Determination Memorandum ("Determination Memo" or "DM") Exhibit D is a December 22, 2017 Determination Memo, which concludes that certain work submitted by PREPA, to be performed by Cobra, was eligible for FEMA funding. DM's were created in the ordinary course of FEMA's work, and were a regular part of FEMA's business."

"All of us who were overseeing the recovery effort were concerned about the lack of contractor resources in Puerto Rico and about the time it was taking PREPA to provide the documents necessary to bring additional resources to Puerto Rico, including executed contracts and the documents necessary to prepare Project Worksheets ("PW") for additional work."

These documents are available on the Mammoth website: 

Mammoth's Chief Executive Officer, Arty Straehla, commented:

"Multiple third-party reviews have concluded that the funds obligated by FEMA to support Cobra's efforts restoring power in Puerto Rico were reasonable, customary and eligible, as was the work done by Cobra. Our work has stood the test of time through several subsequent natural disasters. The men and women of our Company worked hard to restore power and normalcy to the island of Puerto Rico, and yet more than two and one-half years later, PREPA continues without explanation to breach their contractual obligations."

A longtime FEMA official, Mr. Byrne was appointed FCO for FEMA's response to Hurricane Irma and Hurricane Maria in Puerto Rico in October 2017, which position he held until April 2019. In that capacity he was deployed to Puerto Rico for approximately a year, and then for the next six months divided his time between Puerto Rico and the U.S. Virgin Islands, which was also recovering from those two storms. As FCO in Puerto Rico, he was responsible for coordinating FEMA's disaster and recovery response.

Following Hurricane Maria (September 2017) in Puerto Rico and its complete destruction of the island's power grid, Mammoth, through its subsidiary Cobra, was awarded an initial $200 million reconstruction contract in 2017. Through five separate amendments to the original contract, the aggregate contract amount was eventually increased to $945 million. PREPA awarded a second contract of up to $900 million to Cobra in response to a Request for Proposals ("RFP") process.

As of September 30, 2021, Mammoth, through Cobra, is owed $328 million including $101 million in interest charges, as specified in the contract, on remaining invoices for work Cobra completed more than two and one-half years ago.

Mammoth Energy Services, Inc.

Mammoth is an integrated, growth-oriented energy services company focused on the construction and repair of the electric grid for private utilities, public investor-owned utilities and co-operative utilities through its infrastructure services businesses. The Company also provides products and services to enable the exploration and development of North American onshore unconventional oil and natural gas reserves. Mammoth's suite of services and products include: infrastructure services, well completion services, natural sand and proppant services, drilling services and other energy services. For more information, please visit

Mark Layton, Chief Financial Officer
(405) 608-6007

Media Contact:
Peter Mirijanian
(202) 464-8803

Rick Black
(832) 435-0026

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SOURCE Mammoth Energy Services, Inc.

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