Lawsuits fly over disputed B.C. project

A pair of Red Deer companies are embroiled in a multimillion-dollar lawsuit related to a plant dismantling project in British Columbia that they worked on together.

A pair of Red Deer companies are embroiled in a multimillion-dollar lawsuit related to a plant dismantling project in British Columbia that they worked on together.

Bula Enterprises Ltd. is suing Blue Horizon Contracting, a division of Blue Horizon Energy Inc., for $643,000. Blue Horizon Contracting has responded with a $19-million counterclaim against Bula.

The conflict stems from a February 2011 agreement that Blue Horizon Contracting struck with Chinese companies Ko Yo Development Co. Ltd. and Guangan Lotusan Natural Gas Chemical Co. Ltd. to dismantle a methanol plant and other facilities near Kitimat, B.C.

In May, Blue Horizon Contracting hired Bula to do some of the work.

Blue Horizon Contracting announced in November that Ko Yo and Guangan Lotusan had terminated the dismantling agreement, with more than $4 million still owing.

That matter is now subject to arbitration, with Ko Yo and Guangan Lotusan required to post security in court before the equipment could be released for shipment to China.

Bula says in its statement of claim that it was not paid for services it performed; Blue Horizon Contracting alleges that the work was not completed as required.

Blue Horizon Contracting also says in its counterclaim that Bula encouraged Ko Yo and Guangan Lotusan to terminate the primary dismantling contract, so that it could take over as the main contractor.

It says this resulted in it not being paid $4.5 million for work done, losing a further $5 million that it might have earned under the contract and for subsequent work related to the project, and possibly losing the opportunity to earn $9 million for another unrelated project.

Blue Horizon Contracting is also seeking $500,000 for indirect damages.

Bula’s statement of claim was filed on Jan. 27, and Blue Horizon Contracting’s statement of defence and counterclaim were filed on March 23.

Malcolm McKimm, Bula’s chief financial officer, told the Advocate on Wednesday that his company was in the process of filing a statement of defence to Blue Horizon Contracting’s counterclaim.

Allegations contained in statements of claim, counterclaim and defence have not been proven in court.

McKimm said Bula has now completed the Kitimat dismantling project for Ko Yo and Guangan Lotusan. He said Bula was retained by the Chinese companies after their contract with Blue Horizon Contracting was terminated, and after they considered several companies for the work.

Blue Horizon Energy is a subsidiary of Red Deer-based Blue Horizon Industries Inc. (CNSX:BH). In addition to the dismantling and related work done by its Blue Horizon Contracting division, Blue Horizon Energy explores for oil and gas in Western Canada. Blue Horizon Industries also owns Blue Horizon Bio-Diesel Inc., which is building a pilot bio-diesel manufacturing plant, and has a 74 per cent interest in Blue Horizon Mining Inc., which is involved in mining projects.

Bula has its headquarters in Red Deer with branches in Drayton Valley, Blackfalds and Fort McMurray. It performs services related to the installation, maintenance and dismantling of equipment in various industries.

Meanwhile, Blue Horizon Industries announced last week that Eric Leslie resigned as a director of the company on March 29. Aric Ferguson, president and CEO of private investment firm Zydeco Capital Inc. and a consultant to Blue Horizon Industries, has stepped into the vacant position.

hrichards@bprda.wpengine.com

Just Posted

Red Deer Mayor: City council responding to social and safety issues

Fellow Red Deerians, We have all had a growing awareness that Red… Continue reading

Women’s transitional roles explored in The Pink Cloudless exhibit by Red Deer artist

Alysse Bowd explores the gap between ‘maidenhood and motherhood’

Red Deer grassroots campaign takes aim at drugs, homelessness

Online support for Stand Up For A Safe Community

VIDEO: B.C. deer struggles with life-preserver caught in antlers

Campbell River resident captures entangled deer on camera

Ontario finance minister projects $15B deficit for province

TORONTO — Ontario’s finance minister said the province will have to make… Continue reading

Trump drops civil tone, slams Kavanaugh accuser credibility

WASHINGTON — Abandoning his previous restraint, President Donald Trump challenged the credibility… Continue reading

New evacuations ordered because of Florence flooding

WILMINGTON, N.C. — A new round of evacuations was ordered in South… Continue reading

Ancient treasures on show in Germany reveal turbulent past

BERLIN — An arrowhead firmly lodged in the skull of an ancient… Continue reading

Eerily empty condo-style retail mall in Calgary postpones grand opening

CALGARY — The developer of a nearly empty new mall just north… Continue reading

Mass tourism threatens Croatia’s ‘Game of Thrones’ town

DUBROVNIK, Croatia — Marc van Bloemen has lived in the old town… Continue reading

Euro 2024 study: Human rights concern in Turkey, not Germany

A week before the 2024 European Championship vote, UEFA expressed concern on… Continue reading

Golf’s European Tour marks first 59

After 46 years, the European Tour finally has its first round of… Continue reading

Most Read