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Friday, April 19, 2024

Dispute over mineral rights lease payments lands in court

Oil gas pump

WHEELING – Two Ohio County men say the firm they leased their oil and gas interests to have been paying them incorrectly.

Douglas Rodgers and William Rodgers filed a lawsuit March 16 in Ohio Circuit Court against Southwestern Engergy Co., Southwestern Energy, Southwestern Energy Production Co., Chesapeake Appalachia LLC and Chesapeake Energy Corp., alleging breach of a lease agreement.

According to the complaint, Douglas and William Rodgers leased the mineral rights on their property to Chesapeake Energy and its successor, Southwestern Energy, in exchange for an 18 percent royalty on gross sales of any oil and natural gas obtained therein. The suit says the plaintiffs are receiving payments calculated on the net proceeds of the sales, rather than gross, as specified in the agreement.

Additionally, the suit claims, Southwestern has not confined its operation to the granted right of way, and has allowed the appearance of the tanks and surrounding property to deteriorate.

The plaintiffs seek compensatory and punitive damages, plus litigation costs. They are represented by attorney Mark A. Kepple of Bailey & Wyant PLLC in Wheeling.

Judge Jason A. Cuomo is assigned to the case.

Ohio Circuit Court Case number 16-C-81

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