CLARKSBURG – Black Land Management Inc. is suing Postrock Eastern Production for breaching its contract with the company.


Postrock Energy Services Corporation was also named as a defendant in the suit.


Postrock is the successor-in-interest to PetroEdge Resources with respect to an oil and gas lease dated Nov. 12, 2007, from Black Land Management, who is the owner of the mineral and surface rights with respect to tracts of land subject to the lease, according to a complaint filed Jan. 12 in Braxton Circuit Court and removed to federal court last month.


On June 14, 2011, Black Land and Postrock entered into a settlement agreement and release to resolve a dispute concerning the viability of the lease.


Black Land claims pursuant to the terms of the agreement and contemporaneously with the execution of the agreement, both parties agreed to execute an amended and restated oil and gas lease dated Nov. 10, 2010, which superseded and replaced the lease in all respects.


The defendants agreed to pay Black Land a sum in the amended lease with an initial payment and an additional sum of $2,500 per acre, according to the suit.


Black Land claims on Nov. 1, 2013, it provided a survey of one tract of land, known as the Pickens Tract, to the defendants, establishing that it encompasses 548.68 acres, rather than the 515.09 estimated and set force in the amended lease and agreement.


On Dec. 5, Black Land also provided a survey of a tract of land known as the Brewster Tract, to the defendants, establishing that the tract encompasses 153.40 acres rather than the 100 acres estimated and set forth in the amended lease and agreement, according to the suit.


Black Land claims despite repeated requests, the defendants have failed to direct Smith Land survey to remove pins and markers that were placed in connection with the inaccurate surveys.


The defendants had a duty to act in good faith in the performance of the agreement and amended lease and breached their contract with Black Land, according to the suit.


Black Land claims the defendants have been unjustly enriched at their expense.


Black Land is seeking compensatory damages with pre- and post-judgment interest. It is being represented by Gene W. Bailey II and Raj Shah of Hendrickson & Long PLLC.


The case is assigned to District Judge Irene Keeley.


U.S. District Court for the Northern District of West Virginia case number: 1:15-cv-00024

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