MOUNDSVILLE – Mason Energy LLC has filed a class action lawsuit against Chevron Appalachia LLC after it claims the company falsified production records.
On Oct. 27, 2009, Beryl E. Mason entered into an oil and gas lease agreement with TriEnergy Holdings LLC regarding the mineral rights of 115.17 acres, which she exclusively owned in Washington District in Marshall County, according to a complaint filed in Marshall Circuit Court.
On Dec. 15, 2010, Mason filed the Articles of Organization for Mason with the Secretary of State of West Virginia for the purpose of developing, leasing, holding and selling mineral rights.
The Mason property’s mineral interests were then assigned by Mason to Mason Energy and Mason Energy is the current owner of the property’s mineral interest.
In 2011, Mason Energy received royalty payments for a gross production gas value of $24,704.13, NGL value of $19,603.25 and oil/condensate value of $1,946.90 for a total gross production value of $46,254.28.
The plaintiff claims it was recently discovered that in 2011, Chevron reported to the West Virginia Department of Environmental Protection that Mason Energy received royalty checks totaling $55,604.04.
“Therefore, in 2011, Chevron reported higher production numbers to the state of West Virginia than it had to Mason Energy … and, as a result, Mason Energy … received $9,349.76 less on royalty payments than it was entitled,” the complaint states.
In 2014, Mason received royalty checks for a total of $338,593.88, and Chevron had reported a total of $527,662.80, making Mason entitled to $189,068.92 more than it received, according to the suit.
Mason claims Chevron confirmed that its internal production records match the production reported to West Virginia.
The plaintiff brings its claims for unjust enrichment, breach of contract and fraud on behalf of all individuals who received royalty payments from Chevron based on false production records, according to the suit.
Mason is seeking compensatory and punitive damages with pre- and post-judgment interest. It is being represented by James G. Bordas Jr. and Jeremy M. McGraw of Bordas & Bordas PLLC.
Marshall Circuit Court case number: 15-C-187