Gas company seeks enforcement of arbitration ruling

By Robert Hadley | Feb 16, 2016

BECKLEY — A Raleigh County energy firm is suing to enforce a Jan. 28 arbitration ruling in its favor against ARP Mountaineer Production.

SD Gas LLC filed the petition in Raleigh Circuit Court on Feb. 1 against ARP Mountaineer Production LLC.

According to the complaint, the defendant was required under a 1999 lease to drill at least one horizontal coalbed methane well encompassing at least 300 acres of the leased premises by Dec. 1, 2012, which it allegedly failed to do. Under a separate 2005 lease, the suit says, ARP was required to pay a minimum annual rental payment for each year the lease remains in effect. However, SD Gas claims no payments were made for 2010, 2011, 2012, 2013, 2014 and 2015.

The suit says the arbitration panel found that ARP owes $129,086.64 and $123,888.01 for breaching the 1999 and 2005 leases, respectively, as well as $12,401.35 for arbitration costs. In addition, the panel directed ARP to pay an additional $75,069.82 for litigation fees and expenses.

SD Gas seeks enforcement of the ruling and recovery of the specified damages. It is represented by attorneys Nicholas S. Johnson and Jonathan S. Deem of Bailey & Glasser LLP in Washington, D.C.

Judge Robert A. Burnside Jr. is assigned to the case.

Raleigh Circuit Court case number 16-C-38-B

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