MOUNDSVILLE — Two lawsuits have been filed against Gastar Exploration USA for oil and gas royalties.
Gastar Exploration USA, Gastar Exploration, Gastar Exploration Texas TH Exploration II and Tug Hill Operating were all named as defendants in the lawsuits.
The lawsuits were filed by PennMarc Resources II, Appalachian Basin Minerals, McCrow Energy Partners II, Wildes Mineral Interests, Marcellus Tx Mineral Partners, Prairie Mineral Company, Purpleburgh Ventures, and JMC Irrevocable Trust; and Venable Royalty Ltd. and Venro Ltd. in Marshall Circuit Court.
The first lawsuit claims it owns the mineral rights to more than 226 acres of property in Marshall County and that Gastar has drilled and/or operated oil and gas wells on the property between January 2013 and April 2016.
The defendants wrongfully deducted for gathering or compression costs from the gas royalties, according to the first lawsuit.
The plaintiffs claim the price they were paid does not represent the market value upon which their royalties should be based.
In the second lawsuit, the plaintiffs claim Gastar improperly deducted amounts from their royalties and that their leases did not expressly provide that they should bear the costs incurred between the wellhead and the point of sale for the oil.
The plaintiffs in the second lawsuit have three Gastar leases and the defendants were not entitled to deduct for gathering or compression costs from the gas royalties, according to the suit.
Gastar's actions have caused the plaintiffs in each lawsuit damages.
The plaintiffs claim that Gastar's improper deductions lessened the prices for gas, gas liquids and condensate for their royalties.
The plaintiffs are seeking compensatory damages with pre- and post-judgment interest. They are represented by Mark A. Kepple of Bailey & Wyant; James Holmes of Holmes PLLC; and Bradley S. Tupi and Jeremy V. Farrell of Tucker Arensberg.
Marshall Circuit Court Case numbers: 18-C-220, 18-C-227
