Oil and energy companies seek payment for overriding royalties

By Noddy A. Fernandez | Jan 29, 2019

MOUNDSVILLE — An energy and a gas company are suing an oil company, citing alleged breach of contract.

Columbia Gas Transmission, LLC and Columbia Energy Ventures, LLC filed a complaint in Marshall Circuit Court against SWN Production Company, LLC alleging that it breached the express provisions and implied covenants of an oil and gas sublease agreement.

According to the complaint, on June 5, 2007, the parties entered into a sublease agreement contract whereby the Columbia companies are entitled to Overriding Royal Provision (ORRI) payments in exchange for SWN's right to produce oil and natural gas from certain properties in Marshall and Wetzel counties. 

The plaintiffs claim that SWN allegedly did not make ORRI payments for gas that it produced but chose to consume rather than sell. As a result, the plaintiffs have suffered damages at least $17,504.35 in underpaid royalties to date, plus additional amounts to be determined. 

The plaintiffs hold SWN Production Company, LLC responsible because it allegedly failed to pay overriding royalties, failed to include all gas produced under the sublease when calculating the plaintiffs' ORRI payments and failed to provide the documentation necessary for Columbia to determine the extent of the deficiencies.

The plaintiffs request a trial by jury and seek declaratory judgment, award of compensatory damages, pre- and post-judgment interest, attorneys' fees, costs and any all other relief the Court deems just and proper. They are represented by J. Brian Jackson of McGuireWoods LLP in Charlottesville, Virginia.

Marshall Circuit Court Case number 18-C-265

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Marshall Circuit Court McGuire, Woods LLP

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