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WEST VIRGINIA RECORD

Friday, May 31, 2024

Couple sues K. Petroleum for breach of oil and gas lease contract

Federal Court
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In July 2015 a well leased by the defendants had stopped producing natural gas. In a lease agreement initially created in the 1980s, Richard and Sandra Boice claim that K. Petroleum failed to make required "shut-in" or delay rental payments from 2016 onward with the exception for one payment in 2017 which was explained as necessary due to repairs on the Grafton Gathering System. Since these repairs the plaintiffs believe that K. Petroleum has not sought to produce from this well.

In all years with the exception of 2019, in which the plaintiffs returned a "shut-in" payment due to the defendants being in violation of their lease agreement, no other payments had been made. 

According to the West Virginia Department of Environmental Protection (WVDEP), the well has not produced except for 2000 cubic feet of natural gas allegedly produced in July 2019 and another 63,000 cubic feet in 2023. The plaintiffs believe that these numbers were reported in error as the well on the their property was in such disrepair that it could not have possibly measured the amount of gas produced correctly.

K. Petroleum have not provided an written communication or explanation as to why they are not producing gas from this well.  They have also not provided the free gas to heat and light the plaintiffs home since 2015 nor removed any of the equipment that has become damaged and is causing issues on the property. According to the records of the WVDEP, the well has been abandoned.

Represented by attorneys Hunter B. Mullens and Matthew L. Ervin from Mullens & Mullens, PLLC, the plaintiffs have filed a lawsuit against K. Petroleum, Inc. in the Circuit Court of Taylor County, West Virginia (Case ID: 1:24-cv-00051-TSK) on May 6, 2024 and later brought to US District Court - Northern District West Virginia. 

The Boices are seeking damages for remediation costs, loss of free gas supply, emotional distress, and inconvenience. They request the court to declare the lease terminated due to K. Petroleum's breaches and demand permanent cessation of operations on their property.

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